Public Investment Management Framework in North Macedonia

Public Investment Management Ministry of Finance North Macedonia Public Investment Management Department Ana Nanevska Alev Sulejman Edon Kadriu

PIM regulatory framework 1.Organic Budget Law - medium-term priorities and procedure for selection of new projects 2. PIM Decree 3. PIM Process Manual 4. Feasibility Study Guidelines 5. Decision for prioritization criteria

Application of the Decree The provisions of PIM Decree apply to: Public investment projects implemented by budget users or other public entities, which are funded or co-funded from the public revenues and other inflows, own funds of public entities, funds received from the budget of the European Union or development partners in the course of their investment or operational use phase (including guarantees). The provisions of this Decree do not apply to: - projects related to national security, projects aimed at rectifying the consequences of natural disasters, technical and technological disasters, epidemics and other disasters, which would be initiated within a period not exceeding six months from the occurrence of the disaster. - measures in situations of a declared state of crisis.

Project size in EUR PIM Documentation Small projects Medium sized projects Large projects Less than 2,0 M 2,0 15,0 M > 15 M Project Concept Note Yes Yes Yes Pre-Feasibility Study No No Yes* Feasibility Study & Summary of Feasibility Study No Yes Yes

Project proposer/Parent budget user 1 Government National Investment Committee Ministry of Finance Project identification and pre- 2 PCN 4 Preparation and submission of PCN Conclusions for the Government Quality Check Initial Decision Opinion to the NIC Recommendations with justification Opinion from Ministry of Energy Anytime screening PCN 5 Time specified by PIM unit Final decision 3 Refinement and re- submission of the PCN 4 weeks to do List of remarks Positive assessment End of project development/ Information & justification Rejection Procedure for medium and Procedure for medium and large projects large projects 6 Budget reallocation within own budget or request for financing of (pre)feasibility study (Budget Process) Legend: 7 Application for financing of FSs Decision on (pre)FS financing Step of the process 8 Independent review Project Appraisal Procurement, preparation and submission of Feasibility Study (or pre-FS) Preparation of application form Positive Decision about financing of FS Document 9 FS Summary Form +FS Stakeholder Quality Check / Financial evaluation Procedure for small projects Whenever ready Stage of PIM process Returned for Revision Ranking of Projects with financing recommendations 10 FS Summary Form +FS Recommendations with justification -Scoring Opinion from Ministry of Energy 11 Refinement of Pre-Feasibility or Feasibility Study and application form and resubmission Comment Initial Decision 12 Whenever ready Final Decision Prioritization and Selection Transfer to PPP procedure Positive assessment after pre-FS preparation Information & justification Rejection End of project development After FS preparation 13 Project inclusion in Priority List 14 Preparation of budget submission based on available fiscal space 15 Budgeting (including project in the Budget) Project submitted to the budget

Project Monitoring and Ex-post review Project implementor/ Parent Budget User National Investment Committee Ministry of Finance Government Monitoring of financial and physical progress Review of the information provided by MoF Review of the report Monitoring report Information Project monitoring (in case of deviations of more than 20% in comparison to initial plan) following each semester of the implementation phase Preparation and submission of information requested Request for additional information Decision Implementation of Decision Review of the report, takes results into consideration when providing guidance to project proposers and when assessing new project ideas Ex-post review report Conducting ex- post review Ex-post review Will be prescribed by MoF

Thank you! ana.veljanovska@finance.gov.mk alev.sulejman@finance.gov.mk edon.kadriu@finance.gov.mk