ADB includes Azerbaijan in regional program to strengthen public financial management systems

The Asian Development Bank (ADB) has approved a $500,000 technical assistance program to implement a regional program to conduct fiduciary assessments and strengthen public financial management systems in countries in the Asia-Pacific region, including Azerbaijan, Report informs.

According to ADB, the program will cover 43 countries and will be implemented in 2026–2028.

The main goal of the initiative is to improve the effectiveness of public financial management and public procurement systems in the bank's member countries. The project includes conducting a comprehensive fiduciary assessment, developing practical recommendations for improving national systems, supporting the implementation of priority reforms, and building the professional capacity of relevant government agencies.

Furthermore, the program includes the development of analytical materials and the exchange of best practices among countries in the region, as well as the improvement of public procurement assessment tools using the Methodology for Assessing Procurement Systems (MAPS).

ADB notes that the need to implement the program stems from persistent weaknesses in public financial management and procurement systems, which reduce the effectiveness of project implementation, increase transaction costs, and limit the use of national systems in the implementation of bank-financed projects.

The Bank notes that the public procurement diagnostic is conducted based on the Organization for Economic Cooperation and Development (OECD) MAPS methodology. As part of the new technical assistance, ADB will also join the MAPS Steering Committee and support the funding of the program secretariat for the 2027–2029 cycle.

The new initiative builds on the results of a previous technical assistance project, which demonstrated that joint diagnostics of public financial management and procurement systems reduce duplication of work, improve the quality of reform plans, and ensure more effective implementation of changes. At the same time, the previous project identified the need to strengthen quality control mechanisms, more clearly define priorities, and improve the consultant management system.

Building on the lessons learned, the new program will focus on moving from diagnosis to action, strengthening expert quality assessment, more clearly defining implementation stages, and combining analytical work with targeted professional development programs.

ADB emphasizes that the initiative is aligned with the bank's Strategy 2030 and aims to improve budget execution, internal financial control, financial reporting, public audit, and the public procurement system. Particular attention will be paid to the implementation of digital solutions that enhance the transparency, accountability, and sustainability of public financial systems.