1 plenary - introducing adb by so'sullivan 25mar2015
TRANSCRIPT
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6th ADB Business Opportunities Fair
25 March 2015
Introducing ADBBy: Sean O’Sullivan, Director General, Operations Services and
Financial Management Department
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Welcome
• The role, strategy and operations of the AsianDevelopment Bank (ADB)
• ADB procurement and its fundamentalprinciples
• ADB procurement reforms
• ADB business opportunities
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What is ADB?
A regional multilateral development bank …
• Established in 1966
• A partnership of 67 countries• 42 client countries
• 28 offices worldwide
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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
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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
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ADB Operations (in $ million)
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2014 Sovereign and Nonsovereign Approvals(in $ million)
7
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2014 Approvals by Modality
8
Investment Support83%
Technical Advisoryand Support
1%
Policy-BasedSupport
16%
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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
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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
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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
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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
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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
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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
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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
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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.
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So where are ADB’s business
opportunities?
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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
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Types of Business Opportunities
Consulting Services
Total contracted in 2014 = $555 million
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ADB Business Opportunities
Agriculture, NaturalResources and Rural
Development, 2,650
Education,
1,487
Energy, 5,274
Finance, 769Health, 186
Industry and Trade, 112
Information and
Communication
Technology, 10
Multisector, 371
Public Sector
Management, 1,019
Transport, 8,298
Water and Other Urban
Infrastructure and
Services, 3,542
Uncontracted Loan Funds by Sector
(as of 31 Dec 2014) US$ million - Total = $23,718M
Transport - 35%
Energy - 22%
Water - 15%
Agriculture - 11%
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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%
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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
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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