ASIAN DEVELOPMENT BANK

PROCUREMENT POLICIES AND GUIDELINES

GROUP MEMBERS:
MUHAMMAD HUNAIN
MUHTASHIM SIDDIQUE
HAFIZ ABDUL WASEY
IFRA RAFIQ
ASIAN DEVELOPMENT BANK

The Asian Development Bank (ADB) is

a regional development bank established on 19
December 1966, which is headquartered in
the Ortigas Center located in the city
of Mandaluyong, Metro Manila, Philippines.
The company also maintains 31 field offices
around the world to promote social
and economic development in Asia.
PURPOSE
The purpose of this policy is to inform those
carrying out a project that is financed in whole or
in part by a loan from the Asian Development
Bank, an ADB-financed grant, or by ADB-
administered funds of the core principles that
govern the procurement of goods, works, and non
consulting and consulting services required for
that project.
VISION
ADB’s vision is an Asia and Pacific region free of
poverty. Its mission is to help its developing
member countries reduce poverty and improve the
quality of life of their people. Despite the region’s
many successes, it remains home to a large share of
the world’s poor. ADB is committed to reducing
poverty through inclusive economic growth,
environmentally sustainable growth, and regional
integration
 PROCUREMENT PLAN
The procurement plan sets forth
(i) the particular contracts for the goods, works, and/or
services required in carrying out the project.
(ii) the proposed methods for procurement of contracts
that are permitted under the financing agreement.
(iii) the types of bidding ADB Procurement Policy
documents to be used; and
(iv) the related ADB review procedures and proposed
contract supervision arrangements.
 INTERNATIONAL COMPETITIVE
BIDDING
 TYPE AND SIZE OF CONTRACT:
The bidding documents shall clearly state the type of contract to be entered into, AND
The most common types of contracts provide for payments on the basis of a lump sum or
unit prices. The size and scope of individual contracts will depend on the magnitude,
nature, and location of the project.

 NOTIFICATION AND ADVERTISING:

The notice shall contain information concerning the borrower :
1.Amount and purpose of the loan.
2.Scope of procurement .
3.the name.
4.Telephone number AND email address (or fax number)
5.Address of the borrower’s agency responsible for procureme. and the address of the
website where specific procurement notices will be posted.
 INTERNATIONAL COMPETITIVE
BIDDING
PRE-QUALIFICATION OF BIDDERS:
Prequalification may be necessary for large or complex works, or in any other
circumstances in which the high costs of preparing detailed bids could discourage
competition.
Prequalification shall be based entirely upon the capability and resources of
prospective bidders to perform the particular contract satisfactorily
 (a) experience and past performance on similar contracts.
 (b) capabilities with respect to construction or manufacturing facilities, and
 (c) financial position.
 BIDDING DOCUMENTS
 Validity of Bids and Bid Security:
Bidders shall be required to submit bids valid for a period specified in the bidding
documents which shall be sufficient to enable the borrower to complete the comparison
and evaluation of bids.
In place of a bid security; if they withdraw or modify their bids during the period of
validity, OR they fail to sign the contract or to submit a performance security before the
deadline, the bidder will be suspended for a period of time from being eligible for bidding
in any contract with the borrower.

 LANGUAGE:
the working language of ADB is English and therefore bidding and other relevant
documents, including advertisements, shall be prepared in English
 BIDDING DOCUMENTS
 CLARITY OF BIDDING DOCUMENTS:
Bidding documents shall be so worded as to permit and encourage international competition and shall
set forth clearly and precisely the work to be carried out like
1.The location of the work,
2.The goods to be supplied,
3.The place of delivery or installation,
4.The schedule for delivery or completion,
5.Minimum performance requirements, AND
6. The warranty and maintenance requirements.

 STANDARDS:
The borrower shall specify internationally accepted standards Such as in all cases;
the bidding documents shall state that equipment, material, or workmanship meeting
other standards, which must specify substantial equivalence.
 BIDDING DOCUMENTS
 USE OF BRAND NAMES:
Specifications shall be based on relevant characteristics and/or performance requirements.
References to brand names, catalog numbers, or similar classifications shall be avoided.

 PRICING:
1. In the case of turnkey contracts, the bidder should including all costs for supply of
equipment, Unless otherwise specified in the bidding documents, the turnkey price shall
include all duties, taxes, and other levies
2. Bidders for civil works contracts shall be required to quote unit prices or lump sum prices
for the performance of the works, and such prices shall include all duties, taxes and other
levies

 FORCE MAJEURE:
The conditions of contract shall stipulate that failure on the part of the parties to perform
their obligations under the contract will not be considered a default if such failure is the
result of an event of force majeure as defined in the conditions of contract.
 BIDDING DOCUMENTS
OTHER FACTORS INVOLVE IN BIDDING
DOCUMENTS:
1.Applicable law and settlement of disputes.
2.Liquidated damages and bonus clauses.
3.Currency of payment.
4.Currency conversion for bid comparison.
5.Transportation and insurance.
6.Price adjustment.
 BID OPENING,EVALUATION, AND
AWARD OF CONTRACT
 TIME FOR PREPARATION OF BIDS:
The time allowed for the preparation and submission of bids shall be
determined Generally, not less than six weeks from the date of the invitation to
bid. If large works or complex items to enable prospective bidders to conduct
investigations before submitting their bids. In such cases, the borrower is
encouraged to convene pre-bid conferences and arrange site visits.

