September 2018

ASIAN DEVELOPMENT BANK

User Guide Procurement Contract Summary Sheet

CONTENTS

I. Introduction 2

II. General Instructions 3

III. Definition of Terms 4

A. Nature/Type of Contract 4

B. Procurement Method 5

C. Country of Origin and Procurement 6

IV. Creating the Procurement Contract Summary Sheet 7

A. Loan Financial Information System 7

B. Grant Financial Information System 16

C. PCSS for Policy-Based Loans and Grants 25

D. PCSS for a Group of Small Contracts Below the Shopping Method Ceiling 26

V. Creating Procurement Contract Update Sheet 27

APPENDIXES

1. Contract Value by Category and by Currency of Payment 29

2. Country and Currency Codes 31

3. Determining the Country of Procurement and the Country of Origin 33

4. Commodity Codes 35

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I. Introduction

The Procurement Contract Summary Sheet (PCSS) is an online form used to record accurately the details of the procurement contracts financed in whole or in part by a loan or grant from ADB. It is accessed using the Loan Financial Information System (LFIS) for loan contracts, and the Grant Financial Information System (GFIS) for grant contracts. The PCSS summarizes the main features of a contract such as mode of procurement, name and nationality of bidders, amount of bids, countries of origin, amount, currency, description of goods, nationality of bidders. The Procurement Contract Update Sheet (PCUS) is the online form for amending an existing contract. Essentially, PCSS/PCUS are prepared to enable disbursement against each contract under a loan 1 . Data contained therein constitute also the basis for the preparation of Procurement Statistics that are circulated to Management, the Board of Directors, Member Governments, and to other national and international institutions. This User Guide is prepared to provide detailed instructions in preparing PCSS and PCUS. Definition of key terms are also provided. It will be updated upon the rollout of the contract module of the Integrated Disbursement System in 2019 to add more fields for new procument methods under the new ADB procurement Regulations. In the interim, these new procurement methods shall be covered under “Others” with details to be entered in the “Description” field.

1 In this document, the term “loan” also refers to grant projects, unless the context requires otherwise.

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II. General Instructions

1. All data entry fields in the PCSS must be accurately filled by the sector division 2 . To ensure that all contract data are accounted, put “N/A” for all fields whose data are not available or not applicable.

2. Generally, one PCSS covers one contract except when a contract is jointly financed by a co-

financier and ADB is acting as a loan administrator of the co-financier. In this case, two PCSS have to be prepared for one contract, one for the portion financed by ADB and another for the portion financed by the co-financier.

3. No PCSS should cover two loans. 4. For contracts using currency of payments other than the US dollars, the LFIS/GFIS

automatically updates the contract amount based on exchange rate adjustments, hence no need to prepare a PCUS.

2 The term “sector division” also refers to the regional office or resident mission administering the project.

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III. Definition of Terms

A. Nature/Type of Contract

1. Construction – large and small works contracts that involve building engineered structures such as roads, bridges or dams.

2. Goods – contracts involving the supply and delivery of equipment or materials to a project location (or locations under the same bid), and may include related services such as installation, testing and commissioning, and training necessary to meet the overall scope.

3. Consulting Services – rendered by a consulting firm or individual consultant to provide special expertise in one or more technical fields. These services may be of an advisory, supervisory, or implementation nature and are provided by skilled experts with specialized knowledge and experience.

4. Turnkey – plant, design-build, or EPC (engineering, procurement and construction) contracts, which may comprise various items of equipment, machinery, and materials, including certain construction work and are usually a single responsibility contract.

o Design–Build–Operate (DBO) contracts are long-term, contractual, performance-based arrangements between an Employer and a Contractor, where the Contractor is to design, build, operate, and maintain a facility, to meet performance standards, to carry out asset replacement over its life cycle, or most of it, and to hand back the facility to the Employer upon the contract completion. DBO arrangements are often confused with other forms of public–private partnership (PPP) projects, such as build–operate–transfer (BOT) or concessions, but, as a main difference with the latter, DBO projects do not require the Contractor to finance the project nor to bear its commercial risk. financing rests with the employer, hence contractual arrangements are shorter and simpler than with BOT or concessions.

o Plant contracts involve design, supply, and installation of a combination of equipment, machinery, and related works with supervision by the employer and payment by price schedules that are usually based on completing milestones.

5. Fellowship – contracts that involve capacity building, seminars and other skills training activities required in the project implementation.

6. Others – contracts that do not fall under any of the above selection.

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B. Procurement Method

1. International Competitive Bidding – is a transparent procurement method in which prospective bidders from eligible source countries were given equal opportunity to bid on goods and related services and works by openly advertising the scope, specification, terms and conditions of the proposed contract as well as the criteria by which the bids will be evaluated. It provides the executing agency with a wide choice in selecting the best bid from competing suppliers and contractors.

2. International Shopping – entails the procurement of goods and works based on solicitation of bids from a reasonable number of suppliers/contractors belonging to more than one Member Country of ADB.

3. Local Competitive Bidding – involves procurement based on domestic competition and/or domestic prequalification.

4. Direct Purchase/Negotiation or Single Tender – involves dealing with a particular supplier or a limited number of suppliers.

5. Force Account – involves the use of the borrower or recipient’s own work force, equipment and other resources in carrying out civil works. This method is employed when the size, nature, and location of the works make it unsuitable to adopt competitive bidding, and ADB is satisfied that the construction facilities available are adequate and efficient, and the borrower has the capability to undertake the works expeditiously and at reasonable cost.

