National Public Investment System of the Dominican Republic
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.
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.
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.
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.
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)
The 2017-2020 National Pluriannual Public Sector Plan has a 4-year horizon and contains the most relevant investment projects distributed in the document, according to the strategic pillars they belong to. The plan globally projects the Pluriannual Public Investment Framework which estimates the annual total public investment, annual investment amounts per type of project (fixed capital, human capital, or knowledge creation), investment amount for each pillar of the 2030 National Development Strategy (END), annual investment amount per sector and annual investment amounts per province. Every year the Annual Investment Plan is prepared, containing the complete portfolio of projects to be executed during the year, outlining the institution in charge, annual assigned amount and the financing sources (general fund, external financing, and/or donations).
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.
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.
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.
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: July 1, 2021