Business Opportunities Seminar In Australia

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1 Business Opportunities Seminar In Australia Asian Development Bank Eric Gagnon Principal Procurement Specialist Operations Services and Financial Management Department Brisbane, 24 October

2 Welcome to ADB ADB Business Opportunities Context Consultants and contractors in ADB operations ADB Procurement and Fundamental Principles ADB Business Opportunities 4

3 What is ADB? A regional multilateral development bank Established in 1966 A partnership of 67 countries 42 client countries 28 offices worldwide 5

4 ADB Operations Main Instruments Loans and Grants Technical Assistance Advice and Knowledge Management Lending Predominantly in public sector, to Governments Assist private enterprises in developing countries through equity investments, guarantees, and loans AAA credit rating helps mobilize funds for development activities 6

5 Asia s infrastructure scores* OECD East Asia Southeast Asia Middle East and North Africa Latin America and the Caribbean Central Asia South Asia Sub-Saharan Africa Pacific Source: Global Competitiveness Report *1 = extremely underdeveloped to 7 = extensive and efficient

6 In Asia, ADB Business Opportunities infrastructure gap means People without Access to: Water and Sanitation 900 million people Electricity 800 million people Roads 1.2 billion people Internet 80% of Asia Source: Various reports compiled by ADB 8

7 Financing Requirements Asia s infrastructure needs, (in 2008, $ billion) Energy (electricity) 4,089 Transport (roads) 2,341 Telecommunications 1,056 Water and sanitation Airports, ports, and railways Source: ADB, Infrastructure for a Seamless Asia. Manila Total of $8.3 trillion ( ) or $750 billion/year 9

8 Strategy 2020 ADB Business Opportunities ADB s core operations Infrastructure Environment Regional cooperation Finance sector Education Drivers of Change Private sector development and private sector operations Good governance and capacity development Gender equity Knowledge solutions Partnerships 10

9 Sovereign & Non-Sovereign Approvals (2013, $ million) $3,715 $150 $849 Cofinancing Technical Assistance Guarantees Grants $11,768 Sovereign $2,933 $35 $6 $142 $1,425 Nonsovereign Equity Investments Loans 11

10 Approvals by Modality (in $ million) ADB Business Opportunities Policy-Based Support, $2,086, 10% Technical and Advisory Support, $434, 2% Investment Support, $18,503, 88% 12

11 Largest Borrowers ADB Business Opportunities India India India PRC PRC PRC Viet Nam Viet Nam Pakistan Pakistan Indonesia Indonesia Uzbekistan Bangladesh Philippines Bangladesh Philippines Bangladesh 13

12 Portfolio Distribution 2013 Active Portfolio - $65.1 billion by Department ADB Business Opportunities Non-Operations, $0.4, 1% SERD, $15.2, 23% CWRD, $16.2, 25% SARD, $20.2, 31% EARD, 11.2, 17% PARD, $1.9, 3% 14

13 $ billion Portfolio Distribution ADB Business Opportunities Active Portfolio by Sector ANR EDU ENE FIN HSP IAT MUL PSM TAI WMS *Loans, Grants, TA, Guarantee, Equity Investment 15

14 Who ADB works with? Governments Private sector Non-government organizations Development agencies Community-based organizations Foundations Professional Organizations Almost all ADB projects rely on Consultants and Contractors 16

15 ADB Procurement Consulting Services (Loans, TAs, Grants) Rank st AUS AUS AUS 2nd IND USA IND 3rd USA KOR USA 4th CAN PHI UKG 5th LUX IND GER 17

16 ADB Registered Consultants CONSULTANTS REGISTRATION IN 2013 CONSULTANT MANAGEMENT SYSTEM NATIONALITY CONSULTING ENTITIES INDIVIDUALS United States Australia Canada Netherlands New Zealand Switzerland United Kingdom

17 Australia Share of ADB Business Opportunities ADB-Administered Contracts AUSTRALIA'S SHARE OF PROCUREMENT CONTRACTS Project and Program Loans combined, Grant and Technical Assistance Cumulative as of 31 Dec 2013 Item Amount ($million) % of Total Amount ($million) % of Total Amount ($million) % of Total Goods, Works and Related Services Consulting Services

18 ADB Procurement ADB Oversight The Borrower (Executing Agency) is responsible for procurement of goods and works ADB (under TAs) or Borrower select and recruit Consultants ADB reviews the procurement activities of EAs to ensure compliance with ADB Guidelines 20

19 Procurement & Consulting Services Guidelines Policies and procedures on the selection, contracting and monitoring of contractors, suppliers, and consultants Fundamental Principles Source of Goods & Services (Eligibility) Transparency Fairness Economy and Efficiency Promotion of Domestic Industries ADB Business Opportunities 21

20 Why pursue ADB contracts? Added benefits of ADB-Financed Contracts Funds are available Internationally-accepted procurement procedures Equal treatment of bidders from member countries No currency exchange risks ADB oversight 22

21 Goods and Works - Contracts Awarded Loans and Grants ( ) $100,000- $1 million $1-20 million Above $20 million Average Number of Contracts per year ~2,120 ~700 ~55 Average Contract Size $0.34 $3.93 $

22 Consulting Services - Contracts Awarded Averages Contracts per year Contract Value Total Annual Value of Contracts Awarded ($ million) Firms Indiv. Firms Indiv. Firms Indiv. ADB Administrative Budget (Staff Consultants) ~ $58,300 $21,950 $1.44 $20.97 ADB Technical Assistance ~220 ~1,980 $593,795 $38,890 $128.6 $80.56 ADB Loans ~825 $428,490 $

23 ADB Business Opportunities 25

24 ADB Business Opportunities PRC 18% IND 14$ VIE 13% PAK 8% BAN 8% PHI 6% Un-contracted Loan Funds by Country (as of 31 Dec 2013) US$ million Total = $26,015M 4, ,772 3, , , ,139 1, ,

25 Locations to consider for Business Development ADB Business Opportunities Solomon Islands, Papua New Guinea, Timor Leste and other Pacific States Afghanistan Cambodia Pakistan 27

26 Why do business with ADB? ADB Business Opportunities A worthy development mission $26 billion of uncommitted portfolio A broad range of opportunities across Asia, in diverse sectors and thematic areas Unlock doors for business in emerging economies Your partner through oversight to ensure fairness and transparency 28

27 Finding ADB Business Opportunities ADB Business Opportunities 29

Finding ADB Business Opportunities Goods, Works and Related Services www.adb.

28 Finding ADB Business Opportunities Goods, Works and Related Services 30

29 Finding ADB Business Opportunities Consulting Services 31

30 Finding ADB Business Opportunities Identifying Projects 32

31 Finding ADB Business Opportunities Identifying Projects 33

32 Finding ADB Business Opportunities Project Data Sheet

33 Energy Sector Business Opportunities Examples of Consulting Expertise Required for Projects/TAs: Urban planners Clean energy development specialists/engineers Power management, transmission and distribution engineers Institutional specialists (utility operations managers) PPP and project finance specialists Economic and financial analysts 35

34 Major Projects in the ADB Pipeline: Energy Sector *TA: Technical Assistance 36

35 Major Projects in the ADB Pipeline: Energy Sector 37

36 Major Projects in the ADB Pipeline: Energy Sector 38

ADB Business Opportunities for Consultants. Presentation by Galia Ismakova, Senior Procurement Specialist, COSO April 2011

ADB Business Opportunities for Consultants Presentation by Galia Ismakova, Senior Procurement Specialist, COSO April 2011 Regional Multi-lateral Development Bank with HQ in Manila, Philippines Asian Development