6. Purchase of Equipment for Use by Small Private Sub-borrowers – procurement of machinery under loans made available to intermediary institution (agricultural development banks, cooperatives, fishery organizations) for relending to small private sub-borrowers in the agricultural or fishery sector where there is centralized procurement in accordance with established commercial practices and where end-users’ preference is taken into account.

7. Limited Tendering or Repeat Order – applicable in cases where procurement of additional quantity of the same items, procured initially under ICB, are involved. Usually, repeat order follows with the earlier order within 18 months while the additional quantities shall not exceed 30 percent of the original cost.

8. Others – can be any one of the special methods of procurement listed in PAI No. 3.07. or for procurement using the methods of procurement under the new ADB Procurement Regulations listed below. This is just an interim solution due to current system limitation. When the new disbursement system is in place, applicable new procurement method should be entered.

a. Community Participation b. Electronic Reverse Auction c. Framework Agreements d. Limited Competitive Bidding e. Open Competitive Bidding f. Performance-Based Procurement g. Procurement Agents

h. Procurement in Fragile and Conflict-Affected Situations

i. Procurement of High-Level Technology j. Procurement Under Loans Guaranteed by

ADB k. Request for Quotations l. Support to Governments for Public-

Private-Partnership

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C. Country of Origin and Procurement

Country of Origin is the country where the goods have been mined, grown, cultivated, produced, manufactured, or processed (or through manufacture, processing, or assembly, another commercially recognized article results that differs substantially in its basic characteristics from its imported components). In case of works, consulting and other services, it is the nationality, or the country of incorporation, of the service provider. The country of origin should also be an ADB member country.

Country of Procurement and the corresponding ADB Acronym refers to the nationality of the contractor (Appendix 2). The “Nationality” corresponds to the place of incorporation or the location of the head office (center of administration) of the contractor. In the case where the supplier/contractor is a subsidiary of an international corporation, the subsidiary’s place of incorporation should be used to determine the procurement country which should still be an ADB member country (see Appendix 3). For consulting services, the home office of the consulting firm would be the country of procurement of the services. In case of a joint venture, the procurement country is the nationality of the lead firm representing the joint venture or associations. In case of an individual, the procurement country is the nationality as indicated in the passport and the consultant registration.

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IV. Creating the Procurement Contract Summary Sheet

1. All data entry fields in the Procurement Contract Summary Sheet (PCSS) must be accurately filled by the sector division3 to ensure that all contract data are recorded. These data will be the basis for computing the participation ratios and success ratios of value of goods and services procured in ADB member countries. Fields whose data are not available or applicable should be filled in with “N/A.” 2. A PCSS related to liquidation or replenishment of advance fund based on the Statement of Expenditures (SOE) should be filled in the same manner as a PCSS covering a normal contract. A. Loan Financial Information System

3. From the mainframe menu, choose Loan Financial Information System (LFIS) and enter corresponding number on each page to get to the contract creation page.

3 The term “sector division” also refers to the regional office or resident mission administering the project.

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4. Loan Number – enter the four-digit loan approval number 5. Segment Number – In case a loan is administered by different sector divisions or RMs such as disaster and emergency assistance projects, a two-digit Segment Number is assigned by the Controller’s Department. Segment numbers are also used to identify loans which have both Financial Intermediation Loans (FIL) and Project components (refer to Operations Manual Section D6/BP). Write two zeroes if there is no segment number.

6. Contract Number – a four-digit sequential number generated by the system for loan contracts, which is different from EA issued contract number.

7. Contract Nature – enter the corresponding number of the contract nature. The definition of each contract nature is available in the Definition of Terms. For goods contracts, indicate the Commodity Code by inputting the assigned number code in the space provided. Appendix 4 presents the list of available commodity codes in the system.

8. Press F1 to display the list of commodity codes. Choose the appropriate code by marking “X” beside the code.

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9. Procurement Mode – choose the appropriate method of procurement based on the approved procurement plan and final contract.

10. Enter the corresponding item code or press F4 to display the list of procurement modes and mark the appropriate item with “X”.

11. Was Domestic Preference provided for in the Bidding Documents? – Input “Y” for yes and “N” for no in the appropriate field. If “Yes”, the percentage of preference prescribed in the bidding document must be indicated comprising two-digit numbers with two decimals. If there are no decimals, write “00”. Example: 07.50 and 15.00. 12. Currency Code of Bid Evaluation – enter the currency numeric code and the corresponding currency mnemonic code4 or press F2 to display and select the currency used during bid evaluation.

4 Appendix 2: Country and Currency Codes.

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13. Various Contractors – if there are multiple bidders. Enter the no. of prequalified bidders, no. of bids received, no. of local bidders plus those from other countries, and input any remarks.

14. Successful Bidder/ Contractor – enter the name of the winning firm/s (or individual) qualified in the bidding process. In case of joint ventures, partnerships or associations, the name of the lead firm is written before the associates (with a notation on the association). The country of incorporation of the lead firm is taken as the Country Code (numeric) and country Acronym of the contractor.

15. S/M – enter the name of the Supplier/ Manufacturer if the name is different from the Successful Bidder.

16. Amount Opened and Evaluated – enter the amount during bid opening and evaluation as indicated in the procurement approval form or the loan consulting submission forms.

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17. Total Contract Amount– Indicate the contract amount approved by ADB and the amount of contract awarded by the EA. If a contract has multiple currencies, input all the relevant currencies and amount in each line.

18. In case the contract amount awarded by EA differs from the contract amount approved by ADB, the sector division must justify the change and indicate the applicable reason by marking with “X” .

19. List of Unsuccessful Bidders – indicate the list of unsuccessful bidders based on ranking in the procurement approval form or the relevant loan consulting submission form.

