Yemen Funds Disbursed 85% Faster

USAID’s Enhancing Government Effectiveness (EGE) project now allows Yemen’s government staff to disburse funds in five to seven days, reduced from the previous time of 35 to 40 days, an 85 percent reduction in time waiting for payment.

The Loans and Grants Management Information System (LGMIS) connects three pilot project management units with the Ministry of Planning and International Cooperation, Ministry of Finance and Central Bank of Yemen.

The project’s 2008 assessments of Yemen’s ministries of Finance, Health, Agriculture and Education identified critical problems:

1) Significant delays and inadequate information in disbursing development loans and grants

2) High operating costs of project management units and Yemen agencies implementing projects under these loans

3) Yemen’s payments of high commitment fees on unused loans

4) Yemen’s weak capacity and lack of incentives to staff, monitor and manage the implementation of projects

With Management Systems International (MSI), the EGE project has achieved all components. The 19-month project designed, installed and trained staff on the Loans and Grants Management Information System to enhance the efficiency, transparency and accountability of multilateral and bilateral aid.

LGMIS, developed by an in-country team of international experts, is complemented by the internationally secure financial transaction and interbank system SWIFT, making Yemen the third country in the Middle East and North Africa to use this service. The Minister of Finance said that LGMIS is a success story of Yemen-United States cooperation.