Regional: Pacific Private Sector Development Initiative, Phase III

Sovereign Project | 46510-001 Status: Approved

Summary

The Pacific Private Sector Development Initiative (PSDI) Phase III will follow on and build on the successes, lessons learned, and strengths of PSDI Phases I and II. These technical assistance (TA) projects support the Pacific Approach 2010 -2014 and Strategy 2020 of the Asian Development Bank (ADB) and leverage ADB''s strategic focus on private sector development, with the objective of improving the business environment in Pacific developing member countries (DMCs).

The first two phases of PSDI focused on three core areas: (i) business law reform, (ii) improving access to financial services, and (iii) state-owned enterprise (SOE) and public- private partnership (PPP) reforms. The positive outcomes of the PSDI initiatives in these areas have led to growing demand for assistance and an expansion of focus into the areas of competition policy and the economic empowerment of women.

Latest Project Documents

Consulting Notices See also: CMS

Procurement Notices See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents

None currently available.


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.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

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.

 
Project Name Pacific Private Sector Development Initiative, Phase III
Project Number 46510-001
Country Regional
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8378-REG: Pacific Private Sector Development Initiative, Phase III
Technical Assistance Special Fund US$ 2.00 million
New Zealand Grant US$ 4.50 million
ATF - Australian TA Grant US$ 24.00 million
TA 8378-REG: Pacific Private Sector Development Initiative, Phase III (Supplementary)
Australian Grant US$ 8.08 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Finance - Finance sector development - Inclusive finance

Public sector management - Economic affairs management - Law and judiciary

Gender Equity and Mainstreaming Gender equity
Description

The Pacific Private Sector Development Initiative (PSDI) Phase III will follow on and build on the successes, lessons learned, and strengths of PSDI Phases I and II. These technical assistance (TA) projects support the Pacific Approach 2010 -2014 and Strategy 2020 of the Asian Development Bank (ADB) and leverage ADB''s strategic focus on private sector development, with the objective of improving the business environment in Pacific developing member countries (DMCs).

The first two phases of PSDI focused on three core areas: (i) business law reform, (ii) improving access to financial services, and (iii) state-owned enterprise (SOE) and public- private partnership (PPP) reforms. The positive outcomes of the PSDI initiatives in these areas have led to growing demand for assistance and an expansion of focus into the areas of competition policy and the economic empowerment of women.

Project Rationale and Linkage to Country/Regional Strategy

It is difficult and costly to do business in the Pacific. Firms have to deal with isolation and small market size. There are many reasons why it is costly to start and operate a business in the Pacific. Business laws are outdated and unsuited to the needs of modern commerce. Laws governing contracts are confusing and difficult to enforce, and complying with regulations is costly and difficult. It is also hard for successful growing businesses to obtain the financing necessary to expand. The financial sector is generally not well developed, and access to and knowledge about financial services and their use by customers is typically limited. Informal sectors are large and productivity is low. While foreign investors should be a source of capital and knowledge, many countries make it hard for them to start new businesses. Inefficient SOEs dominate infrastructure service delivery, resulting in unreliable and costly utilities and transport services, which add to the high cost of doing business. Public sector investment achieves rates of return that are either low or negative. Many Pacific DMCs have competition frameworks that are not strong enough to regulate monopolies, provide poor consumer protection. These constraints reduce private sector growth.

Women''s economic empowerment and economic development are closely interrelated. Limited economic opportunities for women result in higher opportunity cost in terms of foregone growth and poverty alleviation. Many barriers to women''s economic empowerment are systemic, being contained in outdated laws or exclusionary economic and cultural practices.

Impact The expected impact of the TA will be sustained economic growth in Pacific DMCs that increases incomes.

Project Outcome

Description of Outcome The expected outcome will be an equitable business environment encouraging new business formation, and increased domestic and foreign investment in Pacific DMCs.
Progress Toward Outcome Implementation ongoing.
Implementation Progress
Description of Project Outputs

Businesses and households in selected Pacific developing member countries have improved access to financial services.

