Assistance to the Ministry of Economy for Developing a State Ownership Policy for State-Owned Enterprises

Location:

Serbia

TCRS Number:

12327

Business sector:

Other

Notice type:

Public

Status:

Approved

PSD disclosed:

17 Oct 2019

Project Description

In Serbia, state-owned enterprises (“SOEs”) continue to play a critical role in the economy. According to data of the International Monetary Fund (“IMF”), Serbia’s SOE sector is larger than most other countries in the Central and South-Eastern Europe in terms of both employment and output, with SOEs operating in all sectors of the economy. Serbian SOEs also show weaker performance than private sector peers and potential enhancement of their resource allocation can significantly (by close to 2 per cent) increase GDP.

The restructuring of SOEs and the improvement of their governance is therefore a key area of reform which the Serbian Government agreed to undertake as part of the IMF-agreed reform Policy Coordination Instrument and which will include adoption of “an ownership policy document to provide a strategic vision to state ownership, covering ownership objectives (including criteria for divestment), financial and public policy targets, reporting and monitoring guidelines and procedural guidelines for boards of directors”.

The roles and responsibilities of various ministries in the Serbian Government in respect of all state-owned enterprises (i.e. both public enterprises and joint-stock and limited liability companies owned by the State) are defined by the Law on Ministries, the Law on Public Enterprises and the Government’s Decision on the division of responsibilities of competent ministries. According to these acts, the Ministry of Economy is, inter alia, in charge of the setting of strategic goals of state-owned enterprises and for preparing draft decisions on appointments and dismissals of supervisory board members of state-owned enterprises (or members of assemblies in the case of joint stock companies).

EBRD has first-hand experience with improving corporate governance of SOEs in Serbia and has participated in a significant number of transactions which included governance improvement efforts. Against this background, the Ministry of Economy has requested EBRD’s assistance in developing the State Ownership Policy for SOEs, which should provide the basis for the enhancement of their efficiency, governance and transparency. The State Ownership Policy should include, inter alia, the rationales for state ownership, public policy objectives under which SOEs are expected to operate, principles behind the State’s role in corporate governance of SOEs as well as high level objectives and expectations for SOEs.

TC Services

It is proposed to initiate a technical assistance project (the “Project”) with the aim of strengthening the Serbian corporate governance regulatory framework by assisting the Ministry of Economy (and more broadly the Government) in developing a State Ownership Policy and strengthening corporate governance of SOEs, in line with international standards and best practices.

In order to achieve the Project objectives, the EBRD will assist the Ministry of Economy with, inter alia, the following tasks:

(i) Identification of ownership rationales and high-level objectives of the State’s ownership and advising on the overarching objectives that the State aims to achieve with its ownership and what should be the specific objectives in particular industries or SOEs;

(ii) Developing criteria for classification and categorisation of SOEs (e.g. SOEs of strategic significance, commercial SOEs etc.), based on an analysis of mandates, missions and purposes of all SOEs and their link to the State’s ownership rationales;

(iii) Designing the framework for setting objectives and targets for SOEs and for monitoring their achievement, upon having reviewed the State’s approach to setting performance targets and (financial, technical and non-commercial) Key Performance Indicators (“KPIs”) for SOEs as well as relevant reporting requirements and by creating links to the SOEs’ corporate strategies;

(iv) Analysing the Serbian legal and institutional frameworks concerning corporate governance of SOEs and the exercise of the State’s ownership function and benchmarking them against best international practices and practices of selected jurisdictions (preferably OECD members or candidates) whose economies and institutional frameworks are comparable to that of Serbia;

(v) Outlining the key principles and features of the future State Ownership Policy in a Concept Note and working with the Ministry, EBRD, IMF and other ministries as well as other stakeholders from the Serbian Government and SOEs on building consensus for the Concept Note;

(vi) Drafting the State Ownership Policy and developing a Roadmap for its implementation which shall operationalise and assign responsibilities for implementation of high-level principles and activities endorsed in the State Ownership Policy; and

(vii)  Assisting with the consultation and adoption processes for the above mentioned documents.

Any competitive selections for business opportunities relating to this project will be published on the EBRD's website: Consultancy Procurement Opportunities.

Email: eSelection@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

Please note that after the appointment of the new mechanism Head in 2020, the revised Project Accountability Policy and Guidance will come into effect to guide case handling.

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