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G L 1 Procurement Procurement July, 2011 July, 2011 Tokyo Tokyo Business Opportunity Business Opportunity Seminar Seminar

Procurement

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ProcurementProcurement

July, 2011July, 2011TokyoTokyo

Business Opportunity Business Opportunity SeminarSeminar

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Procurement GuidelinesProcurement GuidelinesSourcesSources

ADBADBBoard Board PolicyPolicy

CommerciaCommercial Practicesl Practices

OtherOtherMDBsMDBs

ADBADBExperienceExperience

ADBADBCharterCharter

PROCUREPROCUREMENTMENT

GUIDELINGUIDELINESES

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ADB Charter   Article 14 (ix) : "The proceeds of any loan, : "The proceeds of any loan,

investment or other financing undertaken in investment or other financing undertaken in the ordinary operations of the Bank or with the ordinary operations of the Bank or with Special Funds …  shall be used only for Special Funds …  shall be used only for procurement in member countries of goods procurement in member countries of goods and services produced in member countries, and services produced in member countries, except …in any case in which the Board of except …in any case in which the Board of Directors by a vote of the Directors Directors by a vote of the Directors representing not less than two-thirds of the representing not less than two-thirds of the total voting power of the members, total voting power of the members, determines to permit procurement in a non-determines to permit procurement in a non-member country …”member country …”

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Member Countries: 67AfghanistanAfghanistan ArmeniaArmenia Australia Australia AustriaAustria

Azerbaijan Azerbaijan Bangladesh Bangladesh Belgium Belgium Bhutan Bhutan

Brunei Darussalam Brunei Darussalam Cambodia Cambodia Canada Canada China, People’s Republic ofChina, People’s Republic of

Cook Islands Cook Islands Denmark Denmark Fiji Islands, Republic of Fiji Islands, Republic of Finland Finland

France France Georgia Georgia Germany Germany Hong Kong, China Hong Kong, China

India India Indonesia Indonesia Ireland Ireland Italy Italy

Japan Japan Kazakhstan Kazakhstan Kiribati Kiribati Korea Korea

Kyrgyz Kyrgyz Lao People’s Democratic Rep. Luxembourg Lao People’s Democratic Rep. Luxembourg Malaysia Malaysia

Maldives Maldives Marshall Islands Marshall Islands Micronesia, Federal States of Micronesia, Federal States of MongoliaMongolia

MyanmarMyanmar Nauru, Republic ofNauru, Republic of NepalNepal NetherlandsNetherlands

New ZealandNew Zealand NorwayNorway Pakistan Pakistan PalauPalau

Papua New GuineaPapua New Guinea PhilippinesPhilippines PortugalPortugal SamoaSamoa

SingaporeSingapore Solomon IslandsSolomon Islands SpainSpain Sri LankaSri Lanka

SwedenSweden SwitzerlandSwitzerland Taipei, ChinaTaipei, China TajikistanTajikistan

ThailandThailand Timor-Leste, Democratic Timor-Leste, Democratic TongaTonga TurkeyTurkey

Republic ofRepublic of

TurkmenistanTurkmenistan TuvaluTuvalu United Kingdom United Kingdom United States of AmericaUnited States of America

UzbekistanUzbekistan VanuatuVanuatu Viet NamViet Nam

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ADB Charter   Article 14 (xi) :  : "The Bank shall take "The Bank shall take

the necessary measures to ensure the necessary measures to ensure that the proceeds of any loan made, that the proceeds of any loan made, guaranteed or participated in by the guaranteed or participated in by the Bank are used only for the purposes Bank are used only for the purposes for which the loan was granted and for which the loan was granted and with due attention to considerations with due attention to considerations of economy and efficiency" of economy and efficiency" 

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Procurement GuidelinesProcurement GuidelinesPurposePurpose

To inform Borrowers as well as To inform Borrowers as well as Suppliers, Manufacturers, Contractors Suppliers, Manufacturers, Contractors of the general principles and of the general principles and procedures to be observed in carrying procedures to be observed in carrying out procurement under ADB financingout procurement under ADB financing

Additional arrangements may be set Additional arrangements may be set out in the Loan Agreementout in the Loan Agreement

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Procurement GuidelinesProcurement GuidelinesResponsibilitiesResponsibilities

