MG - Prviate Sector Development II

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The Second Private Sector Development Project will enable the Government of Madagascar, improve access, reliability, and affordability of key utilities, including transport. It will complete divestiture of four state-owned enterprises, and some small, and medium enterprises, and will liberalize reforms in corresponding sectors, i.e., agro-industry, air transport, energy, finance, and telecommunications, thereby creating opportunities for private investments. The components will: 1) strengthen the capacity of the three autonomous sector regulators - air transport, petroleum, and telecommunications - improving their efficiency in technical, and economic regulation, and monitoring environmental hazards, sector standards, and policy guidelines. In-house capacity at the Center for Facilitation of Enterprise Creation will be built, and financial systems strengthened; 2) implement privatization processes, by strengthening the Technical Secretariat privatization through technical assistance provision, and advisory assistance, namely in management, and concession arrangements. The local ownership scheme will support management processes to local investors through financial advisory services, and, privatization will be supported to accelerate the process of remaining sectoral enterprises; and, 3) finance, and support the operational set-up of the recently created center for the coordination of activities of micro, and small enterprises, including formulation support for implementation of the Interim Poverty Reduction Strategy Paper.