The Project will strengthen the Government of Pakistan's capacity to privatize and restructure its designated public sector enterprises (PSEs) by (i) strengthening the privatization program; (ii) improving corporate governance, structure, and management capacity in selected PSEs; and (iii) enhancing governance and regulatory regimes in selected sectors currently dominated by PSEs.
The expected impact of the project is a reduction of the fiscal and economic costs associated with Pakistan PSEs. The expected outcome is successful privatization and restructuring of selected PSEs. This will be measured through the number of government divestments from fiscally costly PSEs and the number of fiscally costly PSEs effectively restructured.
| Project Name | Public Sector Enterprise Reforms Project | ||||
| Project Number | 48031-001 | ||||
| Country | Pakistan |
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| Project Status | Closed | ||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Governance and capacity development Private sector development |
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| Sector / Subsector | Public sector management - Economic affairs management - Reforms of state owned enterprises |
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| Gender Equity and Mainstreaming | No gender elements | ||||
| Description | The Project will strengthen the Government of Pakistan's capacity to privatize and restructure its designated public sector enterprises (PSEs) by (i) strengthening the privatization program; (ii) improving corporate governance, structure, and management capacity in selected PSEs; and (iii) enhancing governance and regulatory regimes in selected sectors currently dominated by PSEs. The expected impact of the project is a reduction of the fiscal and economic costs associated with Pakistan PSEs. The expected outcome is successful privatization and restructuring of selected PSEs. This will be measured through the number of government divestments from fiscally costly PSEs and the number of fiscally costly PSEs effectively restructured. |
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| Project Rationale and Linkage to Country/Regional Strategy | The government has requested the Asian Development Bank and other development partners to support the strategic policy and financial requirements of the PSE reform and privatization agenda. The Project will finance technical assistance to PSE reforms. This assistance is aligned with the ADB country partnership strategy for Pakistan and is included in the country operations business plan 2014 -2016. | ||||
| Impact | Reduced fiscal and economic costs associated with Pakistan''s PSEs | ||||
| Project Outcome | |
|---|---|
| Description of Outcome | Successful privatization and restructuring of selected PSEs |
| Progress Toward Outcome | To be determined. Project activities has yet to start. |
| Implementation Progress | |
| Description of Project Outputs | Strengthened privatization program Corporate governance, structure and management capacity improved in selected PSEs Governance and regulatory regimes enhanced in selected sectors currently dominated by PSEs Project efficiently and effectively managed |
| Status of Implementation Progress (Outputs, Activities, and Issues) | With the slowdown of the privatization program and use of the government's own resources for energy sector reform monitoring, the government is now focusing only on completing the energy sector reform monitoring reports by April 2017. |
| Geographical Location | Pakistan |
| Safeguard Categories | |
|---|---|
| Environment | C |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | The Project will finance technical assistance to support government's reforms in public sector enterprises (PSEs). It is anticipated that it will have no adverse environmental impacts. |
| Involuntary Resettlement | The Project does not include civil works with land acquisition. It will finance consulting services to support government's policy reforms. |
| Indigenous Peoples | The Project will finance consulting services to support government's reforms in public sector enterprises (PSEs). The reforms will be applied across PSEs and are not expected to have adverse impacts on any specific minority ethnic groups in the country. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | The main stakeholders are PSEs management and staff, regulatory authorities, ministries, consumer organizations, and labor unions. Representatives of these stakeholders were consulted throughout project processing. The beneficiaries will primarily be the domestic, industrial, agricultural, and commercial clients of public goods and services provided by PSEs, who will gain from improved service delivery. Taxpayers and recipients of government services will indirectly benefit from reduced fiscal costs of PSEs. Workers in PSEs are expected to benefit from a consistent and fair approach to labor retrenchment to be provided through the mitigation framework for labor-related matters to be developed under the Project. |
| During Project Implementation | Representatives of the stakeholders will continue to be consulted throughout project processing. The Project will prepare a public communications strategy to ensure transparency, understanding, and public support to PSE reforms by all stakeholders. The customer surveys to be financed by the Project will monitor service delivery and tariff structures of PSEs throughout project implementation, with specific consideration of poor consumers. |
| Business Opportunities | |
|---|---|
| Consulting Services | All consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). |
| Procurement | All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2013, as amended from time to time). |
| Responsible ADB Officer | Mtchedlishvili, Levan G. |
| Responsible ADB Department | Central and West Asia Department |
| Responsible ADB Division | Energy Division, CWRD |
| Executing Agencies |
Ministry of Finance [email protected]_CC.SDNPK.UNDP.ORG Economic Affairs Div. Rm. 308 Block "C" Secretariat Bldg Islamabad, Pakistan |
| Timetable | |
|---|---|
| Concept Clearance | 18 Apr 2014 |
| Fact Finding | 31 Mar 2014 to 11 Apr 2014 |
| MRM | 06 Aug 2014 |
| Approval | 04 Dec 2014 |
| Last Review Mission | - |
| Last PDS Update | 30 Mar 2017 |
Loan 3214-PAK
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 04 Dec 2014 | 27 Jan 2015 | 17 Apr 2015 | 30 Jun 2020 | - | 19 Jul 2017 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 22.54 | Cumulative Contract Awards | |||
| ADB | 20.00 | 04 Dec 2014 | 0.00 | 0.00 | 0% |
| Counterpart | 2.54 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 04 Dec 2014 | 0.00 | 0.00 | 0% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | - | - | Satisfactory | - | Satisfactory |
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.
| Title | Document Type | Document Date |
|---|---|---|
| Public Sector Enterprise Reforms Project: Project Data Sheet (Urdu Translation) | Translated PDS | Jun 2015 |
| Project Agreement for Public Sector Enterprise Reforms Project | Project/Program Agreements | Jan 2015 |
| Loan Agreement (Special Operations) for Public Sector Enterprise Reforms Project | Loan Agreement (Special Operations) | Jan 2015 |
| Public Sector Enterprise Reforms Project: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Dec 2014 |
| Public Sector Enterprise Reforms Project: Report and Recommendation of the President | Reports and Recommendations of the President | Nov 2014 |
| Public Sector Enterprise Reforms Project: Procurement Plan | Procurement Plans | Oct 2014 |
| Public Sector Enterprise Reforms Project: Project Administration Manual | Project/Program Administration Manual | Oct 2014 |
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
None currently available.
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.