The Borrower (Executing Agency) is The Borrower (Executing Agency) is responsible for all procurement responsible for all procurement activitiesactivities

ADB has the obligation to review the ADB has the obligation to review the procurement activities to ensure procurement activities to ensure that the proceeds of its finance are that the proceeds of its finance are used with due attention to used with due attention to considerations of economy and considerations of economy and efficiency, fairness, and efficiency, fairness, and transparencytransparency

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Procurement GuidelinesProcurement GuidelinesDocuments Governing Documents Governing ProcurementProcurement

Documents Governing Documents Governing Procurement ActionsProcurement Actions

Loan Agreement (Schedule 4)Loan Agreement (Schedule 4) Procurement GuidelinesProcurement Guidelines Standard Bidding Documents (SBDs)Standard Bidding Documents (SBDs) Internal Instructions (PAI)Internal Instructions (PAI) Handbooks and GuidesHandbooks and Guides

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Procurement GuidelinesProcurement GuidelinesProcurement PrinciplesProcurement Principles

Economy and Efficiency

Fairness

Transparency

Promotion of Domestic Industries

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Procurement GuidelinesProcurement GuidelinesApplicabilityApplicability

Contracts financed by ADB entirely or partlyContracts financed by ADB entirely or partly• Procurement Procurement Guidelines must be followed Guidelines must be followed

Contracts not financed by ADB but part of Contracts not financed by ADB but part of ProjectProject • Borrower may adopt its own procurement Borrower may adopt its own procurement

proceduresprocedures

• Works/goods to be procured must be . . . Works/goods to be procured must be . . .

. . . . . . of satisfactory and compatible qualityof satisfactory and compatible quality

. . . . . . completed and/or delivered in timely completed and/or delivered in timely fashionfashion

. . . . . . priced not to affect adversely viability priced not to affect adversely viability of projectof project

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Procurement GuidelinesProcurement GuidelinesEligibilityEligibility

Limitation for ParticipationLimitation for Participation Ideally only by bidders' nationality Ideally only by bidders' nationality

and capability to fulfill the contractand capability to fulfill the contract

ExceptionsExceptions Compliance with UN Security Compliance with UN Security

Council decisionCouncil decision Conflict of InterestConflict of Interest Government owned enterprisesGovernment owned enterprises Declaration of ineligibility by ADBDeclaration of ineligibility by ADB

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Advance Procurement ActionAdvance Procurement Action Initial steps of procurement prior to loan Initial steps of procurement prior to loan

signingsigning Procedures must follow Procurement Procedures must follow Procurement

GuidelinesGuidelines Borrower’s own riskBorrower’s own risk ADB to review processADB to review process ADB not committed to financeADB not committed to finance

Retroactive FinancingRetroactive Financing Reimbursement of eligible payments by Reimbursement of eligible payments by

ADB within limits specified in loan ADB within limits specified in loan agreementagreement

Procurement GuidelinesProcurement GuidelinesAdvance Action & Advance Action & Retroactive FinancingRetroactive Financing

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Procurement GuidelinesProcurement GuidelinesMisprocurementMisprocurement

If Procurement is not carried out as If Procurement is not carried out as agreedagreedADB willADB will

. . . . . . declare misprocurementdeclare misprocurement

. . . . . . cancel corresponding portion of cancel corresponding portion of financingfinancing

. . . . . . exercise other remediesexercise other remedies

If appropriate, ADB may permit If appropriate, ADB may permit rebiddingrebidding

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Procurement GuidelinesProcurement GuidelinesFraud and CorruptionFraud and Corruption

Corrupt PracticeCorrupt Practiceoffering, giving, receiving, or soliciting, directly or offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the indirectly, anything of value to influence improperly the actions of another partyactions of another party

Fraudulent PracticeFraudulent Practiceact or omission, including a misrepresentation, that act or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or mislead, a party to obtain a financial or other benefit or to avoid an obligationto avoid an obligation

Coercive PracticeCoercive Practiceimpairing or harming, or threatening to impair or harm, impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the directly or indirectly, any party or the property of the party to influence improperly the actions of a partyparty to influence improperly the actions of a party

Collusive PracticeCollusive Practicearrangement between two or more parties designed to arrangement between two or more parties designed to achieve an improper purpose, including influencing achieve an improper purpose, including influencing improperly the actions of another partyimproperly the actions of another party

