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 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 - Marshall Islands : III. Sector Strategies

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F. Private Sector Development

40. Private sector development is being supported by ADB through the ongoing ADB financed Public Sector Reform Program, which aims at (i) downsizing the civil service, (ii) privatization, (iii) tax reforms, and (iv) establishment of a more conducive environment for foreign investments. Furthermore, through the ongoing TA, ADB will continue to provide direct support in corporatization and privatization of specific state-owned enterprises. Thus, Kwajalein Joint Utility Resource (KAJUR) and National Telecommunication Authority (NTA) have been selected for privatization. As a result, KAJUR is currently operated by a private sector operator under an eighteen-month management contract.

41. Government requested for a follow up TA to help in the corporatization/privatization of other state-owned enterprises (SOE). The earlier TA has accomplished the framework for privatization and participated in the actual privatization of KAJUR. A follow up TA was required to undertake privatization of SOEs identified under the first TA.

42. A small business development and microfinance project is included in the pipeline to further enhance private sector involvement and promote entrepreneurship in RMI. Further support and information dissemination is being considered through the holding of private sector promoting forum in conjunction with the local chamber.

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