Overview of ADB Business Opportunities

Transcription

1 Asian Development Bank ADB Business Opportunities Seminar AICEP Portugal Global Av. 5 de Outubro, Lisboa 4 October 2012 Overview of ADB Business Opportunities BOS 1 Presented by Ahmadou Barry Senior Procurement Specialist Central Operations Services Office (COSO) Beijing, PRC

2 Outline ADB Activities & Financing Instruments Project Delivery Model/ Procurement Policies Overview of ADB Opportunities ADB Opportunities by Sector & Country BOS 2

3 Introduction to ADB Overview of ADB Opportunities ADB Activities & Financing Instruments Why pursue ADB contracts? ADB Opportunities by Country ADB Opportunities by Sector BOS 3

4 What we Do ADB funds development projects and programs in Asia and Pacific region through Lending Grants Technical assistance Advice and knowledge Key Partners Governments Private sector Nongovernmental Organizations Development agencies Community based organizations Foundations BOS 4

5 ADB Financing Instruments BOS 5 Lending Grants Dominantly in public sector to Government ADB also assists private enterprises in developing countries through equity investments, guarantees, and loans ADB Has provided a cumulative amount of $ billion as of 31 December 2011 excluding cofinancing A cumulative amount of $ 5.0 billion in grants (as of 31 December 2011) A total amount of $ 614 million in 2011 Technical Assistance - Grant funds used for Preparing projects Providing advice Implementing projects Supporting regional activities A total of $ million was approved in 2011 in Technical assistance

6 ADB Financing Instruments Lending - Sector distribution $ billion cumulative total lending as of 31 Dec (Excluding co-financing) Water and Other Municipal Infrastructure and Services, 8.5% Multisector, 6.8% Agriculture and Natural Resources, 11.4% Education, 3.7% Energy, 20.5% Transport and ICT, 24.9% BOS 6 Public Sector Management, 8.1% Industry and Trade, 2.6% Finance, 11.4% Health and Social Protection, 2.1%

7 ADB Financing Instruments Technical Assistance Approvals ( ) Amount ($ million) Year Amount ($ million) BOS 7

8 ADB Financing Instruments Private Sector Operations Supports projects with clear development impact Basic needs and services for a wide segment of the population Encourage technology and know-how transfer Expand role of private sector A key role in improving finance sector intermediation Supported sectors include Capital Markets and Financial Sector Banks, Capital market institutions, Leasing or non-bank financial institutions, Insurance companies, Funds Infrastructure Sector Power, transportation, water supply, waste treatment, telecommunications BOS 8

9 ADB Financing Instruments Private Sector Operations BOS 9 To catalyze investments, ADB uses Equity investments Loans Guarantees Complementary financing schemes Non sovereign operations in 2011 $6.32 billion in approvals $5.62 billion (89%) to private sector (loans, guarantees, equity, technical assistance, co-financing for trade finance program) Balance of $700 million (11%) for non sovereign public sector loans

10 Financial Resources ADB and Special funds In 2011, of ADB total approvals of $21.72 billion, $14.02 billion (65%) are financed from: Ordinary Capital Resources (OCR) ADB leverages its AAA rating to mobilize funds for development activities Special Funds (SF) Asian Development Fund (ADF) Technical Assistance Special Fund (TASF) Japan Special Fund (JSF) Other special funds BOS 10

11 Financial Resources Co-financing In 2011, of ADB total approvals of $21.72 billion, $7.69 billion (35%) from co-financing arranged from Public Sources (bilateral and multilateral) Export Credit Agencies Financial institutions such as: Commercial Banks Life Insurance Companies Pension Funds BOS 11

12 Introduction to ADB Overview of ADB Opportunities ADB Project Delivery Model & Procurements Policies Why pursue ADB contracts? ADB Opportunities by Country ADB Opportunities by Sector BOS 12

13 ADB Project Delivery Loan/Grant (investment) projects (-- public sector --) Implemented by recipient Government Agencies ADB oversees implementation to ensure compliance with ADB procedures and requirements Almost all projects are contracted through competitive bidding following ADB Guidelines Implementation generally requires consultants & contractors Technical Assistance (TA) projects TA projects are Implemented by ADB Generally consultants are hired to implement TA projects Consultant directly contracted by ADB Opportunities for consultants and contractors BOS 13

