Front Matter Page
IMF Country Report No. 20/221
BELIZE
TECHNICAL ASSISTANCE REPORT—PUBLIC INVESTMENT MANAGEMENT ASSESSMENT
July 2020
This technical assistance report on Belize was prepared by a staff team of the International Monetary Fund. It is based on the information available at the time it was completed in January 2020.
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Front Matter Page
FISCAL AFFAIRS DEPARTMENT
Belize
Public Investment Management Assessment
Bruno Imbert, Jean-Luc Helis, John Hooley, Arnold Ainsley, Eivind Tandberg, Joao Guilherme Morais de Queiroz, Pablo Andres Guzman Abastoflor and Eduardo Andres Estrada
Technical Report
March 2020
Contents
ABBREVIATIONS AND ACRONYMS
PREFACE
EXECUTIVE SUMMARY
I. PUBLIC INVESTMENT IN BELIZE: CONTEXT
A. TRENDS IN PUBLIC INVESTMENT AND CAPITAL STOCK
B. COMPOSITION OF PUBLIC INVESTMENT
C. IMPACT AND EFFICIENCY OF PUBLIC INVESTMENT
II. ASSESSMENT OF PUBLIC INVESTMENT MANAGEMENT
A. PLANNING SUSTAINABLE LEVELS OF PUBLIC INVESTMENT
B. ENSURING PUBLIC INVESTMENT IS ALLOCATED TO THE RIGHT SECTORS AND PROJECTS
C. DELIVERING PRODUCTIVE AND DURABLE PUBLIC ASSETS
D. CROSS-CUTTING ISSUES
BOXES
1. Belize’s Climate Strategy
2. A Framework for Controlling the Fiscal Costs of PPPs
3. Maintenance Guidelines for Public Infrastructure in South Africa
4. Belize Procurement Notice Board
5. Chile: Ex-Post Reviews
6. Main Requirement of Cash-Basis IPSAS for the preparation of Financial Statements
7. Suggested Amendments to the PIM draft Legislation
FIGURES
1. Summary of the Strengths and Weaknesses of PIM in Belize
2. Investment
3. Public Investment
4. Public Capital Stock
5. Public Capital Stock per Capita
6. Public Investment and GDP growth
7. Public Debt and Public Capital Stock
8. Public Investment by Function
9. Capital Expenditure
10. Measures of Infrastructure Access, 1990s Average
11. Measures of Infrastructure Access; 2017
12. Efficiency Frontier (2000–2017)
13. Infrastructure Efficiency (2017) Hybrid Indicator
14. Infrastructure Efficiency (2017) Physical Indicator
15. Infrastructure Efficiency (2017) Quality Indicator
16. PIMA Framework
17. Comparison of Budget Estimates in Subsequent Budget Years
18. Ministry of Works – Adjusted Budgets and Outturns 2016 – 2019
TABLES
1. Proposed action plan to strengthen PIM in Belize
2. Map Summarizing the Outcomes of the PIMA in Belize
3. Budgetary Expenditure: 1- and 2- Year Ahead Forecasts and Outturns (% GDP)
4. Sectoral Development Strategies
5. Budget 2019/20
6. Extrabudgetary and PC Capital Spending
7. Maintenance and Capital Repairs 2016 – 2020
8. New Capital Projects in 2019 – 2020 Budget for Ministry of Works (BZ $)
9. Number and Value (BZ $) of Contracts for Central Government by Tender
10. SmartStream Modules Currently Being Used
11. The Legal Framework for Public Investment Management in Belize
APPENDICES
1: Fiscal risk statement
2. Effective Oversight of Public Corporations in Belize
3. PIM Process: Appraisal and Selection of Projects
4. PIMA Evaluation Scores
Abbreviations and Acronyms
| AGO |
Auditor General Office |
| BEL |
Belize Electricity Limited |
| BIL |
Belize Infrastructure Limited |
| BSIF |
Belize Social Investment Fund |
| BWS |
Belize Water Service Limited |
| CARICOM |
Caribbean Community |
| CARTAC |
Caribbean Regional Technical Assistance Centre |
| CBB |
Central Bank of Belize |
| CCJ |
Caribbean Court of Justice |
| CCPA |
Climate Change Policy Assessment |
| CDB |
Caribbean Development Bank |
| CEO |
Chief Executive Officer |
| CG |
Central Government |
| CITO |
Central IT office |
| CMU |
Cash Management Unit |
| CNTMP |
Comprehensive National Transportation Master Plan |
| COA |
Chart of Accounts |
| CRF |
Consolidated Revenue Fund |
| DFID |
Department for International Development (UK) |
| DIGI |
Belize Telemedia |
| DP |
Development Partner |
| EBF |
Extrabudgetary Fund |
| EME/EMDE |
Emerging market economies/Emerging market and developing economies |
| ESS |
Education Sector Strategy |
| FAD |
Fiscal Affairs Department |
| FARA |
Finance and Audit Reform Act |
| FINEX |
Financing abroad/externally funded |
| FO |
Financial Order |
| FRL |
Fiscal Responsibility Law |
| FRS |
Fiscal Risks Statement |
| FS |
Financial Statement |
| GAMP |
Government Asset Management Policy |
| GDP |
Gross Domestic Product |
| GoB |
Government of Belize |
| GSDS |
Growth and Sustainable Development Strategy |
| HSSP |
Health Sector Strategic Plan |
