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|
|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
Private sector development
|Gender Mainstreaming Categories||No gender elements|
|Type/Modality of Assistance||Approval Number||Source of Funding||Approved Amount (thousand)|
|Technical Assistance||7588||Japan Fund for Poverty Reduction||500|
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.
|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.
|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.|
|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.|
|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 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.
|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
|Date of First Listing||2010 Sep 07|
Consultant recruitment is underway.
|Procurement and Consulting Notices
|Concept Clearance||31 Mar 2010|
|Fact-finding||12 Apr 2010 to 16 Apr 2010|
|Management Review Meeting||–|
|Approval||01 Sep 2010|
|Last Review Mission||–|
|Technical Assistance 7588||01 Sep 2010||01 Oct 2010||01 Oct 2010||30 Sep 2012||31 Dec 2014||–|
|Date||Approval Number||ADB (US$ thousand)||Others (US$ thousand)||Net Percentage|
|Cumulative Contract Awards|
|Approval Number||Approved Amount||Revised Amount||Total Commitment||Uncommitted Balance||Total Disbursement||Undisbursed Balance|
|Technical Assistance 7588||500||500||312||188||19||481|
|Responsible ADB Officer||Hayden Everett (firstname.lastname@example.org)|
|Responsible ADB Department||Pacific Department|
|Responsible ADB Divisions||Pacific Liaison and Coordination Office in Sydney, Australia|
Ministry of Finance & Economic Management
|List of Project Documents||http://www.adb.org/projects/43413-012/documents|