Private sector helping SOEs

 A NEW report by the Asian Development Bank shows that engaging the private sector through public-private partnerships and privatisation improves the performance and service delivery of state-owned enterprises.

Finding Balance 2014: Benchmarking the Performance of State-Owned Enterprises in Island Countries launched yesterday involves nine nations, including Papua New Guinea.

They were selected for the breadth of their SOE reform experience.

ADB’s vice president Stephen Groff said: “The study reflects ADB’s ongoing commitment to economic development in our member countries, an important element of which is continued thought leadership on SOE reforms.

“Reforming the SOE sector is vital as it improves basic service delivery, reduces the costs of doing business, and creates opportunities for private investment.”

The study said the state entity reforms can bring immediate benefits, as in the Solomon Islands where SOEs showed an average 10% return on equity in 2010-2012, compared to a return of -11% from 2002-2009.