Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date 03 Jun 2010
PDS Updated as of 28 Mar 2014

Project Name State-Owned Enterprise Rationalization Program
Country Vanuatu
Project/Program Number 43413-012
Status Approved
Geographical Location National (Vanuatu)
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector and/or Subsector Classification Public sector management
/ Economic and Public Affairs Management
Thematic Classification Economic growth
Governance
Private sector development
Gender Mainstreaming Categories No gender elements

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Technical Assistance7588Japan Fund for Poverty Reduction500
TOTAL US$ 500

Summary of Environmental and Social Issues

The TA has no direct environmental or social impact. The TA should has indirect, positive social impact. Vanuatu's state-owned enterprise (SOE) sector absorb large amounts of scarce capital on which they provide very low returns, divert government resources away from vital social investments in health and education, and drive up the costs of doing business where they are the sole service providers.

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

During Project Design
The Mission has design the TA 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, line ministries, Prime Ministers 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.

Description

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.

Development Impact

Reduced drain on the fiscal position of the government from underperforming public enterprises

Project Outcome

Description of Outcome
Improved financial, operational and governance performance of SOEs
Progress Towards 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.

Outputs and Implementation Progress

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. ADB is mobilizing resources to support the drafting of a new SOE Act, pursue the SOE liquidation work, and also support the SOE Monitoring Unit, through capacity development.
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2010 Sep 07
Consulting Services
Consultant recruitment is underway.
Procurement
Procurement and Consulting Notices
http://www.adb.org/projects/43413-012/business-opportunities

Timetable

Concept Clearance 31 Mar 2010
Fact-finding 12 Apr 2010 to 16 Apr 2010
Management Review Meeting
Approval 01 Sep 2010
Last Review Mission

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Technical Assistance 7588 01 Sep 2010 01 Oct 2010 01 Oct 2010 30 Sep 2012 31 Dec 2014

Utilization

Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
Cumulative Disbursements

TA Amount (US$ thousand)

Approval Number Approved Amount Revised Amount Total Commitment Uncommitted Balance Total Disbursement Undisbursed Balance
Technical Assistance 7588 500 500 312 188 19 481

Contacts and Update Details

Responsible ADB Officer Kanokpan Lao-Araya (klaoaraya@adb.org)
Responsible ADB Department Pacific Department
Responsible ADB Divisions Pacific Liaison and Coordination Office in Sydney, Australia
Executing Agencies Ministry of Finance & Economic Management

Links

Project Website http://www.adb.org/projects/43413-012/main
List of Project Documents http://www.adb.org/projects/43413-012/documents