Awkward times. This week I was in Kyrgyzstan to take stock of the government’s progress with regard to its PPP reforms. A chaotic week. Not in the least because of the Corona virus. The original plan was to return on Saturday though following Trump’s decision to close the borders for continental Europe, the ADB recommended on Thursday the international consultants to return home with the first option possible in anticipation of possible further international travel bans. Not a day too soon. Being able to change my Saturday flight out to Friday morning, it turned out that my carrier Turkish Airlines decided on Friday evening to stop flying to the Netherlands among other from Saturday onwards. Just in time.
During the week itself we were also caught up by political reality. Initially we were briefed to discuss with our implementing agencies the possibility of advancing some of the reform actions including PPP to allow the government to demonstrate appropriate progress with its reforms making it eligible for a substantial grant facility from ADB. Money desperately needed to address the fiscal implications from the Corona virus i.e. reduced income from import duties because of the economic downturn and increased expenses because of the necessary health care. Tough negotiations as a result because how to define what is a substantial reform. Nevertheless we agreed with the relevant agencies including the Ministry of Economy, Finance and the government’s PPP Center a comprehensive and achievable set of actions that had to be implemented before the summer.
However, halfway through the week the news came that the ADB would make available a separate facility to support the government with the impact from Corona and we we had to go back to the original plan. So again, meeting the different implementing agencies to agree on the work plan for the coming period. Luckily, availability and the proximity of the different government agencies and ADSB’s resident mission made the logistics of all these meetings fairly efficient though on average I have walked some 7km a day because of all the necessary meetings. Then again, such exercise is better than spending the entire day behind a desk.
As a result some active weeks ahead. In particular for the update of the governments PPP Program for 2025 and the revision of the Ministry Finance’s fiscal management framework following last year’s adaptation of a new PPP Law. A law that regrettably weakened the necessary fiscal oversight of PPP so we now have to work on supporting regulations to ensure that Ministry of Finance is able to manage the fiscal exposure arising from any PPP arrangement. A complex task that requires alignment with different legislative provisions including the budget code. Would have been easier to amend the PPP Law though unfortunately that is too politically sensitive. Anyhow, means no worries the coming weeks for being without work, and glad that these activities can be done from the home office.
So fortunately coming weeks no international travel. These days, you want to be with your family dealing with whatever is to come to counter the Corona virus. So far, the situation in the Netherlands is bearable albeit that the number of infected people and casualties is rising and our health care capacity is reaching its limits and we may end up with conditions that Italy is currently facing which is a groom prospect. We can’t do much more than follow our government’s instructions based on advice from qualified experts and hope for the best.
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