Partnering with the Asian Development Bank

AGENDA

ADB at a Glance

Portugal in ADB Operations

ADB’s Consulting Opportunities

ADB’s Goods and Works Opportunities

ADB’s Procurement and Consultant

Recruitment Policy Framework

ADB at a Glance

Overview

Regional Multilateral Development Bank

Established in 1966

Partnership of 67 countries

42 client countries

Headquarters in Manila with 29 resident missions

and 3 representative offices (Tokyo, Frankfurt,

and Washington, DC)

3000+ employees from 61 member countries

ADB’s Vision: An Asia and Pacific Region Free of Poverty

Partners

Governments

Private sector

Nongovernment organizations

Development agencies

Community-based organizations

Foundations

Almost all ADB projects rely on consultants and contractors

Strategic Agendas

Inclusive Social Development

Environmental Sustainability

Regional Cooperation for poverty reduction

Five Core Specializations

Infrastructure

Environment including climate change

Regional Cooperation and integration

Financial sector development

Education

Other: Health, Agriculture, Disaster Assistance

Strategy 2020*

* http://www.adb.org/documents/strategy-2020-working-asia-and-pacific-free-poverty

ADB Portfolio 2015 Assistance by Sector - $27.17 billion

$1.09 B AGRICULTURE, NATURAL

RESOURCES & RURAL DEVELOPMENT

$0.54 B INFORMATION &

COMMUNICATION TECHNOLOGY

$0.38 B HEALTH

$0.03 B INDUSTRY & TRADE

$0.02 B MULTISECTOR

$9.97 B ENERGY

$1.58 B EDUCATION $1.73 B PUBLIC SECTOR MANAGEMENT $2.54 B WATER & OTHER URBAN INFRASTRUCTURE & SERVICES $4.22 B TRANSPORT $5.08 B FINANCE 7

ADB Portfolio 2015 Assistance by Region

SOUTHEAST ASIA $7.95 billion

REGIONAL $0.54 billion

CENTRAL AND WEST ASIA $7.30 billion

SOUTH ASIA $7.80 billion

EAST ASIA $3.12 billion

PACIFIC $0.46 billion

8

Uncontracted Loan Funds By Sector

Uncontracted Loan Funds by Country

Largest Borrowers

Portugal in ADB Operations

PORTUGAL– Shareholding and Voting Power

Share of ADB’s Procurement Contracts

Consulting Services

ADB Consulting Opportunities

Why pursue ADB-Financed Consulting Contracts?

Significant expenditure on consulting services (approximately $555M in 2014)

Gateway to new opportunities in fast growing emerging

economies across multiple sectors Availability of funds is assured Risks related to transparency, fairness and integrity of

recruitment activities mitigated through ADB oversight Support a worthy development mission

When are Consultants needed?

Evaluation

6

1

2

Concept

3 Preparation

4

Negotiations, Approval & Effectiveness

5 Implementation

Consulting Firm and/or Individuals

Consulting Firm or

Individuals

Country Partnership Strategy & Business Plans

Individual Consultants

Consultants, Contractors &

Suppliers

Individual Consultants

Types of Consultants

Consulting entities

Consulting firms

Universities

NGOs

Research institutes

Others – UN Organizations

Individuals

Sourced through a firm

Independent Consultants

Technical Assistance Consulting Assignments PPTA (Project preparation) CDTA (Advisory TA) RETA (Regional TA)

Loan Project Consulting Assignments Project implementation supervision/support Capacity building Monitoring & Evaluation

Staff Consulting Assignments

Project preparation Evaluation Others

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

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

Types of Consulting Assignments

8-Step Plan to Win ADB-Financed Consulting Contracts

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. Do good work

Step 1: Collect relevant business intelligence

Study Country Partnership Strategy (CPS) and Country Operations Business Plans (COBP)

Obtain information from procurement plans (and project documents)

Check ADB website for opportunities in the Consulting Services Recruitment Notices (CSRN) section

Visit ADB Headquarters/Resident missions

Visit departments responsible for projects

Brown-bag seminars

Business Opportunities Fairs

Visit government executing agencies

Register in ADB Consultant Management System (CMS)

