Regional : Improving Financial Access and Entrepreneurship Development in the Pacific

Sovereign Project | 53097-002

The transaction technical assistance (TA) was designed to help prepare the proposed Improving Financial Access and Entrepreneurship Development Project for Papua New Guinea (PNG). Building on the achievements and insights gained from the Microfinance and Employment Project, and the Microfinance Expansion Project, the proposed project aims to expand the financial access and entrepreneurial capabilities of households and micro, small, and medium-sized enterprises (MSMEs) by strengthening financial intermediation in PNG.

Project Details

Project Name
Improving Financial Access and Entrepreneurship Development in the Pacific
Project Number
53097-002
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
Project Status
Active
Project Type / Modality of Assistance
  • Technical Assistance
Source of Funding / Amount
TA 9972-REG: Preparing the Improving Financial Access and Entrepreneurship Development Project
Source Amount
Technical Assistance Special Fund US$ 750,000.00
TA 9972-REG: Improving Financial Access and Entrepreneurship Development in the Pacific
Source Amount
Technical Assistance Special Fund US$ 500,000.00
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
Sector / Subsector
  • Finance / Banking systems and nonbank financial institutions - Finance sector development - Inclusive finance - Small and medium enterprise finance and leasing

Gender
Effective gender mainstreaming
Description

The transaction technical assistance (TA) was designed to help prepare the proposed Improving Financial Access and Entrepreneurship Development Project for Papua New Guinea (PNG). Building on the achievements and insights gained from the Microfinance and Employment Project, and the Microfinance Expansion Project, the proposed project aims to expand the financial access and entrepreneurial capabilities of households and micro, small, and medium-sized enterprises (MSMEs) by strengthening financial intermediation in PNG.

To support the governments implementation of its financial sector development strategy and financial inclusion and small and medium-sized enterprise policies, the proposed project is expected to have four outputs that include (i) financial capabilities and capacities of households, MSMEs, and participating financial institutions improved; (ii) use of digital financial services increased; (iii) regulatory capacity for microfinance strengthened; and (iv) capacity of government-established Credit Guarantee Corporation supported.

The proposed project will continue ADBs role in supporting greater financial inclusion in PNG through financial literacy programs and improving the capacity of microfinance institutions. It will address the very low levels of financial access in the population at large and among MSMEs that is weighing on entrepreneurship in a weakening economy and frustrates efforts to create jobs, raise incomes and reduce poverty.

Project Rationale and Linkage to Country/Regional Strategy

The transaction TA supported the preparatory work for the proposed project in PNG by assessing the finance sector and evaluating gaps and needs, identifying potential activities for consideration in project scope, undertaking necessary due diligence, identifying the appropriate implementation arrangements, and assisting the overall project design.

As the implementation of the transaction TA progressed, ADB in consultation with the PNG Department of Treasury and Department of National Planning and Monitoring identified the potential to support new interventions targeting finance and private sector development. In addition, interest from ADB's Pacific developing member countries (DMCs) in fortifying their finance sector to boost financial inclusion and enable affordable, sustainable access to finance has been increasing.

Recognizing the significance of these developments and the need to be client centric, agile, and responsive, ADB, on 21 December 2023 approved a major change in scope for this transaction TA, including the implementation arrangements and increased the TA resourcing. The changes include (i) reclassifying this transaction TA as a TA; (ii) expanding the scope of the TA in PNG to support additional analytical and due diligence work, and promote reforms to develop the foundations of finance and private sectors and strengthen ADB's position to engage and advocate for transformative and sustainable interventions; (iii) recategorizing this as a regional TA, encompassing all of ADBs Pacific DMCs; and (iv) renaming the TA to 'Improving Financial Access and Entrepreneurship Development in the Pacific.

In line with these changes, an additional output was introduced that will support consultations and policy dialogue on critical financial sector development issues in PNG and the rest of ADB's Pacific DMCs. Within this context, the TA will facilitate preliminary scoping, analytical work, and broader due diligence to inform development outcomes, including project design. The due diligence requirements considered and supported will be in line with ADB requirements, including but not limited to, sector and thematic assessments, gender-sensitive economic and financial project analysis, financial due diligence, gender analysis, gender action plan development, strategic procurement planning, and the establishment of baseline data.

Furthermore, the TA will enhance the implementation readiness of finance sector projects in the Pacific by strengthening the capacity of executing and implementing agencies and the project management units to initiate critical project activities. Additionally, the TA will support legal and policy reforms essential for enabling the finance sector in the region, complementing other TA resources. The reforms will be coordinated with existing programs and will only be supported if existing TAs are resource-constrained, or the request does not fit the scope of existing TAs. The support will be demand-driven and aligned with policy-based programs, wherever feasible.

