ADB Business Opportunitiesfor Consultants

Presentation by

Galia Ismakova, Senior Procurement Specialist, COSO

April 2011

Regional Multi-lateral Development Bank with HQ in Manila, Philippines

Asian Development BankADB is an international development finance institution whose mission is to help its

developing member countries reduce poverty and improve the quality of life of their people.

Headquartered in Manila, and established in 1966, ADB is owned and financed by its 67 members, of which 48 are from the region and 19 are from other parts ofthe globe.

ADB’s main partners are governments, the private sector, nongovernment organizations, development agencies, community-based organizations, and foundations.

Under Strategy 2020, a long-term strategic framework adopted in 2008, ADB will follow three complementary strategic agendas: inclusive growth, environmentally sustainable growth, and regional integration.

In pursuing its vision, ADB’s main instruments comprise loans, technical assistance, grants, advice, and knowledge.

Although most lending is in the public sector - and to governments - ADB also provides direct assistance to private enterprises of developing countries through equity investments, guarantees, and loans. In addition, its triple-A credit ratinghelps mobilize funds for development.

ADB Fast FactsPresident: Haruhiko Kuroda

Headquarters: Manila, Philippines

Founded: 1966

Field offices: 27

Total employees: 2,600+

Nationalities employed: 50+

Members: 67

Regional members: 48

Nonregional members: 19

Total loans in 2009: $13.2 billion

Total grants in 2009: $1.1 billion

Technical assistance in 2009: $267.2 Mln

ADB OperationsIn 2010, Asian Development Bank’s (ADB) operations totaled $17.51 billion, $13.84 billion financed by ADB and Special Funds and $3.67 billion by cofinancing partners.

The total $13.84 billion consists of (i) $11.46 billion loans,

(ii) $243.0 million in equity investments,

(iii) $981.7 million in grants,

(iv) $982.3 million in guarantees, and

(v) $175.5 million in technical assistance (TA).

Including cofinancing, the top five recipients are Bangladesh ($2.97 billion), India ($2.40 billion), People’s Republic of China ($1.95 billion), Viet Nam ($1.25 billion), and Pakistan ($1.09 billion).

Excluding cofinancing, the top five recipients remain the same except for the ranking that changes as follows: India ($2.38 billion), People’s Republic of China ($1.61 billion), Bangladesh($1.25 billion), Viet Nam ($1.10 billion), and Pakistan ($904 million).

Board of Directors

Australia; Azerbaijan; Cambodia; Hong Kong,

China; Kiribati; Fed. States of Micronesia;

Georgia; Nauru; Palau; Solomon Islands;

Tuvalu

Philippines, Pakistan, Kazakhstan; Maldives;

Marshall Islands; Mongolia; Timor-Leste

United States

Republic of Korea; Papua New Guinea; Sri Lanka;Taipei,China; Uzbekistan;

Vanuatu; Viet NamPeople’s Republic of China

Canada; Denmark; Finland; Ireland;

Netherlands; Norway; Sweden

Belgium; France; Italy; Portugal; Spain;

Switzerland

Austria; Germany; Luxembourg; Turkey;

United Kingdom

Cook Islands; Fiji; Indonesia; Kyrgyz Republic; New

Zealand; Samoa; Tonga

Brunei-Darussalam Malaysia; Myanmar; Nepal; Singapore;

Thailand

Afghanistan; Bangladesh; Bhutan; India; Lao PDR; Tajikistan; Turkmenistan

Japan

“An Asia and Pacific region free of poverty “

Instruments

• Loans

• Technical Assistance

• Grants

• Advice and knowledge

Lending

• Dominantly to Governments

• Direct assistance to private enterprises

• Triple-A credit rating

Our Vision

Strategy 2020ADB's Strategy 2020, approved in April 2008,

reaffirms both ADB’s vision of an Asia and Pacific free of poverty and mission to help its developing member countries improve their living conditions and quality of life.

To achieve this, ADB will support three complementary development agendas: i) inclusive economic growth, ii) environmentally sustainable growth, and iii) regional integration.

