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 at a glance
SOE profitability doubled
Improvements supported
Public-private partnerships
Political influence reduced
11 privatizations or liquidations
Women on SOE boards
Latest News
Commercially oriented state-owned banks can help provide much-needed financing for businesses in the Pacific, but only if they adhere to commercial principles and regulations, according to PSDI’s latest Finding Balance report.
A PSDI-supported public-private partnership signed in Nuku’alofa yesterday will see the largest solar plant in the south Pacific built in Tonga.
NUKU’ALOFA, TONGA (21 March 2019) — The largest solar plant in the south Pacific will be built in Tonga through the country’s second commercially financed public-private partnership (PPP) after an agreement was signed in Nuku’alofa today.
HONIARA, SOLOMON ISLANDS (24 January 2019) — Solomon Islands’ new, commercially oriented state-owned enterprise (SOE) policy will help ensure the government’s public investments remain efficient and profitable, says the Asian Development Bank (ADB).
Key Publications