14 ADB Procurement Guidelines All procurement and selection of consulting services under ADB financed projects for loan, grants and technical assistance projects, conducted by ADB or Borrower/ Government Agencies must follow ADB Guidelines Policies and procedures on the selection, contracting and monitoring of consultants Policies and procedures for the procurement of goods and works BOS 14

15 ADB Procurement Fundamental Principles Transparency Fairness Economy and Efficiency Promotion of Domestic Industries Source of Goods & Services (Eligibility) BOS 15

16 Introduction to ADB Overview of ADB Opportunities Why pursue ADB contracts? Overview of ADB Opportunities ADB Opportunities by Country ADB Opportunities by Sector BOS 16

17 Why pursue ADB contracts? Attractiveness of ADB contracts Funds are available Internationally accepted procurement procedures Equal treatment of bidders from member countries No currency exchange risks ADB oversight BOS 17

18 ADB Financing in 2011 ADB funds development projects and programs in the Asia and Pacific Regions In 2011 ADB approved financing of $21.72 billion (including co-financing of 7.69 billion) Loans Grants Technical Assistance Other $ billion $ 1.59 billion $ 0.36 billion $ 3.05 billion A total of $20.4 billion (94%) was for investment support Generates contracts for Goods, Works, and Services BOS 18

19 ADB Financing in 2011 Lending Sector distribution $12.60 billion total lending in 2011 (excluding co excluding co-financing financing) Water and Other Municipal Infrastructure and Services, 9.3% Multisector, 14.1% Agriculture and Natural Resources, 6.7% Education, 4.3% Energy, 31.3% Finance, 1.4% BOS 19 Transport and ICT, 28.6% Public Sector Management, 4.2% Health and Social Protection, 0.2% Industry and Trade, 0.0%

20 ADB Financing in 2011 Grants Sector distribution $614 million in grants in 2011 (excluding co excluding co-financing financing) Water and Other Municipal Infrastructure and Services, 2.8% Multisector, 1.0% Agriculture and Natural Resources, 5.4% Education, 17.4% Energy, 10.3% Finance, 0.8% Health and Social Protection, 0.5% BOS 20 Transport and ICT, 52.0% Public Sector Management, 9.8% Industry and Trade, 0.0%

21 ADB Financing in 2011 Technical Assistance Sector distribution $359.4 million in Technical Assistance in 2011 (including co-financing financing) Water and Other Municipal Infrastructure and Services, 6.5% Multisector, 18.7% Agriculture and Natural Resources, 14.0% Education, 16.9% Transport and ICT, 7.9% Energy, 11.6% BOS 21 Public Sector Management, 15.1% Industry and Trade, 2.4% Health and Social Protection, 1.1% Finance, 5.7%

22 Introduction to ADB Overview of ADB Opportunities ADB Upcoming Opportunities in Specific Sectors & Countries Why pursue ADB contracts? ADB Opportunities by Country ADB Opportunities by Sector BOS 22

23 ADB Opportunities by Country $19,483 million in Uncontracted Loan Funds (as 31 December 2011) 4,000 3,677 3,500 3,000 2,968 2,877 llion 2,500 2,311 Amount $ mil 2,000 1,500 1,549 1,280 1, BOS 23

24 ADB Opportunities Energy Sector Types Investment projects Technical assistance ADB Strategy / Areas of Focus The greening of ADB s Energy Sector Operations to accelerate low-carbon growth and reduce greenhouse gas emissions in the region Target $2 billion per year of new clean energy investments from 2013 onwards Deployment of modern clean energy technologies (e.g. solar, wind) Target 3,000 MW of solar electricity generation & associated smart grid projects by 2013 (Asian Solar Energy Initiative) Target 1,000 MW of wind power by 2015 (Quantum Leap in Wind Power) BOS 24

25 ADB Opportunities Energy Sector ADB Strategy / Areas of Focus (cont.) Projects that lower the barriers to adopting clean energy technologies Encourage private sector participation (and PPPs) to enhance efficiency through competition, and to increase investable resources Projects that increase access to clean energy and efficient energy for the poor Promote large and small projects that are grid-connected and off-grid Target energy access to 100 million people by 2015 (Energy for All Initiative) Technical capacity programs for clean energy Support advocacy and assistance to DMCs in technology transfer and deployment Promote superior knowledge management and dissemination of good practices and lessons learned BOS 25

