Microsoft Word pcr uzb public Finance Management Reform Project Final 7Sept2017. docx

I. 
PROJECT DESCRIPTION 
1. 
On 28 June 2007, the Asian Development Bank (ADB) approved a loan of $20.7 million 
from its ordinary capital resources for the Public Finance Management Reform Project in 
Uzbekistan and an associated technical assistance (TA) grant of $600,000 for Supporting Public 
Finance Management Reform in Uzbekistan.
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2. 
The project aimed to improve public resource planning and use. Its intended outcome 
was improved effectiveness, efficiency, transparency, and accountability of budget execution 
processes. The project had five outputs: (i) establishment of a modern treasury with a 
nationwide network of treasury offices servicing budget organizations of national and 
subnational governments and revenue collection agencies, and development of a functioning 
government financial management information system (GFMIS) to facilitate treasury operations; 
(ii) consolidated and streamlined treasury banking operations under an established treasury 
single account (TSA); (iii) creation of a central accounting system using a unified chart of 
accounts (COA) in line with the revised budget classification, the Government Finance Statistics 
Manual 2001 of the International Monetary Fund (IMF), and International Public Sector 
Accounting Standards; (iv) a refined legal framework; and (v) application of the revised budget 
classification to budget preparation and execution, with improved pilot program budgeting in 
selected sectors. 
3. 
The project was organized into three components: (i) establishment of a nationwide 
institutional network of treasury offices and support for capacity building; (ii) modernization of 
treasury operations; and (iii) project management, monitoring, and evaluation. Component 1 
was to help establish a nationwide institutional network of treasury offices and provide 
associated capacity building in areas where gaps were identified and the needs were acute. 
Capacity building included supporting the Ministry of Finance (MOF) in maintaining the GFMIS 
and managing its associated databases. Component 2 comprised the development and 
implementation of the GFMIS and provided financing for (i) the procurement, the setting of 
parameters, and the installation and deployment of an integrated treasury software application 
package with associated documentation and training services; (ii) the main servers for the 
central treasury office and a backup processing center in Tashkent; (iii) the computers and 
networking items for the treasury offices being established throughout Uzbekistan; (iv) the 
procurement of telecommunications equipment; and (v) local area networking, including 
dedicated local telecommunication lines, local area network infrastructure, power supply, 
monitoring, and alarm systems for local offices. Component 3 funded a project management 
office (PMO) under the MOF to manage day-to-day project activities. The PMO was expected to 
work closely with the MOF, the Treasury, and treasury offices at central and local levels. 
4. 
Since 2000, the government has been engaged in long-term cooperation with many 
international partners in preparing public finance management (PFM) reform. After 7 years of 
pilot testing various elements of fiscal reforms, the government adopted a long-term strategic 
approach to advancing the PFM reform process. ADB was not directly involved in these 
activities but closely followed up with the government and international partners to coordinate 
activities, given ADB’s strong involvement in financing public sector investment projects. The 
project was initially to be financed by the World Bank. In 2007, that financing became 
unavailable and the government requested ADB to support its strategic aim to establish a 
comprehensive treasury system and implement unified budget and accounting systems, which 
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ADB. 2007. 
Report and Recommendation of the President to the Board of Directors: Proposed Loan and Technical 
Assistance Grant to the Republic of Uzbekistan for the Public Finance Management Reform Project
. Manila. 

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was needed to undertake its PFM reform strategy. ADB responded quickly. In May 2007, the 
MOF developed the Public Finance Management Reform Strategy, 2007–2018 with support 
from the IMF Fiscal Affairs Department and ADB. The strategy outlined a 12-year action plan to 
(i) establish a functioning treasury system, (ii) adopt and implement a modern unified budget 
and accounting system, and (iii) introduce a medium-term budget framework (MTBF) and 
program budgeting. The project provided support for implementing and refining the PFM 
strategy. PFM reform was expected to have significant implications for the country’s economic 
management, leading to more effective and efficient public resource management.