Core Areas of Operations

ADB estimates that 80 % of its aggregate operations will fall within the five core areas:

1. Infrastructure

2. Environment

3. Regional Cooperation and Integration

4. Finance Sector Development

5. Education

Other Areas of Operations (limited scale involvement)

Health

Agriculture

Disaster and Emergency Assistance

2010 Approvals by Modality ($ million)

Policy BasedSupport1,683

TechnicalAssistance327

InvestmentSupport15,504

Modality - Involves the specific application of instruments (loan, equity investment, grant, project cofinancing, and guarantee) classified as investment support, policy-based support, other budget support (countercyclical support facility), or technical and advisory support.

Lending

Figure 1: Sectoral Distribution of Loans, 2009

Transport and ICT $4.67 b (29.2%)

Publc Sector Management

$5.62 b (35.1%)

Energy$2.15 b (13.4%)

Water Supply and Other Municipal

Infrastructure and Services,

$841.2 m (5.3%)

Agriculture and Natural Resources$472.1 m (3.0%)

Education$85.0 m (0.5%)

Finance$510.0 m (3.2%)

Multisector$1.42 b (8.9%)

Industry and Trade$101.0 m (0.6%)

Health and Social Protection

$123.1 m (0.8%)

Total: $16.00 billion

Grant OperationsFigure 2: Sectoral Distribution of Grant-Financed Projects, 2009

Agriculture and Natural Resources

$174.5m (15.7%)

Education $173.7m (15.6%)

M ultisector$107.3m (9.6%)

Water and Other M unicipal

Infrastructure and Services

$110.4m (9.9%)

Public Sector M anagement$57m (5.1%)

Industry and Trade $1.6m (0.1%)

Energy$95.3m (8.6%)

Transport and ICT$355.2m (31.9%)

Health and Social Protection,$35m (3.1%)

Finance$3.5 m (0.3%)

Total: $1.11 billion

Technical Assistance (TA) OperationsFigure 3: Sectoral Distribution of Technical Assistance, 2009

Finance: $24.8m (9.3%)

Public Sector M anagement: $52.8m (19.8%)

Water and Other M unicipal

Infrastructure and Services:

$18.4m (6.9%)

M ultisector: $52.2m (19.5%)

Health and Social Pro tection:

$6.6m (2.5%)

Energy: $35.0m (13.1 %)

Education: $5.9m (2.2 %)

Transport and ICT:$33.4m (12.5 %)

Agriculture and Natural

Resourcesa:

$33.0m (12.4%)

Industry and Trade:$5.0m (1.9%)

Total: $267.2 million

ADB Project Cycle and Business Opportunities

Business Opportunities

Consultants

Technical Assistance*

Staff Consulting*

Grants**

Loans**

Suppliers and Contractors

Grants**

Loans**

Institutional Procurement*

* Procured by ADB

** Procured by the Borrower

Procurement Ranking*Procurement Ranking*

Goods and Works

2008

PAKPRCINDUSAINO

SPA - 51stPOR - 51

2009

IND PRCUSAPHIPAK

SPA - 25th POR - 51

2010

PRCINDUSAPAKKOR

SPA - 33rdPOR - 52

* based on Nationality of Bidder* based on Nationality of Bidder** ADB has 67 member countries** ADB has 67 member countries

Procurement Ranking*Procurement Ranking*

Consulting Services (Loans)

2008

INO

IND

UKG

USA

PAK

SPA - 37th

POR - 37th -

2009

IND

PAK

INO

SPA

NZL

SPA - 4th POR - 39th

*based on Nationality of Bidder*based on Nationality of Bidder** ADB has 67 member countries** ADB has 67 member countries

2010

IND

INO

AUS

VIE

BAN

SPA - 27th

POR - 39th

Procurement Ranking*Procurement Ranking*

Consulting Services - TA

2008

AUS

USA

UKG

FRA

IND

SPA - 19th

POR - 55

2009

AUS

UKG

IND

USA

PHI

SPA - 20th

POR - 50th*based on Nationality of Bidder*based on Nationality of Bidder

** ADB has 67 member countries** ADB has 67 member countries

2010

USA

IND

AUS

UKG

PHI

SPA - 15th

POR - 60th

Consultant Registration with ADBConsultant Registration with ADB

Country Consulting Entities Individual Consultants

Spain* 106 139* 111 152*

Portugal 18 32* 27 36*

Australia 333 1902

Ireland 34 115

Netherlands 97 441

United Kingdom 371 1784

United States 605 2281

Singapore 153 204

* Includes de* Includes de--activated accounts as wellactivated accounts as well

Policies and procedures

Guidelines on Use of Consultants by ADB and Its Borrowers

Project Administration Instructions

Guidelines on the Use of Consultants by ADB and its Borrowers (2010)