 BID OPENING PROCEDURES:

1.The borrower shall open all bids at the stipulated time and place. Bids shall be
opened in public
2. bidders or their representatives shall be allowed to be present (in person or
online, when electronic bidding is used).
3.The name of the bidder and total amount of each bid shall be read aloud .
4.Recorded when opened and a copy of this record shall be promptly sent to ADB
and to all bidders who submitted bids in time.
 BID OPENING,EVALUATION, AND
AWARD OF CONTRACT
ALTERATIONS OF BIDS:
The borrower shall ask bidders for clarification needed to evaluate their bids but shall not
ask or permit bidders to change the substance or price of their bids after the bid opening.
Requests for clarification and the bidders’ responses shall be made in writing, in hard
copy.
 CONFIDENTIALITY:
After the public opening of bids, information relating to the examination, clarification, and
evaluation of bids and recommendations concerning awards shall not be disclosed to
bidders or other persons not officially concerned with this process until the publication of
contract award.
 EXAMINATION OF BIDS:
1.Meet the eligibility requirements
2.have been properly signed
3.are accompanied by the required securities
4.Are substantially responsive to the bidding documents
5.The bidder shall not be permitted to correct or withdraw material deviations or
reservations once bids have been opened.
BID OPENING,EVALUATION, AND AWARD
OF CONTRACT
EVALUATION AND COMPARISON OF BIDS:

1.The bid evaluation with the lowest evaluated cost be considered, but not
necessarily the lowest submitted price, shall be selected for award.
2.Price adjustment provisions applying to the period of implementation of the contract shall
not be taken into account in the evaluation.
3. Under works contracts, contractors are responsible for all duties, taxes, and other levies,
and bidders shall take these factors into account in preparing their bids.
4. The borrower shall prepare a detailed report on the evaluation and comparison of bids
setting forth the specific reasons on which the recommendation is based for the award of
the contract.
BID OPENING,EVALUATION, AND AWARD OF
CONTRACT
 AWARD OF CONTRACT:
The borrower shall award the contract to the bidder who meets the appropriate
standards of capability and resources and whose bid has been determined
1.To be substantially responsive to the bidding documents and
2. To offer the lowest evaluated cost.

OTHER FACTORS INVOLVE DURING BID OPENING,

EVALUATION AND AWARD OF CONTRACT:
1.Rejection of all bids
2.Publication of the award of contract
3.Postqualification of bidders
4.Extension of validity of bids
 FRAUD AND CORRUPTION
ADB defines for this purpose below as follows:
Corrupt practice: means the offering, giving, receiving, or soliciting,
directly or indirectly, anything of value
Fraudulent practice: including a misrepresentation, that knowingly
or recklessly misleads, or attempts to mislead, a party to obtain a
financial or other benefit.
Coercive practice: means impairing or harming, or threatening to
impair or harm, directly or indirectly to any party.
Collusive practice: means an arrangement between two or more
parties designed to achieve an improper purpose
 FRAUD AND CORRUPTION
ADB PROCEDURES,GUIDELINES & ACTIONS AGAINST
FRAUD AND CORRUPTION IN PROCUREMENT:
1. Will reject a proposal for award if it determines that the bidder recommended for
award has, directly or through an agent, engaged in corrupt, fraudulent, collusive,
or coercive practices in competing for the contract.
2. Will cancel the portion of the financing allocated to a contract if it determines at
any time that representatives of the borrower or of a beneficiary of ADB-financing
engaged in corrupt, fraudulent, collusive, or coercive practices during the
procurement or the execution of that contract.
3. To inspect their accounts and records and other documents relating to the bid
submission . contract performance and to have them audited by auditors appointed
by ADB.
4. No fees, gratuities, rebates, gifts, commissions, or other payments, except those
shown in the bid, have been given or received in connection with the procurement
process or in contract execution.
ADB APPROVES 1 BILLION DOLLARS
LOAN FOR PAKISTAN
 On 06-dec-19 The Asian Development Bank (ADB)
has approved $1 billion loan for Pakistan to help
strengthen a slowing economy.
“These funds will meet the government’s emergency
financing needs to prevent significant adverse social
and economic impacts and lay the foundations for a
return to balanced growth.”
 ADB PROJECTS IN PAKISTAN
Pakistani Women Plant Millions of Trees to
Rebuild Climate Resilient Roads:
The Asian Development Bank responded with emergency assistance,
helping Pakistan rebuild roads through innovative techniques, which also
allow for the empowerment of women, and promote green enterprises and
eco-tourism.

ADB Provides $107 Million to Pakistan for Water

Resource Development in Baluchistan Province:
On 05-jan-19 ADB and the Provincial Government of Baluchistan signed the
project agreement of a $107 million loan and grants to improve irrigation
infrastructure and water resource management in Baluchistan.