Regional: Private Sector Development Initiative (PSDI)

Sovereign Project | 37662-012 Status: Closed

Summary

The proposed PSD Initiative (PSDI) aims at improving the business environment in Pacific Islands by promoting effective PSD policies and practices within the context of ADB country assistance strategies. PSDI will have a strong focus on the following core themes: (i) financial intermediation; (ii) institutional, legal, and regulatory business environment; and (iii) state-owned enterprise reform and public-private partnerships.

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Project Name Private Sector Development Initiative (PSDI)
Project Number 37662-012
Country Regional
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6353-REG: Private Sector Development Initiative (PSDI)
Technical Assistance Special Fund US$ 1.10 million
ATF - Australian TA Grant US$ 7.60 million
TA 6353-REG: Private Sector Development Initiative (Supplementary)
ATF - Australian TA Grant US$ 300,000.00
TA 6353-REG: Private Sector Development Initiative (Supplementary)
ATF - Australian TA Grant US$ 160,000.00
TA 6353-REG: Private Sector Development Initiative (Supplementary)
ATF - Australian TA Grant US$ 600,000.00
TA 6353-REG: Private Sector Development Initiative (Supplementary)
ATF - Australian TA Grant US$ 79,350.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Private sector development
Sector / Subsector

Public sector management - Economic affairs management

Gender Equity and Mainstreaming No gender elements
Description

The proposed PSD Initiative (PSDI) aims at improving the business environment in Pacific Islands by promoting effective PSD policies and practices within the context of ADB country assistance strategies. PSDI will have a strong focus on the following core themes: (i) financial intermediation; (ii) institutional, legal, and regulatory business environment; and (iii) state-owned enterprise reform and public-private partnerships.

PSDI will deliver activities in 3 main output categories: (i) diagnostic studies, dialogue, and communication; (ii) rapid response, technical advice, and capacity development; and (iii) regional initiatives and monitoring. Activities will be carried out using a mix of country-focused, multi-country and regional approaches and processes. On the country level, deliverables will include diagnostics (economic and sector work); stakeholder engagement; PSD policies, strategies, and reform roadmaps on country and sector levels; design and implementation of policy, legislative and regulatory, and institutional PSD reform measures, including capacity development; identification and catalysis of strategic opportunities for private sector investment in the region, for instance in the area of public-private partnerships; improved public-private dialogue; regional cooperation; and improved awareness and understanding of PSD issues, policies, strategies and practices with a view to creating demand for change.

Project Rationale and Linkage to Country/Regional Strategy PSD is a main pillar of ADB's Pacific Approach 2101 - 2014, which guides ADB's assistance strategies and programs.
Impact Contribution to poverty reduction by promoting enterprise, investment, and economic growth

Project Outcome

Description of Outcome Focused reform policies, strategies, and measures for an improved enabling business environment, with emphasis on core themes of (i) stateowned enterprise reform and public-private partnerships, (ii) financial intermediation, (iii) business law and regulation, and (iv) mainstreaming of PSD in priority sectors
Progress Toward Outcome Implementation Ongoing
Implementation Progress
Description of Project Outputs

Diagnostic studies, dialogue, and communication

Rapid response, technical advice, and capacity development

Regional initiatives and monitoring

Status of Implementation Progress (Outputs, Activities, and Issues)

PSDI was launched operationally in early 2007. A strong core team of PSD experts has been recruited; project management structures and systems, including a Management for Development Results (MfDR) tool, have been put in place; the analysis of PSD issues and solutions in the region has been strengthened, and the findings communicated to key stakeholders and the general public. Thirty-eight activities are underway in all of the three core focus areas. To date approximately $9.7m have been committed to these activities.

In particular, PSDI has enabled ADB to respond rapidly and seize PSD reform opportunities as they occur. This capacity facilitated the rapid, demand-oriented dispatch of highly skilled technical expertise to support PDMC governments in key PSD result areas. The RETA has also been proven instrumental in identifying and catalyzing strategic opportunities for private sector investment, and supporting dialogue between governments and businesses.

Government, private sector, and reform champions have been delighted about the unique responsiveness and the highly qualified, hands-on expertise dispatched, often at short notice, under the PSDI. Relationships and trust have developed, and strong reform constituencies established in selected PDMCs. This, in turn, has increased demand exponentially. The PSDI team has been expanded in line with the demand.

A number of large scale PSD reform programs have been underway for some time in multiple countries and on a regional basis. These reforms are multiple year efforts, and will translate into development outcomes accordingly. PSDI has the potential to develop into a significant success story if it can be sustained to see through some of the ongoing, fundamental PSD reforms. A second phase of PSDI was approved in December 2009 and is now ongoing.

