Public Enterprises (PEs) play a key role in the world economy, with 10% of the world's largest companies, in terms of market capitalization, being state-owned. In OECD countries there are over 2,000 EP and employ more than 6 million workers. One of the challenges for governments is how to monitor these public assets so that they are managed efficiently and transparently. In the specialized literature it is indicated that centralized models of supervision, concentrated in a ministry, agency or state holding, would promote the generation of better information and greater transparency in the management of PEs.
In Latin America, PEs have a presence in economic sectors such as water, sanitation, electricity, oil, mining, finance, telecommunications, ports and airports. Its economic relevance in some of these countries reaches about 10% to 15% of GDP. As regards the supervision of the management of its PE, Brazil, Chile and Peru are examples of countries with centralized models of supervision. Thus, the Department of Coordination and Governance of Brazil (DEST), the Public Business System of Chile (SEP) and the Financing Fund of the State of Peru (FONAFE), with different types of institutional design and tools of Supervision, have worked over the last decade to improve the financial performance of PEs subject to their supervision.
At present AL is experiencing a period of mediocre growth with fiscal deficits and increasing indebtedness. Due to their economic relevance, poorly managed PE can contribute to increasing these deficits and constitute a significant fiscal risk through the accumulation of contingent liabilities. Also, in many cases, EPs provide key basic services to citizens that may be damaged by inefficiency and lack of transparency in management.
Project Detail
Country
Paraguay
Project Number
PR-T1231
Approval Date
December 6, 2016
Project Status
Closed
Project Type
Technical Cooperation
Sector
REFORM / MODERNIZATION OF THE STATE
Subsector
PUBLIC EXPENDITURE MANAGEMENT
Lending Instrument
-
Lending Instrument Code
-
Modality
-
Facility Type
-
Environmental and Social Impact Category (ESIC)
Category C: Likely to cause minimal or no negative environmental and associated social impacts
Total Cost
USD 270,000.00
Country Counterpart Financing
USD 0.00
Original Amount Approved
USD 270,000.00
| Operation Number | Lending Type | Reporting Currency | Reporting Date | Signed Date | Fund | Financial Instrument |
|---|---|---|---|---|---|---|
| ATN/AA-15928-PR | Sovereign Guaranteed | USD - United States Dollar | Transparency Fund | Nonreimbursable |
- Lending Type: Sovereign Guaranteed
- Reporting Currency: USD - United States Dollar
- Reporting Date:
- Signed Date:
- Fund: Transparency Fund
- Financial Instrument: Nonreimbursable