Azerbaijan included in ADB public financial management program

Azerbaijan has been included in a regional public financial management initiative following the Asian Development Bank's (ADB) approval of $500,000 in technical assistance to support fiduciary assessments and strengthen public financial management systems across the Asia-Pacific region.

The program will cover 43 countries and be implemented between 2026 and 2028, Caliber.Az reports, citing local media.

The initiative aims to improve public financial management and public procurement systems in the bank's member countries. It includes comprehensive fiduciary assessments, the development of practical recommendations to enhance national systems, support for the implementation of priority reforms, and capacity-building for relevant government institutions.

The program also provides for the preparation of analytical materials, the exchange of best practices among countries in the region, and the enhancement of public procurement assessment tools using the internationally recognised Methodology for Assessing Procurement Systems (MAPS).

The ADB said the program is needed to address persistent shortcomings in public financial management and procurement systems that reduce project implementation efficiency, increase transaction costs, and limit the use of national systems in bank-financed projects.

The bank noted that public procurement assessments are conducted using the Organisation for Economic Co-operation and Development's (OECD) MAPS methodology. Under the new technical assistance program, the ADB will also join the MAPS Steering Committee and support funding for the program's secretariat during the 2027–2029 cycle.

The new initiative builds on the results of a previous technical assistance project, which found that joint assessments of public financial management and procurement systems help reduce duplication, improve the quality of reform plans, and facilitate more effective implementation of reforms. At the same time, the earlier project highlighted the need to strengthen quality assurance mechanisms, establish clearer priorities, and improve consultant management.

Drawing on those lessons, the new program will focus on shifting "from diagnosis to action," strengthening expert quality reviews, defining implementation stages more clearly, and combining analytical work with targeted professional training programs.

According to the ADB, the initiative is aligned with the bank's Strategy 2030 and is designed to improve budget execution, internal financial controls, financial reporting, public auditing, and public procurement systems. Particular emphasis will be placed on introducing digital solutions to enhance the transparency, accountability, and resilience of public financial management systems.

By Bakhtiyar Abbasov