Geographical Location Pacific Developing Member Countries (PDMC)

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

Business Opportunities

Consulting Services Substantial consulting services by international and domestic experts specialized in one or more of the above core themes and/or output categories will be required. In addition, a small number of PSD experts will be required for longer term engagement for the promotion, management, and evaluation of subprojects financed under this TA. Recruitment will include both individual experts and firms, depending on the specific assignment/subproject.

Responsible Staff

Responsible ADB Officer Hayden Everett
Responsible ADB Department Pacific Department
Responsible ADB Division Pacific Liaison and Coordination Office in Sydney, Australia
Executing Agencies
Asian Development Bank
Mr. Jeremy Cleaver
jcleaver@adb.org
6 ADB Avenue,
Mandaluyong City 1550, Philippines

Timetable

Concept Clearance 23 May 2006
Fact Finding 03 Jul 2006 to 06 Jul 2006
MRM -
Approval -
Last Review Mission -
PDS Creation Date 19 Oct 2006
Last PDS Update 15 Feb 2011

TA 6353-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Nov 2006 - 21 Nov 2006 30 Nov 2011 30 Apr 2013 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
2,239,350.00 7,600,000.00 0.00 0.00 0.00 0.00 9,839,350.00 21 Nov 2006 9,809,552.73
Title Document Type Document Date
Private Sector Development Initiative TA Completion Reports Sep 2013
Reforming Pacific Contract Law Documents Produced Under Grant/Loans/TA Aug 2009
Private Sector Development Initiative TA Change in Scope, Amount, and Implementation Arrangements Jul 2008
Private Sector Development Initiative Technical Assistance Reports Oct 2006

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

Title Document Type Document Date
Digital Financial Services in the Pacific: Experiences and Regulatory Issues Reports Mar 2016
Empowering the Other Half: Women and Private Sector Growth in the Pacific Brochures and Flyers Dec 2015
The Cook Islands: Stronger Investment Climate for Sustainable Growth Country Planning Documents Oct 2015
Reform Renewed: A Private Sector Assessment for Samoa Country Planning Documents Oct 2015
Growing the Non-Oil Economy: A Private Sector Assessment for Timor-Leste Country Planning Documents Jul 2015
Building a Dynamic Pacific Economy: Strengthening the Private Sector in Papua New Guinea Country Planning Documents May 2015
Pacific Private Sector Development Initiative: Progress Report 2013–2014 Statutory Reports and Official Records Dec 2014
Unlocking Finance for Growth: Secured Transactions Reform in Pacific Island Economies Reports Sep 2014
Finding Balance 2014: Benchmarking the Performance of State-Owned Enterprises in Island Countries Reports Aug 2014
Together We Deliver: 10 Stories from ADB-Supported Projects with Clear Development Impacts Books Apr 2014
Re-invigorating Private Sector Investment: A Private Sector Assessment for Fiji Country Planning Documents Jun 2013
Finding Balance: Benchmarking the Performance of State-Owned Enterprises in Papua New Guinea Books Sep 2012
Pacific Private Sector Development Initiative: Annual Progress Report 2011 Statutory Reports and Official Records Aug 2012
Impact Stories from the Pacific Region - Breaking Down the Barriers to Business: More Private Sector Reform Stories Brochures and Flyers Jul 2012
Continuing Reform to Promote Growth: Update of the Private Sector Assessment for Tonga Country Planning Documents Jun 2012
Palau: Policies for Sustainable Growth, A Private Sector Assessment Country Planning Documents Jul 2011
Finding Balance 2011: Benchmarking the Performance of State-Owned Enterprises in Fiji, Marshall Islands, Samoa, Solomon Islands, and Tonga Books Mar 2011
Breaking Down the Barriers to Business in the Pacific: Private Sector Reform Stories Brochures and Flyers Jan 2011
Sustaining Growth: A Private Sector Assessment for Vanuatu Country Planning Documents Jun 2009
Finding Balance: Making State-Owned Enterprises Work in Fiji, Samoa, and Tonga Books Feb 2009
Transforming Tonga: A Private Sector Assessment Country Planning Documents Dec 2008
Foundation for the Future: A Private Sector Assessment for Papua New Guinea Country Planning Documents Jun 2008
Samoa: Consolidating Reform for Faster Economic Growth Country Planning Documents Jun 2008
Private Sector Assessment for Solomon Islands Country Planning Documents Jul 2005
Promise Unfulfilled: Private Sector Assessment for Fiji Country Planning Documents Jul 2005
Swimming Against the Tide? An Assessment of the Private Sector in the Pacific Serials Jan 2004

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