1 Introducing ADB by S. O'Sullivan Final for 20 March 2013

7/29/2019 1 Introducing ADB by S. O'Sullivan Final for 20 March 2013

1/24

Business Opportunities Fair

Introducing ADBWhy do Business with ADB?

20-21 March 2013

Sean OSullivanDirector General

Operations Services and Financial Management DepartmentAsian Development Bank


2/24

Welcome

The Role, Strategy and Operations of the AsianDevelopment Bank

ADB Procurement and its FundamentalPrinciples

ADB Business Opportunities
http://www.adb.org/documents/events/2011/business-opportunities-fair/default.asp


3/24

What is ADB?

A regional multilateral development bank

Established in 1966

A partnership of 67 countries 42 client countries

28 offices worldwide


4/24

Strategy 2020

Vision:Asia and the Pacific free of poverty.

Inclusive economic growth Environmentally sustainable growth

Regional cooperation and integration
http://www.adb.org/documents/events/2011/business-opportunities-fair/default.asphttp://www.adb.org/Strategy2020/default.asp


5/24

Source: Various reports compiled by ADB

Asia has the worlds largestinfrastructure gap

Number of People without Access to Infrastructure

in the Asia and Pacific Region

Water and Sanitation 900 million people

Electricity 800 million people

Roads 1.2 billion people

Internet 80% of Asia

5


6/24

Source: Global Competitiveness Report 2012-2013*1 = extremely underdeveloped to 7= extensive and efficient

Asias overall infrastructure score*is relatively low

5.4

5.1

4.2

4.1

3.6

3.5

2.9

2.8

2.3

0 1 2 3 4 5 6

OECD

East Asia

Southeast Asia

Middle East and North Africa

Latin America and the Caribbean

Central Asia

South Asia

Sub-Saharan Africa

Pacific

6


7/24

Asias financing requirements arelarge

4,089

2,341

1,056

381

125

0 500 1000 1500 2000 2500 3000 3500 4000 4500

Energy (electricity)

Transport (roads)

Telecommunications

Water and sanitation

Airports, ports, and railways

Asias infrastructure needs, 20102020(in 2008, $ billion)

7

Source: ADB, 2009. Infrastructure for a Seamless Asia. Manila

Total of $8.3 trillion (20102020) or $750 billion/year


8/24

Strategy 2020

Drivers of Change Private sector

development and privatesector operations

Good governance andcapacity development

Gender equity

Knowledge solutions

Partnerships

ADBs core operations Infrastructure

Environment

Regional cooperation Finance sector

Education


9/24

ADB Operations

Main Instruments Loans and Grants

Technical Assistance

Advice and Knowledge Management

Lending

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 fordevelopment activities


10/24

ADB Operations ($million)

10


11/24

Sovereign and Non sovereignApprovals (in $ million)

11

$10,611

$1,107

$131

$697$146

$5

$2,155

$6,117

$200

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

Sovereign Nonsovereign

Supply Chain

Finance

Cofinancing

TA Grants

Guarantees

Grants

Equity

Loans


12/24

Approvals by Modality(in $ million)

12

Investment

Support,$18,779 , 87%

Policy-Based

Support,

$2,494 , 12%

Technical

and

Advisory

Support,

$298 , 1%


13/24

Largest Borrowers

2010 2011 2012

India India India

PRC PRC PRC

Bangladesh Viet Nam Viet Nam

Viet Nam Pakistan Indonesia

Indonesia Uzbekistan Bangladesh

Uzbekistan Bangladesh Philippines


14/24

Portfolio Distribution

14

NONOPERATIONS,

0.3 , 1%

CWRD, 14.4 ,

23%

EARD, 11.4 ,18%

PARD, 1.5 , 2%

SARD, 20.9 ,

34%

SERD, 14.0 ,

22%

2012 Active Portfolio - $62.5 billion

by Department

* Loans, Grants , TA, Guarantee, Equity Investment


15/24

Portfolio Distribution

15

0

5

10

15

20

25

ANR EDU ENE FIN HSP IND MUL PSM TAI WSM

$billion

2012 Active Portfolio

by Sector

* Loans, Grants , TA, Guarantee, Equity Investment


16/24

Who does ADB work with?