| IDB |
Inter-American Development Bank |
| IFI |
International Financial Institution |
| IMF |
International Monetary Fund |
| IPSAS |
International Public Sector Accounting Standards |
| MED |
Ministry of Economic Development |
| MIS |
Monitoring and Information System |
| MLLGRD |
Ministry of Labor, Local Government, and Rural Development |
| MOF |
Ministry of Finance |
| MTFF |
Medium-Term Fiscal Framework |
| NAFP |
National Agriculture and Food Policy |
| NCCPSAP |
National Climate Change Policy, Strategy and Action Plan |
| NCRIP |
National Climate Resilience Investment Plan |
| NSTMP |
National Sustainable Tourism Master Plan |
| PCs |
Public corporations |
| PEFA |
Public Expenditure and Financial Accountability |
| PFRAM |
Public-Private Partnerships Fiscal Risk Assessment Model |
| PIs |
Public institutions |
| PIE |
Public Investment Efficiency Index |
| PIM |
Public investment management |
| PI MA |
Public Investment Management Assessment |
| PIU |
Project Implementation Unit |
| PPP |
Public-Private Partnership |
| PPP$ |
US Dollars adjusted by Purchasing-Power Parity |
| PSIP |
Public Sector Investment Program |
| PU |
Procurement Unit |
| PUC |
Public Utilities Commission |
| SB |
Statutory Body |
| SES |
Sustainable Energy Strategy |
| SIF |
Belize Social Investment Fund |
| SNGs |
Sub-national governments |
| SO |
Store Order |
| SS |
SmartStream |
| TA |
Technical assistance |
| TD |
Treasury Department |
| TSA |
Treasury Single Account |
| VCC |
Village/Community Council |
| WB |
World Bank |
Preface
At the request of the authorities of Belize, a technical assistance mission from the Fiscal Affairs Department (FAD) of the International Monetary Fund (IMF), including experts from the World Bank, visited Belmopan from January 15–28, 2020 to conduct an evaluation of the public investment management system using the PIMA (Public Investment Management Assessment). methodology. The mission, led by M. Bruno Imbert (Economist, FAD), included MM. Jean-Luc Helis and John Hooley (both Economist, FAD), Arnold Ainsley (Advisor, Caribbean Regional Technical Assistance Centre — CARTAC), Eivind Tandberg (Expert, FAD), and MM. Joao Guilherme Morais de Queiroz, Pablo Andres Guzman Abastoflor and Eduardo Andres Estrada (Procurement and Public sector Specialists, World Bank).
At the start and at the end of its work, the mission met with Mr. Joseph Waight, Financial Secretary of the Ministry of Finance (MOF), accompanied by Ms. Yvette Alvarez (Special Advisor at the MOF), Mr. Marion Palacio (Deputy Financial Secretary) and Ms. Yvonne Hyde, Chief Executive Officer (CEO) of the Ministry of Economic Development (MED). The mission also met with Ms. Joy Grant, Governor of the Central Bank of Belize (CBB) and her staff. During its stay the mission conducted meetings with the departments and services involved in investment management within the MOF and the MED: the Budget Unit, the Treasury Department, the Central IT office, the Policy and Planning Unit, the Belize Social Investment Fund (SIF). Working sessions were also conducted with line ministries (Ministry of Health, Ministry of Education, Ministry of Agriculture, Ministry of Works and Ministry of Local Government and Rural Development). Likewise, the mission met with the CEO of Belize Water Service Limited (BWS), the Public Utility Commission (PUC), the Secretariat for the Economic Development Council, Belize Infrastructure Limited (BIL). Working meetings were also organized with the Auditor General (AGO), the Mayors’ Association and the Works Committee of the National Assembly of Belize. Finally, the mission met with the Inter-American Development Bank (IDB) Country Representative Ms. Cassandra Rogers and her staff, as well as with the Representative of the European Union (EU) Technical Office in Belize.
Two plenary sessions, served to present and share the mission’s approaches, recommendations and options, in the presence of key stakeholders, who provided useful feedback on the mission’s findings. At the end of its stay, the mission presented its conclusions and recommendation to the FS and his collaborators.
The mission would like to express its gratitude to authorities of Belize for their warm welcome, the organization and the frank discussions, and warm welcome. The mission is particularly grateful to Ms. Yvette Alvarez, focal point of the mission, for her constant support and useful advices.
