Business Opportunities Webinar

Organized by aicep Portugal Global & GPEARI, Ministry of Finance, Portugal

29 June 2018

Outline

�ADB’s Operations and Business Opportunities

�Documents governing the Procurement

�How to find business opportunities?

�Procurement Reform

Opportunities for consulting services in ADB financed TAs & Projects

Business OpportunitiesADB 2007-2017 Approvals

Sovereign and Nonsovereign Approvals, 2008-2017 ($million)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Project Approvals

Sovereign 9,310 13,702 11,361 11,344 11,127 12,589 11,571 13,159 14,880 15,939

Nonsovereign 1,400 1,474 1,140 1,561 1,355 1,459 1,862 2,626 2,502 3,150

Subtotal 10,709 15,176 12,501 12,905 12,482 14,048 13,433 15,784 17,381 19,089

Technical Assistance

Subtotal 189 202 174 145 151 155 158 141 169 206

Cofinancing

Subtotal 5,085 5,355 5,162 7,324 8,270 6,647 9,222 10,735 14,061 9,604

TOTAL 15,983 20,733 17,836 20,374 20,903 20,850 22,813 26,660 31,611 28,899 Note: Historical figures are net of terminations before signing of agreement.

Business OpportunitiesActive Portfolio

(as of 31 December 2017)

Business OpportunitiesLargest Borrowers

2013 2014 2015 2016 2017

India India India India PRC

PRC PRC PRC PRC India

Pakistan Pakistan Pakistan Indonesia Pakistan

Indonesia Viet Nam Indonesia Pakistan Indonesia

Philippines Philippines Bangladesh Azerbaijan Bangladesh

Bangladesh Bangladesh Kazakhstan Bangladesh Philippines

Uncontracted Loan & Grant Funds - by Country

Uncontracted Loan and Grant Funds - by Sector

Agriculture, Natural Resources and Rural Development, 4,380

Education, 2,078

Energy, 8,239

Finance, 1,726

Health, 589

Industry and Trade, 428

Information and Communication Technology, 28

Multisector, 1

Public Sector Management, 310

Transport, 8,721

Water and Other Urban Infrastructure and Services,

3,997

(in US$ million at 31 Dec 2017) - Total = $30,498M

Transport - 29%

Energy - 27%

Agriculture- 14%

Water/Urban-13%

Education- 7%

https://www.adb.org/sites/default/files/publication/27796/por-2017.pdf

Portugal’s Share of ADB Procurement Contracts

Japan’s Share of ADB Financed ContractsPortugal’s Share of ADB Procurement

Contracts

Why pursue ADB-Financed Contracts?

• Gateway to new opportunities in fast growing emerging

economies across multiple sectors

• Availability of funds is assured

• Internationally accepted procurement procedures

• Risks related to transparency, fairness and integrity of

procurement process mitigated through ADB oversight

Evaluation

6

1

2Concept

3 Preparation

4

Negotiations, Approval & Effectiveness

5Implementation

Consulting

Firm and/or

Individuals

Consulting

Firm or

Individuals

Country Partnership Strategy

& Business Plans

Individual

Consultants

Consultants,

Contractors &

Suppliers

Individual

Consultants

11

Most ADB projects

rely on Consultants

and Contractors

When are Consultants, Contractors and Suppliers needed?

� The Borrower

(Executing Agency)

is responsible for

procurement of

goods and works

� ADB (under TAs) or

Borrower select and

recruit Consultants

ADBSUPPLIER

CONTRACTOR

EXECUTING

AGENCY

FINANCING

AGREEMENT

BIDDING

DOCUMENTS,

CONTRACTS

• ADB reviews the procurement activities of EAs

to ensure that proceeds of its financing are used

with due attention to considerations of the

principles defined in these Regulations and

agreed rules.

ADB Role and Executing Agency’s Role

Documents Governing ADB Procurement

Category Old

Procurement Policy

Procurement & ConsultingProcedures

Staff Instructions

Bidding Documents

Project Administration

Instructions (PAI 2 & 3)

New (after 1 July 2017)

•Staff Instructions (Procurement

of Goods, Works,

Nonconsulting & Consulting

Services)

•TA Staff Instructions

• 24 Guidance Notes• Standard

Procurement and

Consulting documents

Standard

Procurement and

Consulting documents

How to find Consulting Services Opportunities?