Governments

Private sector

Non-government organizations

Development agencies Community-based organizations

Foundations

Professional Organizations

Almost all

ADB projectsrely onConsultantsand

Contractors


17/24

ADB Procurement

ADB Oversight

The Borrower (Executing Agency) isresponsible for all procurement of goods and

works

ADB (under TAs) or Borrower select andrecruit Consultants

ADB reviews the procurement activities toensure that the ADB Guidelines are followed


18/24

Procurement and Consulting ServicesGuidelines

Fundamental Principles Transparency

Fairness

Economy and Efficiency

Promotion of Domestic

Industries

Source of Goods & Services(Eligibility)

Policies and procedures on theselection, contracting andmonitoring of suppliers,contractors and consultants


19/24

Goods and Works - Contracts Awarded

Loans and Grants(2010 -2012)

$100,000-$1million

$1-20 millionAbove $20

million

Average Number of

Contracts per year 2,352 748 66

Average Contract Size $0.3 million $4.1 million $53.5 million

Total Value ofContracts Awarded(Average 2010-2012)

$0.8 billion $3.1 billion $3.5 billion


20/24

Consulting Services- Contracts Awarded

2010 -2012

Average No. of Contractsper year

AverageContract Size

Annual AverageValue of

ContractsAwarded($ million)

Total Firms Indiv. Firms Indiv. Firms Indiv.

ADB AdministrativeBudget(Staff Consultants)

1,261 47 1,214 $97,247 $21,950 $4.6 $26.6

ADB Technical

Assistance 2,037 188 1,849 $600,115 $38,886 $112.8 $71.9

ADB Loans 562 562 $457,270 $256.9


21/24


Agriculture and Natural

Resources, 2,755

Education, 783

Energy, 4,605

Finance, 578

Health and Social

Protection, 167

Industry and Trade, 222

Multisector, 2,305

Public Sector

Management, 1,035

Transport and ICT, 7,432

Water and Other

Municipal Infrastructure

and Services, 2,367

Uncontracted Loan Funds - by Sector(in US$ million, at 31 Dec 2012) - Total = $22,249M

Transport/ICT - 33%

Energy - 21%

Agriculture - 12%

Water/Municipal - 11%

Multisector - 10%


22/24

15111

459

2,641

26

315

6 9 4

262

3,560

985

759

85 14179

6162

327

1,296

6

758

203

4,142

2 5 5 10

796

8 0 33

1,459

13

3,585

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

AFG

ARM

AZE

BAN

BHU

CAM

COO F

IJ

FSM

GEO

IND

INO

KAZ

KGZ

KIR

LAO

MLD

MON

NEP

PAK

PAL

PHI

PNG

PRC

REG

RMI

SAM

SOL

SRI

TAJ

THA

TIM

UZB

VAN

VIE

Uncontracted Loan Funds by Country(as of 31 Dec 2012) US$ million - Total = $22,249MPRC - 19%IND - 16%

VIE - 16%

BAN - 12%

UZB - 7%

PAK -6%



23/24

Locations to consider forBusiness Development

Solomon Islands, Papua New Guinea,

Timor Leste and other Pacific States

Afghanistan,

Cambodia, Pakistan


24/24

So why do Businesswith ADB?

Join a worthy development mission

$21 billion of business opportunities

A broad range of opportunities across Asia,

sectors and thematic areas Working with ADB can unlock the door for

business in emerging economies

ADB is your partner and overseesprocurement to ensure fairness andtransparency

1 Introducing ADB by S. O'Sullivan Final for 20 March 2013

Documents

Transcript of 1 Introducing ADB by S. O'Sullivan Final for 20 March 2013