Policies and procedures for selecting, contracting and monitoring consultants required for loan and technical assistance (TA) projects

ADB

Guidelines onThe Use of ConsultantsBy Asian Development Bankand Its Borrowers

April 2010

Asian Development Bank

Summary of Recruitment Cycle

Consulting Services Recruitment Notice (CSRN)

ADB/EA prepares Short-list

ADB/EA issues Request for Proposal (RFP)

ADB/EA evaluates Technical Proposal

Public opening of Financial Proposal

ADB/EA does overall ranking

ADB/EA conducts negotiations and signs contract

Selection MethodsSelection Method Technical Proposal Evaluation Financial Proposal Selection procedure

LCS – Least Cost Selection >= 750 out of 1000 Lowest priced Firm with lowest priced responsive proposal wins

QCBS – Quality and Cost based selection

>= 750 out of 1000 Competitive

(Quality-cost ratio50:50, 70:30; 80:20; 90:10)

Firm representing the best combination of quality and price wins

FBS – Fixed Budget Selection

>= 750 out of 1000And Highest Technical Score

<= budget Firm with the best technical proposal and the financial proposal within the budget wins

QBS – Quality Based Selection

>= 750 out of 1000And

Highest Technical Score

Supporting documents to prove financial position of the firm, remuneration of experts, social and overhead charges

Negotiations are conducted with the firm that presented the best technical proposal

CQS – Consultants’Qualification Selection

Amplified Expression of Interest (EOI)

Structured EOI submission>= 750 out of 1000

Negotiations are conducted with the firm that presented the best expression of interest

SSS – Single Source Selection

>= 750 out of 1000 Supporting documents to prove financial position of the firm, remuneration of experts, social and overhead charges

Negotiations are conducted with the firm that is selected without benefit of competition

Contracting Arrangements

Guidelines on the Use of Consultants

Contracting Arrangements

“Old” contracting arrangements

Time based contract

Lump sum contract

New additions

Indefinite delivery contract ( Price Agreement)

Retainer and/ or Contingency ( Success) Fee Contract

Performance based contracts/hybrid

Guidelines on the Use of Consultants

Expressions of Interest and

Short-listing

Basic Strategies/Market Intelligence

Register in ADB Consultant Management System (CMS)

Study the ADB Country Partnership Strategy

Visit ADB (HQ and RM) and EAs

Review procurement plans [Loan consultants]

Consulting Services Recruitment Notice (CSRN)

Report and Recommendations of the President (RRP)

Express interest to ADB and/or the EA

Information on Business Opportunities

Consulting Services Recruitment Notice (CSRN)

• The Consulting Services Recruitment Notice (CSRN) provides detailed information on the consulting services required for ADB financed or administered technical assistance, loans and grants and provides the ability to collectexpressions of interest (EOI).

• Starting from 26 January 2009, the system also allows advertisements of Staff Consulting Assignments, Indefinite Delivery Contracts and Special Assignments.

• Starting 1st week of September 2010, use webmailing facility to inform consultants on currently advertised opportunities.

CSRN Consulting firms and individual consultants can:File EOIs on ADBBO (important to Save and Submit) and have the opportunity to edit the EOI before the deadline for submissionGet notified of updates to advertisement (if an EOI has been submitted)

Expressions of Interest (EOIs)

For projects and assignments administered by ADB, EOIs are expected to be presented online through CSRN (Consulting Services Recruitment Notice)

For projects administered by Executing Agencies (Borrowers) submit EOIs online (if applicable) and offline (as directed in the notice)

If for any reason, you are unable to use the e-facility, send the EOI to project officer stated in the CSRN. Standard template for EOI shall be followed. You may also attach EOI to your Consultant Management System registration page and cross-reference.

Templates for Expressions of Interest (EOIs)

Template for EOI (individual)

• http://www.adb.org/Consulting/EOI-individuals.doc

Template for EOI (firm)

• http://www.adb.org/Consulting/EOI-firms-v09.doc

ADB Business Opportunities – Where to Find?

