2014年-世界发展银行全球_Fiduciary_Systems_Assessment_of_the_Oaxaca_Water_and_Sanitation_Sector_Modernization_Project_26页_624kb

Oaxaca Water and Sanitation Sector Modernization Program Fiduciary Systems Assessment Summary

Core Content

This document presents a Fiduciary Systems Assessment of the Oaxaca Water and Sanitation Sector Modernization Program (MAS Oaxaca), conducted by the World Bank in March 2014. The assessment evaluates the financial management (FM) and procurement systems of the program's implementing entities, focusing on their ability to manage funds transparently, efficiently, and in compliance with legal and institutional frameworks.

Main Points

Program Overview

• The MAS Oaxaca Program is a hybrid Program for Results (PforR) / Investment Project Financing (IPF) operation.
• It supports the modernization of the water and sanitation (WSS) sector in the State of Oaxaca, with a focus on institutional reform, service improvement, and information enhancement.
• The program includes a Technical Assistance (TA) Component, funded by the International Bank for Reconstruction and Development (IBRD) and APAZU (federal counterpart).

Legal and Institutional Framework

• The legal borrower is BANOBRAS, the National Bank of Public Works and Services, which will manage and transfer loan proceeds to SEFIN (Secretariat of Finance).
• The executing entities are:
  • SEFIN: Coordinates overall implementation.
  • CEA (State Water Commission): Implements Result Areas 1, 3, and 4.
  • SAPAO (Oaxaca Metropolitan Area Water Utility): Implements Result Areas 2 and 4.
• APAZU, a federal program, funds the state contribution for Result Areas 2 and 3, following Operation Rules issued annually by CONAGUA.

Fiduciary Systems

• The fiduciary systems are designed to ensure that funds are used efficiently, effectively, transparently, and with accountability.
• These systems are based on a strong legal framework, including:
  • Federal Constitution Article 134: Governs procurement principles.
  • Federal and State laws: Such as LOPSRM (Law of Public Works) and LAASSP (Law of Acquisitions, Leases and Services).
• The State Budget and Fiscal Responsibility Law, Fiscal Coordination Law, and General Law on Government Accounting are also relevant to the program's financial management.

Key Elements of the Program

Financial Management (FM) Systems

• SEFIN will coordinate the program's financial implementation.
• SINPRES, the Budgetary Integral System, is used by the State executive branch and includes modules for budgeting, accounting, and public debt.
• The program will be earmarked with a specific code for financial tracking at both federal and state levels.
• Internal controls and accounting procedures are in place, supported by internal and external audits by SCTG (Secretariat of the Comptroller and Governmental Transparency) and ASEO (State Supreme Audit Institution).

Procurement Systems

• The procurement process is governed by open competitive bidding, with exceptions for small contracts (under a set threshold).
• CEA and SAPAO have limited experience in managing Bank-financed operations, but their systems are generally suitable for program implementation.
• The procurement plan must be submitted to SEFIN, with specific deadlines for works and goods/services.
• The Federal procurement platform, CompraNet, is used for publishing tenders and updates, while State procurement plans are not legally required to be published.

Challenges and Risks

Budget Execution Issues

• Delays in signing Expedientes Tecnicos with CONAGUA have historically caused late budget allocation.
• This has led to procurement procedures being carried out in the last quarter of the year, resulting in:
  • Reduced time for competitive bidding.
  • Insufficient competition due to short bid periods.
  • Frequent contract amendments.
  • Unused federal resources being returned to the Federation.

Procurement Risks

• Delays in budget allocation and challenges to competition can lead to suboptimal procurement outcomes.
• Contract implementation issues increase transaction costs.
• Consulting services for Result Areas 1 and 4 are subject to State legal frameworks, which may differ from federal practices.

Mitigation and Strengthening Measures

• The Program Action Plan (PAP) outlines actions to strengthen the program's fiduciary systems.
• Key recommendations include:
  • Improving procurement planning and timely submission of Expedientes Tecnicos.
  • Ensuring bidding documents are ready when the budget is released.
  • Strengthening SAPAO's institutional capacity, including hiring qualified staff and training in budgeting, accounting, and SINPRES.
• The TA Component is used to procure strategic consulting services, following World Bank guidelines.

Conclusion

• The overall fiduciary risk is substantial, but mitigation measures are in place to address these risks.
• The program's financial management and procurement systems are adequate, but require improvements in planning, execution, and capacity building.
• The PAP is aligned with federal and state legal frameworks and is expected to enhance program performance and fiduciary integrity.