EU4PFM Ukraine 2019-2024

The first year of implementation was concentrated on the procurement of an implementing partner, a consultancy. The Embassy launched a tender on 28 October 2019 with the closure date of 9 December 2019 and intention to start project activities in February 2020. The budget ceiling for the tender was EUR 10,531,480. The procurement of the implementing partner has followed the Swedish procurement legislation, in particular, Swedish Public Procurement Act (2016: 1145). Certain requirements derived from the contribution agreement between Sida and the EU, in particular, General Obligations, Conflict of Interests, Data protection, Communication and visibility, Accounts and archiving, Access and financial checks, Confidentiality and Restrictive measures were transferred to Sida’s standard contract template of the consultancy contract. The tender evaluation took place in December 2019 – February 2020. However, on 4 March 2020 the Embassy had to cancel the procurement as during the standstill period the Embassy identified risks that it had not been possible to fully uphold equality between the tenderers in the procurement procedure. To ensure project implementation, the Embassy decided to re-launch the tender. Due to Covid-19 outbreak, the tender was taken up to Sida HQ. According to a tentative timeplan, the tender is to be announced during 1st quarter 2021 and project to start in 2nd quarter 2021.

This is the conclusion on performance for the period January-December 2020. The  conclusion on performance for 2019 was covered by the Major Amendment to Contribution - Decision on Additional Funding UKR37/2019 as of 12 December 2019.   Project information is provided below. The beneficiaries of the project are the Ministry of Finance, Ministry of Economic Development and Trade, and Treasury. In particular, the project aims to strengthen the capacities of relevant national partners in mid-term budgeting, program-based budgeting, performing spending reviews, fiscal impact assessment, macroeconomic forecasting, liquidity management and public accounting. The Expected Results were updated after the scoping mission commissioned by the Embassy in February-April 2019. The purpose of the mission was to define the scope for the 2 new components for Sweden on liquidity management and public accounting, as well as to update the scope for previously defined components. Detailed work tasks are listed in ToR for procurement, and expected results are listed in Results matrix that will be updated after the Inception Phase. The intervention logic of the contribution can be summarized as follows: Overall objective of EU4PFM program: Improve performance in core systems of public financial management (PFM). Specific objectives of Component 1 implemented by Sweden: Provide assistance to the Government of Ukraine in the implementation of the PFM Strategy 2017-2020. Expected results: Component 1 – Budget planning 1.1. Improved medium-term budget planning. 1.2. Improved programme-based budgeting. 1.3. Preparation and implementation of spending reviews. 1.4. Establishment of process for, and conduct of, fiscal impact assessments. Component 2 – Macroeconomic forecasting 2.1. Improved capacity for macroeconomic forecasting (MEDT). 2.2. Improved capacity for macroeconomic forecasting and impact analysis (MoF). Component 3 – Liquidity Management 3.1. Improved capacity in cash and liquidity management. 3.2. Improved coordination of cash, liquidity and debt management. Component 4 – Public Sector Accounting 4.1. Updated national public sector accounting standards (NPSAS). 4.2. Proposal for improvement to organisational arrangements of government accounting services. 4.3. Preparation of consolidated financial statements. Other PFM thematic areas (upon request) During the Inception Phase and/or during the course of implementation of the Project, additional PFM thematic areas may become a priority for the beneficiary institutions and be considered by the Project. Such areas may include but not limited to: strategic planning; public investment management; revenue forecasting; sector-specific expertise in planning and budgeting in inter alia education, health, agriculture, energy, transportation etc.; information technology to support and automate PFM processes and systems.