Tajikistan: Support Enabling Capacity Building for Public-Private Partnerships in Tajikistan

Sovereign Project | 47098-001 Status: Active

Summary

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Project Name Support Enabling Capacity Building for Public-Private Partnerships in Tajikistan
Project Number 47098-001
Country Tajikistan
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8344-TAJ: Support Enabling Capacity Building for Public-Private Partnerships in Tajikistan
Technical Assistance Special Fund US$ 225,000.00
TA 8344-TAJ: Support Enabling Capacity Building for Public-Private Partnerships in Tajikistan (Supplementary)
Technical Assistance Special Fund US$ 275,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Public sector management - Economic affairs management - Public expenditure and fiscal management

Gender Equity and Mainstreaming
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome

Progress as of March 2016

-On track; (i) the government has established and operationalized the PPP Center (under the State Committee for Investment and State Property Management, SCISPM) to serve as the coordinating agency for all government's PPP initiatives (In line with the PPP Act); (ii) regulations and guidelines for implementation of the PPP Act have been developed, and a review of the wider legal framework and detailed review of the PPP Act have been undertaken, leading to proposed amendments; (iii) PPP focal points in key line ministries and local governments have been trained through on-the-job training, workshops, and high-level promotional events; and (iv) a comprehensive PPP website has been developed to promote and support the PPP programme.

Progress as of Sept. 2015

-Initial development of four pilot PPP projects underway: (i) Sugdh FEZ Water Supply; (ii)Turzunzade Logistics Center (pre-feasibility study completed); (iii) Medical Center (pre-feasibility study completed), and (iv) Danagara FEZ Transmission line; and selecting of other potential pilot projects.

Draft Government decree has been prepared to amend the Regulation on Entrepreneurship Support Fund (ESF, an existing fund managed by the SCISPM) to enable the Project Development Fund (for PPPs) to be partly capitalized from the ESF.

Two additional staff (in addition to existing three staff) committed by MOF to the PPP Center

Progress as of March 2015

PPP Unit director and one additional PPP Unit staff hired (by the government

TA extension request submitted to ADB management

Progress as of December 2014

- International sectoral expert hired

- Review Mission,with consultant team, fielded in November 2014

- Government comments on draft TA report discussed

- Signed Aide Memoire, with comments, received; government request for extension beyond March 31, 2015 noted

- Mission apprised EA and government of the need for adequate staff in the PPP Unit to ensure effective continuation of PPP development.

Overall TA progress as of December 2014

the bulk of activities for the initial implementation of the PPP Law have been substantially conducted; Several Development Partners have indicated interest to also support, in particular with the preparation of (pilot) PPP projects; the main focus is placed now on developing the pipeline of potential PPP projects and on supporting with the further preparation of a limited number of projects which demonstrate greatest potential to be successfully implemented as PPPs; work undertaken during the mission to identify and select a limited number of projects to support initial preparation work; the establishment of the Project Development Fund is being actively pursued to ensure that institutional support mechanisms to support project preparation are put in place; the Deputy Chairperson of the SCISPM (the EA) would like to conduct a substantial PPP Forum in Tajikistan during 2015 to present the governments PPP programme (Tajikistan now has substantive progress to demonstrate, and that such a forum is warranted and appropriate at this time)

Progress as of July 2014

-The PPP Centre and TA consultants have focused on supporting the government to understand and implement the PPP Law, together with process flows and regulations. An ongoing activity of the PPP Centre is identification of harmonization issues.

-has been developed and is being finalized by the PPP Centre. The policy incorporates institutional, procedural and other provisions already contained in the PPP Law and places these in a broader policy framework.

-As noted, pilot PPP projects have been identified in conjunction with several line ministries, local government and FEZ agencies.

On the Policy side, as the PPP Law already contains the main elements of a PPP policy, the development of a policy has not been prioritised at this point.

On the institutional side, the PPP Centre has been set up with two core full-time staff. The TA is focusing increasingly on supporting the PPP Unit staff in taking on principal responsibility for the PPP framework, support to line agencies and project development. A national legal specialist and national PPP specialist have been recruited to support the PPP Unit. The budget of the PPP Unit has been approved by the Ministry of Finance (MOF) based on the Business Plan developed by the PPP Unit staff and the TA. The TA is in the process of providing office equipment to enable better operation of the PPP Unit.Initial work has been conducted to develop a webpage on the SCISPM website for the PPP Unit and a more comprehensive website will be launched by August 2014.

The PPP Unit is preparing for the first formal meeting of the PPP Council (headed by the Deputy PM) at which various aspects of the PPP framework, including regulations, PPP procedures, pilot project process, will be tabled. An 'Awareness Building' event for government is being prepared.

The workings and need for a Project Development Fund (PDF) have been discussed with the PPP Unit staff. An Executive Briefing Memo on PDFs has been prepared for initial formal discussions within SCISPM and MOF.

On the legal and regulatory side, an inventory of codes and regulations impacted by the PPP Law has been prepared. Key implementing regulations have been drafted.The PPP Law has detailed procedures and processes already set out in the principal legislation as opposed to being placed in regulations. More detailed work has been conducted and a number of shortcomings have been identified in the Law. An international legal specialist is being recruited to provide support.

