Economics & Development

Modernizing Public Institutions and Systems in Yemen for the Republic of Yemen, has the development objective to strengthen the public statistical, financial, and human resource systems and management. Component 1, Strengthening Yemen’s Statistical System and System of National Accounts, will rebuild foundational capacity for official statistics and restore the compilation and publication of the System of National Accounts, including modernizing physical and information technology infrastructure, strengthening governance and coordination across statistical units, and enhancing skills through on-the-job training and an official statistics course at the University of Aden; Sub-components are: Sub-components 1.1, Strengthening the statistical system and function, which provides capacity building on the Generic Statistical Business Process Model, upgrades data storage and connectivity with hybrid power and cloud backup, and establishes stakeholder engagement and planning; and Sub-components 1.2, Developing SNA and its elements, which supports updated legal and governance frameworks for national accounts and classifications, digitizes administrative data and expands survey and registry sources including a business register and the final phase of the Household Budget Survey, and builds capacity to compile gross domestic product and Supply Use Tables with documented methods, validation, and release calendars. Component 2, Strengthening Core Public Finance Management and Human Resource Management/payroll Functions and Systems, will introduce streamlined rules, controls, and automation for budgeting, cash management, expenditure controls, payroll integrity, and reporting, and progressively deploy interoperable Financial Management Information System (FMIS) and Human Resource Management Information System (HRMIS) modules supported by a Treasury Single Account; Sub-components are: Sub-components 2.1, Strengthening core PFM, which develops a sequenced reform roadmap, updates processes and manuals including charts of accounts, and builds capacity across the Ministry of Finance, the Central Bank of Yemen in Aden, and selected spending units for budget preparation, execution, and reporting; Sub-components 2.2, Strengthening core HRM and payroll, which defines and updates establishment and personnel verification processes, supports arrears and pension analysis, and trains human resources and payroll staff in central and pilot sector ministries and governorates to reconcile employee identities and records and to expand direct salary payments to bank accounts; and Sub-components 2.3, Setting enabling IT systems for core PFM and HRM functions, which acquires and configures fit-for-context FMIS and HRMIS core modules, ensures linkages for payroll and commitment control, and establishes hybrid on-premise and cloud data processing with hot disaster recovery, help desk, and service level agreements. Component 3, Project Management and Coordination and Readiness towards Localization and Change Management, will ensure efficient delivery and build readiness for future direct implementation by government entities through structured involvement in project functions and targeted training on fiduciary management, procurement, monitoring and evaluation, environmental and social standards, project and change management, and World Bank requirements; Sub-components are: Sub-components 3.1, Project management and coordination, which finances implementation support, audits, monitoring and evaluation, and grievance mechanisms; and Sub-components 3.2, Readiness towards localization and change management, which organizes hands-on participation of staff from the Ministry of Finance, the Ministry of Civil Service and Insurance, and the Central Statistics Organization in project tasks, delivers multimodal training with attention to women’s participation, and supports coalition building and stakeholder engagement to enable the adoption and sustainability of the reforms.