|Project Name||State-Owned Enterprise Rationalization Program|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Public sector management - Economic affairs management
|Gender Equity and Mainstreaming||No gender elements|
The TA aims to strengthening the legal, governance, and monitoring frameworks for SOEs. This work will include (i) drafting an SOE act; (ii) establishing a robust process for the selection, appointment, and accountability of directors; (iii) strengthening the capacity of the SOE directors to execute their mandates; (iv) establishing a framework for contracting and financing CSOs; and (v) clarifying the role and responsibilities of the monitoring agency within MFEM. The recent restructuring of MFEM provides an opportunity to strengthen its SOE monitoring function, and this will be an integral component of the TA.
While the legal, governance, and monitoring reforms are being developed, a parallel effort to update SOE financial accounts will be undertaken, so that those that represent the greatest strain on the budget can be rapidly identified. The outputs of this work will also facilitate the development of necessary baseline indicators for assessing the performance of the TA.
|Project Rationale and Linkage to Country/Regional Strategy||State-owned enterprise reform is an integral part of the approach to supporting private sector development in ADB's 2010-2014 Country Partnership Strategy (CPS) for Vanuatu, which was approved in September 2009. The Government's commitment to SOE reform is also contained within the recently-released "Planning Long, Acting Short" matrix of policy priorities for 2009-2012. It is central to the improved economic governance supported through AusAID's Governance for Growth Program (GfG), and the recently signed Partnership for Development (PfD) between the Governments of Australia and Vanuatu.|
|Impact||Reduced drain on the fiscal position of the government from underperforming public enterprises|
|Description of Outcome||Improved financial, operational and governance performance of SOEs|
|Progress Toward Outcome||Support the development and implementation of an SOE reform program in Vanuatu to relieve the fiscal strain that SOEs place on the state budget and ensure that SOEs do not compromise consumer welfare or crowd out the private sector.|
|Description of Project Outputs||
1. Rationalization strategies formulated and under implementation for at least four SOEs, along with associated governance and regulatory reforms
2. Draft SOE act prepared
3. At least six training courses on SOE governance and monitoring delivered for SOE directors and Ministry of Finance staff
4. Director performance evaluation system developed and implemented
|Status of Implementation Progress (Outputs, Activities, and Issues)||
Supported MFEM to prepare the liquidation of four SOEs in the country: Asset Management Unit (AMU), Metensel Estates Limited (MEL), Vanuatu Livestock Development Limited (VLDL), and the Vanuatu Agricultural Development Bank (VADB).
An SOE policy was endorsed by Council of Ministers (COM) in October 2013.
A new SOE Act has been drafted.
Training courses on SOE governance and monitoring are being delivered.
A director performance evaluation system has been developed.
|Geographical Location||National (Vanuatu)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||The TA has been designed in close consultation with Ministry of Finance and Economic Management (MFEM) and key stakeholders, including the SOEs, line ministries, Prime Ministers Office, State Law Office, and development partners.|
|During Project Implementation||During the project implementation, the project team will continue consulting with MFEM, SOEs, line ministries, Prime Minister's office, State Law Office, and development partners. In addition, the team will also develop individual SOE rationalization plans for the SOEs, as agreed jointly with the Directorate of Finance.|
|Consulting Services||Consultant recruitment is underway.|
|Responsible ADB Officer||Hayden Everett|
|Responsible ADB Department||Pacific Department|
|Responsible ADB Division||Pacific Liaison and Coordination Office in Sydney, Australia|
Ministry of Finance & Economic Management
|Concept Clearance||31 Mar 2010|
|Fact Finding||12 Apr 2010 to 16 Apr 2010|
|Approval||01 Sep 2010|
|Last Review Mission||-|
|PDS Creation Date||03 Jun 2010|
|Last PDS Update||26 Nov 2014|
|Approval||Signing Date||Effectivity Date||Closing|
|01 Sep 2010||01 Oct 2010||01 Oct 2010||30 Sep 2012||31 Dec 2014||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|0.00||500,000.00||100,000.00||0.00||0.00||0.00||600,000.00||01 Sep 2010||327,285.95|