Countries and Regions

	Table of Contents
p. 14 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies A. Agriculture B. Infrastructure C. Social Infrastructure and Environment D. Governance Dimensions of ADB Operations F. Gender Dimensions of ADB Operations G. Private Sector Development 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 - Nepal : III. Sector Strategies

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F. Private Sector Development

80. ADB's Private Sector Development Strategy seeks to (i) support the development of enabling conditions for business, (ii) generate business opportunities in ADB-financed public sector projects, and (iii) catalyze private investment through direct financing and guarantees. ADB's strategy in Nepal to enhance the private sector's contribution to enhanced growth and poverty reduction focuses most immediately on the promotion of an enabling environment for private sector activities through ADB's public sector operations, and on generating opportunities for private sector participation in public sector projects. To develop the enabling environment for the private sector, impediments to development and growth of Nepal's private sector must be removed, to improve governance, transparency and efficiency in the corporate and financial sector. ADB's primary target for the next three years is to support the Government's efforts to establish transparent policies and basic mechanisms for corporate and financial governance, including support for streamlining legislative and regulatory frameworks, capacity building for regulation, supervision and enforcement, and improvements in information disclosure and accounting /auditing standards. ADB's Corporate and Financial Governance Project in 2000 supports these efforts, laying the groundwork for future private sector operations and growth in business activity.

81. With respect to private sector operations, ADB began its involvement in direct investments in the private sector in Nepal in 1989. Since then, three equity investments and five loans have been approved, amounting to $53 million. While ADB will continue to assess specific investment opportunities in such projects that demonstrate commercial viability, catalyze private investment, and have development impact, those investments that not only meet these criteria but also complement and support such enabling policy initiatives will be accorded priority. In addition, as public-sector projects in the pipeline develop, opportunities for private sector participation and building public-private partnerships will be fully explored.

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