Step 2: Build your brand name

Business Opportunities Fair and ADB’s Project Pipeline

Background on the 2016 Business Opportunities Fair including Project Pipelines across countries and sectors

ADB’s yearly Business Opportunities Fair - Usually in the month of March; most recent was on 16 – 17 March 2016

http://www.adb.org/news/events/7th-adb-business-opportunities-fair-2016

http://adbprocurementforum.net/?page_id=2388

Check opportunities on ADB website

Submit Expression of Interest on time

Step 3: Express Interest

Step 3: Express Interest

Considerations Capacity to compete Capacity to deliver Go it alone or associate/joint venture

Criteria Eligibility – pass/fail Management competence – (%) Technical experience – (%) Geographical experience – (%)

Get to know the EA

Obtain first hand information

Field assessment

Identify local partner(s)

Estimate the local costs

Step 4: Know the country of the assignment and project site

Step 5: Offer partnership to firms likely to be shortlisted

Network with potential partners online and offline

Step 5: Offer partnership to firms likely to be shortlisted

Business Opportunities Fair in Manila

ADB LinkedIn Networking Site

Step 6: Prepare a responsive and strong technical proposal

Technical proposal usually carries 80% of the weight under QCBS and 100% under QBS and FBS

Key Success Factors:

Understand client requirements (ADB, government)

Study the TOR

Select the best personnel

Personnel carry > 50% of the weight in technical score

Team Leader normally carries the heaviest weight

Visit the project site

Follow the instructions in the RFP

Understand the evaluation criteria

Clarify your understanding

ADB conducts Performance Evaluation Review (PER) for every consulting assignment and a poor performance record can affect consultants’ future opportunities with ADB

Drivers of strong performance:

Good team leader

Relationships with EA

Relationships between International & National consultants

Managing replacements

Step 7: Do good work

Failure to disclose conflict of interest

Firm or any of its associates not organized in an ADB member country

Wrong type of technical proposal is submitted

Technical Proposal includes costs (QCBS)

Proposal was not delivered in time to meet deadline

Employees from executing agencies included in consultant’s proposal (caution for government employees in general)

Avoiding Common Mistakes

CV Missing CV

Nationality not stated

Certification not properly accomplished

Discrepancy between person-months in the RFP and proposed person-months

Discrepancy between type of experts in the RFP and those proposed

Proposal makes radical changes to the TORs (Note: Comments on the Terms of Reference)

Proposed price exceeds maximum stipulated in request for proposals

Avoiding Common Mistakes

ADB Procurement Opportunities

Contractual Relationships

ADB SUPPLIER

CONTRACTOR

EXECUTING AGENCY

FINANCING AGREEMENT

BIDDING DOCUMENTS, CONTRACTS

Executing Agency is responsible for all procurement activities

ADB oversees compliance with ADB’s Procurement Guidelines*

* ADB’s review procedures are set forth in Project Administration Instruction 3 at http://www.adb.org/documents/project-administration-instructions

Significant expenditure on goods and works (approximately $8Bn in 2014) 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 activities mitigated through ADB oversight Support a worthy development mission

Why pursue ADB financed goods and

works contracts?

Country Strategy and Business Plans Early notices General Procurement Notice Procurement Plan

Specific Procurement notices Invitation for Prequalification Invitation for Bids

Hop-on Opportunities Prequalified Contractors Contracts Awarded

Identifying Opportunities for

Goods and Works

VIE Country Operations Business Plan

adb.org Business Opportunities Portal

Early Notices: Procurement Plans

Early Notices: Procurement Plans

Early Notices: Procurement Plans

Early Notices: Procurement Plans

Specific Procurement Notices

Link to e-Alerts at bottom of adb.org Home Page

e-Alerts (alerts.adb.org)

Hop-on Opportunities

Bidding Strategy

Advice on Bid Preparation

Think strategically!

Position yourself according to your competitive advantage.

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

• Afghanistan • Cambodia • Pakistan • Solomon Islands • Papua New Guinea • Timor-Leste and other Pacific States

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

Seek clarification. “Don’t wait ‘til it’s too late!”

