STATE AUDIT OFFICE OF GEORGIA

ECONOMIC AFFAIRS 27 October, 2016
Management of Regional Development Fund’s Projects
Period: 2016, 2015

Improving the local infrastructure is one of the main prerequisites for reducing disparity within the municipalities, which is one of the most important goals for National Regional Development Strategy. Taking into consideration the fact that RDF is one of the main sources for financing infrastructural projects in municipalities, it is important to distribute fund resources within municipalities based on such criteria which should ensure reduction of disparity. Though, existing criteria (number of population and previous year’s spending) cannot support reduction of disparity. In addition to the mentioned criteria, defining other criteria, which will be based on the needs of municipality and economic factors, will support the development of municipalities and achieving specific goals defined within Regional Development Strategy.

In turn, there is a potential to improve the project implementation stage. In particular, proper monitoring system is a prerequisite for detecting and improving deficiencies on time. In addition development of project post evaluation phase will support the use the accumulated knowledge and experience in future projects, which will in turn improve project implementation process, quality and raise achieved results.

The State Audit Office of Georgia believes that by improving criteria for distribution of fund resources within municipalities, determining periodicity and format for presenting monitoring results and establishing the post evaluation practice for completed projects, will improve the management process of the projects financed by the RDF based on Government Commission’s decision.

 

To the Ministry of Regional Development and Infrastructure:

To support equal development of municipalities, MRDI in collaboration with the Ministry of Finance, develop the criteria for defining the marginal limits, which in addition to the number of population and previous year’s spending, considers actual needs of the municipalities and other socio-economic factors.

To the Ministry of Regional Development and Infrastructure:

To ensure identification and elimination of mistakes made during project implementation phase, compliance of works with the predefined schedule and reporting of monitoring results, the ministry must recommend the form and periodicity of monitoring by taking into consideration the type of projects.

To the Ministry of Regional Development and Infrastructure:

To take into consideration and avoid deficiencies made in previous projects, the Ministry:

  • In collaboration with municipalities, should develop the format of project post evaluation (preparation of the report will be a responsibility  of municipality) and ensure analysis of those reports;
  • Should identify and share the results of analyzing deficiencies revealed on the planning and implementation stages through municipalities.