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ADB’s Anticorruption Policy requires all parties to ADB’s Anticorruption Policy requires all parties to observe the highest standard of ethics during the observe the highest standard of ethics during the procurement and execution of such contracts. In procurement and execution of such contracts. In pursuance of this policy, ADB willpursuance of this policy, ADB will

Procurement GuidelinesProcurement GuidelinesFraud and CorruptionFraud and Corruption

Declare a firm ineligible either Declare a firm ineligible either indefinitely or for a stated period of indefinitely or for a stated period of timetime

Cancel the corresponding portion of Cancel the corresponding portion of a loana loan

Inspect accounts and records of Inspect accounts and records of suppliers and contractors and have suppliers and contractors and have them audited by auditors appointed them audited by auditors appointed by ADBby ADB

Reject a proposal to award contractReject a proposal to award contract

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Procurement GuidelinesProcurement GuidelinesProcurement Plan

1

Identification

Procurement Plan

- Type of contract- Method of procurement

- Procurement Timing

- ADB review (post/prior)

Evaluati

on

6 2 Preparation

3 Apprai

sal4Loan Negotiation& Board Approval

5 Implementa

tion

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Bid PackageBid Package

Content ofContent ofBid PackageBid Package

InstitutionalInstitutionalCapabilityCapability

Timing ofTiming ofDeliveryDelivery

Market Market PracticesPractices

CompetitivCompetitivee

AspectsAspects

LocationLocation

Procurement GuidelinesProcurement GuidelinesProcurement PlanProcurement Plan

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Procurement GuidelinesProcurement GuidelinesEA Capacity AssessmentEA Capacity Assessment

Objective - Determination of EA’s EA’s capability to handle ADB capability to handle ADB procurement procurement Action Plan Action Plan

WhoWho - - Project departments in Project departments in cooperation with COSOcooperation with COSO

TimingTiming -- During project processing During project processing (ideally as part of (ideally as part of PPTA) or as PPTA) or as separate exerciseseparate exercise

ScopeScope -- Legal and regulatory Legal and regulatory regimeregime-- Organizational and Organizational and functional structurefunctional structure-- Operational management Operational management and controlsand controls-- Documentation and Documentation and RecordsRecords-- StaffingStaffing-- General institutional General institutional environmentenvironment

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Procurement GuidelinesProcurement GuidelinesProcurement MethodProcurement Method

International Competitive International Competitive Bidding (ICB) is the Bidding (ICB) is the

default method under default method under ADB Procurement ADB Procurement

GuidelinesGuidelines

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Procurement GuidelinesProcurement GuidelinesInternational Competitive International Competitive BiddingBidding

Fairness, TransparencyFairness, TransparencyFor prospective bidders from eligible source For prospective bidders from eligible source countries, adequate, fair and equal countries, adequate, fair and equal opportunitiesopportunities

Essentials of ICBEssentials of ICB Threshold contract values (US$):Threshold contract values (US$):

Goods – 500,000 to 1,000,000Goods – 500,000 to 1,000,000Works – 1,000,000 to 10,000,000Works – 1,000,000 to 10,000,000

Value for MoneyValue for Money For Borrower, wide range of choices For Borrower, wide range of choices in bid selection from among in bid selection from among competing suppliers / contractorscompeting suppliers / contractors

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Type:Type: Supply (Goods), Supply (Goods), Works, Works, Design-Supply-Install (Turnkey) Design-Supply-Install (Turnkey)

Size:Size: Dependent on magnitude, nature Dependent on magnitude, nature and location of project and location of project

Payment:Payment: Unit Price, Lump Sum, Unit Price, Lump Sum, CombinationCombination

Slicing:Slicing: A bid may consist of multiple A bid may consist of multiple contracts (slices)contracts (slices)

Procedure:Procedure: Single/Two-Stage, Single/Two-Stage, One/Two-EnvelopeOne/Two-Envelope

International Competitive International Competitive BiddingBidding Type and Size of ContractsType and Size of Contracts

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-4-4 -3-3 -2-2 -1-1 11 22 33 44 55 66 77 88 99 1010 1111

Planning/Bid PackagingPlanning/Bid Packaging

Preparation of PQ DocumentPreparation of PQ Document

PrequalificationPrequalification

Preparation of Bidding DocumentPreparation of Bidding Document

BiddingBidding

AwardAward

Procurementplan

Contract signed

Deadline bid Submission

International Competitive International Competitive BiddingBidding Typical Time RequirementsTypical Time Requirements