ADB website – opportunities links

ADB Business Opportunities Fair

ADB Business Opportunities Fair was conducted twice so far (in 2009 and 2011).

ADB set-up network to facilitate collaboration between consultants looking for business partners to pursue ADB-funded opportunities. Consultants/consulting entities will need to have LinkedIn profile to be able to use the facility

ADB Consultants Network at ADB Consultants Network:http://www.linkedin.com/e/qfo72y-gkf0zuh8-6r/vgh/3796524

There is also ADB Suppliers Network at LinkedIn

ADB Business Opportunities

Information on ADB Projects – Proposed Projects

Information on Projects –Approved Projects

Consulting Opportunities

Consulting Services Recruitment Notice

Consulting Services Recruitment Notice

and Consultant Management System

Consulting Services Recruitment Notice (CSRN) publishes notices of consulting opportunities for firms and individual consultants funded by Technical Assistance projects, Loan and Grant projects and through Internal Administrative Budget of ADB (Staff Consultants)

Typically, TA and Staff consultants are engaged by ADB, while Loan and Grant consultants are engaged by the Borrowers.

ADB requests online submission of expression of interest, while borrowers may choose to request EOIs offline.

To express interest online, consultant (or consulting firm) needs to be registered in Consultant Management System (CMS).

There are 2 types of CMS registration – i) simplified (shall not take more than 15 minutes to complete; ii) full (depends on the qualifications) . Full registration is required prior to issuance of contract

Consultant Management System

Typical Shortlisting Criteria –From Long List to Short List

Long list shall include all eligible consultants that expressed interest

Short list is drawn, using the following criteria and conditions:

• The shortlisted firms meet the eligibility criteria in PAI 2.01, Section M.

• The shortlisted firms meet the technical competence, as determined by the recruiting party.

• Short lists normally comprise six firms.

• The shortlisted firms meet the requirements for country/regional experience/s, considering any preference that has been expressly indicated by the recruiting party.

• For international assignments, short lists should have a wide geographic spread and should normally not have more than two firms from any single country. Short lists should include at least one firm from a developing member country (DMC), unless no qualified firm from a DMC has been identified. For shortlisting and where a consortium comprises firms from a range of countries, only the country where the lead firm/partner is registered will be considered for a geographical spread, but all the firms in the consortium must meet the eligibility requirements.

• For national recruitments (PAI 2.02, para 61), the short list may comprise entirely national firms (registered in the project country). However, if foreign firms express interest, they should be considered.

You are shortlisted – What’s next?

1. Carefully examine all portions of Request for Proposal (RFP), especially Instructions to Consultants (ITC), Data Sheet, TOR, Summary Evaluation Sheet and Personnel Evaluation Sheet

2. Examine adequacy of budget. Consider total budget versus competitive budget (excluding provisional sums and contingency)

3. Examine contract template and make sure you are OK with it (the template is unlikely to change at your request later).

4. Assemble the best team you can afford within the budget specified. Special consideration – selection of Team leader and deputy team leader (if applicable). Be guided by Summary Evaluation Sheet and Personnel Evaluation Sheet in your efforts of assembling the team

5. If in-house expertise is not sufficient to fully meet requirements of the TOR, consider independent consultants or consultants from other firms

Contd.

You are shortlisted – What’s next?

6. Don’t hesitate to clarify RFP, if it is not clear or contain inconsistencies

7. Remember eligibility criteria and check nationality of proposed experts. (International experts shall be from ADB member countries, national experts from project country). If, in doubt, raise clarification.

8. Remember of the deadline, don’t attempt to assemble the proposal (especially submitted through CMS) in the last hour. Target submission 2 days prior to deadline ( you can always work on proposal by returning it to “Draft” status and then submitting it again before the deadline)

9. Don’t give conditional/ restrictive proposal – this might disqualify it.

You are not shortlisted –what’s next?

1. Consider joining firm/ entity that have been shortlisted either in association/ JV or by supplying individual consultants

2. Individual consultants can be present in more than 1 proposal, if they are not full-time employee of one of the shortlisted firms.

Consulting Services – Hop-on

Opportunities - Shortlisted Firms

Business Opportunities eLearning

eLearning for suppliers and contractors

eLearning for Consultants

Responding to RFP

For More Information

www.adb.org

http://www.adb.org/Procurement/contact.asp

http://www.adb.org/Consulting/contact.asp