Operational Procurement
ADB extends loans and provides technical assistance to its developing member countries (DMCs) for a broad range of development projects and programs. These ADB-financed projects involve the procurement of goods, works and services (other than consulting services) from external suppliers.
Article 14 of the ADB Charter states ADB's operating principles. Those relating to procurement are
Proceeds of a loan can be used only for procurement of goods and works supplied from, and produced in, member countries of ADB.
To achieve economy and efficiency, contracts are to be procured through international competition unless other forms of procurement are more suitable and have been agreed upon between ADB and the borrower.
Procurement procedures must give member countries adequate, fair, and equal opportunity to compete for contracts.
Transparency is essential in the procurement process to achieve economy and efficiency and to combat fraud and corruption.
ADB is prepared, in urgent cases and upon a borrower's request, to authorize procurement prior to loan approval; particularly when early contracting of goods or works would be crucial for a project's timely completion or when substantial financial benefits would accrue. In such cases, ADB will approve the draft prequalification or bidding documents before they are issued and ensure that requirements for public advertising and notification of bid invitation be followed.
ADB's approval of such advance procurement is with the explicit understanding that it does not commit ADB to approve the project and loan, and that future ADB financing depends on compliance with ADB's procedural requirements.
The prequalification of contractors are undertaken for most large, ADB-financed civil works contracts, turnkey contracts and contracts for the supply of expensive and technically complex equipment. ADB reviews and approves the prequalification process conducted by the Borrower's executing agency and publishes lists of prequalified contractors for contracts with estimated value of $10,000,000 and above.
ADB-financed projects use various bidding procedures for the procurement of goods, works, and nonconsulting services. Each project tender specifies the bidding procedure that will be used.
Contracts awarded for goods and civil works with contract value above US$1.0 million. An archive of the previous year's contract awards is also provided.
