National Public Investment System of Bolivia
Governing Statutory Body:
The Subsystem of Public Investment and External Financing for Integral Development (SIPFE) is ruled by the Ministry of Development Planning. The system is operated by the Vice-Ministry of Public Investment and External Finance (VIPFE). The VIPFE coordinates the process of profile formulation and ex-ante assessment of the investment projects through the Project Bank. Once the project is in execution, it is in charge of performing the financial physical monitoring based on the data registered by the project’s executory body and performs field visits to the most significant projects.
The Ministry of Economy and Finance (MEF) is in charge of assigning resources to the annual public investment program and preparing the Nation’s General Budget. New investment projects proposed and supported by the Ministries, in accordance with the regulations, require a Supreme Decree. This Supreme Decree is issued by the National Council for Economic Policy which the MEF is part. This Council establishes the projects’ economic viability and their alignment with the priorities established in the national planning. Once the public investment program is in execution, the MEF monitors the execution through the Financial Administration System and the quarterly execution reports prepared by the Vice-Ministry of Public Investment. The budget execution assessment is used by the MEF to reassign resources and prepare the budget for the next cycle.
The Entities of Public Administration, Regional Governments and Municipalities participate during the entire life cycle of the public investment projects. They are responsible for the formulation and ex-ante assessment of the projects as well as reporting on their financial physical progress. The maximum authorities of the ministries (MAE) have the faculty to assess the investment projects according to the effective regulations and methodologies. The MAE issues the opinion that supports the project meeting these regulations and sends it to the VIPFE so the investment program can be included in the Nation’s General Budget. Once the public investment projects are in execution, the executory entities and the maximum authority of the ministry should monthly report the financial physical progress through the Investment Information System.
The SIPFE in Bolivia is regulated mainly by the Law on Integral Planning System of the State published in 2016. This law replaces the National Public Investment System SNIP by the SIPFE and establishes the Ministry of Development Planning through the VIPFE as the statutory governing body for public investment. However, the regulations and standards allowing for the full instrumentalization of this law have not been published yet and, instead, the Basic Rules of the National Public Investment System of 1996 and the SNIP Basic Operation Regulations of 1997 are used. The budget law and its regulations which are updated once per year play an important role in the regulation of processes, functions, and interactions between the different entities that participate in the SIPFE. The Supreme Decree Nª3246 (2017): Decrees the : "BASIC STANDARDS OF THE OPERATIONS PROGRAMMING SYSTEM", which are mandatory for all public sector entities. See the complete legal framework.
With the support of some ministries (except the methodology for educational projects prepared by the Ministry of Education), the VIPFE has developed multiple specific methodologies applicable to the most representative public investment sectors in the country (such as infrastructure, public services, agriculture). These methodologies aim at giving orientation in the formulation and assessment of investment projects by diagnosing the problem to be solved, the identification of solution alternatives and the assessment of these alternatives based on the calculation of the Social and Private Net Present Value (SNPV and PNPV ), like the environmental impact analysis of the impact the investment projects could cause. See the full list of methodologies.
Public Investment Plans
Currently, the SIPFE, under the VIPFE, is not preparing a national investment plan or strategy. Although it does not correspond to an investment plan as such, it is important to emphasize what is incorporated in axis 1, Rebuilding the economy, retaking macroeconomic and social stability, of the PDES 2021-2025 of the Plurinational State of Bolivia, which states as a goal of policy guideline No. 1.2, "Retake the leading role of the State through public investment and promoting private and foreign investment," in what is related to strengthening the management of public investment. This guideline contemplates three actions with respect to the national public investment system in Bolivia: 184.108.40.206, Reverse the paralyzation of works affected in the 202 management; 220.127.116.11, Public investment budget oriented to strengthen the productive development of the country with a view to industrialization with import substitution; 18.104.22.168, Program and execute public investment in a sustained manner.
Investment Project Bank
The Information System on Investments (SISIN) is the information tool for registration and follow-up of investment projects in a unique database, thus forming the project bank. The SISIN is obligatory to be used for all entities that formulate and execute investment projects, including departmental governments and municipalities. This system enables following up on the physical-financial progress of the projects based on information reported by the executing entities. Information is transferred too to the Public Management System related to the budget of the investment projects that have been approved, and during the execution phase, the physical-financial progress assessment reports of the project are shared. The SISIN can be accessed only by user and password assigned to officials authorized by the VIPFE.
The VIPFE makes several virtual courses available for public officers, in charge of the formulation, assessment and execution of investment projects, to acquire knowledge. See VIPFE's website (Available only in Spanish). The name of the silver form is: Plataforma Programa de Capacitación Permanente (PCP).
Project Management Cycle
The life cycle of the investment projects starts in the formulating entities which, based on the methodologies the VIPFE makes available on its website, prepare the Technical Report on Previous Conditions. This document, similar to a project profile, establishes the preliminary viability of the project in terms of its connection to development planning and the possibility to achieve financing. In case of infrastructure projects, it must be accredited that the terrain is there for construction or a plan of acquiring it. Then, in accordance with the project dimensions, a Technical Pre-investment Design Study is prepared. This is a series of documents based on sectoral methodologies prepared by the VIPFE, which formulates in detail and economically assesses the viability of the investment projects.
The faculty of the highest authority (MAE) of the Ministry is to determine the complexity of the required studies in accordance with the dimension of the project. Once the design study is ready, it is presented to the MAE for it to issue a technical report approving the project and confirming that it has met the regulations in force. Once this opinion has been received, the project can be registered in the SISIN and can be included in the National Budget. In accordance with the regulations in force, the Technical Pre-investment Design Study will be kept by the project’s executory entity and must be available to be consulted by the VIPFE if necessary.
During the implementation phase of the projects, the executory entities are in charge of reporting monthly, through the SISIN, on the physical-financial progress of the project. For larger investment projects, the VIPFE makes field visits to verify whether the progress reported in the SISIN is real progress and prepares a quarterly assessment report which is sent to the Ministry of Economy and Public Finance for consideration. This monitoring will continue until the finalization of the investment project. The regulations do not consider the implementation of ex-post assessments of the projects.
Public Investment Policy Cycle
Based on the priorities established in the plan, the Ministries, governors' offices, and municipalities prepare their specific plans and program the public investment projects. In order to receive resources from the National Treasury or external financing, public investment projects must be registered in the SISIN. In order to be registered, the MAE of each ministry is required to issue the Resource Allocation Opinion, which is a sworn statement and certifies that the projects have complied with the current project formulation and evaluation regulations. In other words, it is the ministries that formulate and evaluate the investment projects before they are included in the budget.
In the case of new projects seeking financing from the National Treasury, they will require a Supreme Decree issued by the National Economic Policy Council; this council is made up of the Ministry of Economy and Public Finance, the Ministry of Development Planning and the Ministry of the sector presenting the projects. In the case of externally financed projects, the process is different; the entity that formulates and evaluates the project will process the external financing in coordination with the VIPFE, with the endorsement of the MAE. Once the resources are allocated and authorized, the VIPFE registers the public investment projects in the MEF's Public Management System for inclusion in the Budget Bill, which is then submitted to the National Congress for discussion and approval.
During the execution of the public investment budget, the VIPFE is the entity responsible for following up on the physical and financial progress of the projects, based on the information uploaded monthly by the executing entities in the SISIN. In turn, the VIPFE must prepare a quarterly public investment evaluation report and submit it to the Ministry of Economy and Public Finance. These reports are used as input for the preparation of the public investment budget for the next cycle.
Latest update: October 20, 2022