Asian Development Bank
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*The following content has been prepared by the Office of Liaison with the Asian Development Bank, located at our Embassy of Canada to the Philippines.
The Asian Development Bank (ADB) is a multilateral development bank dedicated to reducing poverty in the Asia-Pacific region by means of sustainable economic growth, social development and good governance. Established in 1966, it is owned by 67 member countries, mostly from the region. Canada is the second-largest shareholder of ADB's non-regional members and, overall, its seventh-largest shareholder. Please visit our ADB Fact Sheet.
In 2013, ADB's operations totaled US$21.02 billion, (all dollar figures are in US dollars) of which $14.38 billion was financed by ADB's ordinary capital resources (OCR) and Special Funds resources and US$6.65 billion by cofinancing partners. Sovereign operations, including official and technical assistance cofinancing, totaled $16.48 billion. Nonsovereign operations, including cofinancing, totaled $4.54 billion. Disbursements totaled $8.54 billion, a decrease of $49.98 million (0.58%) from 2012.
The top five ADB borrowers in 2013, excluding co-financing, were India ($2.5 billion), People's Republic of China (PRC) ($2.1 billion), Pakistan ($1.5 billion), Indonesia ($1.0 billion) and the Philippines ($0.9 billion). Including co-financing, the five largest borrowers were India ($2.7 billion), Pakistan ($2.6 billion), PRC ($2.4 billion), Viet Nam ($2.1 billion), and Indonesia ($2.1 billion).
The ADB's main financial instruments are loans, technical assistance and grants. Most lending is in the public sector, primarily for large infrastructure projects. The Bank also provides technical assistance grants and loans to developing member countries so they can hire consultants to help identify and prepare development projects.
ADB infrastructure lending is, for the most part, in the following sectors:
- transportation and urban development, including road, rail, marine port and airport projects
- the environment, including water supply, waste treatment and environmental management;
- energy, including electric power, renewable energy, and oil and gas;
- agriculture and natural resources; and
- information technology and telecommunications.
Skip directly to the section on:
- Country Strategies
- Strategy 2020
- Project Cycle
- Procurement Process
- Corporate Procurement
- Private Sector Lending
- Trust Funds
The ADB's Country Partnership Strategies (CPS) are prepared with the borrowing country's participation. This takes the form of consultation with the government and with other country stakeholders, including civil society, non-government organizations, the private sector and other development agencies.
A CPS is based on an analysis of the borrower's development priorities and its poverty reduction programs, and is consistent with ADB's strategic priorities. The CSP is normally aligned with the borrower's planning cycle, which usually covers a period of five years.
ADB Country Partnership Strategies can be found on the individual country pages of the ADB website.
Strategy 2020 is the ADB's new long-term strategic framework, which will cover the period from 2008 to 2020. This framework will serve as the ADB's institution-wide planning document and will give the ADB a more relevant and innovative role in shaping the region's future. Strategy 2020 will refocus ADB operations on the three development agendas of economic growth, environmentally sustainable growth and regional integration.
ADB's project cycle has the following five stages:
Country Partnership Strategy: The ADB works with the developing member country to define its CPS, as described above in the "Country Strategies" section.
Identification and preparation: The ADB consults with the executive level of the borrowing country to identify potential projects and programs. To help the government identify feasible projects, ADB often provides Project/Program Preparatory Technical Assistance (PPTA) grants.
Appraisal and approval: The ADB conducts an appraisal mission to the country to assess the project's feasibility. Following the field assessment, the appraisal mission conducts further field studies, analyses and consultations as required. A loan proposal report and a draft loan agreement are prepared.
Once the appraisal is finished, the draft loan agreement and draft program proposal are submitted to the involved parties for their review. After collecting all the feedback, the ADB begins negotiations with the borrowing government.
Following these negotiations, the loan proposal is submitted for approval to the ADB's Board of Directors. This document is known as the Report and Recommendation of the President (RRP). After the Board approves the loan, the RRP and its associated legal agreements are posted on the ADB website.
Next, the RRP is sent to the borrowing country's government for cabinet authorization. Once this is obtained, the loan agreement is signed by the ADB's President and the representative of the government.
The ADB's legal counsel and Project Officer then review the agreement to make sure it meets all required conditions. If it does, the loan is formally declared effective. Loan documents normally allow 90 days for the loan agreement to become effective.
Implementation: ADB-assisted projects are implemented by the executing agency according to the agreed schedule and procedures. A project administration memorandum sets out the project's implementation agreements and details.
Evaluation: After the project facilities and technical assistance activities are completed, the ADB prepares a project completion report or technical assistance completion report that documents how the implementation proceeded. These reports are prepared within 12 to 24 months of the completion of the project.
ADB-financed procurement must follow the ADB's rules for procurement of goods, civil works and the use of consultants. The executing agency in the borrowing country is responsible for all aspects of the procurement process. For technical assistance projects funded directly by the Bank, the procurement process is the responsibility of the ADB, although some projects may be delegated to the executing agencies.
ADB procurement principles are as follows:
- Sources of procurement: Proceeds of a loan can be used only for procurement of goods and works supplied from, and produced in, member countries of the ADB.
- Economy and efficiency: To achieve economy and efficiency, contracts are to be procured through international competition unless other forms of procurement are more suitable and have been agreed upon between the ADB and the borrower.
- Fairness: Procurement procedures must give member countries adequate, fair and equal opportunity to compete for contracts.
- Transparency: Transparency is essential in the procurement process to achieve economy and efficiency, and to combat fraud and corruption.
Project and Procurement Information
The chief entry point for project and procurement information is the Business Opportunities page of the ADB website. The Projects section has links to a great deal of information about procurement plans, project documents and the design and monitoring frameworks that are established when a project is being prepared. Procurement Notices are also published by country on the ADB website.
