State-owned Enterprise Reform and Public-Private Partnerships
We work with Pacific governments to improve the performance of state-owned enterprises and increase private sector involvement.
State-owned enterprises (SOEs) are amongst the largest commercial entities in most Pacific countries, managing essential infrastructure such as ports, airports, and utilities, and providing a range of financial and other services.
Yet the contribution of these SOEs to economic growth is low, and the services provided are often high cost with low delivery standards and low productivity. Poor performing SOEs slow economic growth and increase the costs of doing business for private companies that depend on their services.
Pacific countries recognize the importance of improving SOE performance, and many have already adopted leading edge reform programs. The ability of Pacific SOEs to deliver a wide range of public infrastructure and services can also be enhanced by increased partnership with the private sector.
Progress has been made, but international and regional experience demonstrates that governments struggle to sustain improved SOE performance over time. Also, while SOEs remain under majority public ownership, politicians are likely to avoid commercial decisions that carry short-term political costs.
PSDI’s state-owned enterprise and public-private partnerships focus area works to improve the performance and efficiency of SOEs, by:
- supporting improvements to legal, regulatory, governance, and monitoring arrangements to strengthen SOEs’ commercial mandate, enhance transparency, and improve accountability for those SOEs that remain under majority public ownership, and
- helping to increase private sector involvement in SOEs through contracting out, PPPs, and privatizations.
State-Owned Enterprise Reform and Public Private Partnerships and COVID-19
For more information on PSDI's State-Owned Enterprise Reform and Public Private Partnerships focus area and COVID-19, click here.
State-owned Enterprise Reform and Public-Private Partnerships at a glance
SOE profitability doubled
Political influence reduced
11 privatizations or liquidations
Women on SOE boards
Pacific governments can ensure the best outcomes for their state-owned enterprises (SOEs) by reducing political influence in the director selection process and hiring candidates with the knowledge, skills, and experience needed to address the SOE’s challenges, according to a new PSDI policy brief.
The Asian Development Bank has welcomed the passing of the Public-Private Partnership (Amendment) Act in Papua New Guinea, which will increase private sector investment and participation in essential infrastructure and improve service delivery.
The Asian Development Bank has welcomed the publication of the Kumul Consolidated Holdings Authorisation (Amendment) Act 2021 in Papua New Guinea’s National Gazette, a key step in efforts to reform state-owned enterprise governance.
Papua New Guinea’s National Executive Council has endorsed the PSDI-supported Public-Private Partnership (PPP) Amendment Bill and Regulations.