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Invitation for Prequalification or Invitation for Prequalification or for Bids for Bids to be published to be published . . . by ADB on ADB’s web site, and. . . by ADB on ADB’s web site, and

. . . by EA in English language newspapers, . . . by EA in English language newspapers, oror

. . . internationally known and freely . . . internationally known and freely accessible websiteaccessible website

In case of PrequalificationIn case of PrequalificationInvitation for Bids will be sent to Invitation for Bids will be sent to

prequalified bidders onlyprequalified bidders only

International Competitive International Competitive BiddingBidding Advertisement and Advertisement and NotificationNotification

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PurposePurposeto ensure that bids are submitted only to ensure that bids are submitted only by firms that have the necessary by firms that have the necessary qualifications in terms ofqualifications in terms of• EligibilityEligibility• Experience Experience • Financial CapacityFinancial Capacity• Pending LitigationPending Litigationto undertake the work for which bids to undertake the work for which bids are to be invitedare to be invited

International Competitive International Competitive BiddingBidding PrequalificationPrequalification

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Prequalification process usually Prequalification process usually used forused for Large complex works contracts

Turnkey contracts

Contracts for fabrication of custom designed plant and equipment

Specialized service contracts

Complex IT contracts

International Competitive International Competitive BiddingBidding PrequalificationPrequalification

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Bidding Documents shall :Bidding Documents shall : Comply with requirements of the Comply with requirements of the

ADB’s Procurement GuidelinesADB’s Procurement Guidelines Comply with agreed modifications Comply with agreed modifications

or departures from the Guidelinesor departures from the Guidelines Comply with the format of the Comply with the format of the

ADB’s appropriate Standard ADB’s appropriate Standard Bidding Documents (SBDs)Bidding Documents (SBDs)

International Competitive International Competitive Bidding Bidding Bidding DocumentsBidding Documents

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Two StageTwo Stage

Two-Stage: Two-EnvelopeTwo-Stage: Two-Envelope

Single-Stage: Two-Single-Stage: Two-EnvelopeEnvelope

Single-Stage: One-Single-Stage: One-EnvelopeEnvelope

International Competitive International Competitive BiddingBidding Bidding ProceduresBidding Procedures

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Bidding ProceduresBidding Procedures Single-Stage: One-EnvelopeSingle-Stage: One-Envelope

ADBAppro

valDeadline

STOP

Preparation

TechnicalProposal

FinancialProposal

Evaluation

Technical

Financial

TechnicalProposal

FinancialProposal

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Bidding ProceduresBidding ProceduresSingle-Stage: Two-EnvelopeSingle-Stage: Two-Envelope

DeadlineADB

Approval

ADBAppro

val

Preparation Evaluation 1

Evaluation 2

TechnicalProposal

FinancialProposal

FinancialFinancial

TechnicalProposal

FinancialProposal

Technical

STOP

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Bidding ProceduresBidding ProceduresTwo Stage Two Stage

ADBAppro

valDeadline ADB

Approval

Deadline

Evaluation 2

Preparation 2

Evaluation 1

Preparation 1

TechnicalProposal

TechnicalProposal

TechnicalRevised Technical

Financial

RevisedTechnical Proposal

FinancialProposal

RevisedTechnical Proposal

FinancialProposal

STOP STOP

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Bidding ProceduresBidding ProceduresTwo-Stage: Two-EnvelopeTwo-Stage: Two-Envelope

ADBApprov

alDeadlin

eTechnicalProposal

Technical

TechnicalProposal

Revised Techn.Proposal

Suppl. FinancialProposal

FinancialProposal

Financial

FinancialProposal

Evaluation 2

Preparation 2

Evaluation 1

Preparation 1

ADBApprov

alDeadlin

e

Revised Technical

Suppl. Financial

Revised Techn.Proposal

Suppl. FinancialProposal

Financial Financial

STOP STOP

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2.13 Validity of Bids2.13 Validity of Bids 2.14 Bid Security : Bank guarantee, 2.14 Bid Security : Bank guarantee,

L/C, Certified check, or DeclarationL/C, Certified check, or Declaration 2.15 Language : English2.15 Language : English 2.21 Pricing : Intercoms 2000 2.21 Pricing : Intercoms 2000

