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
BOARD OF DIRECTORS
Introduction 6
 Board of Directors
Kazakstan; Maldives; United States Republic of Korea; Papua
Marshall Islands; New Guinea;
Mongolia; Pakistan; Sri Lanka; Taipei,China;
Philippines Uzbekistan; Vanuatu; Viet
Canada; Denmark; Nam
People’s Republic of China Finland; Netherlands;
Norway; Sweden Belgium; France; Italy;
Portugal; Spain;
Switzerland
Cook Islands; Fiji;
Indonesia; Kyrgyz Austria; Germany;
Luxembourg; Turkey; Australia; Azerbaijan;
Republic; New Zealand;
United Kingdom Cambodia; Hong Kong,
Samoa; Tonga China; Kiribati; Fed. States
of Micronesia; Nauru;
Malaysia; Myanmar; Solomon Islands; Tuvalu
Nepal; Singapore; Bangladesh; Bhutan;
Introduction 7

Thailand India; Lao PDR; Tajikistan Japan

 Organization
BOARD OF DIRECTORS
President

Vice President KMSD VP Operations 1 VP Operations 2 VP Finance & Admin MDG

Regional & Sustainable South Asia East Asia Office of the Secretary
Development Dep. Department Department
Economics & Office of the General Counsel
Research Dep.
Southeast Asia BPMS Department
Office of Department
External Relations Central & West Asia
Department Office of Admin. Services

Office of the President Pacific

Department Controllers Department
Office of the Auditor General
Treasurers Department
Operations Evaluation Dep. Private Sector Central Operations
Department Services Office Office of Cofinancing Op.
Introduction 8

Strategy & Policy Department

Special Project Facilitator 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
US$ mill. %
Project Loans 76,092.4 57
Program Loans 27,325.9 20
Sector Loans 16,872.1 13
Private Sector Loans 3,609.8 3
Others (TA Loans, Special Assistance) 9,398.8 7
Introduction 12

Total 133,299.1 100

 Lending (Total Lending as of 31 Dec 2007)

ADB Assisted Sectors $ bill. %

Agriculture & Natural Resources 16.6 13.0
Education 5.9 4.0
Energy 26.1 20.0
Finance 16.7 13.0
Health, Nutrition & Social Protection 3.1 2.0
Industry & Trade 5.6 4.0
Law, Economic Management & Public Policy 5.8 4.0
Transport and Communications 32.4 24.0
Water Supply, Sanitation & Waste Management 6.9 5.0
Multisector 14.2 11.0
Introduction 13

Total 133.3 100

 Lending (Total Lending as of 31 Dec 2007)

Largest Borrowers (as of 31 December 2007)

2004 2005 2006 2007
PRC PRC PRC Pakistan
India Indonesia Pakistan Vietnam
Pakistan Pakistan India India
Philippines Vietnam Indonesia PRC
Vietnam Bangladesh Philippines Indonesia
Bangladesh India Vietnam Bangladesh
Introduction 14
 Technical Assistance

Grant funds used for

 Preparing projects
 Providing advice
 Implementing projects
 Supporting regional activities
Introduction 15
 Technical Assistance

Technical Assistance Approvals

 2002 . . . . . . . . . . . . . . . . . . $ 179.0 mill
 2003 . . . . . . . . . . . . . . . . . . $ 174.9 mill
 2004 . . . . . . . . . . . . . . . . . . $ 192.4 mill
 2005 . . . . . . . . . . . . . . . . . . $ 197.4 mill
 2006 …………………... $ 241.2 mill
 2007 …………………... $ 243.4 mill
Introduction 16
 Private Sector

Financial Intermediaries Infrastructure (BOO or BOT)

 Leasing  Power Supply
 Venture Capital Financing  Water Supply
 Merchant Banking  Transport
 Mutual Funds  Telecommunications
 Insurance
 Securitization Other
 Credit Enhancement  Industrial
and Credit Rating  Agri-business
 Other project with significant
Introduction 17

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 . . . . . . . . . . . . . . . . $ 55.98 billion
 Amount Paid-In . . . . . . . . . . . . . . $ 3.94 billion
 Callable Guarantees . . . . . . . . . . $ 52.04 billion
Asian Development Fund
 Pledged . . . . . . . . . . . . . . . . . . . . $ 30.65 billion
 Contributed . . . . . . . . . . . . . . . . . $ 29.46 billion
Introduction 20
 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
 Administered by ADB
 About $1.0 billion mobilized to date
Introduction 21
 Cofinancing Operations

ADB arranges Cofinancing from

 Official Sources (bilateral and multilateral)
 Export Credit Agencies
 Market Institutions such as:
• Commercial Banks
• Life Insurance Companies
• Pension Funds
Introduction 22
 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

These projects generate contracts for Goods, Works,

and Services
Introduction 24
 Business Opportunities

Why to pursue supply and works contracts

 Funds are available

 Internationally accepted procurement procedures

 Equal treatment of bidders from member countries

 No currency exchange risks

Introduction 25
 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)
2004 2005 2006 2007
PRC PRC India PRC
India India PRC India
Indonesia Bangladesh Pakistan Indonesia
Sri Lanka Pakistan Bangladesh Pakistan
Korea Sri Lanka Indonesia Bangladesh
Pakistan Indonesia Korea Viet Nam
ITA (27th) ITA (25th) ITA (34th) ITA (11th)
Introduction 27
 Business Opportunities
Contract Awards Italy million US$
Goods & Works - Project Loans 2004 2005 2006 2007
Agriculture & Natural Resources 0.0 0.0 0.1 0.1
Education 0.0 0.0 0.8 0.3
Energy 2.2 0.7 0.2 7.6
Finance 1.4 0.8 0.1 0.0
Health, Nutrition & Social Protection 0.1 0.4 0.6 1.0
Industry & Trade 0.0 0.0 0.0 0.0
Law, Economic Management & Public Policy 0.0 0.0 0.0 0.0
Transport and Communications 0.0 11.8 1.9 31.2
Water Supply, Sanitation & Waste Mgmnt 0.0 1.5 0.0 0.2
Introduction 28

Multisector 1.5 0.0 0.0 0.5

Total 5.3 15.2 3.6 40.9
 Business Opportunities

Procurement Ranking Consulting Services (Loans & TAs)

2004 2005 2006 2007
USA Australia India India
UK India USA USA
Australia USA Australia Australia
India UK Indonesia Indonesia
Indonesia Pakistan UK UK
ITA (43rd) ITA (29th) ITA (26th) ITA (44th)
Introduction 29
 Business Opportunities
Contract Awards Italy million US$
Consulting - Loans & TAs 2004 2005 2006 2007
Agriculture & Natural Resources 2.2
Education 0.0
Energy 0.0
Finance 0.1
Health, Nutrition & Social Protection 0.0
Industry & Trade
Law, Economic Management & Public Policy 0.0
Transport and Communications 1.5
Water Supply, Sanitation & Waste Mgmnt
Introduction 30

Multisector 0.0
Total 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 Preparation
Evaluation 6 2
5 3 Appraisal
Implementation 4
Introduction 33

Procurement Plan Loan Negotiation& Board Approval

 Asian Development Bank

Thank You
Introduction 34