Regional : Pacific Private Sector Development Initiative, Phase IV
The Pacific Private Sector Development Initiative (PSDI) provides advisory and capacity-building assistance to help Pacific developing member countries (DMCs) of the Asian Development Bank (ADB) improve their business enabling environments. This in turn supports inclusive, private sector-led economic growth. The three consecutive phases of PSDI implemented since 2007 have helped Pacific DMCs carry out reforms and introduce new policies to improve conditions for private sector development and investment, responding to related needs and opportunities as they evolved. PSDI has expended $60.83 million during the first three phases which funded more than 600 subprojects. This included grant cofinancing of $54.73 million from Australia and New Zealand which reflects the importance and value their governments place on introducing reforms and building capacity for private sector development in the Pacific.
Project Details
-
Project Officer
Kirkby, Jonathon A.
Pacific Department
Request for information -
Country/Economy
Regional -
Sector
- Finance
| Project Name | Pacific Private Sector Development Initiative, Phase IV | ||||||||||||||||||||||
| Project Number | 53072-001 | ||||||||||||||||||||||
| Country / Economy | Regional Cook Islands Fiji Micronesia, Federated States of Kiribati Nauru Niue Palau Papua New Guinea Marshall Islands Samoa Solomon Islands Tonga Tuvalu Vanuatu |
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| Project Status | Active | ||||||||||||||||||||||
| Project Type / Modality of Assistance | Technical Assistance |
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| Source of Funding / Amount |
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| Operational Priorities | OP1: Addressing remaining poverty and reducing inequalities OP2: Accelerating progress in gender equality OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability OP6: Strengthening governance and institutional capacity OP7: Fostering regional cooperation and integration |
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| Sector / Subsector |
Finance / Banking systems and nonbank financial institutions - Finance sector development - Inclusive finance - Small and medium enterprise finance and leasing Public sector management / Law and judiciary - Reforms of state owned enterprises |
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| Gender | Gender equity theme | ||||||||||||||||||||||
| Description | The Pacific Private Sector Development Initiative (PSDI) provides advisory and capacity-building assistance to help Pacific developing member countries (DMCs) of the Asian Development Bank (ADB) improve their business enabling environments. This in turn supports inclusive, private sector-led economic growth. The three consecutive phases of PSDI implemented since 2007 have helped Pacific DMCs carry out reforms and introduce new policies to improve conditions for private sector development and investment, responding to related needs and opportunities as they evolved. PSDI has expended $60.83 million during the first three phases which funded more than 600 subprojects. This included grant cofinancing of $54.73 million from Australia and New Zealand which reflects the importance and value their governments place on introducing reforms and building capacity for private sector development in the Pacific. The technical assistance (TA) for Phase IV (PSDI IV) will build on Phase III achievements across six core areas of focus: access to finance, business law reform, state-owned enterprise reform, public-private partnerships, competition and consumer protection, and the economic empowerment of women. PSDI IV will retain these areas of focus and also respond to climate change and labor mobility by incorporating these issues into relevant subprojects. A 2018 review of PSDI by ADB's Independent Evaluation Department (IED) found that the first three phases helped provide several important inputs necessary for establishing modern, functioning private sectors in Pacific DMCs. While concluding that PSDI remained relevant and well-aligned with these DMCs' needs, IED made recommendations aimed at improving outcomes. These recommendations have been incorporated into PSDI IV. PSDI IV is consistent with ADB's Strategy 2030 and aligned with the strategic priorities of ADB's Pacific Approach, 2016-2020. The TA is included in the Pacific Regional Operations Business Plan, 2019-2021. |
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| Project Rationale and Linkage to Country/Regional Strategy | Despite progress, sustained engagement is needed to shift and remove the many barriers to healthier private sectors in Pacific DMCs. Most Pacific DMCs are remote, small in size and population, and vulnerable to shocks. Geographical dispersion and distance from major markets limit competition and increase costs. Economies are narrow and rely heavily on the public sector and large, often struggling SOEs. Complex legislation and weak policies, along with human and institutional capacity constraints, raise the cost of doing business, make it hard for financiers and investors to assess risks, suppress business access to finance, and slow economic growth. Policy reforms have proven critical to improving these business environments so far. Private investment and growth trajectories have been lifted through PSDI I-III, and trade and connectivity within the Pacific and other markets has increased. Pacific DMCs are seeking further assistance under PSDI IV to accelerate and expand these reforms and address the numerous challenges that remain. | ||||||||||||||||||||||
