• Reference: P-BW-KA0-003
• Approval date: 14/10/2010
• Start date: 14/10/2011
• Appraisal Date: 26/03/2010
• Status: OngoingOnGo
• Implementing Agency: BOTSWANA POWER CORPORATION
• Location: GABORONE BOTSWANA

1.The Government of Botswana wishes to further advance the implementation of its privatization program, a key component of its diversification agenda. Economic diversification has been a central objective of Botswana's development policy, in recognition of the excessive dependence of Botswana's economy on diamonds. In 2009, the African Development Bank supported this objective by providing a US$ 1.5 bn Economic Diversification Support Loan (EDSL). The loan supported reforms designed in particular to promote "the development of a vibrant private sector including privatization" (component one).

2.The objective of the proposed project is to build capacity in the Public Enterprises Evaluation and Privatization Agency (PEEPA). PEEPA is mandated to take the leadership in the implementation of the privatization program. The project is an important complement to the privatization-related reforms included in the EDSL.

3.The project includes the following activities:

(i) Preparing options analyses and tender documents for two privatization transactions;

(ii) providing on-the-job training based on these two transactions;

(iii) improving practical skills of PEEPA staff through secondment to experienced sister institutions;

(iv) producing a policy for Citizen Economic Empowerment in privatization projects. The project focuses on on-the-job training on actual transactions, to complement the overall adequate academic qualifications of PEEPA staff. It will be implemented during the period 2010-2012.

4.The project will contribute to accelerating the implementation of the privatization program by building practical privatization skills and through the demonstration effect of delivering two high priority transactions. The Citizen Economic Empowerment Policy will also make a major contribution to improving economic opportunities for domestic businesses and investors.

The Government of Botswana wishes to further advance the implementation of its privatization program, a key component of its diversification agenda. Economic diversification has been a central objective of Botswana's development policy, in recognition of the excessive dependence of Botswana's economy on diamonds. In 2009, the African Development Bank supported this objective by providing a US$ 1.5 bn Economic Diversification Support Loan (EDSL). The loan supported reforms designed in particular to promote "the development of a vibrant private sector including privatization" (component one).

The objective of the proposed project is to build capacity in the Public Enterprises Evaluation and Privatization Agency (PEEPA). PEEPA is mandated to take the leadership in the implementation of the privatization program. The project is an important complement to the privatization-related reforms included in the EDSL.

Privatization is a major component of the Private Sector Development Strategy of the National Development Plan 10. Promoting privatization and PPPs is one of the key actions under the pillar "Support actions to expand private sector investment" of the AfDB's CSP.

The Bank assisted in the definition of the project. This project is also used as a platform for AfDB to conduct a policy dialogue with the Government on privatization strategies. OPSM could also finance privatization and PPP projects emerging from the privatization pipeline.

PEEPA is the sponsor and the main beneficiary. It is an autonomous government agency established to, amongst other things, advise Government on all aspects of commercialisation and privatisation. PEEPA plays a central role in the delivery of Botswana's ambitious privatization program (from divestiture to concessions to outsourcing). Its mandate covers, policy, planning, coordination, transaction structuring and execution.

LUMBILA Kevin Numbi - OSGE2

Finance source	Amount
MICF	UAC 600,000
Total	UAC 600,000