1. Capacity Building Program for EAs/IAs on Successful Project Design and Implementation 20-22 November 2013  ADB Headquarters, Manila, Philippines Improving Procurement Outcomes in South Asia - Operational Perspective Hans Carlsson Advisor and Head, SAOD-PR South Asia Department Asian Development Bank

2. 2

3. Active Loan Portfolio (as of end 2013)

4. Portfolio Performance South Asia Department | 4 Contract Awards and Disbursements

5. Number of Contracts by Contract Size

6. South Asia Department | 6 Best practice difficult because of low service standards and processes Low premium on quality Narrow list of contract modalities Limited differentiation between countries, agencies and project types Procedures need modernization Procurement Process Bottlenecks seen by clients and operational staff Challenges

7. Improvements possible

8. Critical Issue – Project Preparation South Asia Department | 8 Project Implementation Cycle Project Implementation Cycle S Curve Extension Project Approval Date Real Curve Causes: 1. Low Readiness 2. Slow Procurement 3. Poor Project Mgnt. 4. Complexity 5. Safeguards

9. South Asia Department | 9 C omplete engineering designs Advanced work on procurement for key contracts Actions on safeguards (land buying & resettlement) Project management units (with right staff) Secure counterpart finance to match ADB’s Ensure all other in-country permits Adopt Project Readiness Filters Filters determine the location on S curve map

10. Project Performance South Asia Department | 10 S Curve – with Readiness S Curve – with Readiness Board Approval Date Others Procurement Safeguards PMO/Team Local Financing Design

11. Conclusion o Procurement extremely important in project implementation and for achieving results o Client concerns need to be addressed o Approaches and processes must change o DMC procurement systems are developing at different pace o There is no “one-size-fits-all” approach in procurement – we need to adapt