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20. Description – name of contract package based on procurement plan, signed contract or a summary description of the package if small package and/or statement of expenditure (SOE) (limited to 150 characters). Use this field also to identify the procurement method used if the contract was awarded using the new ADB Procurement Regulation. 21. Date of Approval – date of ADB’s approval of the bid evaluation report in case prior review was used. In case of post review, this is the date of ADB’s approval of the contract. All dates are entered in “DDMMYYYY” format. 22. Date of Contract – contract signing date. This date should NOT be revised in case a PCUS is issued. 23. Date Received – date ADB received the signed contract 24. Date of PCSS – system generated date corresponding to the PCSS data entry date 25. Planned Physical Completion Date of Contract – the expected completion of the construction, physical delivery of goods, commissioning of plant, or completion of consulting services. 26. Various EA contract – enter “Y” for yes if there are several contracts involved. This is typically used for SOE contracts. 27. Executing Agency Contract Number – as indicated in the signed contract and supporting documents from the EA.

28. Contractor Name – Enter the full name of the successful bidder on the first line. In case of joint ventures (JV), partnerships or associations, the name of the lead firm is written before the associates, indicating the other firm(s) as JV or associate(s). Refrain from typing “JV,” “Association,” “Consortium” or similar terms before the actual name of the lead contractor. The first character in this field is crucial in ‘mapping’ the contractor information when the procurement contracts data are extracted from the system. 29. Address Lines 1 to 3 – Enter the complete address of the contractor (or lead firm), which should pertain to the address of the nationality of the contractor. In case the place of current residence is different from the contractor’s nationality, indicate the country of nationality in Address Line 3.

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30. Re-enter the (numeric) Country Code and country Acronym of the above address – This should be consistent with the nationality of the contractor. Refer to Appendix 2 on list of country code and currencies.

31. Code of Procurement Country or “Country of Procurement” and the corresponding ADB Acronym (footnote 15) refer to the nationality of the contractor. The “Nationality” corresponds to the place of incorporation or the location of the head office (center of administration) of the contractor. In the case where the supplier/contractor is a subsidiary of an international corporation, the subsidiary’s place of incorporation should be used to determine the procurement country which should still be an ADB member country (Appendix 3). For consulting services, the home office of the consulting firm would be the Country of Procurement of the services including individual consultants hired through a firm. In case of a joint venture, the procurement country is the nationality of the lead firm representing the joint venture or associations. In case of an individual consultant or consultant from a firm, the procurement country is the nationality as indicated in the passport and the consultant registration. 32. State Code is applicable only to procurement in the United States, and code “99” or “Undetermined” can be used, since historical data do not collect information from this field. 33. Country of Origin – the country where the goods have been mined, grown, cultivated, produced, manufactured, or processed (or through manufacture, processing, or assembly, another commercially recognized article results that differs substantially in its basic characteristics from its imported components). In case of works, consulting and other services, it is the nationality, or the country of incorporation, of the service provider. The country of origin should also be an ADB member country.11 It is necessary to distinguish the procurement country from the country of origin if these are not the same. For example, if a supplier incorporated in Australia supplies goods made in India, then the procurement country is Australia, while the country of origin is India. Enter the country of origin numeric code, country acronym and the corresponding percentage per country of origin.

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34. Terms of Payment – It is mandatory to indicate the milestone payments (including advances) and fixed exchange rate between foreign currency and local currency as stipulated in the contract, as well as the percentage of ADB financing in Schedule 3 of the Loan Agreement, if it differs from the percentage financed by ADB as shown in the PCSS. 35. Confirm if Country of Origin is the same as Country of Procurement (Y or N) – If there are multiple countries of origin, the highest percentage determines the country of origin that should be compared to the Country of Procurement.

36. Currency of Payment – the mnemonic currency code based on contract price. This should be consistent with the currency indicated in the contract amount page. 37. Category Reference Number – this is based on the loan categories indicated in the project agreement. 38. Total Bank Financing – percentage of ADB financing in Schedule 3 of the Loan Agreement. Refer to Appendix 1 for more details.

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39. The LFIS indicates the ADB-financed portion of each contract by recording its value expressed in the currency of payment, the qualified commitments, and the disbursements in the currency concerned. Disbursements are translated into US dollars at the historical exchange rates and the undisbursed contract balance at the latest ADB bookkeeping rate. This will permit a continuous upgrading of the contract value vis-à-vis the allocated loan amount under each category, and provide the latest status of utilization of the loan amount in terms of procurement and disbursement which can be viewed at any given time.

40. Approving Officer – enter the staff ID of the project team leader to save the contract

41. Confirming the contract – Once the PCSS is approved, return to the main menu and confirm the contract.

42. Indicate the loan number, contract number generated by PCSS and the staff ID of the project team leader.

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B. Grant Financial Information System 43. From the mainframe menu, choose Grant Financial Information System (GFIS) and proceed until the contract creation page. Enter the four-digit grant approval number.

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44. Contract Nature – enter the corresponding number of the contract nature as indicated in the bid documents. The definition of each contract nature is available in the Definition of Terms. For goods contracts, indicate the Commodity Code by inputting the assigned number code in the space provided. Refer to Appendix 4 for the list of commodity codes.

45. or pressing F1 to display the list of commodity codes. Choose the appropriate code by marking “X” beside the code.

46. Procurement Mode – choose the appropriate method of procurement based on the approved procurement plan and final contract. 47. Was Domestic Preference provided for in the Bidding Documents? – Input “Y” for yes and “N” for no in the appropriate field. If “Yes”, the percentage of preference prescribed in the bidding document must be indicated comprising two-digit numbers with two decimals. If there are no decimals, write “00”. Example: 07.50 and 15.00. 48. Currency Code of Bid Evaluation – enter the currency numeric code and the corresponding currency mnemonic code or press F2 to display and select the currency used during bid evaluation. Refer to Appendix 2 for the of country and currency codes.

