National Public Investment System of Guatemala

Country
Investment Map Training Methodologies Projects Bank Legal Framework Processes Stakeholders Instruments Formulation Planning Cross-cutting Processes Budgeting Evaluation Cross-cutting Processes Ex-ante Evaluation Selection Execution Ex-post Evaluation Other Stakeholders Public Investment Policy Cycle Staturory Governing Body Organic Budget Law (Decree 101-97) of Guatemala Sub-secretariat of Investment for Development, Secretariat of Planning and Programming of the Presidency (SEGEPLAN) Ministry of Finance Public Investment Entities (PIEs), Development Councils and Municipalities Steering Financing Coordination Information Project Management Cycle Public Investment Program (PIP)

 

Stakeholders

Statutory Governing Body:

El National Public Investment System (SNIP) in Guatemala is coordinated by the Secretariat of Planning and Programming of the Presidency (SEGEPLAN) through the Sub-Secretariat of Investment for Development. The steering entity prepares the regulations, methodologies, and administration of the systems that contribute to the functioning of the SNIP. SEGEPLAN participation during the projects’ life cycle starts in the ex-ante assessment phase and continues until the conclusion of the execution phase through the monitoring of the physical-financial progress of the projects.

Related Entities:

The Ministry of Finance determines the budget limits including those destined for public investment. It incorporates into the Budget Bill the projects that have been approved by the SEGEPLAN and selected by the Public Investment Entities.

Incorporated Entities:

According to the SNIP regulations, the Public Investment Entities (EPI), the Development Councils, and the municipalities must identify, formulate, assess, register, and present the investment projects to the SEGEPLAN through the project bank. The incorporated entities also manage the financial resources for the projects once they have been approved by SEGEPLAN. During the execution phase, the EPI is responsible for reporting the physical financial progress through the project bank. Once the projects finalize the execution phase, the EPI decides to determine the ex-post assessments.

 

Legal Framework

El legal framework that regulates the SNIP in Guatemala is formed by the Organic Budget Law and its regulations, which establishes the Ministry of Public Finance as the governing body of the Budget System and the Executive Body Law which, in its chapter 14, section b, creates the Secretariat for Planning and Programming of the Presidency (SEGEPLAN) and establishes as its main functions to design, coordinate, monitor and assess the National Public Investment System projects. The SEGEPLAN annually updates and publishes the Regulations of the National Public Investment SystemSee the complete legal framework.

 

 

Methodologies

As part of its mandate, the SEGEPLAN, through the Sub-Secretariat of Investment for Development has a general methodology for formulation and ex-ante assessment “Project formulation and assessment manual”. This manual is about the assessment of projects based on the calculation of the Net Present Value (NPV) and the Internal Return Rate (IRR), as well as the cost-efficiency analysis. SEGEPLAN also gives project formulators access to the risk assessment guide “Risk Management Assessment in public investment projects" and the “Guide for finalizing public investment projects in the public investment information system (SINIP)". See the full list of methodologies (Available only in Spanish).

 

 

Public Investment Plans

The Public Investment Program (PIP) is prepared annually by SEGEPLAN, based on the approved projects and with an assigned budget for execution, registered in the SNIP. The PIP includes information on government expense execution and the macroeconomic environment in the country, outlines the connection of public investment with the 2032 National Development Plan, the public investment distribution in accordance with the 2020-2024 General Government Policy, and the complete portfolio of projects separated by entities of the central government, national non-financial public companies, and departmental councils with general data (name of the project, executory unit, annual programmed amount and total programmed amount).

 

 

Investment Project Bank

The Public Investment Information System (SINIP) is the platform used by the SEGEPLAN to manage investment projects from the formulation to the end of their execution. Within SINIP it is possible to monitor the projects according to their progress through the different phases of their life cycle. Additionally, the SINIP integrates the georeferentiation functionality, to localize, based on search parameters, projects by year of execution, sector, department, municipality, executory institution. The SINIP, in turn, exchanges information on the progress of the financial execution of the investment projects with the Integrated Financial Administration System (SIAF).

