According to the Bank’s website, the objective of this project is to improve transparency and efficiency of public spending and effectiveness of tax administration.

The proposed Program-for-Results (PforR) operation aims to support North Macedonia's public financial management (PFM), tax administration, and state aid reforms. It is the first PforR in the country and is designed to improve public spending efficiency, transparency, and revenue administration effectiveness. North Macedonia has made progress in PFM reforms but faces challenges due to the pandemic, energy crisis, and fiscal pressures. The fiscal deficit and the public debt increased, with persistent expenditure arrears and weak fiscal discipline. Changes in climate pose significant risks, requiring large-scale adaptation investments. The government adopted a new Organic Budget Law (OBL) in 2022 to address systemic weaknesses in budgeting, accounting, and investment management.

The PforR will support key institutional reforms included in the Public Financial Management Reform Plan, the Public Revenue Office Reform Plan and reforms to consolidate and streamline state aid processes.

No civil works are planned under the IPF component thus, the environmental risk is rated low. However, some adverse downstream effects are possible (including generation of larger quantities of e-waste, some OHS for installation and energy efficiency of IT equipment) that could also qualify for the application of the Associated Facility. The ESSA identified several gaps, including limited enforcement of e-waste management regulations, despite national legislation being harmonized with EU directives; capacity constraints within the State Environmental Inspectorate and local inspectorates, where human and technical resources restrict comprehensive execution of inspection activities; and the absence of specific operational guidelines for IT-related environmental management.

Socially, the Project will strengthen fiscal transparency and public accountability through consulting, advisory, and capacity-building activities. No land acquisition or displacement is expected. ESS2 applies to direct workers (PIU) and contracted workers (consulting firms), with low SEA/SH risks due to the nature of the work.

Total Project Cost: US$ 34.20 million
Loan (IBRD Commitment): US$ 28.50 million
National Government: US$ 10.49 million

CONTACT POINT - World Bank

Task Team Leader: Mediha Agar
Title: Senior Public Sector Specialist
Email: Magar@worldbank.org

ACCESS TO INFORMATION

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ACCOUNTABILITY MECHANISM OF THE WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. Information on how to file a complaint and a complaint request form are available at: https://www.inspectionpanel.org/how-to-file-complaint