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49. Various EA contract – enter “Y” for yes if there are several contracts involved. This is typically used for SOE contracts. 50. Enter the Country Code of the contractor if mode of procurement used is direct purchase, force account, sub-borrower equipment, limited tender or others. Press F2 to show the list of country codes.

51. Contract Amount Approved by ADB – Enter the numeric Currency Code8 and the corresponding contract amount approved by ADB. 52. Contract Amount Awarded – Enter the numeric Currency Code8 and the corresponding contract amount awarded by the EA. If the amount differs from the amount approved, there should be a valid justification.

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53. In case the contract amount awarded by EA differs from the contract amount approved by ADB, the sector division must justify the change and indicate the applicable reason by marking with “X” .

54. Number of Bids Received – if there are multiple bidders. Enter the no. of prequalified bidders, no. of bids received, no. of local bidders plus those from other countries, and input any remarks.

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55. Description – name of contract package based on procurement plan, signed contract or a summary description of the package if small package and/or statement of expenditure (SOE) (limited to 150 characters). Use this field also to identify the procurement method used if the contract was awarded using the new ADB Procurement Regulation. 56. Date of Approval – date of ADB’s approval of the bid evaluation report in case prior review was used. In case of Post Review, this is the date of ADB’s approval of the contract. All dates are entered in “DDMMYYYY” format. 57. Date of Contract – contract signing date. This date should not be revised in case a PCUS is processed. 58. Date Received – date ADB received the signed contract 59. Date of PCSS – system generated date corresponding to the PCSS data entry date 60. Planned Physical Completion Date of Contract – the expected completion of the construction, physical delivery of goods, commissioning of plant, or completion of consulting services. 61. Various EA contract – enter “Y” for yes if there are several contracts involved. This is typically used for SOE contracts. 62. Executing Agency Contract Number – as indicated in the signed contract and supporting documents from the EA.

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63. Contractor Name – Enter the full name of the successful bidder on the first line. In case of joint ventures (JV), partnerships or associations, the name of the lead firm is written before the associates, indicating the other firm(s) as JV or associate(s). Refrain from typing “JV,” “Association,” “Consortium” or similar terms before the actual name of the lead contractor. The first character in this field is crucial in ‘mapping’ the contractor information when the procurement contracts data are extracted from the system. 64. Address Lines 1 to 3 – Enter the complete address of the contractor (or lead firm), which should pertain to the address of the nationality of the contractor. In case the place of current residence is different from the contractor’s nationality, indicate the country of nationality in Address Line 3. 65. Please re-enter the (numeric) Country Code and country Acronym of the above address – This should be consistent with the nationality of the contractor. Refer to Appendix 2 for the list of country and currency codes.

66. Code of Procurement Country or “Country of Procurement” and the corresponding ADB Acronym (footnote 15) refer to the nationality of the contractor. The “Nationality” corresponds to the place of incorporation or the location of the head office (center of administration) of the contractor. In the case where the supplier/contractor is a subsidiary of an international corporation, the subsidiary’s place of incorporation should be used to determine the procurement country which should still be an ADB member country (Appendix 3). For consulting services, the home office of the consulting firm would be the Country of Procurement of the services. In case of a joint venture, the procurement country is the nationality of the lead firm representing the joint venture or associations. In case of an individual or individual from a firm, the procurement country is the nationality as indicated in the passport and the consultant registration.

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67. State Code is applicable only to procurement in the United States, and code “99” or “Undetermined” can be used, since historical data do not collect information from this field.

68. Country of Origin –the country where the goods have been mined, grown, cultivated, produced, manufactured, or processed (or through manufacture, processing, or assembly, another commercially recognized article results that differs substantially in its basic characteristics from its imported components). In case of works, consulting and other services, it is the nationality, or the country of incorporation, of the service provider. The country of origin should also be an ADB member country.11 69. It is necessary to distinguish the procurement country from the country of origin if these are not the same. For example, if a supplier incorporated in Australia supplies goods made in India, then the procurement country is Australia, while the country of origin is India. 70. Enter the country of origin numeric code, country acronym and the corresponding percentage per country of origin. 71. Terms of Payment – It is mandatory to indicate the milestone payments and fixed exchange rate between foreign currency and local currency as stipulated in the contract, as well as the percentage of ADB financing in Schedule 3 of the Loan Agreement, if it differs from the percentage financed by ADB as shown in the PCSS. 72. Confirm if Country of Origin is the same as Country of Procurement (Y or N) – If there are multiple countries of origin, the highest percentage determines the country of origin that should be compared to the Country of Procurement.

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73. Currency of Payment – the mnemonic currency code based on contract price. This should be consistent with the currency indicated in the contract amount page. 74. Contract Amount – indicate the contract amount which should be the same as the contract amount inputted in the earlier screens. If a contract has multiple currencies, input all the relevant currencies and amount in each line. Enter “X” beside the corresponding currency to input the appropriate expenditure category of each contract amount.

75. Category Code – enter the appropriate expenditure category code based on the grant agreement or press F1 to show the available categories. 76. Contract Amount – input the corresponding contract amount for each category. The total must be the same as the total contract amount indicated in the previous screens.

