Business Opportunities Sarah O’Keeffe Head of Communications Europe Asian Development Bank European Representative Office

Asian Development Bank Regional Multilateral Development Bank

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Established in 1966

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Partnership of 67 countries

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40 client countries

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31 offices worldwide

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Employees: 3,000+

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Nationalities employed: 60+

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ADB Board of Directors United States

Kazakhstan; Maldives; Marshall Islands; Mongolia; Pakistan; Philippines; Timor-Leste

Republic of Korea; Papua New Guinea; Sri Lanka; Taipei, China; Uzbekistan; Vanuatu; Viet Nam

Canada; Denmark; Finland; Ireland; The Netherlands; Norway; Sweden

People’s Republic of China Cook Islands; Fiji; Indonesia; Kyrgyz Republic; New Zealand; Samoa; Tonga

Brunei-Darussalam Malaysia; Myanmar; Nepal; Singapore; Thailand

Austria; Germany; Luxembourg; Turkey; United Kingdom

Afghanistan; Bangladesh; Bhutan; India; Lao PDR; Tajikistan; Turkmenistan

Belgium; France; Italy; Portugal; Spain; Switzerland Australia; Azerbaijan; Cambodia; Hong Kong, China; Kiribati; Fed. States of Micronesia; Georgia; Nauru; Palau; Solomon Islands; Tuvalu

In Asia, infrastructure gap means People without Access to: Water and Sanitation

900 million people

Electricity

800 million people

Roads

1.2 billion people

Internet

80% of Asia

Source: Various reports compiled by ADB

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Financing Requirements

Total of $8.3 trillion (2010–2020) or $750 billion/year Source: ADB, 2009. Infrastructure for a Seamless Asia. Manila

Overview of ADB Lending Operations Main Instruments •

Loans and Grants

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Technical Assistance

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Advice and Knowledge Management

Lending •

Dominantly in public sector to Governments.

• ADB assists private enterprises in developing countries through equity investments, guarantees and loans. •

AAA credit rating helps mobilize funds for development activities.

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ADB’s Strategy Strategic Agendas  Inclusive Social Development Connect poor communities to markets Improve infrastructure Invest in Education Improve essential public services (water and sanitation) Gender equality and empowerment of women Social Protection – pension reforms

ADB’s Strategy Strategic Agendas Environmental Sustainability Asia’s economic growth leads to depletion of regional natural resources - ADB supports environmentally friendly technologies and introduces safe guard measures

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ADB’s Strategy Strategic Agendas Regional Cooperation for poverty reduction ADB promotes effective approaches and solutions, facilitating transfer of knowledge and technologies on environmental management. Closer cooperation of regional countries and regions will allow regions to respond more effectively to sudden changes in economic circumstances.

Largest Borrowers 2010

2011

2012

2013

India

India

India

India

PRC

PRC

PRC

PRC

Bangladesh

Pakistan

Viet Nam

Pakistan

Viet Nam

Viet Nam

Indonesia

Indonesia

Uzbekistan

Uzbekistan

Bangladesh

Philippines

Pakistan

Bangladesh

Philippines

Bangladesh

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ADB Business Opportunities

Why ADB?  Funds are available  Internationally accepted procurement procedures  Equal treatment of bidders from member countries  No currency exchange risks  ADB oversight

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Content • Goods & Works: slides 14 - 46 • Consultancy: slides 47 to 83

Identifying Opportunities for Goods and Works • Country Strategy and Business Plans • • • • • • • • •

Early notices General Procurement Notice Procurement Plan Specific Procurement notices Invitation for Prequalification Invitation for Bids Hop-on Opportunities Prequalified Contractors Contracts Awarded

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ADB Website: www.adb.org

Choose Country

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Country Partnership Strategy

Planning Documents

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Business Opportunities

Proposed Projects http://adb.org/projects/search/21304

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Goods and Works/Suppliers http://www.adb.org/site/business-opportunities/operational-procurement/goods-services

Procurement Notices

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Procurement Plans

Hop On Opportunities

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Email Alerts http://alerts.adb.org/