| Impact | Inclusive, private sector-led economic growth achieved in Pacific DMCs |
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| Project Outcome | |
|---|---|
| Description of Outcome | Gender-inclusive enabling environment for private sector development improved |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Access to inclusive business finance improved Business and regulatory environment improved, and technology platforms introduced State-owned enterprise performance improved through reforms, including privatization and public-private partnerships Effective competition and consumer protection policies developed and implemented |
| Status of Implementation Progress (Outputs, Activities, and Issues) | PSDI is working to develop new financial products using secured transactions frameworks in the Federated States of Micronesia, Fiji, PNG, and Samoa. Target of at least five new financial products introduced to support the implementation of PPSAs in selected Pacific DMCs on track to be achieved. PSDI is on track to procure and implement a new regional registry for small Pacific Island countries and has already implemented a national online business registry for PNG. PSDI is on track in supporting the establishment of policies and legislation that promote competition and consumer protection in at least three additional Pacific DMCs. PSDI has supported a PPP transaction in Tonga and is supporting another in PNG and assessing PPP options in Palau and Tuvalu. Currently, PSDI is on track to complete at least two additional PPP transactions that also address climate change. |
| Geographical Location | Cook Islands - Nation-wide; Fiji - Nation-wide; Kiribati - Nation-wide; Marshall Islands - Nation-wide; Micronesia, Federated States of - Nation-wide; Nauru - Nation-wide; Niue - Nation-wide; Palau - Nation-wide; Papua New Guinea - Nation-wide; Samoa - Nation-wide; Solomon Islands - Nation-wide; Tonga - Nation-wide; Tuvalu - Nation-wide; Vanuatu - Nation-wide |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | PSDI routinely engages in stakeholder consultation and communication during project design. |
| Responsible ADB Officer | Kirkby, Jonathon A. |
| Responsible ADB Department | Pacific Department |
| Responsible ADB Division | Pacific Liaison and Coordination Office in Sydney, Australia (PLCO) |
| Executing Agencies |
Asian Development Bank |
| Timetable | |
|---|---|
| Concept Clearance | 22 Jul 2019 |
| Fact Finding | 23 Jan 2019 to 23 Jan 2019 |
| MRM | - |
| Approval | 06 Nov 2019 |
| Last Review Mission | - |
| Last PDS Update | 30 Mar 2023 |
TA 9848-REG
| Milestones | |||||
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| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 06 Nov 2019 | - | 06 Nov 2019 | 31 Oct 2024 | - | - |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 2,000,000.00 | 27,297,641.66 | 0.00 | 0.00 | 0.00 | 0.00 | 29,297,641.66 | 01 Dec 2023 | 19,956,338.25 |
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 Access to Information Policy (AIP) 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 |
|---|---|---|
| Pacific Private Sector Development Initiative, Phase IV: Technical Assistance Report | Technical Assistance Reports | Nov 2019 |
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 |
|---|---|---|
| Pacific Private Sector Development Initiative Annual Report FY2022 | Statutory Reports and Official Records | May 2023 |
| Finding Balance 2023: Benchmarking Performance and Building Climate Resilience in Pacific State-Owned Enterprises | Reports | Mar 2023 |
| Pacific Private Sector Development Initiative Annual Report FY2021 | Statutory Reports and Official Records | Aug 2022 |
The Access to Information Policy (AIP) 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.
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Tenders
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| Policy and Advisory Technical Assistance | Technical Assistance 9848 | 07 Mar 2023 | Paradigm Applications LLC (U.S.A.) | 8680 Greenback Lane, Suite 200 Orangevale, Sacramento, CA 95662-3969 United States | Asian Development Bank | 1,116,450.00 | — |
| Policy and Advisory Technical Assistance | Technical Assistance 9848 | 15 Jan 2023 | Paradigm Applications LLC (PA) (U.S.A.) | 8680 Greenback Lane, Suite 200 Orangevale, Sacramento, CA 95662-3969, United States | Asian Development Bank | 977,139.00 | — |
| Policy and Advisory Technical Assistance | Technical Assistance 9848 | 17 Jan 2023 | Paradigm Applications LLC (PA) (U.S.A.) | 8680 Greenback Lane, Suite 200 Orangevale, Sacramento, CA 95662-3969, United States | Asian Development Bank | 1,752,091.00 | — |
| Policy and Advisory | Technical Assistance 9848 | 19 Aug 2020 | Paradigm Applications LLC (PA)(UNITED STATES) | 4214 Orange Grove Avenue Sacramento, CA 8680 Greenback Lane, Suite 200 Orangeval Sacramento, CA 95662-3969 United States | Asian Development Bank | 1,526,710.00 | — |
Procurement Plan
None currently available.