Infrastructure Investment at ADB Yu-Lan Feng, Ph. D. Director (retired) Environment, Natural Resources and Agriculture Division East Asia Department fengyulan86@gmail.com

OUTLINE Basic Facts of ADB ADB’s Strategy 2020 and Core Operations Portfolio and Investment in Infrastructure Projects Procurement Activities at ADB

Basic Facts Of ADB A multilateral development bank, founded in 1966 A working partnership of 67 member countries 34 borrowing member countries  ADB is a multilateral development bank—“multilateral” because it involves many countries; “development” because it is concerned with economic growth and cooperation, and “bank” because it lends money.  Its clients are the developing countries of Asia and the Pacific. Its shareholders are its members.  ADB is a working partnership of the developing countries of the region and the developed countries of the world. 

ADB’s Strategy 2020 -Core Areas of Operations Infrastructure Energy efficiency, clean energy, transport, irrigation and water management, urban infrastructure Environment Climate change, livable cities, transfer of knowledge Regional cooperation and integration Finance sector development Education

What Does ADB Do? Sovereign lending through country partnership strategy and country operational business plan Non-sovereign lending to support private sector development Grant financing

Portfolio of 2013 $21.02 billion, of which ADB financed $14.38 billion, and co-financing partners $6.65 billion. Historical top borrowers—IND, PRC, INO, PAK, VIE, PHI  Typically ADB lends $5 billion to $6 billion a year,  2003 was no exception.  Most lending is from ADB’s ordinary capital resources. This lending is made at market rates of interest typically at around 6–6½ percent and for terms of 10–20 years. Asian Development Fund loans are made on highly favorable terms—an interest rate of 1–1½ percent, repayable over 32 years. In 2001 ADF loans made up a quarter of the total. 

Investment in Infrastructure Investment priorities in 2013 included energy (5.63B), transport and ICT (5.14B), finance (2.99B), water and municipal services (1.92B).

ADB Project Cycle Country Partnership Strategy and its updates (CPS, CPSU) Country Operational Business Program (COBP), and Report and Recommendations of the President (RRP), and its Project Administration Manual (PAM), and Procurement Plan

Sample Procurement Plan

Procurement Activities Regional Departments Central Asia, East Asia, South Asia, Southeast Asia, Pacific, Private Sector OSFMD Owns procurement guidelines, monitors, and coordinates project processing and administration work programs, procurement reviews and consultant recruitment

Procurement Process General Procurement Notice on ADB website Invitation For Bid by Borrower Major Mode of Procurement International Competitive Bidding International Shopping National Competitive Bidding Direct Purchase

Procurement Thresholds METHOD THRESHOLD ICB for works Above $40,000,000 ICB for goods Above $3,000,000 NCB for works Below or equal to $40,000,000 but more than $100,000 NCB for goods Below or equal to $3,000,000 but more than $100,000 Shopping for works and goods Below or equal to $100,000

ADB’s Review Process of loan procurements Shortlist Bidding Documents and Draft Contract Bid Evaluation Report Disbursement Documents

Sample Invitation for Bids (1)

Sample Invitation for Bids (2) Procurement of Works, Plant & Services for construction of Civil structures and supply, transportation, storage, assembly, erection, testing and commissioning of Hydro-Mechanical equipment of 118 MW Nikachhu Hydropower Project at Trongsa, Bhutan

Visit ADB Web Site http://www.adb.org For More Information Visit ADB Web Site http://www.adb.org Or email fengyulan86@gmail.com