Suppliers of Goods, Works and Non-Consulting Services
The ADB requires that borrowers use the International Competitive Bidding (ICB) method for procuring equipment and civil works. This process is normally open to all eligible suppliers and contractors, although preferences are sometimes allowed for domestically manufactured goods and, where appropriate, for domestic contractors.
When bidding on large and complex civil works contracts, turnkey contracts, and contracts for expensive and technically complex plant and equipment, contractors must prequalify using the Standard Procurement Document for Prequalification of Bidders (SPQD). Prequalification allows the ADB to make sure that a company has the experience, track record and human and financial resources to be a potentially successful bidder.
Other bidding documents available on the ADB website are for goods, works (large contracts), works (small contracts) and plant. They can be accessed via the Procurement Documents page of the ADB website.
The ADB uses the following bidding procedures for ICB procurement, as described on the Bidding Procedures page:
- single-stage, one-envelope bidding;
- single-stage, two-envelope bidding;
- two-stage, two-envelope bidding; and
- two-stage bidding.
As well as ICB, the ADB also uses the following procurement methods:
- limited international bidding;
- national competitive bidding;
- direct contracting;
- force account;
- procurement from specialized agencies;
- procurement agents;
- inspection agents;
- procurement under loans to financial intermediaries;
- procurement under private-sector arrangements;
- performance-based procurement;
- procurement under loans guaranteed by the ADB;
- community participation in procurement; and
- procurement under disaster and emergency assistance.
For detailed information about the ADB procurement process, refer to the ADB Procurement Guidelines.
Consultants and Consulting Services
ADB provides an integrated Consultant Management System (CMS) for registering and maintaining profiles of both consulting firms and individual consultants. Consultants must be registered on CMS to be considered for a contract. Companies and individual consultants that have previously registered in the older DACON database do not need to re-register.
Recruitment of consultants for technical assistance (TA) contracts is normally the responsibility of the ADB, although in some cases this may be delegated to the borrowing government. Direct responsibility for recruitment is shared between the project user division and the Central Operations Services Office (COSO). For TA grants of less than US$600,000, the project user division undertakes the recruitment activities; for TA grants above US$600,000, COSO plays a more central role. The main funding sources for ADB-financed consulting services are project loans, TA grants and the ADB's own administrative budget.
Individual consultants and consulting firms should submit an Expression of Interest (EOI) if they want to be involved in a project. For projects in which the borrower is responsible for recruiting consultants, EOIs are normally sent directly to the project office of the executing agency. For consulting services recruited directly by ADB, interested firms can submit their EOI electronically via the Consulting Services Recruitment Notices (CSRN) page on the ADB website. Consultants may send additional hard copy of their EOI should they wish to do so.
The ADB has six basic principles for the use of consultants:
- Consulting services should be of high quality.
- Engagements should be economical and efficient.
- All qualified consultants should have the opportunity to compete for assignments.
- The ADB aims to develop and use consultants from its developing member countries.
- The selection process should be transparent and should not involve conflicts of interest.
- Good governance and ethical behavior are especially important.
The ADB uses six methods for selecting teams of consultants for its own use:
- Quality- and Cost-Based selection (QCBS);
- Quality-Based Selection (QBS);
- Fixed-Budget Selection (FBS);
- Least-Cost Selection (LCS);
- Consultants' Qualification Selection (CQS); and
- Single-Source Selection (SSS)
For more information on ADB's policies on the use of consultants, refer to the following documents:
- Guidelines on the Use of Consultants by ADB and Its Borrowers
- Consulting Services Operations Manual
- Project Administration Instructions (PAI)
Contact OLIFI Manila for a copy of the "Winning Consulting Services Contracts at the Asian Development Bank" overview compiled by the Trade Commissioner Service.
The Asian Development Bank procures goods and/or services for its institutional requirements in support of ADB's operations at market prices, using the most competitive procurement method applicable, and giving due regard to the reputation of the vendor or contractor, promptness of delivery, terms of payment and availability of adequate warranty and servicing facilities, among others.
ADB also recruits for staff consulting assignments funded from ADB’s administrative budget to supplement its staff by providing specialized expert knowledge and advice. Most of these fixed-length staff consulting assignments are for individuals, but some are for organizations, including commercial consulting firms, international and national organizations, accredited nongovernment organizations, and academic and research institutions. Opportunities can be found by searching the Institutional Procurement Notices.
Private Sector Lending
ADB’s strategic objective for Private Sector Operations is to increase the flow of capital into and within its developing member countries (DMCs) and, more importantly, to broaden the flow into more countries and sectors. In order to achieve this objective, ADB's Strategy 2020 emphasizes the need for private sector participation in infrastructure and capital market development, wider use of credit enhancement and other instruments, and strategic alliances with other development agencies.
ADB’s tools to catalyze change through greater private investments in DMCs include: direct financing, credit enhancements, risk mitigation guarantees, trade facilitation, and other innovative financial instruments. Private sector (non-sovereign) operations currently account for $1.67 billion (or 12%) of ADB's total operations. Building on ADB's existing strengths, the core areas of private sector operation are: (i) infrastructure (including energy, power, transport, telecommunications, water) and (ii) capital market and financial sector development.
The Canadian Cooperation Fund on Climate Change was established at ADB in 2001. The Fund operates at the programming and policy level to help ADB's developing member countries reduce greenhouse gas emissions and manage and mitigate the effects of climate change. This cumulative commitment of $3.44 million has funded projects in China, India, Indonesia and the Pacific Islands; however, the fund has not been replenished to date.
Canada also contributes to three multi-donor cooperation funds related to the following themes: Governance, Gender and Development, and Support of Managing for Development Results.
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