1 plenary - introducing adb by ignatius santoso 11mar2014 final

8/12/2019 1 Plenary - Introducing ADB by Ignatius Santoso 11Mar2014 Final

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Business Opportunities Fair

Introducing ADBWhy do Business with ADB?

12-13 March 2014

Ignatius Santoso,Procurement Director

Operations Services and Financial Management DepartmentAsian Development Bank


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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


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What is ADB?

A regional multilateral development bank

Established in 1966

A partnership of 67 countries 42 client countries

28 offices worldwide


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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


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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


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

Asias overall infrastructure scores*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


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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

7

Source: ADB, 2009. Infrastructure for a Seamless Asia. ManilaTotal of 8.3 trillion (20102020) or 750 billion/year


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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


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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


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ADB Operations ($million)


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$11,768

$1,425$142

$849

$35

$150

$6

$3,715

$2,933

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

Sovereign Nonsovereign

Cofinancing

Technical Assistance

Guarantees

Grants

Equity Investments

Loans

Sovereign and Non sovereignApprovals (in $ million)

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Approvals by Modality(in $ million)

12

Investment

Support,$18,503, 88%

Policy-Based

Support,

$2,086, 10%

Technical

and

Advisory

Support,

$434, 2%


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Largest Borrowers

2011 2012 2013

India India India

PRC PRC PRC

Viet Nam Viet Nam Pakistan

Pakistan Indonesia Indonesia

Uzbekistan Bangladesh Philippines

Bangladesh Philippines Bangladesh


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Portfolio Distribution

14

CWRD,

$16.2, 25%

EARD, 11.2,

17%

PARD, $1.9, 3%

SARD, $20.2,

31%

SERD, $15.2,23%

Non-Operations,

$0.4, 1%

2013 Active Portfolio - $65.1 billion by Department


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Portfolio Distribution

15

0

5

10

15

20

25

ANR EDU ENE FIN HSP IAT MUL PSM TAI WMS

$b

illion

*Loans, Grants, TA, Guarantee, Equity Investment

2013 Active Portfolio by Sector


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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


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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


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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


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Goods and Works - Contracts Awarded

Loans and Grants(2011 -2013)

$100,000-$1million

$1-20 millionAbove $20

million

Average Number of

Contracts per year 2,124 699 53

Average Contract Size $0.34 $3.93 $72.98


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Consulting Services- Contracts Awarded

2011 -2013 Averages

Contractsper year

AverageContract Value

Total Annual Valueof Contracts

Awarded($ million)

Firms Indiv. Firms Indiv. Firms Indiv.

ADB AdministrativeBudget(Staff Consultants)

25 937 $58,301.59 $21,950 $1.44 $20.97

ADB TechnicalAssistance 217 1,978 $593,794.73 $38,886 $128.66 $80.56

ADB Loans 825 $428,490.73 $353.65


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1,036

154425

2,063

29

364

0 2 9

391

3,772

668685

23014

2827

27873

719

2,139

23

1,537

467

4,766

8 0 28 19

675

2501 61 0 32

1,410

44

3,353

0

1000

2000

3000

4000

5000

6000

Uncontracted Loan Funds by Country(as of 31 Dec 2013) US$ millionTotal = $26,015MPRC18%

IND14$

VIE13%

PAK8%

BAN8%

PHI 6%


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Locations to consider forBusiness Development

Solomon Islands, Papua New Guinea,

Timor Leste and other Pacific States

Afghanistan,

Cambodia, Pakistan


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So why do Businesswith ADB?

Join a worthy development mission

$26 billion of uncommitted portfolio

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 plenary - introducing adb by ignatius santoso 11mar2014 final

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