(CIF/CIP, EXW…)(CIF/CIP, EXW…) 2.24 Price Adjustment : generally 2.24 Price Adjustment : generally

beyond 18 monthsbeyond 18 months

International Competitive International Competitive Bidding Bidding Bidding DocumentsBidding Documents

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2.29 Currency of Bid: In any currency 2.29 Currency of Bid: In any currency (Up to three foreign currencies)(Up to three foreign currencies)

2.31 Currency Conversion for Bid 2.31 Currency Conversion for Bid Comparison: Bid Price shall be Comparison: Bid Price shall be converted to a single currency by the converted to a single currency by the official rate on a date selected in official rate on a date selected in advanceadvance

2.32 Currency of Payment: in the 2.32 Currency of Payment: in the currency(ies) in which the bid price is currency(ies) in which the bid price is expressed.expressed.

International Competitive International Competitive Bidding Bidding Bidding DocumentsBidding Documents

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2.34 Terms and Methods of Payment2.34 Terms and Methods of Payment 2.37 Alternative Bids2.37 Alternative Bids 2.38 Conditions of Contract2.38 Conditions of Contract 2.39 Performance Security2.39 Performance Security 2.41 Liquidated Damages and Bonus 2.41 Liquidated Damages and Bonus

ClausesClauses 2.42 Force Majeure2.42 Force Majeure 2.43 Applicable Law and Settlement of 2.43 Applicable Law and Settlement of

Disputes.Disputes.

International Competitive International Competitive Bidding Bidding Bidding DocumentsBidding Documents

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2.34 Terms and Methods of Payment2.34 Terms and Methods of Payment 2.37 Alternative Bids2.37 Alternative Bids 2.38 Conditions of Contract2.38 Conditions of Contract 2.39 Performance Security2.39 Performance Security 2.41 Liquidated Damages and Bonus 2.41 Liquidated Damages and Bonus

ClausesClauses 2.42 Force Majeure2.42 Force Majeure 2.43 Applicable Law and Settlement of 2.43 Applicable Law and Settlement of

Disputes.Disputes.

International Competitive International Competitive Bidding Bidding Bidding DocumentsBidding Documents

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2.44 Time for Preparation of Bids: 2.44 Time for Preparation of Bids: Generally six weeks from the date Generally six weeks from the date of invitationof invitation

2.45 Bid Opening2.45 Bid Opening 2.46 Clarifications2.46 Clarifications 2.48 Examination of Bids2.48 Examination of Bids 2.49 Evaluation and Comparison 2.49 Evaluation and Comparison

of Bidsof Bids

International Competitive International Competitive Bidding Bidding Bidding DocumentsBidding Documents

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2.55 Domestic Preferences:2.55 Domestic Preferences:

Domestically Manufactured Goods Domestically Manufactured Goods 15%15%

Domestic Civil Work Contractors Domestic Civil Work Contractors 7.5% 7.5%

International Competitive International Competitive Bidding Bidding Bidding DocumentsBidding Documents

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Countries Eligible for Countries Eligible for Domestic PreferenceDomestic Preference

Afghanistan Afghanistan Bangladesh Bangladesh Bhutan Bhutan

Cambodia Cambodia India India Kyrgyz Republic Kyrgyz Republic

Lao People’s Democratic Republic Lao People’s Democratic Republic Mongolia Mongolia

Myanmar Myanmar Nepal Nepal Pakistan Pakistan

Papua New Guinea Papua New Guinea Solomon Islands Solomon Islands Tajikistan Tajikistan

Timor-Leste Timor-Leste UzbekistanUzbekistan Viet NamViet Nam Based on per capita annual GNI limit of $875 as of January 2007.Based on per capita annual GNI limit of $875 as of January 2007.