Selected business laws in Pacific developing member countries promote inclusive business formation, investment, entrepreneurship, and trade.

The delivery of infrastructure services will be made more efficient and cost-effective.

Selected Pacific developing member countries governments establish a framework that promotes competition.

Successful pilot initiatives promoting the economic empowerment of women are implemented in selected Pacific developing member countries.

Strategic and knowledge management services are effectively provided.

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

Phase III of PSDI was launched operationally in May 2013 and a core team of private sector development experts has been recruited. Project management structures and systems were already in place under the first two phases of PSDI will continue for this phase.

This TA adds to the work already completed and still underway through phase I and II, and leverages the analysis of private sector development issues previously developed.

Additional financing of $8.08 million was approved on 30 June 2015.

As of 29 March 2016, there are 125 ongoing initiatives being implemented for 14 Pacific developing member countries, 35 pipeline initiatives, and 69 active consultant contracts. As of 29 March 2016, approximately $25.5 million has been committed, with $13.0 million disbursement to date.

Geographical Location

Summary of Environmental and Social Aspects

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

(i) Government officials from relevant government agencies and state-owned enterprises in PDMCs, including Ministry of Finance, Ministry of Public Enterprises;

(ii) Private sector entities including chambers of commerce, women's groups, banking institutions;

(iii) Civil society organizations including women's and community groups; and

(iv) Development partners active in private sector development activities in Pacific including the IFC and other bilateral and multilateral development institutions/organizations.

During Project Implementation Same as during the project design with more frequent and in-depth consultations.

Business Opportunities

Consulting Services

Consultants will be engaged by ADB in accordance with the Guidelines on the Use of Consultants (2013, as amended from time to time).

Consultants with expertise in the following areas are being engaged: (i) economic analysis; (ii) business and market analysis; (iii) PSD strategies and policies; (iv) competition policies; (v) economic empowerment of women; (vi) institutional and organizational change; (vii) SOE reform; (viii) PPPs; (ix) business law reform; (x) regulatory reform; (xi) access to finance; (xii) branchless banking; (xiii) capacity development; (xiv) knowledge management and communication; (xv) monitoring and evaluation; and (xvi) flexible results-oriented innovative grant delivery, among others.

Procurement Procurement is being undertaken in accordance with ADB's Procurement Guidelines (2013, as amended from time to time).

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
6 ADB Avenue,
Mandaluyong City 1550, Philippines

Timetable

Concept Clearance -
Fact Finding -
MRM -
Approval 06 Jun 2013
Last Review Mission -
Last PDS Update 30 Mar 2016

TA 8378-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Jun 2013 - 06 Jun 2013 31 May 2019 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
2,000,000.00 36,580,000.00 0.00 0.00 0.00 0.00 38,580,000.00 06 Jun 2013 13,765,674.53
Title Document Type Document Date
Pacific Private Sector Development Initiative, Phase III: Major Change in Technical Assistance TA Change in Scope, Amount, and Implementation Arrangements May 2015
Pacific Private Sector Development Initiative, Phase III Technical Assistance Reports May 2013

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
Pacific Private Sector Development Initiative: Progress Report 2014-2015 Statutory Reports and Official Records Feb 2016
Empowering the Other Half: Women and Private Sector Growth in the Pacific Brochures and Flyers Dec 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
Finding Balance: Benchmarking the Performance of State-Owned Enterprises in Papua New Guinea Books Sep 2012
Impact Stories from the Pacific Region - Breaking Down the Barriers to Business: More Private Sector Reform Stories Brochures and Flyers Jul 2012
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
Finding Balance: Making State-Owned Enterprises Work in Fiji, Samoa, and Tonga Books Feb 2009
Swimming Against the Tide? An Assessment of the Private Sector in the Pacific Serials Jan 2004

The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.