Asian Development Bank Business Opportunities Introduction 1 Overview What is ADB ? What is ADB doing ? Where does ADB get its money from ? Why to pursue ADB contracts ? Where to find the ADB opportunity Introduction 2 Asian Development Bank Regional Multilateral Development Bank Established in 1966 A Partnership of 67 Countries 42 Client Countries Introduction 3 Strategic Directions Goal Poverty reduction in Asia and the Pacific Development Objectives Promotion of pro poor, sustainable economic growth Supporting social development Facilitating good governance Introduction 4 Ownership 67 Shareholders 48 regional members 19 nonregional members Japan and the United States are the largest shareholders (15.5% each) Introduction 5 Ownership BOARD OF GOVERNORS Delegates powers to Board of Directors except for : Admission of New Members Change in Authorized Capital Stock Election of President and Board of Directors Amendments to Charter Introduction 6 BOARD OF DIRECTORS Board of Directors Kazakstan; Maldives; Marshall Islands; Mongolia; Pakistan; Philippines United States Introduction 7 People’s Republic of China Canada; Denmark; Finland; Netherlands; Norway; Sweden Cook Islands; Fiji; Indonesia; Kyrgyz Republic; New Zealand; Samoa; Tonga Austria; Germany; Luxembourg; Turkey; United Kingdom Malaysia; Myanmar; Nepal; Singapore; Thailand Bangladesh; Bhutan; India; Lao PDR; Tajikistan Republic of Korea; Papua New Guinea; Sri Lanka; Taipei,China; Uzbekistan; Vanuatu; Viet Nam Belgium; France; Italy; Portugal; Spain; Switzerland Australia; Azerbaijan; Cambodia; Hong Kong, China; Kiribati; Fed. States of Micronesia; Nauru; Solomon Islands; Tuvalu Japan Organization BOARD OF DIRECTORS President Vice President KMSD VP Operations 1 VP Operations 2 Regional & Sustainable Development Dep. South Asia Department East Asia Department Southeast Asia Department Central & West Asia Department Office of the Auditor General Introduction 8 Strategy & Policy Department Special Project Facilitator Office of the Secretary BPMS Department Office of Admin. Services Pacific Department Office of the President Operations Evaluation Dep. MDG Office of the General Counsel Economics & Research Dep. Office of External Relations VP Finance & Admin Controllers Department Treasurers Department Private Sector Department Central Operations Services Office Office of Cofinancing Op. Off. of I. Systems & Techn. Offices 28 offices worldwide Introduction 9 Business Opportunities What is ADB ? What is ADB doing ? Where does ADB get its money from ? Why to pursue ADB contracts ? Where to find the ADB opportunity Introduction 10 Activities ADB Makes loans Provides technical assistance Offers advice Provides information Introduction 11 Lending (Total Lending as of 31 Dec 2007) Type of Loans Project Loans Program Loans Sector Loans Private Sector Loans Others (TA Loans, Special Assistance) Introduction 12 Total US$ mill. % 76,092.4 27,325.9 16,872.1 3,609.8 9,398.8 57 20 13 3 7 133,299.1 100 Lending (Total Lending as of 31 Dec 2007) ADB Assisted Sectors Introduction 13 Agriculture & Natural Resources Education Energy Finance Health, Nutrition & Social Protection Industry & Trade Law, Economic Management & Public Policy Transport and Communications Water Supply, Sanitation & Waste Management Multisector Total $ bill. % 16.6 5.9 26.1 16.7 3.1 5.6 5.8 32.4 6.9 14.2 13.0 4.0 20.0 13.0 2.0 4.0 4.0 24.0 5.0 11.0 133.3 100 Lending (Total Lending as of 31 Dec 2007) Largest Borrowers (as of 31 December 2007) Introduction 14 2004 2005 2006 2007 PRC India Pakistan Philippines Vietnam Bangladesh PRC Indonesia Pakistan Vietnam Bangladesh India PRC Pakistan India Indonesia Philippines Vietnam Pakistan Vietnam India PRC Indonesia Bangladesh Technical Assistance Grant funds used for Preparing projects Providing advice Implementing projects Supporting regional activities Introduction 15 Technical Assistance Technical Assistance Approvals Introduction 16 2002 . . . . . . . . . . . . . . . . . . 2003 . . . . . . . . . . . . . . . . . . 2004 . . . . . . . . . . . . . . . . . . 2005 . . . . . . . . . . . . . . . . . . 2006 …………………... 