Business Opportunities Fair

Why do Business with ADB?

20-21 March 2013

Introducing ADB

Sean OSullivan Director General Operations Services and Financial Management Department Asian Development Bank

Welcome
The Role, Strategy and Operations of the Asian Development Bank ADB Procurement and its Fundamental Principles
ADB Business Opportunities

What is ADB?
A regional multilateral development bank Established in 1966 A partnership of 67 countries 42 client countries 28 offices worldwide

Strategy 2020
Vision: Asia and the Pacific free of poverty.
Inclusive economic growth Environmentally sustainable growth Regional cooperation and integration

Asia has the worlds largest infrastructure gap

Number of People without Access to Infrastructure in the Asia and Pacific Region
Water and Sanitation
Electricity Roads Internet
Source: Various reports compiled by ADB
5

900 million people

800 million people 1.2 billion people 80% of Asia

Asias overall infrastructure score* is relatively low

OECD East Asia Southeast Asia Middle East and North Africa Latin America and the Caribbean Central Asia South Asia Sub-Saharan Africa Pacific 0
Source: Global Competitiveness Report 2012-2013 *1 = extremely underdeveloped to 7= extensive and efficient

5.4 5.1 4.2 4.1 3.6 3.5 2.9 2.8 2.3 1 2 3 4 5 6

6

Asias financing requirements are large

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

Energy (electricity)
Transport (roads) Telecommunications Water and sanitation Airports, ports, and railways 0 381 1,056 2,341

4,089

125
500 1000 1500 2000 2500 3000 3500 4000 4500

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

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

7

Strategy 2020
ADBs 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

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 for development activities

ADB Operations ($million)

10

Sovereign and Non sovereign Approvals (in $ million)

$16,000

$14,000

$2,155
$12,000

$146 $697
$10,000

Supply Chain Finance Cofinancing TA Grants

$8,000

$200

Guarantees Grants

$6,000

Equity $10,611 $6,117 Loans

$4,000

$2,000

$5 $131 $1,107

$0

11

Sovereign

Nonsovereign

Approvals by Modality (in $ million)

Policy-Based Support, $2,494 , 12% Technical and Advisory Support, $298 , 1%

Investment Support, $18,779 , 87%

12

Largest Borrowers
2010 India PRC Bangladesh Viet Nam Indonesia Uzbekistan 2011 India PRC Viet Nam Pakistan Uzbekistan Bangladesh 2012 India PRC Viet Nam Indonesia Bangladesh Philippines

Portfolio Distribution
2012 Active Portfolio - $62.5 billion by Department
N ONOPERATIONS, 0.3 , 1%

SERD, 14.0 , 22%

CWRD, 14.4 , 23%

SARD, 20.9 , 34%

EARD, 11.4 , 18%

14 * Loans, Grants , TA, Guarantee, Equity Investment

PARD, 1.5 , 2%

Portfolio Distribution
2012 Active Portfolio by Sector
25

20
15
$billion

10

5
0 ANR EDU ENE FIN HSP IND MUL PSM TAI WSM
* Loans, Grants , TA, Guarantee, Equity Investment
15

Who does ADB work with?

Governments Private sector Non-government organizations Development agencies Community-based organizations Foundations Professional Organizations

Almost all ADB projects rely on Consultants and Contractors

ADB Procurement
ADB Oversight
The Borrower (Executing Agency) is responsible for all procurement of goods and works ADB (under TAs) or Borrower select and recruit Consultants ADB reviews the procurement activities to ensure that the ADB Guidelines are followed

Procurement and Consulting Services Guidelines

Policies and procedures on the selection, contracting and monitoring of suppliers, contractors and consultants
Fundamental Principles Transparency Fairness Economy and Efficiency Promotion of Domestic Industries Source of Goods & Services (Eligibility)

Goods and Works - Contracts Awarded

Loans and Grants (2010 -2012)
Average Number of Contracts per year

$100,000-$1 million
2,352

$1-20 million

Above $20 million

66

748

Average Contract Size

Total Value of Contracts Awarded (Average 2010-2012)

$0.3 million

$4.1 million

$53.5 million

$0.8 billion

$3.1 billion

$3.5 billion

Consulting Services- Contracts Awarded

Average No. of Contracts per year Average Contract Size Annual Average Value of Contracts Awarded ($ million) Firms Indiv.

2010 -2012
Total ADB Administrative Budget (Staff Consultants) ADB Technical Assistance Firms Indiv. Firms Indiv.

1,261

47

1,214

$97,247 $21,950

$4.6

$26.6

2,037

188

1,849

$600,115 $38,886

$112.8

$71.9

ADB Loans

562

562

$457,270

$256.9

ADB Business Opportunities

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%
Water and Other Municipal Infrastructure and Services, 2,367

Agriculture and Natural Resources, 2,755 Education, 783

Transport and ICT, 7,432

Energy, 4,605

Multisector, 2,305 Finance, 578 Health and Social Protection, 167 Industry and Trade, 222

Public Sector Management, 1,035

ADB Business Opportunities

Uncontracted Loan Funds by Country (as of 31 Dec 2012) US$ million - Total = $22,249M
4,142
3,560

4,500 4,000
3,500

PRC IND VIE BAN UZB PAK

- 19% - 16% - 16% - 12% - 7% - 6%

3,585

3,000 2,500 2,000

1,500

2,641

1,296
985

1,459

1,000 500
15

759 459 111

AZE

758 179
LAO

796 203

315 26
CAM
BAN BHU

262
6
COO

9
FIJ

4
INO

85 14
KIR IND
KAZ KGZ

6
MLD

162
MON

327 6

2
PNG

5
RMI

5
SAM

10
SOL SRI

8
TAJ

0
THA

33
UZB
TIM

13
VAN VIE

0
AFG

ARM

FSM

PAK

NEP

PAL

PRC

GEO

REG

PHI

Locations to consider for Business Development

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

So why do Business with 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 oversees procurement to ensure fairness and transparency