1 Plenary - Introducing ADB by SO'Sullivan 25Mar2015

8/9/2019 1 Plenary - Introducing ADB by SO'Sullivan 25Mar2015

1/23

6th ADB Business Opportunities Fair

25 March 2015

Introducing ADBBy: Sean O’Sullivan, Director General, Operations Services and

Financial Management Department


2/23

Welcome

• The role, strategy and operations of the AsianDevelopment Bank (ADB)

• ADB procurement and its fundamentalprinciples

• ADB procurement reforms

• ADB business opportunities


3/23

What is ADB?

A regional multilateral development bank …

• Established in 1966

• A partnership of 67 countries• 42 client countries

• 28 offices worldwide


4/23

ADB Strategy 2020

Vision: Asia and the Pacific free of poverty.

ADB’s core operations

• Infrastructure• Environment

• Regional cooperation

• Finance sector

• Education

Drivers of Change

• Private sector developmentand private sector operations

• Good governance andcapacity development

• Gender equity• Knowledge solutions

• Partnerships

http://www.adb.org/Strategy2020/default.asp


5/23

ADB Operations

Main Instruments• Loans and Grants

• Technical Assistance

• Advice and Knowledge Management

Lending

• Dominantly in public sector to Government

• ADB assists private enterprises in developing

countries through loans, equity investments,guarantees

• AAA credit rating helps mobilize funds fordevelopment activities


6/23

ADB Operations (in $ million)


7/23

2014 Sovereign and Nonsovereign Approvals(in $ million)

7


8/23

2014 Approvals by Modality

8

Investment Support83%

Technical Advisoryand Support

1%

Policy-BasedSupport

16%


9/23

Largest Borrowers

2012 2013 2014

India India India

PRC PRC PRC

Indonesia Pakistan Pakistan

Viet Nam Indonesia Viet Nam

Bangladesh Philippines Philippines

Philippines Bangladesh Bangladesh


10/23

10

Sovereign Portfolio

• Active Portfolio - $68.2 billion

54.258.3

61.364.1

68.2

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

2010 2011 2012 2013 2014

$ b i l l i o n


11/23

Sovereign Portfolio Regional Distribution

11

CWRD

$17.0billion

25%

EARD

$11.4billion

17%

PARD

$1.9

billion

3%

SARD

$21.7

billion

32%

SERD

$15.8

billion

23%

Regional $0.4

billion

1%

2014 Active Portfolio - $68.2 billion


12/23

Sovereign Portfolio Sector Distribution

12

6

3

16

21 1 0.1 1

3

26

8

0

5

10

15

20

25

30

ANR EDU ENE FIN HLT IND ICT MUL PSM TRA WUS

$ b i l l i o n

2014 Active Portfolio by Sector


13/23

Who does ADB work with?

• Governments

• Private sector

• Non-government organizations

• Development agencies• Community-based organizations

• Foundations

• Professional Organizations

Almost all

ADB projectsrely on

Consultants,

Suppliers and

Contractors


14/23

ADB Procurement

ADB Oversight

• The Borrower (Executing Agency) isresponsible for all procurement of goods and

works

• ADB (under TAs) or Borrower select andrecruit Consultants

• ADB reviews the procurement activities toensure that the ADB Guidelines are followed


15/23

Procurement and Consulting Services Guidelines

Fundamental Principles• Transparency

• Fairness

• Economy and Efficiency

• Promotion of DomesticIndustries

• Source of Goods & Services(Eligibility)

• Quality (for consulting services)

Policies and procedures on theselection, contracting andmonitoring of suppliers,contractors and consultants


16/23

CPS Preparation

Project Concept Paper

Project Preparation

Project Implementation

ADB Procurement Reforms

PROCUREMENTGUIDELINES

Country

Procurement

Thresholds

Country and

Sector/Agency

Procurement Risk

Assessments

Project

Procurement

Classification

Project

Procurement Risk

Assessment Project

Procurement Plan

Procurement

Supervision

WHEN OUTPUT

Risk-based

Approach

Reduce time, increase

administrative efficiency,

improve project delivery while

maintaining sound fiduciary

oversight.

New risk-based approach to

procurement governance. At

each step of project cycle risk isconsidered and directs

procurement supervision.

Review country systems, post

review (sampling) method,

rationalize decision authorities,streamline and automate

procurement business

processes and enhance

consulting services quality.


17/23

So where are ADB’s business

opportunities?


18/23

Types of Business Opportunities

Goods and Works

Loans and Grants

2012-2014 $100,000 < $ 1M $ 1M < $ 20M Above $ 20M

Average Number ofContracts per Year

1,858 745 99

Average Contract Size ($M) 0.37 4.34 64.04

Total contracted in 2014 = $8.2 billion


19/23

Types of Business Opportunities

Consulting Services

Total contracted in 2014 = $555 million


20/23

ADB Business Opportunities

Agriculture, NaturalResources and Rural

Development, 2,650

Education,

1,487

Energy, 5,274

Finance, 769Health, 186

Industry and Trade, 112

Information and

Communication

Technology, 10

Multisector, 371

Public Sector

Management, 1,019

Transport, 8,298

Water and Other Urban

Infrastructure and

Services, 3,542

Uncontracted Loan Funds by Sector

(as of 31 Dec 2014) US$ million - Total = $23,718M

Transport - 35%

Energy - 22%

Water - 15%

Agriculture - 11%


21/23

ADB Business Opportunities

6152

434

2,130

106321

8 82 7

344

3,424

632468

1573

1912

385104

539

2,426

20

1,389

299

4,932

0 2 20

922

0 1 20

1,034

13

3,147

-

1,000

2,000

3,000

4,000

5,000

6,000

A F G

A R M

A Z E

B A N

B H U

C A M

C O O F

I J

F S M

G E O

I N D

I N O

K A Z

K G Z

K I R

L A O

M L D

M O N

M Y A

N E P

P A K

P A L

P H I

P N G

P R C

R E G

S A M

S O L

S R I

T A J

T H A

T I M

T K M

U Z B

V A N

V I E

$ m n

Uncontracted Loan Funds by Country

(as of 31 Dec 2014) US$ million - Total = $23,718MPRC - 21%

IND - 14%

VIE - 13%

PAK - 10%

BAN - 9%


22/23

How to get started with ADBBusiness Opportunities?

• Actively follow projects on adb.org andcommunicate with project officer

• Start small

• Work with others - joint venture, subcontract• Seek opportunities where competition islimited

–Pacific countries like Solomon Islands,

Papua New Guinea, Timor Leste – Afghanistan

–Pakistan


23/23

So why do Businesswith ADB?

• Join a worthy development mission

• $24 billion of uncommitted portfolio whichleverages to even more in total contract value

• A broad range of opportunities across Asia,sectors and thematic areas

• Working with ADB can unlock the door forbusiness in emerging economies

• ADB is your partner and overseesprocurement to ensure fairness andtransparency

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1 Plenary - Introducing ADB by SO'Sullivan 25Mar2015

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