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77. The GFIS indicates the ADB-financed portion of each contract by recording its value expressed in the currency of payment, the qualified commitments, and the disbursements in the currency concerned. Disbursements are translated into US dollars at the historical exchange rates and the undisbursed contract balance at the latest ADB bookkeeping rate. This will permit a continuous upgrading of the contract value vis-à-vis the allocated loan amount under each category, and provide the latest status of utilization of the loan amount in terms of procurement and disbursement which can be viewed at any given time. 78. Press F10 to save the PCSS. A distinct contract number is automatically generated after the PCSS is saved. The grant contract number starts with a prefix “G” followed by a five-digit number.

79. Confirming the contract – Once the PCSS is approved, return to the main menu and confirm the contract.

80. Indicate the grant number, contract number generated by PCSS and the staff ID of the project team leader.

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C. PCSS for Policy-Based Loans and Grants 81. A formula is used to estimate how policy-based loans/grants could have been allocated to ADB member countries based on import figures in the borrower's country. The source data is ADB's Statistical Database System (SDBS), a system which records macro-economic and social indicators of our Developing Member Countries (DMCs). SDBS contains annual data on trade including imports into the DMC. To estimate and record the potential value of imports from an ADB member country, the following formula is applied:

(Value of Imports from ADB member country X Total value of ADB policy-based loans in the country)

Value of Imports from all ADB member countries

82. Policy-based loans and grants are entered into LFIS or GFIS for disbursement purposes only. They do not have actual procurement contracts like project loans/grants. However, a PCSS is required to record the allocations to ADB Member countries and to disburse against it. Using SDBS, the user division generates data on Direction of Trade (also known as trade pattern) for the past four years. Average and corresponding percentage shares are also computed. Based on these statistics, the user division then calculates the rate to be applied for each country in each PCSS created on the tranche disbursed. The amount and corresponding percentage shares are distributed to at most 10 countries per PCSS entry. The total share has to be 100%. 83. The PCSS fields are mandatory and have to be filled in even in the absence of an actual contract. The name of contractor must be “various” and the country of procurement (or nationality) will be the country of the borrower. Allocation of amounts and percentages will be reflected in the country of origin and origin Amount. Amount of tranche release can be distributed to several PCSS.

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D. PCSS for a Group of Small Contracts Below the Shopping Method Ceiling

84. This is applicable to a group of small contracts each not exceeding the ceiling of procurement under the shopping procedure.5

(i) Issue PCSS No. 8801 for each loan covering the first calendar year of disbursement projections of small contracts, and assign an amount to each category (in local currency and US dollar).

(ii) Issue PCSS No. 8802 for each loan covering the second calendar year of disbursements of small contracts, after cancelling the undisbursed balance under 8801.

(iii) Subsequent PCSS entries are sequentially numbered for succeeding years following the procedures above.

(iv) Upon receipt of a withdrawal application, the Controller’s Department (CTL) disburses and charges to the relevant categories under PCSS No. 8801. Contracts over $100,000 equivalent are charged to the individual PCSS.

(v) If the amount allocated to any category is not enough for the year, the PCSS amount can be increased by issuing a PCUS.

(vi) Any undisbursed contract balance at the end of each year is cancelled by the project staff, or by CTL, as endorsed by the user division, upon closing of the loan.

85. This should be used only for reimbursement, replenishment, and liquidation of advance fund applications. Direct payment and commitment letter procedures are not applicable.

5 PAI 3.06: Other Methods of Procurement.

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V. Creating Procurement Contract Update Sheet

86. The project staff manually assigns a Procurement Contract Update Sheet (PCUS) serial number for each loan or grant, regardless of the contract number, and record this offline. 87. Creating a PCUS follows the same procedures as that of creating a PCSS. Choose variation of contract in the main menu and use the same system-assigned contract number when updating the contract information.

88. If the ADB-financed amount is amended, the PCUS will show the revised value. PCUS updates the information in the LFIS/GFIS and consequently, the historical PCSS data is replaced by the new value and relevant information. To cancel a particular column, indicate the currency and category codes used, then in the appropriate lines for values, put in zeroes. 89. The date of approval, date of contract and date received and date of PCSS should not be revised. 90. Date of Variation or PCUS Date – is a system-generated date for the latest contract amendment using a PCUS. 91. If the country of origin is amended, indicate the country numeric code and the corresponding percentage. If it is cancelled, the new percentage must show a zero value.

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92. A contract may be transferred to an additional financing loan, in whole or in part, in the following cases:

a) If no disbursement has occurred under that particular contract and no Qualified Commitment (QC) has been issued, the whole contract may be transferred by means of a PCUS. The old contract number under the original loan and the new contract number under the additional financing loan will be indicated. No other details need to be filled in, and the records of the contract will be fully transferred to the additional financing loan. However, if the category number in the additional loan is not the same as that in the original loan, a new PCSS must be prepared containing all the data relating to that contract as if a new contract was approved.

b) If disbursement or issuance of a QC has taken place:

i) If the transfer is effected before the original loan is fully disbursed and closed, a PCUS must be used to cancel the contract balance in the original loan. Simultaneously, a PCSS shall be prepared under the additional financing loan for that balance.

ii) If the transfer is effected after the original loan is fully disbursed, there is no need to issue a PCUS since the cancellation of the contract balance will be automatically done by LFIS/GFIS after the original loan is closed. The issuance of a PCSS relevant to a new contract under the additional financing loan will be necessary

Appendix 1 29

Contract Value by Category and Currency of Payment

93. One PCSS should reflect the entire amount of the contract, including the portion not financed by ADB. For example, when a contract is payable in two or more currencies and ADB does not finance one of these currencies (e.g., local currency) the amount of this currency should also be reflected in the PCSS in a separate column with "zero" percentage of ADB financing.

