Govt to Reform State-Owned Enterprises Under $400 Million ADB Program

The government has moved to accelerate structural reforms in state-owned enterprises (SOEs) through a $400 million results-based loan from the Asian Development Bank. The initiative is aimed at improving governance, financial sustainability and service delivery across 40 state-run entities. Titled the Accelerating State-Owned Enterprise Transformation Program, it was shared for consideration before the Concept Clearance Committee. According to official documents, the programme will be executed by the Ministry of Finance in coordination with line ministries and SOE boards. The loan will be linked to measurable performance outcomes, ensuring that reforms translate into tangible improvements in corporate governance, oversight and efficiency. A key priority will be strengthening the financial sustainability of the National Highway Authority (NHA). The reforms will support full implementation of the State-Owned Enterprises Act 2023 and the SOE Ownership and Management Policy 2023. They aim to strengthen the Central Monitoring Unit’s capacity for better oversight, monitoring and accountability. However, technical reviewers have noted that clear, measurable disbursement-linked indicators are still required. They have also asked for evidence of consultations with relevant ministries and SOEs to ensure long-term ownership of the reforms.