Catalog

	Table of Contents
p. 25 of 32 BACK | NEXT I. Introduction II. Assessment of Past Performance III. Rationale and Role IV. Operational Strategy V. Operational Improvements A. Single Project Exposure Limit B. Providing for Smaller Interventions C. Conflicts of Interest D. Screening of Projects E. Streamlining of Business Processes F. Strengthened Risk Management G. Strengthened Management of Nonperforming Investments H. Private Sector Operations at Resident Missions I. Enhancing Technical Assistance for Private Sector Operations J. Active Outreach Marketing K. Establishment of a Financial Reporting System VI. Resource Requirements VII. Conclusions and Recommendations

Private Sector Operations: Strategic Directions and Review : V. Operational Improvements

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H. Private Sector Operations at Resident Missions

99. PSG’s experience, especially in the recent past, has demonstrated the critical importance to PSO of an effective local presence through ADB’s RMs. There is simply no substitute for reliable, accurate, and timely local information and response when identifying, processing, and administering private sector projects. On this basis, and in line with ADB’s policy on resident missions, local inputs for PSO must be bolstered by more appropriate arrangements to promote PSO in local markets, to assist with the processing of new projects, to undertake on-the-ground portfolio administration, and to address risk management issues. Such arrangements could include an enhanced PSO-dedicated headquarter staff presence, the wider use, on a selective basis, of highly PSO-qualified national officers, engagement of local expertise, and the use of experienced local nominee directors. For the latter, appropriate systems will be developed, in consultation with concerned departments, so that nonheadquarters staff supporting PSO are properly recruited and supervised, with particular attention to high standards of professionalism and good governance. The need for substantial RM support is critical in at least four DMCs: PRC, India, Indonesia, and Pakistan. In these RMs, the presence of a PSO-dedicated professional staff member from headquarters is critical to ensure close supervision of PSO activities in the concerned DMC.⁶⁸ PSG will continue to coordinate private sector efforts in the RMs will and provide support through inputs from investment officers based in headquarters.

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