The Secretariat will conduct Public Expenditures Financial Accountability Framework Assessment (PEFA) within the framework of CAPSAP. The SECO endorsed this component and now expects a list of consultants from WB.

"We expect to conduct full overview of the mechanism of state expenditures on the basis of which we will make a report in collaboration with the Azerbaijan Finance Ministry. The report will consist of three parts: overview of available mechanisms of state expenditures, concrete defects preventing this sector development, and the recommendations on their removal," the SECO office said.

Cost of this component will be approx.$200,000. Realization of PEFA to be completed by July will help the Azerbaijani government to work out new mechanisms of state expenditures.

CAPSAP is prepared due to a grant awarded through Japanese government's PHRD Fund in the amount of $895,000. WB is planning to finance around $15-20 million through International development Association for a project to be approved in the first half-year of 2007.

The project composes three components: accounting reforms in corporate sector; accounting reforms in budget sector and creation of Centre for Research, Education & Accounting in Azerbaijan, provision of accountants and auditors with new tools, support of a special workshops programme. Sharg

/BakuTODAY/