ADB LinkedIn Networking Site Suppliers http://www.linkedin.com/e/qfo72y-gkf172wo-r/vgh/3796532/%20

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Locations to consider for Business Development:      

Solomon Islands Papua New Guinea Timor Leste and other Pacific States Afghanistan Cambodia Pakistan

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ADB’s Procurement Guidelines

 Policies and procedures for the procurement of goods and works conducted by the Borrower/ Executing Agencies

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Procurement Guidelines Responsibilities 

The Borrower (Executing Agency) is responsible for all procurement activities



ADB has the obligation ensure compliance with key principles

• • • • •

Goods/Works from ADB member countries Economy and Efficiency Fairness Transparency Promotion of Domestic Industries

Procurement Guidelines Applicability Contracts financed by ADB entirely or partly  Guidelines must be followed Contracts not financed by ADB but part of Project  Borrower may adopt its own procurement procedures. 

Works/goods to be procured must be . . . . . . of satisfactory and compatible quality . . . completed and/or delivered in timely fashion . . . priced not to affect adversely viability of project

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Procurement Guidelines Eligibility Limitation for Participation – Ideally only by bidders' capability to fulfill the contract Exceptions – Compliance with UN Security Council decision – Conflict of interest (i.e., party has interests that could improperly influence that party’s performance of official duties or responsibilities, contractual obligations, or compliance with law) – Government owned enterprises (unless they are legally and financially autonomous, operate under principles of commercial law and not dependent on executing agency) – Declaration of ineligibility by ADB

Procurement Guidelines Mis - procurement If Procurement is not carried out as agreed ADB will . . . declare misprocurement . . . cancel corresponding portion of financing . . . exercise other remedies If appropriate, ADB may permit rebidding

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Procurement Guidelines ICB • ICB is the default procurement method  Threshold Contract Values (US $) Goods - $500,000 to $1,000,000 Works - $1,000,000 to $10,000,000  Value for Money For Borrower, wide range of choices in bid selection from among competing suppliers / contractors  Fairness, Transparency For prospective bidders from eligible source countries, adequate, fair and equal opportunities

Typical Time Line For ICB Activities Bid Packaging Preparation of PQ Document Prequalification Preparation of Bidding Document Bidding Award -4

-3

-2

-1

1

2

3

4

5

6

7

8

9

10

11

Month

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Procurement Guidelines ADB Prior Review • Contracts (Goods, Works, Services) • Procurement Mode • Procurement Timing • ADB review (post/prior)

Procurement Plan

•Advertisement and Invitation to Prequalify •Evaluation Criteria •Evaluation of Applications

Prequalification

Preparation of Bid Documents

•Invitation to Bid •Advertisement •Bid Documents

EA

•Evaluation Report •Proposal of Award Bid Evaluation

•Certified Contract Award of Contract

Procurement Guidelines Bidder Debriefing and Complaints Debriefing: •Bidders may request an explanation from the EA as to why their bids were not selected •The EA shall promptly provide an explanation in writing or in a meeting •If bidders are not satisfied with the explanation given, they may request a meeting with ADB Complaints: •Bidders may file complaint directly with ADB •Bidders may copy ADB on correspondence with EA

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Bidding Dos 

Carefully review qualification and evaluation criteria Failure to satisfy qualification criteria results in high bid rejection rate

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No conditionalities Do not add any conditions. Conditionalities or qualifications will lead to rejection

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Get official clarification If any provisions of the bidding document are unclear or unacceptable, submit an official inquiry in writing to the EA before the bid closing date or such date as may be specified.

Bidding Dos 

Be on time Submit bid within the stipulated deadline. Late bids will not be accepted.



During bid opening ensure  All relevant prices are read out  All discounts are read out  Presence and amount of bid security is read out  No envelope remains unopened  All the above is recorded correctly  The record is signed by all bidders present and by the buyer



Be Aware of Possible Extension There may be a request to extend the bid validity and bid security periods by several months, as in certain cases the evaluation of bids requires more time than originally expected.

