Dimension 11.2. Investment project selection

DIMENSION MEASUREMENT GUIDANCE

11.2:1. This dimension assesses the extent to which the project selection process prioritizes investment projects against clearly defined criteria to ensure that selected projects are aligned with government priorities. Rigorous and transparent arrangements for the selection of investment projects aim to strengthen the efficiency and productivity of public investments. The dimension requires that institutions are in place to guide the project selection processes, including a centralized review of major investment project appraisals before projects are included in budget submissions to the legislature. It also requires that governments publish and adhere to standard criteria for project selection.

11.2:2. Standard criteria are a set of formal procedures adopted by government and used for every project

or group of related major investment projects with common characteristics within and across central governmental units. For the purpose of this dimension, prioritization of major investment projects should be performed in accordance with the standard criteria; and for score A, standard criteria need to be publicly available.

11.2:3. The central review of major investment projects is typically carried out by the MoF staff, although in some countries it may be performed by a Ministry of Economy or Planning. The review may also, but not necessarily, include inputs from other experts, before decisions are taken on whether to include projects in the budget. The central review of major investment projects is performed to ensure that major investment projects have been scrutinized in accordance with standard criteria and are affordable as defined by available budgetary resources.

Dimension 11.2. Scoring

Score Minimum requirements for scores
A Prior to their inclusion in the budget, all major investment projects are prioritized by a central entity on the basis of published standard criteria for project selection.
B Prior to their inclusion in the budget, most major investment projects are prioritized by a central entity on the basis of standard criteria for project selection.
C Prior to their inclusion in the budget, some of the major investment projects are prioritized by a central entity.
D Performance is less than required for a C score

Dimension 11.2. Timing, coverage and data requirements

Time period Coverage Data requirements/calculation Data sources
Last completed fiscal year. CG.
  • List of approved/ongoing investment projects with relevant data to identify them as ‘major’ as per PEFA criteria.
  • Documentation of government’s central review of major investment projects before inclusion of projects in the budget.
  • Documentation on publication and adherence to standard criteria for project selection.
  • Details of standard criteria for project selection.
  • Ministry of finance/planning.
  • Line ministries and agencies.
  • Agency in charge of public investments, if any.
  • Supreme Audit Institution.
  • Development partners when there are major investment projects financed by external funds

 

Pillar Three: Management of Assets and Liabilities