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Procurement GuidelinesProcurement GuidelinesOther Methods of Other Methods of ProcurementProcurement

Limited International Limited International BiddingBidding

National Competitive National Competitive BiddingBidding

ShoppingShopping

Direct ContractingDirect Contracting

Force AccountForce Account

Procurement from Procurement from Specialized Agencies Specialized Agencies

Procurement AgentsProcurement Agents

Procurement in Loans Procurement in Loans to Financial to Financial IntermediariesIntermediaries

Procurement under Procurement under BOO / BOT / BOOT, BOO / BOT / BOOT, Concessions and Similar Concessions and Similar Private Sector Private Sector ArrangementsArrangements

Community Community Participation in Participation in ProcurementProcurement

Procurement under Procurement under Disaster and Disaster and Emergency AssistanceEmergency Assistance

OthersOthers

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Procurement GuidelinesProcurement GuidelinesOther Methods of Other Methods of ProcurementProcurement

Limited International BiddingLimited International Bidding

ICB by InvitationICB by Invitation

Appropriate forAppropriate for

. . . if there is only a limited number . . . if there is only a limited number of suppliersof suppliers

. . . other exceptional reasons. . . other exceptional reasons

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Procurement GuidelinesProcurement GuidelinesNational Competitive Bidding

• Procurement is done domestically, Procurement is done domestically, within the borrowing DMCwithin the borrowing DMC

• Allowed when :Allowed when : Domestic production or Domestic production or

construction facilities are availableconstruction facilities are available Foreign contractors and suppliers Foreign contractors and suppliers

are unlikely to be interestedare unlikely to be interested Procedures for domestic Procedures for domestic

procurement are acceptable to ADBprocurement are acceptable to ADB Borrower has requested for NCBBorrower has requested for NCB

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Procurement GuidelinesProcurement GuidelinesNational Competitive Bidding

Eligibility Eligibility All local and foreign bidders All local and foreign bidders are eligible are eligible

Advertising Advertising National press or official National press or official gazette, orgazette, orfreely accessible websitefreely accessible websiteADB websiteADB website

Bidding Bidding Period Period

30 days is acceptable 30 days is acceptable

PrequalificatiPrequalification on

Discouraged, but national Discouraged, but national prequalification/registration prequalification/registration system is acceptable system is acceptable

Bidding Bidding DocumentDocument

The use of local language, local The use of local language, local banks banks

for bid securities, and local for bid securities, and local currency for currency for

bidding and payment is bidding and payment is acceptableacceptable

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Procurement GuidelinesProcurement GuidelinesOther Methods of Other Methods of ProcurementProcurement

ShoppingMethodMethod Comparing price quotations Comparing price quotations

(minimum 3)(minimum 3)

Used forUsed for - Readily available off-the-shelf goods- Readily available off-the-shelf goods- Standard specification commodities - Standard specification commodities of small valueof small value- Simple works of small value- Simple works of small value

RequestsRequests Requests for quotation to Requests for quotation to include:include:- Description, specifications- Description, specifications- Quantity- Quantity-- Delivery / completion time Delivery / completion time and placeand place

ByBy Letter, fax, emailLetter, fax, email

ContractContract Accepted offer to be incorporated in Accepted offer to be incorporated in brief contractbrief contract

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Procurement GuidelinesProcurement GuidelinesOther Methods of Other Methods of ProcurementProcurement

Direct Contracting Contracting without competition

(Single Source) Appropriate for the procurement of

. . . additional items under existing ICB contracts

. . . standardization of equipment

. . . proprietary equipment

. . . critical items required by process design

. . . extension of existing works contract

. . . response to natural disaster

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Prequalification

•Advertisement and Invitation to Prequalify•Evaluation Criteria•Evaluation of Applications

Preparation of Bid

Documents

•Invitation to Bid•Advertisement •Bid Documents

Bid Evaluation•Evaluation Report•Proposal of Award

Award of Contract

•Certified Contract

Procurement GuidelinesProcurement Guidelines ADB Prior ReviewADB Prior Review

EA

Procurement Plan

• Contracts (Goods, Works, Services)• Procurement Mode• Procurement Timing• ADB review (post/prior)

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Procurement GuidelinesProcurement GuidelinesADB Prior ReviewADB Prior Review

Additional ADB Approval Requirements

Extension of bid validity

Change in contract award recommendation

Change in the terms and conditions of contract

Time extensions, modifications of conditions, change orders increasing in aggregate the original contract amount by more than 15%

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ADB ReviewADB ReviewProcurement CommitteeProcurement Committee

Procurement of contracts with values ofProcurement of contracts with values of $10 million$10 million and above must be and above must be approved byapproved by

--- ADB Procurement Committee ------ ADB Procurement Committee ---

Chairman :Chairman : Principal Director, Principal Director, COSOCOSO

Members :Members : Assistant General Assistant General Counsel Counsel Director, Sector Director, Sector DivisionDivision