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Bidding Dos Make final check of bid

 Amount, validity and text of Bid Security  Signatures and power of attorney  Joint venture agreement enclosed  References enclosed  Discounts in covering letter or appropriate place as specified in the bidding document  Marking of envelopes as appropriate

Bidding Don’ts         

No Bid Security Insufficient Amount of Bid Security Lack of Supporting Documents Incomplete Bids Expiration and Extension of Bid Validity Partial Quantities Absence of test reports if required Bids not signed Conflict of interest

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Identification 1. Country Partnership Strategy (CPS)

Check Country Operations Business Plan

1 2. Concept 6. Evaluation

2

6

Check Proposed projects 5 5. Implementation

Check  Updated Proc Plan  Procurement Notices  Advertising

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3. Preparation

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4. Loan Negotiation& Board Approval

Check  Procurement plans  Notices for advance action

ADB and The Netherlands • Member since 1966 • ADB Governor for The Netherlands The Honorable Lilianne Ploumen, Minister for Foreign Trade and Development Cooperation. • ADB Executive Director for The Netherlands Mr. David F. Murchison is the ADB Director for The Netherlands. • ADB Staff Members As of 31 December 2013, there were 17 international staff from The Netherlands in ADB (14 men and 3 women), which represent 1.57% of the total international staff, including 3 senior staff members.

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ADB and The Netherlands Procurement Statistics

*based on Nationality of Bidder ** including Program and Project Loans, Grants and Technical Assistance

Procurement Ranking Procurement of Good and Works Loans and Grants as of Dec 31st 2013 As of 31ST Dec 2013 Rank

2009

2010

2011

2012

2013

1

India

PRC

PRC

PRC

PRC

2

PRC

India

India

India

India

3

USA

USA

USA

Pakistan

Indonesia

Korea

Indonesia

Viet Nam

Pakistan

Philippines

Korea

4 5

Philippines Pakistan Pakistan

Korea

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Top Dutch Contractors/Suppliers in ADB loan Projects January 2009 –December 2013

Top Dutch Contractors/Suppliers in ADB Grant Projects 2009-2013

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What Kind of Consultants? • Consulting entities Consulting firms Universities NGOs Research institutes Others – UN Organizations •

Individuals Sourced through a firm Independent Consultants

Types of Consulting Assignments • Technical Assistance Consulting Assignments PPTA (Project preparation) CDTA (Advisory TA) RETA (Regional TA) • Loan Project Consulting Assignments Project implementation supervision/support Capacity building Monitoring & Evaluation • Staff Consulting Assignments Project preparation Evaluation Others • Others ABD engages consultants for ‘in-house’ projects, (e.g. Information Systems and Technology Project, building services, etc.), internal training, auditing, institutional/organizational reviews etc.

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Consulting Opportunities ADB Project Cycle Staff Consultants

1. Country Partnership Strategy

1 2. Concept 6. Evaluation Individual Consultants

5. Implementation

Consulting Firm

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2

5

3

Individual Consultants

3. Preparation

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4. Loan Negotiation & Board Approval

Consulting Firm

8-Step Plan to Win ADBFinanced Consulting Contracts 1 2 3 4 5 6 7 8

Collect relevant business intelligence Build your brand name Express interest Know the country of the assignment and project site Offer partnership to firms likely to be shortlisted Prepare a responsive and strong technical proposal Prepare a responsive and competitive financial proposal Do good work

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ADB Website: www.adb.org

Choose Country

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Country Partnership Strategy

Planning Documents

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Business Opportunities

Proposed Projects http://adb.org/projects/search/21304

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Consultants http://www.adb.org/site/business-opportunities/operational-procurement/consulting

Consultancy Services Recruitment Notices http://csrn.adb.org/

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Consultant Management System http://cms.adb.org

ADB LinkedIn Networking Site Consulting http://www.linkedin.com/e/qfo72y-gkf0zuh8-6r/vgh/3796524/%20

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Email Alerts http://alerts.adb.org/