Given the changes, ADB is now administering, executing, and implementing the TA in close collaboration with relevant governments and agencies of the Pacific DMCs.

Impact

Project Outcome

Description of Outcome
Progress Toward Outcome

Implementation Progress

Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
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
Government agencies, financial institutions, Central Banks, financial inclusion agencies, MSME agencies, development partners and other stakeholders.
During Project Implementation
Various stakeholders were consulted during the implementation of this transaction TA in PNG, including the Bank of PNG, Centre of Excellence in Financial Inclusion, government agencies such as the Department of Treasury, and Department of Education, Small and Medium Enterprises Corporation, financial institutions, development partners and other stakeholders. ADB held a virtual fact-finding mission in August 2021 to discuss proposed project activities and complete the due diligence requirements for the proposed project. In addition to the stakeholders above, the Department of National Planning and Monitoring, and the Department of Commerce and Industry were consulted. During these consultations, the relevant government agencies requested additional support for MSMEs. In September 2022, ADB conducted a first in-country mission to PNG for this transaction TA to re-engage with stakeholders (face to face), progress project-related discussions, including fact-finding and firm up the project design and implementation arrangements. The stakeholders in PNG confirmed their readiness to support project implementation, including during the 2023 programming discussions. Subsequent engagements and follow ups resulted in the memorandum of understanding for the fact-finding mission signed on 10 July 2023. Loans and grant negotiations was held from 13 and 14 December 2023. Project is expected to be approved in Q2, 2024. Support to other Pacific developing member countries will be mobilized in Q1, 2024.

Business Opportunities

Consulting Services

ADB will engage consultants following ADB's Procurement Policy (2017, as amended from time to time), ADB's Procurement Regulations (2017, as amended from time to time) and the relevant staff instructions. Individual consultant selection is proposed for the recruitment of six lead international consultants to provide 52 person-months of intermittent services to design the Improving Financial Access and Entrepreneurship Development Project. The lead consultants will recruit specialist short-term consultants with required technical expertise for on-demand assignments, using the individual consultant selection method. Resource person contracts will also be considered for any immediate in-country support, including support for surveys and data collection. The requirements and lengths of the engagements will vary with the scope of work. The terms of reference for assignments by specialist consultants will be prepared by the lead consultants and submitted to the transaction TA supervising team for endorsement.

Contact

Responsible ADB Officer
Bharat, Vimlesh Vikash
Responsible ADB Department
Sectors Group
Responsible ADB Division
Finance Sector Office (SG-FIN)
Executing Agencies
Bank of Papua New Guinea

Timetable

Concept Clearance
-
Fact Finding
-
MRM
-
Approval
30 Apr 2020
Last Review Mission
-
Last PDS Update
13 Mar 2024

Funding

TA 9972-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Apr 2020 03 Jun 2020 03 Jun 2020 30 Jun 2022 30 Apr 2025 -
Financing Plan/TA Utilization
ADB Cofinancing Counterpart Total
Gov Beneficiaries Project Sponsor Others
1,250,000.00 0.00 37,500.00 0.00 0.00 0.00 1,287,500.00
Cumulative Disbursements
Date Amount
02 Apr 2024 570,234.21

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
Preparing the Improving Financial Access and Entrepreneurship Development Project: Technical Assistance Report Technical Assistance Reports Apr 2020

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 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.

Tenders

Tender Title Type Status Posting Date Deadline
COORDINATION AND IMPLEMENTATION SUPPORT CONSULTANT - FINANCE SECTOR OPERATIONS (SAMOA) Individual - Consulting Closed
Marketing Research and Strategy Specialist (Financial Services) Individual - Consulting Closed
Analyst - Vanuatu Policy-based Operation Individual - Consulting Closed
Development of Subsidiaries Policy Guidelines and Revision of Investment Policy Guidelines Individual - Consulting Closed
COORDINATION AND IMPLEMENTATION SUPPORT CONSULTANT - FINANCE SECTOR OPERATIONS (FIJI) Individual - Consulting Closed
COORDINATION AND IMPLEMENTATION SUPPORT CONSULTANT - FINANCE SECTOR OPERATIONS (PNG) Individual - Consulting Closed
Procurement Specialist Individual - Consulting Closed
Finance Sector Project Development Specialist Individual - Consulting Closed
Project Coordinator Individual - Consulting Closed
Financial capacity building expert Individual - Consulting Closed
Gender expert Individual - Consulting Closed
Digital financial services expert Individual - Consulting Closed
MSME development expert Individual - Consulting Closed
Finance Sector Development expert Individual - Consulting Closed
Financial management expert Individual - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.