Secretary :Secretary : Senior Procurement Senior Procurement SpecialistSpecialist (Non-Voting)(Non-Voting)

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ADB ReviewADB ReviewProcurement CommitteeProcurement Committee

Matters for ConsiderationMatters for Consideration For contracts estimated at $10.0 million For contracts estimated at $10.0 million

or moreor more Prequalification Evaluation Prequalification Evaluation Technical Evaluation (2-stage/2-envelope Technical Evaluation (2-stage/2-envelope

bidding)bidding) Bid Evaluation Bid Evaluation Award Award Proposal for RebiddingProposal for Rebidding Proposal for CancellationProposal for Cancellation

Actions in conflict with ADB requirementsActions in conflict with ADB requirements Proposal to vary previous PC decisionsProposal to vary previous PC decisions Any matter referred by managementAny matter referred by management

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AWARD OF CONTRACTAWARD OF CONTRACTPublication of Award of Publication of Award of ContractContract

WhatWhat Name of each bidderName of each bidder Bid prices as read outBid prices as read out Evaluated bid pricesEvaluated bid prices Name of bidders whose bid was rejected and Name of bidders whose bid was rejected and

reasonsreasons Name of winning bidder and price offeredName of winning bidder and price offered Duration and summary scope of contract awardedDuration and summary scope of contract awarded

WhereWhere English language newspaper or freely accessible English language newspaper or freely accessible

web siteweb siteWhenWhen Prior Review: Within 2 weeks after ADB’s approvalPrior Review: Within 2 weeks after ADB’s approval Post Review : By date of contract awardPost Review : By date of contract award

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AWARD OF CONTRACTAWARD OF CONTRACTDebriefingDebriefing

Bidders may request an explanation Bidders may request an explanation from the EA as to why its bid was not from the EA as to why its bid was not selectedselected

The EA shall promptly provide an The EA shall promptly provide an explanation, eitherexplanation, either• in writing and/orin writing and/or

• in a debriefing meeting at the option of in a debriefing meeting at the option of the EAthe EA

The requesting bidder shall bear all the The requesting bidder shall bear all the costs of attending such a debriefingcosts of attending such a debriefing

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Project Implementation and Project Implementation and Administration SeminarAdministration Seminar

Standard Bidding Standard Bidding DocumentsDocuments

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BIDDING DOCUMENTSBIDDING DOCUMENTSOutline and ComponentsOutline and Components

Part I: Bidding ProceduresPart I: Bidding ProceduresSection 1.Section 1. Instruction to BiddersInstruction to BiddersSection 2.Section 2. Bid Data SheetBid Data SheetSection 3. Section 3. Evaluation and Qualification Evaluation and Qualification

CriteriaCriteriaSection 4.Section 4. Bidding FormsBidding FormsSection 5.Section 5. Eligible CountriesEligible Countries

Part II: RequirementsPart II: RequirementsSection 6.Section 6. Supply or Works RequirementsSupply or Works Requirements

Part III: ContractPart III: ContractSection 7.Section 7. General Conditions of ContractGeneral Conditions of ContractSection 8.Section 8. Special/Particular Conditions of Special/Particular Conditions of

ContractContractSection 9.Section 9. Contract FormsContract Forms

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BIDDING DOCUMENTSBIDDING DOCUMENTS3. Evaluation & Qualification 3. Evaluation & Qualification CriteriaCriteria

Qualification CriteriaQualification Criteria ((underlinedunderlined for Works) for Works) Size of Operation (Size of Operation (average annual turnoveraverage annual turnover)) Contractual Experience (Contractual Experience (number of contracts number of contracts

completedcompleted)) Technical Experience (years in production and Technical Experience (years in production and

units sold) units sold) Production Capacity (type, size, and quantity Production Capacity (type, size, and quantity

required)required) Financial Position (Financial Position (audited annual financial audited annual financial

statementsstatements)) Cashflow Capacity (Cashflow Capacity (access to liquid assetsaccess to liquid assets)) Litigation History (Litigation History (current or past litigationcurrent or past litigation))

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Questions/AnswersQuestions/Answers

Taisuke MiyaoTaisuke [email protected]@adb.org

Business Opportunity Business Opportunity SeminarSeminar