Business Opportunities Seminar (BOS)

Asian Development Bank

Hamid Sharif, Principal Director Central Operations Services Office Japan July 2011

Introduction 1

Contents
The Role of the Asian Development Bank Fundamental Principles of ADBs Procurement Guidelines ADB Business Opportunities

Introduction 2

The Role of the Asian Development Bank

Development Bank

Asian

A regional multilateral development bank

Established in 1966

A partnership of 67 countries 42 client countries 28 offices worldwide

Introduction 3

Welcome to ADB!

Introduction 4

The Role of the Asian Development Bank

ADBs Partner
Governments Almost all ADB Private sector projects Nongovernment organizations rely on Development agencies Consult Community-based organizations ants Foundations and

Contrac tors

Introduction 5

The Role of the Asian Development Bank

Portfolio
Strategic Agendas
Inclusive Social Development Environmental Sustainability Regional Cooperation for poverty reduction
Introduction 6

ADB

Five Core Specializations

Infrastructure

Environment including climate change Regional Cooperation and integration

Financial sector ADBs Long-Term Strategic Framework: Strategy 2020 development (published 2008) Education http://www.adb.org/documents/Policies/Strategy2020/St

The Role of the Asian Development Bank

Resources
Ordinary Capital Resources

Lending

Capital Stock . . . . . . . . . . . . . . . $ 148.44

billion Amount Paid-In . . . . . . . . . . . . . $ 7.64 billion Callable Guarantees . . . . . . . . . $ 140.80 billion

Asian Development Fund

Contributed . . . . . . . . . . . . . . . . $ 34.56 billion

* As of 31 March 2011
Introduction 7

The Role of the Asian Development Bank

Assistance
Main Instruments
Bil)

ADB
(Unit: US$

Loans, Grants, 2009 2010 2011 Technical (Actual) (Actual) (Projecte Assistance, Equity d) Investments, etc Lending Total 19,344 17,596 17,385
Dominantly in public sector to Government ADB assists private enterprises in developing countries through equity investments, guarantees, and loans. AAA credit rating helps mobilize funds for development activities
Introduction 8

The Role of the Asian Development Bank

31 Dec 2010)

Largest Borrowers
2009
Indonesia PRC Vietnam India Philippine s Banglades h

(as of

2007
Pakistan Vietnam India PRC Indonesia Banglades h

2008
India PRC Pakistan Indonesia Philippine s Vietnam

2010

India PRC Banglades h Vietnam Pakistan Indonesia

Introduction 9

* Note: Excluding Co-financing

ADF projects

Introduction 10

Fundamental Principles of ADBs Procurement Guidelines

Guidelines
Policies and procedures on the selection, contracting and monitoring of consultants for loan and technical assistance projects, conducted by ADB or Borrower/ Executing Agencies

Policies and procedures for the procurement of goods and works conducted by the Borrower/ Executing

Introduction 11

Fundamental Principles of ADBs Procurement Guidelines

Sources of Guidelines
ADB Charter
GUIDELIN ES

Commercia l Practices

Other MDBs ADB Experience

ADB Board Policy

Introduction 12

Fundamental Principles of ADBs Procurement Guidelines

Fundamental Principles
Transparency Fairness Economy and Efficiency Promotion of Domestic Industries Source of Goods & Services (Eligibility)
Introduction 13

ADB contracts?

Why pursue

Added benefits of ADB-Financed Contracts

Funds are available Internationally accepted procurement procedures Equal treatment of bidders from member countries
Introduction 14

No currency exchange risks

ADB Business Opportunities

ADB Business Opportunities

Sectors)

(By

ADBs opportunities1

Introduction 15

ADB Business Opportunities

ADB Business Opportunities

Countries)

(By

PR China Vietnam India - 5% Bangladesh 4%

- 7% - 5% - 14% - 12%

- 21% - 17%

Pakistan Sri Lanka

Uzbekistan Kazakhstan -

Introduction 16

ADB Business Opportunities

Energy/Business Opportunitie
Types Investment projects Technical assistance Areas Deployment of new clean energy technology Projects that lower the barriers to adopting clean energy technologies Projects that increase access to modern forms of clean and energy efficient energy for the poor Technical capacity programs for clean energy

Introduction 17

ADB Business Opportunities

Energy/Programs and Approaches

Clean Energy
Continue to catalyze clean energy investments using Clean Energy Financing Partnership Facility, Climate Change Fund

Carbon Market Initiative

Supports the development of clean energy, energy efficiency, and GHG abatement projects in DMCs that are eligible under the CDM of the Kyoto Protocol Asia Pacific Carbon Fund and Future Carbon FundF

Energy for All Initiative

Target: provide energy access to 100 million people by 2015

Introduction 18

Asian Solar Energy Initiative

3,000 MW of solar electricity generation and associated smart grid projects over the next 3 years. Asia Accelerated Solar Energy Development Fund (AASEDF)

ADB Business Opportunities

Energy/Programs and Approaches

Quantum Leap in Wind Power

Install 1.0 GW wind power over the next 5 years Aggregate the market for wind to lower cost of technology and catalyze deployment in the region Carbon Capture and Storage Partnership with Global Carbon Capture Institute - comprehensive roadmap for CCS demonstration projects Exchange to Transfer Clean Technologies to Asia and the Pacific
Introduction 19