BIDDING DOCUMENT POTENTIAL ISSUES

Bid Conditions • Unreasonable bid preparation period

Qualification Criteria • Unclear which entity must comply with

qualification criteria

• Ambiguous criteria

• Restrictive criteria

Requirements • Incomplete, unclear or restrictive requirements

Contract Conditions • Unreasonable contract completion period

• Unbalanced risk allocation

Write to ADB directly if the executing agency fails to respond promptly or there is a complaint against the executing agency.

Bidding Dos

Carefully review qualification and evaluation criteria

Failure to satisfy qualification criteria results in high bid rejection rate

No conditionalities Do not add any conditions. Conditionalities or

qualifications will lead to rejection

Get official clarification If any provisions of the bidding document are unclear

or unacceptable, submit an official inquiry in writing to the EA before the bid closing date or such date as may be specified.

Be on time Submit bid within the stipulated deadline. Late bids

will not be accepted.

During bid opening ensure All relevant prices are read out All discounts are read out Presence and amount of bid security is read out No envelope remains unopened All the above is recorded correctly The record is signed by all bidders present and

by the buyer

Be Aware of Possible Extension There may be a request to extend the bid validity

and bid security periods by several months, as in certain cases the evaluation of bids requires more time than originally expected.

Bidding Dos

Make final check of bid

Amount, validity and text of Bid Security Signatures and power of attorney Joint venture agreement enclosed References enclosed Discounts in covering letter or

appropriate place as specified in the bidding document Marking of envelopes as appropriate

Bidding Dos

No Bid Security

Insufficient Amount of Bid Security

Lack of Supporting Documents

Incomplete Bids

Expiration and Extension of Bid Validity

Partial Quantities

Absence of test reports if required

Bids not signed

Conflict of interest

Bidding Don’ts

ADB Procurement and Consultant Recruitment Policy Framework

Key Policy Documents

Overarching Principles

• Economy and Efficiency

• Transparency

• Fairness

• Promotion of Domestic Industries

• Source of Goods & Services (Eligibility)

Downloadable at: http://www.adb.org/site/business-opportunities/operational-procurement/goods-services/documents

Downloadable at: http://www.adb.org/documents/guidelines-use-consultants-asian-development-bank-and-its-borrowers

Key Eligibility Restrictions

Compliance with UN Security Council decision

Conflict of interest (i.e., party has interests that could

improperly influence that party’s performance of official

duties or responsibilities, contractual obligations, or

compliance with law)

Government-owned enterprises in the borrower’s

country may participate if they can establish that they (i)

are legally and financially autonomous, (ii) operate

under commercial law and (iii) are not dependent

agencies of the borrower or sub-borrower.

Declaration of ineligibility by ADB

Prohibited Practices

Corrupt Practice the offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the actions of another party (e.g. bribery, kickbacks, extortion, bid manipulation)

Fraudulent Practice action or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation (e.g., false bid security/bank guarantees, work certificates, financial statements)

Collusive Practice an arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party (e.g. leaking of bid information, rigged specifications)

Coercive Practice impairing or harming, or threatening to impair or harm, directly or indirectly, any party or its property to influence improperly the actions of a party

ADB’s Anticorruption Policy requires all parties to observe

the highest standard of ethics during the procurement and

execution of such contracts. In pursuance of this policy,

ADB will

Prohibited Practices

Declare a firm ineligible either indefinitely or for a stated period of time

Cancel the corresponding portion of a loan

Inspect accounts and records of suppliers and contractors and have them audited by auditors appointed by the Bank

Reject a proposal to award contract

How to Report Integrity Violations

http://www.adb.org/site/integrity/how-to-report-fraud

Debriefing: Unsuccessful bidders/consultants may request debriefing

from EA. If they are not satisfied with the explanation given, they may contact ADB directly.

Complaints: Bidders/Consultants may file complaint directly with ADB

and may copy ADB on correspondence with EA.

Debriefing and Complaints

Sabyasachi (Saby) Mitra

European Representative Office

sabymitra@adb.org

+49 69 2193 6414