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Business Opportunities Seminar

Tokyo, Japan
Procurement of Goods and Works
14 December 2015
Presented by:
Keiko KOISO
Procurement Specialist
Procurement Division 2
Operations Services and Financial Management Department

AGENDA
ADB Overview
Business Opportunities
Bidding Dos and Donts
Q & A

Overview
Regional Multilateral Development Bank
Established in 1966

Partnership of 67 countries
41 client countries
Headquarters in Manila with 29 resident missions and
3 representative offices (Tokyo, Frankfurt, and
Washington, DC)
3000+ employees from 61 member countries
ADBs Vision: An Asia and Pacific Region Free of Poverty

Overview of Sovereign Portfolio

Uncontracted Loan Funds By Sector

Overview of ADB Operations


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

Uncontracted Loan Funds by Country

Why pursue ADB financed goods and


works contracts?
Significant expenditure on goods and works (approximately
$8.2Bn contracted 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

Key Policy Documents


Overarching Principles

Downloadable at:
http://www.adb.org/site/b
usinessopportunities/operationalprocurement/goodsservices/documents

Economy and Efficiency


Transparency
Fairness
Promotion of Domestic
Industries
Source of Goods & Services
(Eligibility)

Downloadable at:
http://www.adb.org/
documents/guidelin
es-use-consultantsasian-developmentbank-and-itsborrowers

Procurement Guidelines
Eligibility
Limitation for Participation
Ideally only by bidders' capability to fulfill the contract

Exceptions
Compliance with UN Security Council decision
Conflict of interest (i.e., party has interests that could improperly

influence that partys performance of official duties or responsibilities,


contractual obligations, or compliance with law)
Government owned enterprises (unless they are legally and
financially autonomous, operate under principles of commercial law and
not dependent on executing agency)

Declaration of ineligibility by ADB

Procurement Guidelines
International Competitive Bidding
ICB is the default procurement method

Threshold Contract Values (US $)


Goods - $500,000 to $1,000,000
Works - $1,000,000 to $10,000,000

Value for Money


For Borrower, wide range of choices in bid
selection from among competing suppliers /
contractors

Fairness, Transparency
For prospective bidders from eligible source
countries, adequate, fair and equal opportunities

Identifying Opportunities for


Goods and Works
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

adb.org Business Opportunities Portal

Early Notices: Procurement Plans

Specific Procurement Notices

Hop-on Opportunities

Online registration will close on 10 February 2016, Wednesday, by close of business Manila time (GMT+8)

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

Summary of Overall Procurement


Goods, Works and Others
Top 5 Contractors/Suppliers from Japan Involved in Goods, Works, and Related Services
Contracts under ADB Loan and Grant Projects,
1 January 2010
31 December 2014
Contract Amount ($ million)

KUBOTA CORPORATION

41.48

OGAWA SEIKI CO., LTD.

37.15

MITSUBISHI CORPORATION

22.79

KITANO CONSTRUCTION CORPORATION

14.91

MARUSHIN SHITAKA CONSTRUCTION CO., LTD.

13.01

Others

26.17

Total

155.51

Bidding Dos and Donts

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.

Bidding Dos
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 Donts

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

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

Keiko KOISO
E-mail: kkoiso@adb.org

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