Regions and Countries

	Table of Contents
p. 14 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies A. Agriculture and Rural Development B. Infrastructure C. Social Infrastructure and Environment D. Governance Dimensions of ADB Operations E. Gender Dimensions of ADB Operations F. Private Sector Operations IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Kyrgyz Republic : III. Sector Strategies

---

F. Private Sector Operations

40. To date, ADB has not undertaken any direct private sector operations in CARs because of an earlier arrangement between ADB and the EBRD that there would be a division of labor between the two institutions such that private sector operations would be the responsibility of the latter. However, it is now felt by all parties that ADB has a relevant role to play in direct support to the private sector. Consequently, in consultation with the governments of the CARs and the EBRD, ADB prepared a Private Sector Strategy for Central Asia, which was circulated to the Board of Directors in March 1998. The strategy proposes that ADB respond to the region’s needs by (i) focusing on private sector operations that would be directly complementary to public sector programs; (ii) developing programs in those sectors that can have a direct impact on reducing the costs of transition, particularly in the social sectors; and (iii) seeking the maximum involvement of other investors or participants. The Strategy recognizes that, given the existing programs of ADB and other funding agencies, there are likely opportunities for ADB to provide direct assistance to the private sector in (i) the financial sector, especially to encourage good corporate governance; (ii) infrastructure, especially in rehabilitation and operation projects; (iii) the company towns facing difficulties; (iv) agriculture to encourage farm restructuring; (v) small- and medium-scale enterprise assistance; and (vi) social infrastructure to help create private sector service providers. The Government has shown a keen interest in the Strategy and has requested that ADB commence private sector operations in the country at an early date. Accordingly, Private Sector Group staff visited the Kyrgyz Republic and are currently examining certain possibilities of private sector assistance.

Back E. Gender Dimensions of ADB Operations	Next IV. Regional Cooperation