94. Duties and Taxes should be included in the cost of the contract if duties and taxes are included in the determination of the percentage of ADB financing in the Loan Agreement or in the Appraisal Report. In case of difference between the data contained in the Loan Agreement and the ones in the Appraisal Report, or in case of absence of such information, the project officer should be consulted on this issue, prior to inputting the data in the PCSS. 95. The amount in one column may represent the whole or a portion of the contract value eligible for financing by ADB. The following formula must always be used within one column: Total (Foreign Currency + Local Currency) x Percentage Financed by ADB = Amount Financed by ADB under the Loan. This is not applicable to TA grants. 96. If there are several categories or currencies of payment, indicate each category or currency in a separate column. No more than one currency and no more than one category can be used in one single column. 97. There are, however, cases where the percentage of ADB financing, as agreed in Schedule 3 of the Loan Agreement, should not be shown. Instead, another percentage representing a portion of the Foreign Currency Cost (FCC) and/or Local Currency Cost (LCC) of the contract shall be entered, as shown in the following cases:

(i) More than one category is involved and the percentage of ADB financing is expressed in terms of the total cost of contract.

(ii) ADB finances the FCC asked for by the supplier/contractor as part of the total value of the contract denominated in LC (Note: in this case, the percentage financed by ADB should be shown as 100%. The first column of this portion of the PCSS has therefore been reserved for this case. If there is more than one FC of payment, and ADB finances 100% of the amount of each FC, the subsequent columns can be used in the same manner as the first column.

30 Appendix 1

(iii) The percentage of ADB financing in Schedule 3 of the Loan Agreement is different from the percentage of FC asked for by the contractor in the contract.

98. If ADB finances only a portion of the contract value and the contract involves two or more currencies of payment, the percentage financed by ADB may be presented in either of the two options below:

(i) Apply the percentage of ADB financing as agreed in Schedule 3 of the Loan Agreement; or

(ii) Obtain the amount financed by ADB first by applying the percentage of ADB financing as agreed in the Loan Agreement to the total contract value. Then assign the amount financed by ADB to the foreign currency or currencies until the amount of ADB financing is fully exhausted. The remaining balance, if any, is assigned to finance a portion of the local currency. After the amount financed by ADB for each currency is determined, the percentage of ADB financing for each currency can be obtained by dividing the amount financed by the ADB over the amount assigned to the cost of the contract in the same column.