26 ADB Opportunities Energy Sector Examples of consulting expertise required for projects/tas Energy economist/planners Clean energy development specialists/engineers Power management, transmission and distribution engineers Institutional specialists (utility operations managers) PPP and project finance specialists Economic and financial analysts BOS 26

27 ADB Opportunities Energy Projects in the Pipeline for PRC ( ) 2013) Year of Approval 2012 Title ADB Financed (in $ million) Other Source (in $ million) Heilongjiang Energy Efficient District Heating Project Shanxi Energy Efficiency and Urban Environment Improvement Project 100 TOTAL 250 Projects in the Pipeline for Indonesia ( ) 2013) Year of ADB Financed Other Source Title Approval (in $ million) (in $ million) 2013 Java-Bali 500 KV Power Transmission Crossing TOTAL BOS 27

28 ADB Opportunities Energy Sector Other Major Projects in Pipeline ( ) Country Title ADB Financed (in $ million) Other Source (in $ million) Azerbaijan Power Distribution Enhancement Investment Program Bangladesh MFF-Power System Expansion and Efficiency i Improvement Investment Program (Facility Concept) India MFF - Maharashtra Solar Park Transmission and Green Grid Development Investment Program (Facility Concept) India MFF -Gujarat Solar and Smart Grid Development Investment Program (Facility Concept) Indonesia Geothermal Power Development Investment Program Pakistan Power Sector Rehabilitation Project Philippines Market Transformation Through Introduction of Energy Efficient Electric Tricycles Indonesia Java-Bali 500 KV Power Transmission Crossing Turkmenistan Afghanistan-Turkmenistan Power Interconnection Project BOS 28 This is not intended as a comprehensive list, but rather as an indicative snapshot of what is in the ADB lending and non-lending pipeline for the core sectors through 2013.

29 ADB Opportunities Transport/ICT Sector ADB s Transport Operations are Changing Water Transport 7% Urban Transport 2% Air Tansport 2% Railways 15% Urban Transport 19% Water Transport 1% Railways 11% Roads 74% Roads 69% BOS 29

30 ADB Opportunities Transport/ICT Sector ADB Strategy / Areas of Focus Urban Transport Road congestion cost Asian economies 2-5% of GDP every year due to lost time and higher transportation costs Uncontrolled increases in urban road traffic are compromising the health and safety of urban dwellers ADB supports model projects such as: Bus Rapid Transit (BRT) Urban Rail systems (MRT) Transport Demand Management will contribute to manage traffic demand will encourage people to use public transport Intelligent Transport Systems traffic control at road junctions management of link ups of MRT's with bus transport use of GPS systems BOS 30

31 ADB Opportunities Transport/ICT Sector BOS 31 ADB Strategy / Areas of Focus (cont.) Climate Change and Energy Efficiency Already about 19% of total transport sector carbon dioxide emissions are from Asia. Expected to rise to 31% by 2030 ADB supports projects in clean fuels development and green vehicle/engine technologies Cross-border Transport and Logistics Transport costs and bottlenecks continue to constrain growth in regional trade includes indirect costs associated with border-crossing delays storage costs due to poor terminal infrastructure ADB supports projects such as: Intermodal transport (road/rail) inland water transport development port development logistics management systems Road Safety and Social Sustainability scale-up up, strengthen approach, and partner with road safety organizations and social development institutions

32 ADB Opportunities Transport/ICT Sector Examples of Consulting Expertise Required for Projects/TAs: Urban, city, regional planners Transport management and civil engineers Logistics management specialists IT professionals, software developers and solutions providers Institutional specialists (transport operations managers) PPP and project finance specialists Economic and financial analysts BOS 32

33 ADB Opportunities Transport/ICT Sector Projects in the Pipeline for Viet Nam ( ) 2013) Year of Approval Title ADB Financed (in $ million) Other Source (in $ million) 2012 HCMC Urban Mass Rapid Transit Line 2 (MFF $520 m) - PFR Central Mekong Delta Connectivity Project GMS Ben Luc-Long Thanh Expressway - PFR Improvement of Road Safety and Climate Resilience on National Highways Ho Chi Minh City Third Ring Road Technical Assistance Project TOTAL BOS 33

