FIDIC Conference, Beijing Sustainable Quality Consulting

Services

Robert Robertson

ADB Director Consulting Services

7 September 2005

Presentation coverage

1 What is the Asian Development Bank (ADB)?

2 Need for sustainable, quality consulting services

3 Revised ADB consulting services Guidelines

4 ADB’s assistance to the PRC consulting services industry

Asian Development Bank

The Asian Development Bank, (ADB) is a multilateral finance institution dedicated to reducing poverty in the Asia Pacific-region.

- Two thirds of the world’s poor live in the Asia Pacific region

- 690 million people live on less than US$1/day

- ADB established in 1966

- Headquarters in Manila, Philippines

- 63 member countries

- 2000+ staff from 53 countries

Offices

HQ in Manila, 26 field offices

Sustainability & consultants

ADB and its borrowing member countries (DMCs), require consultants who can provide high quality services to assist in developing and implementing long-term sustainable poverty alleviation solutions

“Sustainability”

Definition for consulting industry

Sustainability means developing strategies and procedures (solutions), that meet the needs of clients and stakeholders today while protecting, sustaining and entrusting the human and natural resources that will be needed in the future

modification of a definition developed by the International Institute for Sustainable

Development

ADB’s changing needs

Consultants need to become aware of ADB and its Borrowers’ changing needs

Project are multi-faceted and complex and consultants need to be able to respond to sustainable development requirements if they wish to participate

-Solutions are required for:- policy reforms

- capacity building

- innovative technical solutions

Country Strategy and Program (CPS)

Consultants should review CPSs at the ADB web site

http://www.adb.org The CPS

- defines the ADB’s medium-term development strategy agreed with the DMC

- determines ADB’s country-specific poverty reduction strategy, thematic and sector priorities

- is anchored on strong poverty, economic, social and sector analysis

Policy aspects

Consultants should review ADB policy reports at the ADB web site

http://www.adb.org

Anticorruption, ADB and NGO cooperation, project financing, environment, loan products, gender and development, governance, regional cooperation, resettlement, private sector operations etc

Sector issues

Consultants should review ADB policy reports at the ADB web site

http://www.adb.org- Agriculture and natural resources

- Education

- Energy

- Forestry

- Health

- Transportation

- Water

Western Roads Development

Project in Sichuan &

Gansu Provinces Consultant were required to review the Government’s feasibility study and prepare a project suitable for ADB-financing

Western Roads Development

Non-traditional engineering servicesTraffic flow analysis, environmental impact assessment, resettlement, private sector development & commercialization, financial management, pricing policies, road safety, vehicle emissions, etc

Traditional engineering servicesHorizontal & vertical alignment, subsurface investigation, pavement, bridge & tunnel design, construction materials, interchanges, toll station & service area design etc

Quality & Consulting Services

- What is the ADB’s policy on quality?

- What policies, procedures control quality?

- What level of quality is required?

- Who controls quality?

ADB’s Guidelines 1

Quality

“The technical qualifications of consultants to perform the required services are the most important criteria in the selection of consultants”

ADB’s Guidelines 2

Economy and Efficiency

“The assistance of consultants is needed by ADB and its borrowers to ensure maximum economy and efficiency in the preparation, construction and operations of projects ”

Example - QCBS

Quality and cost-based selection QCBS

- 750 (75%) minimum technical score

- 80% technical + 20% price

“Quality at market price”

Revised Guidelines 1

- Current Guideline outdated, written in 1979

- Assignments now more complex

- Expertise requirement has changed- Consulting firms/organizations 5-1000+ employees

- Universities

- NGOs (large and small)

- Government Agencies

- Individual consultants

Revised Guidelines 2

- Consultant recruitment must- Be quicker and procedures streamlined

- More variety of selection methods required

- Take account of varying capacity of EAs

- Need to harmonize with other MDBs/IFIs

- Greater use of internet

Greater focus on Quality

Use of a quality management system

- entry (consultant selection)

- shortlisting and evaluation of proposals

- during implementation of services (PER)

- upon completion of service (PER)

- improved DACON and DICON

ADB, EAs and consultants will all be involved in ensuring high quality

FIDIC’s comments

ADB appreciates the very useful comments FIDIC made on the draft revised ADB Guideline proposals

Sustainable consulting industry

Model for a sustainable consulting industry

- framework/policies/procedures - guidelines

- association/professional body

- consulting firms

- individual consultants

Capacity Building

Capacity building and training

- for ADB staff

- for EA staff

- for the consulting industry

- ADB briefings to consultants

- ADB web site, handbook

- Development of domestic consultant industry seminars (DDC)

TA-4486-PRC Formulation of regulations for

the selection and engagement of consultants for Government-financed projects- ADB has been providing support for the development of the PRC consulting industry since 1995

- With the assistance of consultants ADB has worked with the PRC government to develop Guidelines for the recruitment consultants

- In 1999 under TA-3138-PRC draft Guidelines were developed

- Under TA-4486-PRC the Guidelines are now being converted into regulations

- The intention is that the Guidelines will become law

PRC Guidelines Use of the Guideline will provide for

sustainability by providing a process for transparent and fair consultant recruitment on an on-going basis- Guidelines will ensure consultants with required expertise are selected and remunerated at market rate costs for their services

- Guidelines are in line with a Government’s goal of achieving

- good governance

- improved economic efficiency

- combating corruption

Thank you for your attendance

for more information

please visit http://www.adb.org