 

 

Capacitación

No information was found on training programs or the legal framework mentioning that the SEGEPLAN includes the function of giving courses. Consulted sources: interview, official websites and regulatory framework.

 

 

Project Management Cycle

The life cycle of the public investment projects in Guatemala starts in the EPI, Community Development Councils, departments and municipalities. Each of the entities formulates projects according to the to the effective regulations and methodologies established by the SEGEPLAN. One particularity of the Guatemala SNIP is that, through the Development Councils, civil society can propose investment projects. In the past 4 years, it has destined around 5% of the councils’ budget to projects proposed by the civil society.

Once the projects meet the technical characteristics, according to the guidelines of the steering entity, they must be registered in the SINIP. In addition to registration on the platform the proposing entity must submit, in person in the central SEGEPLAN office or in its regional representations, the physical or digital project support documents as per the effective regulations. After complete registration, the Sub-Secretariat of Investment for Development analyzes and issues the technical opinion on the investment project. If the project meets all the requirements, it will receive technical approval. If documentation is missing, a technical opinion of pending will be issued and if the project is not linked to the national planning, does not show technical feasibility or does not present the pre-feasibility study or the period before the one it is requesting funding for, the technical opinion for the project will be that of rejected.

Projects with a technical approved opinion can be presented by the EPI to the Ministry of Public Finance to be included into the budget and receive funding and start their execution. During the execution of the investment project, the executory entities report on the physical-financial progress until it is finished. Every six months the SEGEPLAN pays visits to some of the projects to verify that the information reported on by the executory entities reflects the progress observed during the visits. The SINIP gives information on the physical-financial progress of the projects, as well as their georeferenced location, the project file which includes general information on the formulation and results of the ex-ante assessment, programming of budget execution and progress photos.

At the end of the project, the EPI must give the project finalization report following the guidelines established by the steering entity. The ex-post assessment of the investment projects is made and decided on by the projects’ executory entities.

 

 

Public Investment Policy Cycle

The annual formulation of the public investment budget starts with the presentation of the projects that have been technically considered approved by the Sub-Secretariat of Investment for Development to the steering entity of the Budget System, which is the Ministry of Public Finance. Then the EPI, the Development Council, the Departments and Municipalities submit the projects they wish to include into the annual budget. After selecting the projects, the ministries and departments prepare their Annual Operative Plans, which must be aligned with their own strategic plans which, in turn, are aligned with the PND. The Development Councils can only include sanitation education and environment projects in their planning that have been endorsed by the members that are part of it, including representatives of civil society.

Taking into consideration the proposals of the Annual Operative Plans and the availability of resources, the Ministry of Public Finance communicates the budget limits to each of the EPI and, based on these limits, the DPI select the projects to be included in the Budget Bill, specifically in the section “Project of the Program on Physical Investment, Capital Transfer and Financial Investment”. The Budget Bill is presented for discussion to Congress and during the process, Congress can request the inclusion of other investment projects that were not provided for in the Budget Bill. They must be registered in the SINIP and have their SNIP code. If not, they must be registered and obtain the technical opinion of approval before these projects can be executed.

Based on the final investment project program the Sub-Secretariat of Investment for Development prepares the annual public investment program, outlining the most important aspects of the public investment to be executed during the year and a complete list of investment projects is included. In order to follow up on compliance of goals and transparent the execution of the projects, the Sub-Secretariat of Investment for Development publishes the Four-monthly Public Investment Report. In coordination with the SEGEPLAN, the Ministry of Public Finance also permanently monitors the budget execution and annually publishes its assessment. In accordance with the legal framework, the project executory entities are in charge of informing, through the established channels, on the physical-financial progress of the projects, since this information is crucial for the preparation of the next budget.

 

Latest update: July 1, 2021