� Technical Assistance Consulting Assignments (ADB recruits)� TRTA (Transaction Technical Assistance)� KSTA (Knowledge and support Technical Assistance)

� Staff Consulting Assignments (ADB recruits)� Project preparation� Evaluation� Others

� Others (ADB recruits)� ABD engages consultants for ‘in-house’ projects, (e.g.

Information Systems and Technology Project, building services, etc.), internal training, auditing, institutional/organizational reviews etc.

� Loan Project Consulting Assignments (Government recruits)� Project implementation supervision/support� Capacity building� Monitoring & Evaluation

Types of Consulting Assignments

� Firms

� Individual (National/International)

� NGOs / CSOs

� Research Institutes

� Foundations, Centers of Excellence

� Professional Organizations

Who are the Consultants?

1. Collect relevant business intelligence

2. Build your brand name

3. Express interest

4. Know the country of the assignment and project site

5. Offer partnership to firms likely to be shortlisted

6. Prepare a responsive and strong technical proposal

7. Focus on Performance

7-Step Business Development Plan to Succeed in ADB-Financed Consulting Contracts

Selection of Consultants

18

� Quality and Cost Based Selection (QCBS) –

Balance the quality and cost of the proposed

services

� Quality Based Selection (QBS)

� Consultants Qualification (CQS)

� Fixed Budget Selection (FBS) – Highest quality

within the available budget

� Least Cost Selection (LCS) – Prioritize cost

Prioritize

Quality

http://cms.adb.org

Finding ADB Business OpportunitiesUsing CMS

http://csrn.adb.org/

Finding ADB Business Opportunities Consulting Services

http://www.adb.org

21

Finding ADB Business Opportunities

Finding ADB Business Opportunities

Finding ADB Business Opportunities

Identifying Projects

23

http://www.adb.org/countries/viet-nam/main

Positioning Yourself for Success Country Program – Viet Nam

24

http://www.adb.org/countries/viet-nam/strategy

Positioning Yourself for Success Country Program – Viet Nam

25

Positioning Yourself for Success Project Information

Positioning Yourself for Success Project Information

How to find Procurement of Works and Goods Opportunities

28

• Country Partnership Strategy

• Country Operations Business Plan

• Procurement Plans

• Specific Procurement notices� Invitation for Prequalification� Invitation for Bids

• Hop-on Opportunities� Prequalified Contractors� Contracts Awarded

Identifying Opportunities for

Goods and Works

Upper Stream

Immediate

opportunities

Procurement Guidelines

• International Competitive Bidding (ICB)

• Limited International Bidding

• National Competitive Bidding (NCB)

• Shopping• Direct Contracting • Force Account• Community

Participation in Procurement

New Procurement Framework

� Open Competitive Bidding (OCB)

� Limited Competitive Bidding (LCB)

� Framework Agreements

� Request for Quotations

� Electronic Reverse Auction

� Direct Contracting

� Force Account

Procurement Methods

30

Procurement Plans

31

https://www.adb.org/projects/documents

Procurement Plans

32

Invitation for Bids

33

Advance Procurement Action

34

at bottom of Link to e-Alerts

35

e-Alerts (alerts.adb.org)

36

Leverage your strength

• Ability to operate in countries that do not generate significant bidder interest

• Afghanistan • Cambodia • Pakistan• Pacific

• Experience in country and with executing agency

• Access to information regarding local joint venture partners and subcontractors

• Access to information regarding availability of key inputs• Materials• Labor• Equipment

Think strategically!

37

Procurement ReformDrivers of the Reforms

1. Increased lending operations

2. Evolving needs of Developing Member Countries

3. Harmonization with Multilateral Development Banks

4. Need to improve procurement delivery systems

Overarching Principles

39

Rollout of the New Framework

Thank you!

For further information, please contact:

Vijay Kumar Akasam

Senior Procurement Specialist

Procurement, Portfolio and Financial Management

Department (PPFD)

Asian Development Bank

Email: vakasam@adb.org

41