National Public Investment System of the Dominican Republic

Dominican Republic

Table of Contents:

  1. Stakeholders
  2. Legal Framework
  3. Methodologies
  4. Public Investment Plans
  5. Investment Project Bank
  6. Training
  7. Project Management Cycle
  8. Public Investment Policy Cycle
Investment Map Training Methodologies Projects Bank Legal Framework Processes Stakeholders Instruments Formulation Planning Cross-cutting Processes Budgeting Evaluation Ex-ante Evaluation Selection Execution Ex-post Evaluation Other Stakeholders Public Investment Policy Cycle Staturory Governing Body Cross-cutting Processes Law No. 498 on Planning and Public Investment of the Dominican Republic General Directorate of Public Investment, Ministry of Economy, Planning and Development National Budget Directorate National Public Administration Entities and Agencies Steering Financing Coordination Information Project Management Cycle 2021-2024 Pluriannual Framework for Public Investment in the Dominican Republic Annual Investment Plan
See System's Symbols Legend

 

Stakeholders

Statutory Governing Body:

The Ministry of Economy, Planning and Development (MEPyD), through the General Public Investment Directorate, is the statutory governing body of the Public Investment System (SNIP) in the Dominican Republic. It proposes the regulations on public investment in the country and prepares the methodologies for the formulation and assessment of public investment projects. It coordinates the formulation and ex-ante assessment of the investment projects that are presented by the public entities. Once the projects enter the execution stage, it monitors their physical-financial progress through the project bank. It prepares the National Pluriannual Public Investment Plan and the Annual Public Investment Plan.

Related Entities:

There is a close collaboration with the Ministry of Treasury and Finance through the General Budget Directorate for preparing the annual programming of public investment, determining the budget limits, and assigning a budget to the public entities.

Incorporated Entities:

The entities from the central government, municipal governments, decentralized and autonomous non-financial institutions; public social security institutions, public non-financial companies; decentralized and autonomous financial institutions; public financial companies: these institutions connected to the SNIP are in charge of formulation, ex-ante assessment, execution, monitoring, operation and ex-post assessment of the investment projects and programs.

 

 

Legal Framework

The legal SNIP framework is mainly composed of Planning and Public Investment Law No. 498-06, creating the National Planning and Public Investment System, the Organic Budget Law for the Public Sector No. 423-06, Law No. 496-06 which creates the Ministry of Economy, Planning, and Development, and the Law on Organization of the Secretary of State of Finance No. 494-06. See the complete legal framework.

 

 

Methodologies

The SNIP has the “General Methodological Guide for the Public Investment Formulation and Assessment” prepared in 2017 by the General Public Investment Directorate. This methodology uses the following indicators to assess the projects’ economic viability: Internal Return Rate (IRR) and Net Present Value (NPV). See the full list of methodologies (Available only in Spanish)

 

 

Public Investment Plans

The National Multi-Year Public Sector Plan 2021-2024 contains the "Multi-Year Public Investment Framework" and is prepared by the General Directorate of Public Investment attached to the Ministry of Economy, Planning and Development, in accordance with the provisions of Law 498-06 and Law 1-12. This document, with a 4-year horizon, contains the most relevant investment projects distributed according to the strategic axes to which they belong.

This Framework presents a distribution of public investment spending by prioritized policy of the Government Program, 2021-2024.

The 2023 Investment Plan is an investment programming document that details each project according to its codification, name, region, province, municipality, execution period, the corresponding government section, the executing institution, its link with the actions, objectives and axes of the National Development Strategy, cost, programmed and executed.

 

Investment Project Bank

The Project Bank keeps economically assessed projects which can be accessed by officers with a username and password. It shares information on the financial progress with the Financial Management Information System (SIGEF) of the Ministry of Finance. There is also the portal of the Investment Map which is publicly accessible and shows relevant information, the geographical location and contracts linked to the investment projects in execution.

 

 

Training

The pieces of training for public officers are given by the Center for Training in Planning and Public Investment (CCPIP). Details are shown on its official website.

 

 

 

Project Management Cycle

The life cycle of the public investment projects starts in the pre-investment stage. The preparation of the project profile, which is the first step, is done in the public entities using the methodology the DGIP has developed. Then, this information is registered in the Projects Bank and, in accordance with the technical and economic dimensions of the project, additional studies should be performed, such as, for example, an environmental impact declaration for physical infrastructures. Once the required information has been delivered, it is reviewed by a committee of specialists of the entity that proposes the project and personnel of the MEPyD to determine whether the project is viable and give approval and the SNIP registration code. As a result of this process, a letter is sent to the Ministry of Finance showing there is no objection to the project and that it can, therefore, continue to the financing stage.

According to the budget limits of each public entity, the project can or cannot be executed in the following fiscal year, whether with government resources of external funding. In case no funding can be obtained, the approval will have a validity of two years and after this period the project will have to be submitted again to technical-economic revision and obtain new approval. If the project has funding, it will go to the execution stage. During this stage, the public entity executes the project and reports on its physical and financial progress through the SNIP platforms and the Financial Management Information System (SIGEF).

The DGIP is in charge of monitoring the investment projects and, in case of projects of great importance, performs field visits. Once they are in operation, the projects are no longer monitored by the DGIP and the ex-post assessment is performed and decided on by the public entities that execute the investment projects.

 

 

Ciclo de Política de Inversión Pública

Planning of the public investment is depicted in the National Pluriannual Plan for the Public Sector which, in turn, is aligned with the National Development Strategy (END). The Pluriannual Plan is prepared by the MEPyD and contains the government’s priorities on a 4-year horizon. It includes the public investment projects that are considered a priority. This plan is updated once a year.

Each year the public entities must register the projects they wish to execute in the next fiscal year and, for that, the projects need to be registered in the Project Bank and obtain approval by the DGIP. Once they have the approval certificate and the SNIP code they can be included in the preliminary budget project and submitted to the General Budget Directorate (DGP). Once the DGP receives the preliminary budget projects of the ministries and public entities, they communicate the budget limits according to resource availability and, in case the amount is lower than the one projected, the public entities must select the projects they will execute and which they will postpone or look for external finance in case there is indebtedness capacity.

The DGIP and the DGP continuously monitor the budget execution. Every six months the DGIP prepares the Public Investment Accountability Report and publishes it on its website. This report outlines the results achieved in the period informed on. It is one of the few reports in the region that, apart from giving an account of the execution of the public investment, dedicates a section to show the link between the executed budget and the Sustainable Development Goals (SDG).

 

Latest update: October 26, 2022