34 ADB Opportunities Transport/ICT Sector Projects in the Pipeline for PRC ( ) 2013) Year of Approval Title ADB Financed (in $ million) Other Source (in $ million) Hunan Xiangjiang Inland Waterway Transport Gansu Urban Infrastructure Development and Wetland Protection Project 100 Jiangxi-Fuzhou Urban Integrated Infrastructure Improvement 100 Railway Energy Efficiency and Safety Enhancement Investment Program - Tranche IV 350 Hubei-Yichang Sustainable Urban Transport Project 150 Yunnan Sustainable Road Maintenance Project 80 TOTAL 930 BOS 34

35 ADB Opportunities Transport/ICT Sector Projects in the Pipeline for Indonesia ( ) 2013) Year of Approval Title ADB Financed (in $ million) 2012 Inclusive Growth through Improved Connectivity 300 Other Source (in $ million) TOTAL 300 Projects in the Pipeline for Timor -Leste ( ) 2013) Year of ADB Financed Other Source Title Approval (in $ million) (in $ million) 2012 Road Network Upgrading (Sector) Project Firm Road Network Upgrading (Sector) Project Additional funding 50 - TOTAL 90 BOS 35

36 ADB Opportunities Transport/ICT Sector Other Major Projects in the Pipeline ( ) 2013) Country Title ADB Financed (in $ million) Other Source (in $ million) Kazakhstan Astana Light Rail Transit Project Azerbaijan MFF - Second Road Network Development Program Uzbekistan MFF - Third CAREC Corridor 2 Road Investment Program India West Bengal North-South Corridor Project India Bihar State Highways II Project-Additional Financing Kazakhstan Central Asia Regional Economic Cooperation Transport Corridor 2 (Mangystau Oblast Section) Investment Program Tranche 2 India Rural Connectivity Investment Program (Tranche 1) This is not intended as a comprehensive list, but rather as an indicative snapshot of what is in the ADB lending and non-lending pipeline for the core sectors through BOS 36

37 ADB Opportunities - Water & Municipal Infrastructure (Urban) Sector ADB Strategy / Areas of Focus Urban sector operational plan basic water and wastewater services 1. provides an integrated solid waste management services planning context for transport, water, energy infrastructure & urban public transportation tat o services services to be more coherently planned, energy efficient, market-oriented, climate resilient and client-focused; Focus areas are strongly integrated with and interventions to strengthen integrated 2. broadens the range of planning (physical and investment); sub- financing and delivery systems, especially sub-national national/municipal finance; financial and modalities. operational management; PPPs; institutional capacity and governance. BOS 37

38 ADB Opportunities - Water & Municipal Infrastructure (Urban) Sector Examples of Consulting Expertise Required for Projects/TAs Urban, regional, city planners Municipal finance specialists; Public Finance specialists Water, sanitation, solid waste management engineers Institutional specialists (utility operations managers) PPP and project finance specialists Economic and financial analysts Economists BOS 38

39 ADB Opportunities Water & Municipal Infrastructure (Urban) Sector Projects in the Pipeline for Viet Nam ( ) 2013) Year of ADB Financed Title Approval (in $ million) 2012 Supporting Viet Nam Water Sector Investment Program PFR2 212 Other Source (in $ million) 2013 Supporting Viet Nam Sanitation Development Program PFR Secondary Cities Development Project 100 TOTAL 930 No project in the pipeline for urban projects in PRC, Indonesia and Timor Leste. See also multisector project which often carry urban components. BOS 39

40 ADB Opportunities - Water & Municipal Infrastructure (Urban) Sector Other Major Projects in the Pipeline ( ) Country Title ADB Financed (in $ million) Other Source (in $ million) Uzbekistan MFF - Solid Waste Management Investment Program (Facility Concept) Sri Lanka MFF - Greater Colombo Water and Wastewater Management Improvement Program (Facility Concept) Bangladesh Khilkhet Water Treatment Plant Project Azerbaijan Water Supply and Sanitation Investment Program Tranche Mongolia Ulaanbaatar Urban Services and Ger Areas Development Investment Program India Second Kolkata Environmental Improvement Project Regional GMS Corridor Town Development Armenia MFF Solid Waste Management India MFF - Jammu and Kashmir Urban Sector Development Investment Program (Tranche 2) BOS 40 This is not intended as a comprehensive list, but rather as an indicative snapshot of what is in the ADB lending and non-lending pipeline for the core sectors through 2013.