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

Progress as of March 2016

Outputs 1, 2, 3 (achieved)

Output 4 (decision made to not developed at this stage as the PPP Law is very detailed and covers all aspects that a National PPP Policy would (cover)

Output 5 (on track; discussions are in an advanced stage for the establishment and capitalization of a Project Development Facility to provide advisory and structuring support for future PPP transactions, including share the costs of structuring and advisory support provided under ADB's AP3F Facility)

Output 6 (achieved)

Output 7 (on track; capacity also being increased through on-the-job training to the PPP Center and relevant ministries/agencies in the initial development of pilot PPP transactions, including one on power transmission lines, in coordination with IFC; and one on a logistics center).

Progress as of December 2014

All outputs on track; main focus now on developing the pipeline of potential PPP projects and on supporting with the further preparation of a limited number of projects which demonstrate greatest potential to be successfully implemented as PPPs and to build PPP capacity through learning by doing on these pilot projects

Progress as of July 2014

- Initial regulations (by-laws) under the PPP Law on eligible sectors have been prepared and discussed by the PPP Council. Procedural flow-charts based on the procedures set out in the PPP Law have been prepared. As the PPP Law contains a high level of procedural detail, there is limited need for detailed procedural regulations.

-Limitations in the current PPP Law are being identified, together with issues regarding legal harmonization.

-The PPP Centre has been established in SCISPM in late 2013. A Business/ Operational Plan has been developed and approved, and budgetary resources allocated. Key staff have been appointed.

-A Draft National PPP Policy has been prepared by May 2014 and is being finalized by the PPP Centre.

-A comprehensive Memorandum on the rationale, setup and functioning of a PDF has been developed in late 2013. The PDF has been tabled at the PPP Council meeting, which has mandated the PPP Centre together with the Ministries of Finance, Justice, and Economic Development and Trade to further develop the PDF.

-Project screening criteria have been developed. As noted, 6 pilot projects are included in the current Action Plan of the PPP Centre and more are under investigation.

-Capacity building for undertaking PPP policy reforms and identifying projects has been taking place with state bodies. This includes formal identification of persons responsible for PPP in each state agency, a consultation/training workshop with these persons, and project specific discussions with several agencies.

Progress as of March 2014

Draft regulations to implement the PPP law have been drafted and undergone interministerial discussions; an inventory of codes and regulations impacted by the PPP Law has been prepared.

The PPP Centre has been set up in the State Committee for Investment and State Property Management (SCISPM, the EA), two core full-time staff appointed and budget approved by MOF.

Review of the PPP Law has shown that main elements of a PPP policy are contained in the Law. Hence, the development of a policy has not been prioritised at this point.

An Executive Briefing Memo on Project Development Funds has been prepared for initial formal discussions within SCISPM and MOF.

Coaching on project screening methodology, selection criteria and ranking has been provided and templates developed. A template for Initial Project Proposals (IPP) has also been developed and is being finalized.

Substantial work has been done to define the PPP process flow which has introduced the PPP Unit staff to the various steps in developing PPPs.Through this work, the TA is providing on-the-job' training to the PPP Unit and national experts.

- The PPP Action Plan, approved in June 2014, is being implemented. Terms of reference for the international legal and national website developer has been prepared.

Geographical Location National

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design During a mission of VP01 to Tajikistan in October 2012, the government requested TA for developing a conducive enabling environment for PPP and building capacity for PPP in selected government agencies. The request was re-iterated during a subsequent mission of DG, CWRD, in October 2012 and discussed in detail during a CWPF consultation mission in February 2013. The mission fielded in February 2013 undertook stakeholder consultantions. These consultations were prepared and followed-up by the PPP focal point in ADB's Tajikistan Resident Mission.
During Project Implementation

- Regular consultations with all stakeholders being undertaken during implementation

- Continuous and active consultation with EA, IAs, stakeholders in the public and private sector, including other development partners

- Inception Mission fielded in June 2013. The PPP focal point in ADB's Tajikistan Resident Mission and the international PPP consultant are undertaking consultations with relevant stakeholders in government and the private sector.

-Inception Report, discussed with the Dy Chairperson of the Investment Committee and the Chairman (also, Dy Chair PPP Council) briefed.

-Change of Scope to TA undertaken with EA, IA consultation

-Review Mission fielded in February 2014. Extensive discussions held with government and development partners.

Business Opportunities

Consulting Services

An International PPP Specialist has been recruited and commenced serviced on 3 June 2013. One national PPP specialist and one national legal specialist have also been recruited. An international legal specialist is will also be recruited. Consultants have been (and will be) recruited individually by ADB in accordance with the Guidelines on the Use of Consultants (2010, as amended from time to time). The national consultants will be guided by the international expert.

A national website developer will also be recruited to help the PPP Center in developing the PPP website.

Procurement No procurement of goods/services is envisaged throughout the implementation.

Responsible Staff

Responsible ADB Officer Priyanka Sood
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
State Committee on Investments and State Property Management
Mr. Shukhratzhon Rakhmatboev, First Deputy Chairman
info@gki.tj
27, Shotemur Street Dushanbe Tajikistan

Timetable

Concept Clearance 26 Mar 2013
Fact Finding -
MRM -
Approval 26 Mar 2013
Last Review Mission -
Last PDS Update 30 Mar 2016

TA 8344-TAJ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Mar 2013 - 26 Mar 2013 31 Mar 2014 30 Sep 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 0.00 0.00 0.00 0.00 500,000.00 26 Mar 2013 391,050.98

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