PMR cover.psd - ppiaf

design and execution of a PPP e-ID system in Vietnam. The deployment of e-ID systems helps increase effi ciency and
transparency of public service delivery to citizens. The private sector’s role in deploying this e-ID infrastructure is critical,
because it can potentially ensure the fi nancial viability and sustainability of the project.
Strengthening private sector engagement is also important, particularly in countries where the PPP model has
been gaining support. In Vietnam, for example, the Ministry of Transport—through the Directorate of Roads
Vietnam—is taking the lead in setting a strategic vision for the national road system, which will include the use of
performance-based contracts in road maintenance. PPIAF is helping to undertake a review of the current approach
to performance-based road maintenance contracting in Vietnam and providing recommendations to improve its
implementation.
Two SNTA activities were approved in recent months to assist local government units access market-based fi nancing
to support priority projects that will help them cope with the challenges of rapid urbanization and climate change.
The fi rst activity will support a credit rating and fi nancial management assessment of the Province of Jakarta and the
strengthening of its newly established Debt Management Unit in assessing and monitoring debt. The Province of
Jakarta is keen on issuing a bond in July 2012, which will potentially be the fi rst municipal bond issuance for Indonesia.
The other SNTA activity is helping the City of Tanuan in the Philippines improve its capacity for fi scal and fi nancial
management as it considers a local currency loan from the International Finance Corporation to fi nance its capital
expenditure program for essential infrastructure. The planned transaction will be different from earlier borrowing by
the city, as this will not involve traditional inter-governmental transfers (block grants from the national government
to local governments) as security.
Looking forward, PPIAF assistance in EAP will continue in the region’s larger economies, but focusing on the least
developed economies remains a strategic priority. To date, potential activities in the energy sector in Papua New
Guinea and telecommunications sector in Myanmar are being explored. Developing a pipeline for PPIAF’s SNTA
window will also be a priority starting with follow-up support to local governments that benefi tted from initial activities
under the SNTA assistance (see box below).