41 ADB Opportunities Multisector Multisector projects A Multisector approach is used in projects that require an integrated planning and implementation across several sectors (urban, environmental, energy, finance, etc.) in order to achieve better outcomes Expertise is required across the sectors involved in the project BOS 41

42 ADB Opportunities Multisector Projects in the Pipeline for PRC ( ) 2013) Year of Approval Title ADB Financed (in $ million) 2012 Integrated Development of Key Townships in Central Liaoning 150 Other Source (in $ million) Xinjiang Integrated Urban Development 200 Yunnan Chuxiong Urban Environment Improvement Project Chongqing Urban and Rural Infrastructure Development II Project 150 Gansu Jiuquan Integrated Urban Environment Improvement Project 100 Guangxi Baise Integrated Urban Environment Rehabilitation 80 TOTAL 830 BOS 42

43 Opportunities - Public Management & Finance Sector ADB Strategy / Areas of Focus Two ways ADB approaches governance in public management and finance: governance as sector reform through public sector management work governance as an over-arching theme thru its thematic priorities of public financial management, procurement, and anticorruption Decentralization (sub-national & local government administration) Economic and public affairs management Law and judiciary Public/national government administration Public expenditure and fiscal management BOS 43

44 Opportunities - Public Management & Finance Sector Business Examples of consulting expertise required for Projects/TAs: Municipal finance specialists; Public Finance specialists PPP and project finance specialists Economic and financial analysts Economists BOS 44

45 Opportunities - Education Sector ADB Strategy / Areas of Focus Lower and upper secondary education Technical and vocational education and training (TVET) Higher education Challenges addressed by these focus areas Skill shortages Expansion of educational opportunities, particularly for post- basic education Improve quality and relevance of teaching and research Access and quality disparities eg. male/female ratio, rural/urban Improve regulatory and financing frameworks for education Education infrastructure gaps BOS 45

46 Opportunities Education Sector Examples of Consulting Expertise Required for Projects/TAs Education specialists PPP and project finance specialists Economic and financial analysts BOS 46

47 Opportunities - Education Sector Major Projects in the ADB Pipeline ( ) Country Title ADB Financed Other Source (in $ million) (in $ million) Bangladesh MFF - Secondary Education Sector Investment Program (Facility Concept) Sri Lanka MFF-Technical Education & Vocational Training Sector Devt Project (Facility Concept) Sri Lanka MFF - Education Sector Development Project (Facility Concept) This is not intended as a comprehensive list, but rather as an indicative snapshot of what is in the ADB lending and non-lending pipeline for the core sectors through 2013, and in what regions and countries. BOS 47

48 Opportunities - Health Sector ADB Strategy 2020 Health is vital to development, productivity, social inclusion and gender equity ADB will contribute to improvements in health mainly through infrastructure projects and governance work Areas of Focus Lagging MDGs (Primary Health Care for the Poor, Maternal and Child Health and Nutrition) Regional Public Health Security (includes HIV/AIDS and Pandemic Preparedness for Emerging Diseases) Non-Communicable Diseases and Road Traffic Accidents (improving prevention and upgrading services) Health Insurance and Health Care Financing for the Poor Improving Sector Governance and Quality of Services BOS 48

49 Opportunities Health Sector Examples of Consulting Expertise Required for Projects/TAs Public health professionals Food and nutrition specialists Water and sanitation specialists PPP and project finance specialists Economic and financial analysts BOS 49

50 Opportunities Health Sector Major Projects in the ADB Pipeline ( ) Pakistan Country Title ADB Financed Other Source (in $ million) (in $ million) Punjab Millennium Development Goals Program Subprogram Viet Nam Health Care in the Central Highlands II Mongolia Fifth Health Sector Development Project Mongolia Fourth Health Sector Development (Additional Financing) This is not intended as a comprehensive list, but rather as an indicative snapshot of what is in the ADB lending and non-lending pipeline for the core sectors through 2013, and in what regions and countries. BOS 50

51 Thank you! Ahmadou Barry Asian Development Bank Central Operations Services Office (COSO) Beijing, People s Republic of China Tel: abarry@adb.org BOS 51