2007 …………………... $ 179.0 mill $ 174.9 mill $ 192.4 mill $ 197.4 mill $ 241.2 mill $ 243.4 mill Private Sector Financial Intermediaries Leasing Venture Capital Financing Merchant Banking Mutual Funds Insurance Securitization Credit Enhancement and Credit Rating Infrastructure (BOO or BOT) Power Supply Water Supply Transport Telecommunications Other Introduction 17 Industrial Agri-business Other project with significant economic merit Asian Development Bank What is ADB ? What is ADB doing ? Where does ADB get its money from ? Why to pursue ADB contracts ? Where to find the ADB opportunity Introduction 18 Financial Resources Ordinary Capital Resources (OCR) Special Funds (SF) Asian Development Fund (ADF) Technical Assistance Special Fund (TASF) Japan Special Fund (JSF) Trust Funds Introduction 19 Lending Resources (as of 31 Dec 2007) Ordinary Capital Resources Capital Stock . . . . . . . . . . . . . . . . Amount Paid-In . . . . . . . . . . . . . . Callable Guarantees . . . . . . . . . . $ 55.98 billion $ 3.94 billion $ 52.04 billion Asian Development Fund Introduction 20 Pledged . . . . . . . . . . . . . . . . . . . . Contributed . . . . . . . . . . . . . . . . . $ 30.65 billion $ 29.46 billion Technical Assistance Resources (as of 31 Dec 2007) Technical Assistance Special Fund Funded by voluntary Contributions Allocations from OCR and ADF About $1.4 billion mobilized to date Japan Special Fund Introduction 21 Administered by ADB About $1.0 billion mobilized to date Cofinancing Operations ADB arranges Cofinancing from Official Sources (bilateral and multilateral) Export Credit Agencies Market Institutions such as: Introduction 22 • Commercial Banks • Life Insurance Companies • Pension Funds Business Opportunities What is ADB ? What is ADB doing ? Where does ADB get its money from ? Why to pursue ADB contracts ? Where to find the ADB opportunity Introduction 23 Business Opportunities ADB funds development projects and programs in the Asia and Pacific Regions 2007 Loans $ 10.1 billion for 82 Projects Grants $ 673 million TAs $ 243 million Introduction 24 These projects generate contracts for Goods, Works, and Services Business Opportunities Why to pursue supply and works contracts Funds are available Internationally accepted procurement procedures Equal treatment of bidders from member countries Introduction 25 No currency exchange risks Business Opportunities Why to pursue consulting contracts For consulting firms and individual consultants For loans and technical assistance projects Open to consultants from ADB member countries Selection focuses is on qualifications Introduction 26 Business Opportunities Procurement Ranking Goods and Works (Project Loans) Introduction 27 2004 2005 2006 2007 PRC India Indonesia Sri Lanka Korea Pakistan PRC India Bangladesh Pakistan Sri Lanka Indonesia India PRC Pakistan Bangladesh Indonesia Korea PRC India Indonesia Pakistan Bangladesh Viet Nam ITA (27th) ITA (25th) ITA (34th) ITA (11th) Business Opportunities Contract Awards Italy Goods & Works - Project Loans Introduction 28 Agriculture & Natural Resources Education Energy Finance Health, Nutrition & Social Protection Industry & Trade Law, Economic Management & Public Policy Transport and Communications Water Supply, Sanitation & Waste Mgmnt Multisector Total million US$ 2004 2005 2006 2007 0.0 0.0 0.1 0.1 0.0 0.0 0.8 0.3 2.2 0.7 0.2 7.6 1.4 0.8 0.1 0.0 0.1 0.4 0.6 1.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 11.8 1.9 31.2 0.0 1.5 0.0 0.2 1.5 0.0 0.0 0.5 5.3 15.2 3.6 40.9 Business Opportunities Procurement Ranking Consulting Services (Loans & TAs) Introduction 29 2004 2005 2006 2007 USA UK Australia India Indonesia Australia India USA UK Pakistan India USA Australia Indonesia UK India USA Australia Indonesia UK ITA (43rd) ITA (29th) ITA (26th) ITA (44th) Business Opportunities Contract Awards Italy Consulting - Loans & TAs Introduction 30 Agriculture & Natural Resources Education Energy Finance Health, Nutrition & Social Protection Industry & Trade Law, Economic Management & Public Policy Transport and Communications Water Supply, Sanitation & Waste Mgmnt Multisector Total million US$ 2004 2005 2006 2007 2.2 0.0 0.0 0.1 0.0 0.0 1.5 0.0 0.0 1.5 2.2 0.1 Business Opportunities What is ADB ? What is ADB doing ? Where does ADB get its money from ? Why to pursue ADB contracts ? Where to find the ADB opportunity Introduction 31 Asian Development Bank Finding the Opportunities www.adb.org Introduction 32 Business Opportunities Identification 1 Evaluation Implementation Introduction 33 Procurement Plan 6 2 5 3 4 Loan Negotiation& Board Approval Preparation Appraisal Asian Development Bank Thank You Introduction 34