Appendix 2 31

Country and Currency Codes

Country

Numeric Code

ADB's

Country Code

Currency

Mnemonic Code Currency Name Country Name

01 AFG AF Afghani Afghani. Is. Rep. Of

02 AUS A$ Australian Dollar Australia

03 AUT S Austrian Schilling Austria

04 BEL BF Belgian Franc Belgium

05 CAM KR Khmer Riel Cambodia

06 CAN C$ Canadian Dollar Canada

07 SRI SRS Sri Lanka Rupee Sri Lanka

08 TAP NT$ New Taiwan Dollar Taipei, China

09 DEN DKR Danish Krone Denmark

10 FIN FMK Finnish Markka Finland

11 GER DM Deutsche Mark Germany

12 IND RS Indian Rupee India

13 INO RP Indonesian Rupiah Indonesia

14 ITA LIT Italian Lira Italy

15 JPN Y Japanese Yen Japan

16 KOR W Korean Won Korea, Republic Of

17 LAO KN Kip of Liberation Lao People's Dem Rep

18 MAL RM Malaysian Ringgit Malaysia

19 NEP NRS Nepalese Rupee Nepal

20 NET F. Netherlands Guilder Netherlands

21 NZL NZ$ New Zealand Dollar New Zealand

22 NOR NKR Norwegian Krone Norway

23 PAK PRS Pakistan Rupee Pakistan

24 PHI P Philippine Peso Philippines

25 SIN S$ Singapore Dollar Singapore

26 SWE SKR Swedish Krona Sweden

27 THA B Thai Baht Thailand

28 UKG L Pound Sterling United Kingdom

29 USA US$ Us Dollar United States

30 VIE VD Vietnamese Dong Viet Nam, Soc Rep Of

31 SAM ST Samoan Tala Samoa

32 SWI SWF Swiss Franc Switzerland

33 HKG HK$ Hong Kong Dollar Hong Kong, China

34 FIJ F$ Fiji Dollar Fiji, Republic Of

35 FRA FF French Franc France

36 PNG PK Papua New Guin. Kina Papua New Guinea

37 TON T$ Tongan Dollar Tonga

38 BAN TK Bangladesh Taka Bangladesh

39 MYA MK Myanmar Kyat Rep. Union of Myanmar

40 SOL SI$ Solomon Isl. Dollar Solomon Islands

32 Appendix 2

Country

Numeric Code

ADB's

Country Code

Currency

Mnemonic Code Currency Name Country Name

41 KIR A$ Australian Dollar Kiribatinmar

42 COO NZ$ New Zealand Dollar Cook Islands

43 MLD RF Maldivian Rufiyaa Maldives

44 VAN VT Vatu Vanuatu

45 BHU NU Ngultrum Bhutan

46 SPA PTA Peseta Spain

47 PRC CHY Renminbi Yuan China, People’s Rep. Of

48 RMI US$ Us Dollar Marshall Islands

49 FSM US$ Us Dollar Micronesia

50 MON MNT Togrog Mongolia

51 TUR TL Turkish Lira Turkey

52 NAU A$ Australian Dollar Nauru, Republic Of

53 TUV A$ Australian Dollar Tuvalu

54 KAZ T Tenge Kazakhstan

55 KGZ SOM Kyrgyz Som Kyrgyz Republic

56 UZB SUM Sum Uzbekistan, Rep. Of

57 TAJ TJS Tajik Somoni Tajikistan, Rep. Of

58 AZE AZM Azerbaijanian Manat Azerbaijan, Rep. Of

59 TKM TMT Turkmenistannewmanat Turkmenistan, Rep Of

60 POR PTE Portuguese Escudo Portugal

61 TIM US$ Us Dollar Timor-Leste P Of

62 LUX LF Luxembourg Franc Luxembourg

63 PAL US$ Usd Palau

64 ARM AMD Armenian Dram Armenia, Republic Of

65 BRU BND Brunei Dollar Brunei Darussalam

66 IRE ILR Irish Pound Ireland

67 GEO GEL Georgian Lari Georgia

68 RUS PY6 Russian Ruble Russian Federation

72 KUW KD Kuwait Dinar Kuwait

73 SAU SR Saudi Arabian Riyal Saudi Arabia

74 UAE DH Dirham United Arab Emirates

78 ZAF ZAR Rand South Africa

79 MXN MXN Mexican Peso Mexico

80 BR R$ Brazilian Real Brazil

81

SDR SDR

82

ECU European Curr. Unit

83

EUR Euro

84 LVA LAT Latvian Lats Latvia, Republic of

85 TUN TND Tunisian Dinar Tunisia

98 OTH

Others

99 REG Regional

Note: The above codes are applicable to LFIS and GFIS only.

Appendix 3 33

Determining the Country of Procurement and Country of Origin

1. Excerpt from the “Agreement Establishing the Asian Development Bank” and By-Laws dated 22 August 1966:

Article 14 - Operating Principles The Operations of the Bank shall be conducted in accordance with the following principles: (ix) The proceeds of any loan, investment or other financing undertaken in the

ordinary operations of the Bank or with Special Funds established by the Bank pursuant to paragraph 1 (i) of Article 19, shall be used only for procurement in member countries of goods and services produced in member countries, except in any cases in which the Board of Directors by a vote of the Directors representing not less than two-thirds of the total voting power of the members, determines to permit procurement in a non-member country or of goods and services produced in a non-member country in special circumstances making such procurement appropriate, as in the case of a non-member country in which a significant amount of financing has been provided to the Bank;”

2. In addition to the above stipulations, outlined below are clarifications on the procurement country (or Country of Procurement) and the country of origin, in relation to accomplishing the PCSS and PCUS.6 A. Procurement in Member Countries 3. There are a number of criteria that should be met to ensure that a procurement transaction in a member country is fulfilled: (i) the contract should be denominated in the currency of a member country and the proceeds should be paid to a place in a member country; (ii) the performance of the supplier/contractor should substantially take place in member countries (this will normally be in a supplier's country or borrower's country); and (iii) the supplier should be a national of a member country. 4. The supplier is a person, corporation, partnership, joint venture (trader, manufacturer, contractor, consultant, etc.) who is contractually bound to supply the goods and services purchased. In the case of an individual who supplies goods and/or services, the nationality is simply the nationality of the individual as stated in his passport. For the PCSS/PCUS, the nationality of a corporation would normally correspond to its place of incorporation or the location of its head office (center of administration). In the case, where the supplier is a subsidiary of an international corporation, the subsidiary’s place of incorporation should be used to determine its nationality. ADB's requirements can normally be considered as satisfied as long as any member country claims the corporate supplier as its national. In the case of partnerships or joint ventures, in order to satisfy the criteria for procurement in member countries, at least 51% of the ownership of the partnership or of the joint venture must be held by member country nationals.

6 The notes on Determining the Country of Procurement and the Country of Origin of Goods and Services Eligible for

ADB Financing Under the ADB-Financed/Co-Financed Projects are based on a memo dated 20 June 1969 from the Office of the General Counsel to the President/Vice President, entitled “Procurement in Member Countries of Goods Produced in Member Countries”.”

34 Appendix 3

B. Production in Member Countries

5. The two basic types of transactions under ADB-financed projects are: (i) simple commodity contracts; and (ii) contracts for services. ADB considers that, where a substantial part of the manufacturing process has been taken place in a member country, the requirements for production in a member country have been satisfied. Therefore, for the PCSS/PCUS, the country of origin should be from the member country in which the goods were substantially manufactured, as certified by the supplier. It should be noted that items that are simply assembled in a member country from standard parts imported from non-member country, are not eligible for ADB financing. 6. In the PCSS/PCUS, it is not necessary to distinguish the country of origin of the shipper or insurer of the goods, except if the contract was on a Free On Board (FOB) basis and ADB was asked to pay for the freight and insurance separately. 7. In general, the services of a consulting firm take the form of work in the home office of the firm and field work in the Borrowing Country. For the PCSS/PCUS, the home office of the consulting firm would be the Country of Procurement of the services. If the consultant sub-contracts some of the work, or purchases goods for use in the project, he is bound by contract to procure the goods or the services in member countries. If the amount of the sub-contract is significant, this should be entered as a separate country of origin of the consultant. 8. In most projects, there is likely to be one or more large complex contracts. Where major components [i.e. where the sub-contract expenditure is more than 15% or US$300,000 (whichever is less) of the main contract price] are to be procured by the main supplier/contractor from sub-suppliers, these should be procured from member countries and the percentage and country of origin of such sub-contracts should be indicated in the PCSS/PCUS. However, when the amount of the sub-contract is below the above-prescribed limit, it is sufficient to consider the package of goods and services supplied under the main contract as a single unit, and therefore the country of origin will be the country of the main supplier/contractor. 9. For goods produced in the borrower's own country, the requirements under the Articles of the Charter will have been met if the goods are substantially produced (see para. 25) in the borrower's country. Generally, in this case, ADB need not inquire into the source of the components of such good.