ADB Business Opportunities

The greening of ADBs Energy Sector Operations

In a bid to accelerate low-carbon growth and reduce greenhouse gas emissions in the region, ADB set the following targets:
$1 billion annual target of clean energy investments, from 2008 $2 billion annual target of clean energy investments, from 2013
Introduction 20

ADB Business Opportunities ADBs Transport Operations are Changing

19702009
Urba n Tra ns por t 2% W a te r Tr a ns por t 7% Air Ta ns por t 2% Ra ilw a ys 15%
Urban Transport 19%

20102012
Water Transport 1%

Railways 11%

Roads 69%

Roa ds 74%

Introduction 21

ADB Business Opportunities

ADB Road Sector Assistance

Key outputs (2005-2009)
1,400 km of expressways 40,000 km of national highways, provincial

and rural roads.

Road loans included

Strengthening the capacity of road

institutions Increasing private sector participation Road asset management

ADBs sub-regional programs Improved physical connectivity Economic integration of neighboring

Introduction 22

ADB Business Opportunities

Opportunities for New and Enhanced Operations

ADBs Sustainable Transport Initiatives

Scaling-up urban transport scale-up operations, promote model projects such as BRT and rail MRT Mainstreaming climate change model projects for mode shifting and distance shortening Improving cross-border transport and logistics more effective transport and trade facilitation Supporting road safety and social

Introduction 23

ADB Business Opportunities

ADB is also pursuing Emerging Opportunities in the Transport Sector

Sustainable transport development plans Policy advisory support Transport demand management and road pricing Intelligent transport systems Possible roles for ADB in promoting new technologies for vehicles,

Introduction 24

Procurement Ranking Goods and Works

(as of 31 Dec 2010) (Project Loans Country of Origin)

ADB Business Opportunities

2008
(4,257.7)

2009
(5,558.7)

2010

(4,265.1)

PRC India Pakistan Viet Nam Sri Lanka Japan (76.57) (1.80%) * Unit: US$ Mil

India PRC Viet Nam Bangladesh Pakistan Japan (47.80) (0.86%)

PRC India Pakistan Germany Azerbaizan Japan (27.36) (0.64%)

Introduction 25

Procurement Ranking Consulting Services

(as of 31 Dec 2010) (Loans and TAs)

2008

(229.3)

2009

(256.0)

2010

(420.78)

USA India UK Australia Indonesia Japan

(13.74) (6 th)
Introduction 26

India Australia New Zeland Pakistan Bangladesh Japan

(5.64) (15 th)

India Indonesia Philippines Bangladesh Pakistan Japan

(2.29) (20 th)

* Unit: US$ Mil

Procurement Ranking Consulting Services (Loans) (as of 31 Dec 2010)

2008 NAT'L Indonesia India Pakistan INT'L. UK USA Japan NAT'L India Pakistan 2009 INT'L. Spain New Zeland NAT'L 2010 INT'L. Indonesia Australia India Japan

Indonesia Australia Banglades Philippines h UK Viet Nam PRC Korea UK

Banglades Australia Banglades h h Cambodia

Introduction 27

Korea

Viet Nam Denmark Japan 12th (3.5M)

* Unit: US$ Mil

Japan 3rd (13.6M)

Japan 2nd (16.3M)

Procurement Ranking Consulting Services (Technical Assistance) (as of 31 Dec

2010)
2008 NAT'L India Pakistan PRC Viet Nam Indonesia INT'L. Australia USA UK France Canada NAT'L PRC India Philippines Pakistan Indonesia 2009 INT'L. Australia UK USA India Japan NAT'L India PRC Banglades h Pakistan Nepal 2010 INT'L. USA Australia UK Pakistan India

Japan 8th (6.1M)

Introduction 28

Japan 5th (9.7M)

Japan 16th (1.8M)

* Unit: US$ Mil

Contracts Awarded for Consulting Services

(2010)
Grants (2.06)
(0.5%)

ADB Business Opportunities

Loans (259.47)
(61.7%)
Introduction 29

(37.8%)

Technical Assistance (159.25)

* Unit: US$ Mil, %

Dec 2010)
Country

ADB registered Consultants (as of 31

Consulting Entities Individual Consultants 328 209 37 34 10 97 24 107 37 40 366 592 99 1711 984 67 109 3 399 26 116 124 90 1,565 2,037 229

ADB Business Opportunities

Australia Canada Finland Ireland Luxembourg Netherlands Portugal Spain Sweden Switzerland United Kingdom United States Japan

Introduction 30

Locations to consider for Business Development:

Solomon Islands, Papua New Guinea, Timor Lest and other Pacific States Afghanistan, Cambodia, Pakistan

Introduction 31

ADB Business Opportunities

Finding ADB Business Opportunities

http://www.adb.org/Business/Opportunities

Introduction 32

Introduction 33

Thank you!
Hamid Sharif Principal Director Central Operations Services Office +63 2 632 4444 hsharif@adb.org http://www.adb.org

Introduction 34