Step 2: Build Your Brand Name  Visit ADB Headquarters/Resident missions • Visit departments responsible for projects • Brown-bag seminars • Business Opportunities Fairs  Visit government executing agencies  Register in ADB Consultant Management System (CMS)

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Step 3: Express Interest  Check opportunities on ADB website  Submit Expression of Interest

Step 3: Express Interest 

Considerations • Capacity to compete • Capacity to deliver • Go it alone or associate/joint venture



Criteria • Eligibility – pass/fail • Management competence – (%) • Technical experience – (%) • Geographical experience

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Step 4: Know the Country and Project Site     

Get to know the EA Obtain first hand information Field assessment Identify local partner(s) Estimate the local costs

Step 5: Partnership with Firms Likely Shortlisted

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Step 6: Prepare a Responsive and Strong Technical Proposal Key Success Factors:

 Understand client requirements (ADB, government)  Study the TOR – Terms of Reference  Select the best personnel • Personnel carry > 50% of the weight in technical score

• Team Leader normally carries the heaviest weight    

Visit the project site Follow the instructions in the RFP - Request for Proposal Understand the evaluation criteria Clarify your understanding

Step 6: Prepare a Responsive and Strong Technical Proposal • Technical Proposal Evaluation Criteria Full

Weight Experience of the firm Methodology Work program Personnel schedule, etc. Personnel

Simplified Biodata

Technical Proposal

Technical Proposal

Proposal

100-200

--

--

200-400

300

100 for personnel schedule only

500-700

700

900

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Step 6: Prepare a Responsive and Strong Technical Proposal • Evaluating the experience of the firm

Experience of the Firm 100-200

Experience in similar projects Experience in the region Other factors

Step 6: Prepare a Responsive and Strong Technical Proposal • Evaluating approach and methodology Understanding of Objectives

Approach & Methodology 200- 400

Methodology Work Program Person month requirement Innovativeness Counterpart Support Presentation

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Step 6: Prepare a Responsive and Strong Technical Proposal • Evaluating Personnel Personnel General (700) Qualification 10-25%

Team Leader /Expert A

300

Expert B

200

Expert C

100

Expert D

100

Project Experience 60-70%

Country Experience 10-15%

Step 7: Prepare a Competitive Financial Proposal Salary Social Charge

Remuneration

Overhead Fee (profit mark up)

Competitive Component Provisional sums

Travel Out-of-pocket Expenses

Communication Per diem

Contingency

Office support Reports Reproduction

Other

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Step 8: Do good work •

ADB conducts Performance Evaluation Review (PER) for every consulting assignment and a poor performance record can affect consultants’ future opportunities with ADB

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Drivers of strong performance: Good team leader Relationships with EA Relationships between international and national consultants Managing replacements

Avoiding Common Mistakes Failure

to disclose conflict of interest

Firm

or any of its associates not organized in an ADB member country Wrong type Technical Proposal

of technical proposal is submitted

Proposal includes costs (QCBS)

was not delivered in time to meet deadline

Employees

from executing agencies included in consultant’s proposal (caution for government employees in general)

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ADB’s Procurement and Consulting Policies  Policies and procedures on the selection, contracting and monitoring of consultants for loan and technical assistance projects, conducted by ADB or Borrower/ Executing Agencies

 Policies and procedures for the procurement of goods and works conducted by the Borrower/ Executing Agencies

ADB System for Consulting Services Who selects consultants? Technical Assistance and Staff Consultancy ADB (Project departments with Central Operations Services Office) selects and engages consultant Consultant selection Committee for assignments > $600,000

Loans, Grants and Delegated Technical Assistance Executing Agencies (client Government Departments) select and engage Consultants ADB reviews all steps of the process (RFP, Evaluation reports, award recommendations, contract)

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Locations to consider for Business Development:      

Solomon Islands Papua New Guinea Timor Leste and other Pacific States Afghanistan Cambodia Pakistan

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ADB and The Netherlands • Member since 1966 • ADB Governor for The Netherlands The Honorable Lilianne Ploumen, Minister for Foreign Trade and Development Cooperation. • ADB Executive Director for The Netherlands Mr. David F. Murchison is the ADB Director for The Netherlands. • ADB Staff Members As of 31 December 2013, there were 17 international staff from The Netherlands in ADB (14 men and 3 women), which represent 1.57% of the total international staff, including 3 senior staff members.

