1. Argentina – Fiduciary Action Plan Fiduciary Forum March 2008

2. Origin of Argentina FAP CMU Initiative Increasing CAS Fiduciary Requirements (100% Investment Lending) Fiduciary Potential Issues in Bank Funded Operations, including indications of collusion in civil works. Country weak control environment

3. Fiduciary Action Plan Objectives Provide stakeholders with timely, detailed, high- quality, and transparent information on all aspects of Bank-financed procurement and contractual activities Improve the Bank’s ability to assess the fiduciary performance of its portfolio through better tools for monitoring and evaluating fiduciary management Build institutional capacity in areas of fiduciary management that are currently weak, for example auditing and contract price monitoring Remove obstacles and strengthen capacity to mainstream Project Implementation Units (PIUs)

4. FAP Main Components 1.SEPA: web-based information system providing the public with easy access to detailed information on all Bank financed contracts 2.Enhanced Bank Fiduciary Monitoring: Integrated Fiduciary Performance Assessments (IFPA); Improved Audit Compliance 3.PMM: Price Monitoring Mechanism for Civil Work Contracts 4.Mainstream of PIUs in cooperation with Government

5. SEPA Innovative, web-based system for planning and monitoring of all Bank- financed contracts, both from a procurement and a project management perspective. Website completely open to the public Shared information platform upon which the government and Bank teams discuss and negotiate projects’ procurement plans

7. IFPA – Integrated Fiduciary Performance Assessment Integrated FM-PR Supervision and PR input to ISR. Increased Frequency of Supervision (FM) Strengthened Communication between OS/SMUs/CMUs: –Individual Project Evaluation: Traffic Light System & Integrated FM-PR Report discussed with TTL –Disagreement between OS Team & TTL reported to CMU & respective Management –Quarterly Portfolio Reports & meeting with relevant TTLs

8. IFPA – Integrated Fiduciary Performance Assessment

9. Improved Audit Compliance

10. Price Monitoring Mechanism for Civil Works Contracts It aims at ensuring that reliable cost estimates be available before each procurement step: –Procurement Planning –Bidding Document Submission –Bid Evaluation –Possible Rejection of all bids It will also provide the SEPA with a price indicators and red-flags tool.

11. Mainstreaming Project Implementation Units (PIUs) Dependence on PIUs Government reluctance for an across- the-board policy Bank effort on preparation of new projects Reduction of 46% of PIU staffing between 2004 and 2006

12. Lessons learned Integration FM-Procurement Cross Sector involvement & CMU ownership Visibility, Communication, Network Flexibility and mix of Instruments: ESW; Portfolio Activities; Support to Country Fiduciary

13. Lessons learned Instrument for dialogue with Government, civil society and control institutions & Spill-over effect Governance and fiduciary agenda are not mutually exclusives Strengthening and reliance on country systems