Financed by: International Bank for Reconstruction and Development (IBRD), part of the World Bank Group, and the French Development Agency (Agence Française de Développement (AFD))
Operation Lead: Ministry of Finance of the Republic of Serbia
Key institutions for the implementation of the Operation: Ministry of Environmental Protection, Public Policy Secretariat (PPS), Republic Property Directorate, and the Public Procurement Office
Implementation period: 1. 8. 2023 – 31. 3. 2027.
Investment value: USD 150 million
Objective of the Operation: The development objective of the Operation is to improve core public financial management functions and institutional capacities necessary for Serbia’s fiscal resilience and green transition. The Operation will support the following core public financial management functions: budgeting and strengthening the links between plans and the budget, public investment and asset management, and fiscal risk management.
Description of the Operation: Improving Public Financial Management for the Green Transition is a four-year Operation supported by the International Bank for Reconstruction and Development (IBRD) of the World Bank Group and the French Development Agency (AFD), aimed at supporting the Government of the Republic of Serbia in further strengthening public financial management and advancing the green transition. Loan agreements with IBRD and AFD were signed in May and June 2023. The Public Policy Secretariat (PPS) is responsible for the implementation of Disbursement Linked Indicator (DLI) 1 – Green and climate aspects are integrated into public policy documents and budgets are strengthened – as well as for the verification of DLIs 2–8.
The Operation is structured through the implementation of activities divided into two main components:
- Program-for-Results (PforR) component, consisting of two areas:
- Strengthening fiscal resilience, transparency, and expenditure effectiveness by using public expenditure management to improve efficiency and strengthen the link between planning and budgeting through better and more efficient cost estimation at the planning stage, improving fiscal transparency, and enhancing the preparation of public investment projects.
- Greening the expenditure cycle in the Republic of Serbia and strengthening institutions for greater environmental resilience – focusing on introducing and applying green criteria in public financial management (PFM), public investment management (PIM), and public procurement, as well as strengthening systems for monitoring and reporting greenhouse gas emissions.
- Investment Project Financing (IPF) component, consisting of technical assistance to support implementing institutions in achieving the expected results. Technical assistance includes training, capacity building, support for stakeholder engagement in the process, and support for Programme for Results (PforR) management.
The complaint mechanism for the Operation “Improving Public Finance Management for the Green Transition” is available at the following link: