Regional : Pacific Private Sector Development Initiative Phase II

Finance / Finance sector development - Inclusive finance

Public sector management / Law and judiciary - Public expenditure and fiscal management

To meet the demand for more private sector-related programs, ADB launched the Pacific Private Sector Development Initiative (PSDI) in November 2006 with significant cofinancing from AusAID. PSDI leverages existing ADB country partnership strategies by providing a rapid-response capability for private sector-related reform. Building on the findings of comprehensive analyses and private sector assessments, PSDI focuses on the three key reform areas: (i) state-owned enterprise (SOE) reform and public-private partnerships (PPPs); (ii) financial sector reform to promote access to financial services; and (iii) reform of the legal and business regulatory environment. The TA being reviewed is the second phase of PSDI, which continues to focus on the three key reform areas above. However PSDI 2 is being implemented with two cross-cutting themes of (i) monitoring and evaluation framework and (ii) gender empowerment. PSDI 2 activities are implemented with a mix of country-focused and regional approaches.

The new RETA is a continuation of the PSDI (RETA 6353), albeit with a strong focus on reform implementation and catalyzing investment.

The RETA is closely coordinated with, and supplements where feasible, ADB and other agencies' efforts to support the region in responding to the impact of the global economic crisis, in particular through reform measures that help increase flexibility and productivity of the economies of the countries concerned.

1. Policy advisory

(i) Advocacy, research, and communication

(ii) Technical advice, and capacity development

(iii) Regional cooperation and results monitoring and

benchmarking

2. Transactions support

(i) Initial assessments and prefeasibility studies

(ii) Feasibility studies, due diligence, and project and transactions design and packaging

Phase II of PSDI was launched operationally in early-2010 and a core team of private sector development experts has been recruited. Project management structures and systems were already in place under TA 6353-REG: Private Sector Development Initiative, i.e., phase I, and are continuing for this second phase.

This TA added to the work already completed through phase I and leverages the analysis of private sector development issues previously developed. To better track progress and results of PSDI, a monitoring and evaluation framework has been developed under phase II of PSDI that encompasses all phases of ADB private sector reform efforts in the Pacific region. In addition, gender has been incorporated as a crosscutting theme of this phase.

Approximately $11.97 million was committed and disbursed under TA.

The TA is completed by December 2014, and financial closing is underway.

(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.