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

B. 
Effectiveness in Achieving Outcome 
34. 
The project is rated 
less than effective
because it did not fully achieve the outcome. 
While the project achieved most outputs, it only partially achieved the critical output related to 
21
The Tashkent Times
. 2017. Uzbekistan's Development Strategy for 2017–2021 has been adopted following Public 
Consultation. 8 February. 
http://www.tashkenttimes.uz/national/541-uzbekistan-s-development-strategy-for-2017-
2021-has-been-adopted-following-discussion
. 

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GFMIS development and use. The impact of the GFMIS will only be seen after the national 
rollout and testing, which just started. The treasury institutional network and upgraded treasury 
and accounting systems are in place, enabling the government to monitor the budget 
expenditure and its execution more efficiently. However, the revised budget classification 
system developed in line with the Global Finance Statistics Manual 2001 was not yet adopted. It 
is still too early to assess the quality of budget execution efficiency and the link between 
budgeting and policy objectives as well as program outcomes. Progress in the introduction of 
the MTBF and program budgeting may have been affected by the late GFMIS rollout and 
prospects are still unclear. 
C. 
Efficiency in Achieving Outcome and Outputs 
35. 
The project is rated 
less than effective
because of significant implementation delays and 
procurement issues. The installed and commissioned equipment and the TA that developed the 
technical requirements for the hardware and software helped the government modernize its 
treasury operations. TSA implementation resulted in efficiency gains, transparency, and greater 
accountability through (i) improved cash management, (ii) the establishment of a centralized 
accounting system, and (iii) the implementation of the Budget Code and the Treasury Law. But 
GFMIS development was delayed by 6 years and the system is only being rolled out. Any cost 
savings are difficult to evaluate since the opportunity cost of lost benefits can be significant. 
Furthermore, the main economic benefits of the project are indirect. 
36. 
The project’s direct economic benefits are savings derived from better cash 
management, expenditure control, accounting, and reporting. Estimates on the economic and 
financial internal rates of return were not prepared during appraisal. ADB completed a 
qualitative assessment of returns for this completion report to rate the project’s efficiency. 
Project beneficiaries include policy makers, government institutions, the public, and Parliament. 
Recent changes by the Government requiring financial authorities to report regularly to local and 
national Parliament is therefore a positive move.