Appendix 4 35

Commodity Codes

CODE COMMODITY

FOOD AND LIVE ANIMALS CHIEFLY FOR FOOD

1 MEAT AND MEAT PREPARATIONS

2 DAIRY PRODUCTS AND BIRDS' EGGS

3 FISH, CRUSTACEANS AND MOLLUSCS, AND PREPARATIONS THEREOF

4 CEREALS AND CEREAL PREPARATIONS

5 VEGETABLES AND FRUIT

6 SUGAR, SUGAR PREPARATIONS AND HONEY

7 COFFEE, TEA, COCOA, SPICES AND MANUFACTURES THEREOF

8 FEEDING STUFF FOR ANIMALS (NOT INCLUDING UNMILLED CEREALS

9 MISCELLANEOUS EDIBLE PRODUCTS AND PREPARATIONS

10 LIVE ANIMALS CHIEFLY FOR FOOD

BEVERAGE AND TOBACCO

11 BEVERAGES

12 TOBACCO AND TOBACCO MANUFACTURES

CRUDE MATERIALS, INEDIBLE, EXCEPT FUELS

21 HIDES, SKINS AND FURSKINS, RAW

22 OIL SEEDS AND OLEAGINOUS FRUIT

23 CRUDE RUBBER (INCLUDING SYNTHETIC AND RECLAIMED)

24 CORK AND WOOD

25 PULP AND WASTE PAPER

26 TEXTILE FIBRES (OTHER THAN WOOL TOPS) AND THEIR WASTES (N

27 CRUDE FERTILIZERS AND CRUDE MINERALS (EXCLUDING COAL, PET

28 METALLIFEROUS ORES AND METAL SCRAP

29 CRUDE ANIMAL AND VEGETABLE MATERIALS, N.E.S.

MINERAL FUELS, LUBRICANTS AND RELATED MATERIALS

32 COAL, COKE AND BRIQUETTES

33 PETROLEUM, PETROLEUM PRODUCTS AND RELATED MINERALS

34 GAS, NATURAL AND MANUFACTURED

35 ELECTRICAL CURRENT

ANIMAL AND VEGETABLE OILS, FATS AND WAXES

41 ANIMAL OILS AND FATS

42 FIXED VEGETABLE OILS AND FATS

43 ANIMAL AND VEGETABLE OILS AND FATS, PROCESSED, AND WAXES

CHEMICALS AND RELATED PRODUCTS

51 ORGANIC CHEMICALS

52 INORGANIC CHEMICALS

53 DYEING, TANNING AND COLOURING MATERIALS

36 Appendix 4

CODE COMMODITY

54 MEDICINAL AND PHARMACEUTICAL PRODUCTS

55 ESSENTIAL OILS, PERFUME MATERIALS; TOILET, POLISHING AND

56 FERTILIZERS MANUFACTURED

57 EXPLOSIVES AND PYROTECHNIC PRODUCTS

58 ARTIFICIAL RESINS AND PLASTIC MATERIALS, AND CELLULOSE ES

59 CHEMICAL MATERIALS AND PRODUCTS, N.E.S

MANUFACTURED GOODS CLASSIFIED CHIEFLY BY MATERIAL

61 LEATHER, LEATHER MANUFACTURES, N.E.S. AND DRESSED FURSKIN

62 RUBBER MANUFACTURES, N.E.S.

63 CORK AND WOOD MANUFACTURES (EXCLUDING FURNITURE)

64 PAPER, PAPERBOARD, AND ARTICLES OF PAPER PULP, OF PAPER O

65 TEXTILE YARN, FABRICS, MADE-UP ARTICLES, N.E.S. AND RELAT

66 NON-METALLIC MINERAL MANUFACTURES, N.E.S.

67 IRON AND STEEL

68 NON-FERROUS METALS

69 MANUFACTURES OF METAL, N.E.S.

MACHINERY AND TRANSPORT EQUIPMENT

71 POWER GENERATING MACHINERY AND EQUIPMENT

72 MACHINERY SPECIALIZED FOR PARTICULAR INDUSTRIES

73 METALWORKING MACHINERY

74 GENERAL INDUSTRIAL MACHINERY AND EQUIPMENT, N.E.S. AND MA

75 OFFICE MACHINES AND AUTOMATIC DATA PROCESSING EQUIPMENT

76 TELECOMMUNICATIONS AND SOUND RECORDING AND REPRODUCING AP

77 ELECTRICAL MACHINERY, APPARATUS AND APPLIANCES, N.E.S., A

78 ROAD VEHICLES (INCLUDING AIR CUSHION VEHICLES)

79 OTHER TRANSPORT EQUIPMENT

MISCELLANEOUS AND MANUFACTURED ARTICLES

81 SANITARY, PLUMBING, HEATING AND LIGHTING FIXTURES AND FIT

82 FURNITURE AND PARTS THEREOF

83 TRAVEL GOODS, HAND BAGS AND SIMILAR CONTAINERS

84 ARTICLES OF APPAREL AND CLOTHING ACCESSORIES

85 FOOTWEAR

87 PROFESSIONAL, SCIENTIFIC AND CONTROLLING INSTRUMENTS AND

88 PHOTOGRAPHIC APPARATUS, EQUIPMENT AND SUPPLIES AND OPTICA

89 MISCELLANEOUS MANUFACTURED ARTICLES, N.E.S.

90 COMMODITIES AND TRANSACTIONS NOT CLASSIFIED ELSEWHERE