Business Opportunities Seminar In Australia Asian Development Bank Eric Gagnon Principal Procurement Specialist Operations Services and Financial Management Department Brisbane, 24 October 2014 1
Welcome to ADB ADB Business Opportunities Context Consultants and contractors in ADB operations ADB Procurement and Fundamental Principles ADB Business Opportunities 4
What is ADB? A regional multilateral development bank Established in 1966 A partnership of 67 countries 42 client countries 28 offices worldwide 5
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
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 2.3 2.9 2.8 3.6 3.5 4.2 4.1 5.1 5.4 Source: Global Competitiveness Report 2012-2013 *1 = extremely underdeveloped to 7 = extensive and efficient 0 1 2 3 4 5 6 7
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
Financing Requirements Asia s infrastructure needs, 2010 2020 (in 2008, $ billion) Energy (electricity) 4,089 Transport (roads) 2,341 Telecommunications 1,056 Water and sanitation Airports, ports, and railways 125 381 Source: ADB, 2009. Infrastructure for a Seamless Asia. Manila 0 1000 2000 3000 4000 5000 Total of $8.3 trillion (2010 2020) or $750 billion/year 9
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
Sovereign & Non-Sovereign Approvals (2013, $ million) 18000 16000 14000 12000 10000 8000 $3,715 $150 $849 Cofinancing Technical Assistance Guarantees Grants 6000 4000 2000 0 $11,768 Sovereign $2,933 $35 $6 $142 $1,425 Nonsovereign Equity Investments Loans 11
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
Largest Borrowers ADB Business Opportunities 2011 2012 2013 India India India PRC PRC PRC Viet Nam Viet Nam Pakistan Pakistan Indonesia Indonesia Uzbekistan Bangladesh Philippines Bangladesh Philippines Bangladesh 13
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
$ billion Portfolio Distribution ADB Business Opportunities 25 2013 Active Portfolio by Sector 20 15 10 5 0 ANR EDU ENE FIN HSP IAT MUL PSM TAI WMS *Loans, Grants, TA, Guarantee, Equity Investment 15
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
ADB Procurement Consulting Services (Loans, TAs, Grants) Rank 2011 2012 2013 1st AUS AUS AUS 2nd IND USA IND 3rd USA KOR USA 4th CAN PHI UKG 5th LUX IND GER 17
ADB Registered Consultants CONSULTANTS REGISTRATION IN 2013 CONSULTANT MANAGEMENT SYSTEM NATIONALITY CONSULTING ENTITIES INDIVIDUALS United States 155 671 Australia 105 500 Canada 37 228 Netherlands 26 125 New Zealand 25 146 Switzerland 17 41 United Kingdom 90 473 18
Australia Share of ADB Business Opportunities ADB-Administered Contracts AUSTRALIA'S SHARE OF PROCUREMENT CONTRACTS 2012-2013 - Project and Program Loans combined, Grant and Technical Assistance 2012 2013 Cumulative as of 31 Dec 2013 Item Amount ($million) % of Total Amount ($million) % of Total Amount ($million) % of Total Goods, Works and Related Services 3.00 0.04 7.64 0.12 686.80 0.54 Consulting Services 75.14 12.88 71.89 14.24 999.88 10.64 19
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
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
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
Goods and Works - Contracts Awarded Loans and Grants (2011-2013) $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 $72.98 23
Consulting Services - Contracts Awarded 2011-2013 Averages Contracts per year Contract Value Total Annual Value of Contracts Awarded ($ million) Firms Indiv. Firms Indiv. Firms Indiv. ADB Administrative Budget (Staff Consultants) ~25 940 $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 $353.65 24
ADB Business Opportunities 25
ADB Business Opportunities 6000 5000 PRC 18% IND 14$ VIE 13% PAK 8% BAN 8% PHI 6% Un-contracted Loan Funds by Country (as of 31 Dec 2013) US$ million Total = $26,015M 4,766 4000 3000 3,772 3,353 2000 1000 0 1,036 425 154 2,063 364 29 0 2 9 391 685 668 230 14 282 7 2,139 1,537 719 467 278 73 23 8 0 28 19 675 250 1 61 0 32 1,410 44 26
Locations to consider for Business Development ADB Business Opportunities Solomon Islands, Papua New Guinea, Timor Leste and other Pacific States Afghanistan Cambodia Pakistan 27
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
Finding ADB Business Opportunities ADB Business Opportunities http://www.adb.org/site/business-opportunities/main 29
Finding ADB Business Opportunities Goods, Works and Related Services www.adb.org/site/business-opportunities/operational-procurement/goodsservices/notices-currrent 30
Finding ADB Business Opportunities Consulting Services http://csrn.adb.org/ 31
Finding ADB Business Opportunities Identifying Projects http://www.adb.org/ 32
Finding ADB Business Opportunities Identifying Projects http://www.adb.org/projects 33
Finding ADB Business Opportunities Project Data Sheet http:// www.adb.org/projects/46490-001/main 34
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
Major Projects in the ADB Pipeline: 2013-2014 Energy Sector *TA: Technical Assistance 36
Major Projects in the ADB Pipeline: 2013-2014 Energy Sector 37
Major Projects in the ADB Pipeline: 2013-2014 Energy Sector 38