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ADB and The Netherlands Procurement Statistics

*based on Nationality of Bidder ** including Program and Project Loans, Grants and Technical Assistance

Procurement Ranking Consulting Services (TA’s Loans and Grants) As of December 2013 Rank

2009

2010

2011

2012

2013

1

India

Australia

Australia

Australia

Australia

2

Australia

USA

India

USA

India

3

UK

India

USA

Korea

USA

4

New Zealand

Philippines

Canada

Philippines

UK

5

Pakistan

UK

Luxembourg

India

Germany

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Top Dutch Consultants in ADB Loan Projects January 2009 –December 2013

Top Dutch Consultants in ADB Grant Projects 2009-2013

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Basic Strategies  Study the Country Partnership Strategy and

Country Operations Business Plan  Register in ADB Consultant Management System  Make yourself known - visit ADB (HQ and Resident Mission)  Find good local partners  Review procurement plans, procurement notices and Consulting Services Recruitment Notices (CSRN)  Express interest to ADB and/or the Executing Agency  Follow Guidelines!

Learning From An Irish Success Story

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An Irish Success Story The Challenge:

Irish companies are unkown because Ireland became an ADB member country in 2006

From 2007 to 2009, IrishCo (not its real name) submits many EOIs remotely but does not get shortlisted

IrishCo attributes failure to lack of: (i) track record in ADB financed assignments, (ii) strong commitment to winning ADB financed assignments and (iii) strong partnerships.

An Irish Success Story • The Solution:  In 2009, IrishCo’s top management makes a strategic commitment to winning ADB financed assignments  Frequent travel to ADB HQ in Manila  Focus initially is exclusively on small assignments  Shorter and simpler recruitment process  Recruiters are more willing to take risks with new firms due to smaller budget  Opportunity to build valuable project references  Opportunity to build brand recognition  Gain familiarity with ADB processes and personnel  By end of 2009, IrishCo wins three small contracts ($37K, $60K, $175K)

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An Irish Success Story 

Equipped with project references and a network of relationships, IrishCo targets larger assignments and wins two contracts worth $580K and $660K in 2011

Loan Implementation/ Grants Project Scale PPTAs Individual Contracts

Time

Avoiding Common Mistakes Failure

to disclose conflict of interest Firm or any of its associates not organized in an ADB member country Wrong type of technical proposal is submitted Technical Proposal includes costs (QCBS) Proposal was not delivered in time to meet deadline Employees from executing agencies included in consultant’s proposal (caution for government employees in general)

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Avoiding Common Mistakes CCV

Missing CV Nationality not stated Certification not properly accomplished Discrepancy between person-months in the RFP and

proposed person-months Discrepancy between type of experts in the RFP and

those proposed Proposal makes radical changes to the TORs (Note:

Comments on the Terms of Reference) Proposed price exceeds maximum stipulated in

request for proposals

Useful Links List of ADB Member countries http://www.adb.org/About/membership.asp Consulting Guidelines http://www.adb.org/Documents/Guidelines/Consulting/Guidelines-Consultants.pdf Procurement Guidelines http://www.adb.org/sites/default/files/Guidelines-Procurement.pdf Anticorruption and Integrity http://www.adb.org/Integrity/ Project Administration Instructions http://www.adb.org/Documents/Manuals/PAI/default.asp Project Cycle http://www.adb.org/Projects/cycle.asp Disclosure at ADB http://www.adb.org/Disclosure/default.asp TA Disbursement Handbook http://www.adb.org/Documents/Handbooks/TADisbursement/tadisbursement.pdf Loan Disbursement Handbook http://www.adb.org/Documents/Handbooks/Loan_Disbursement/loandisbursement-final.pdf

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ADB Business Opportunities Fair Manila March 25-26 2015 •

The ADB Business Opportunities Fair (BOF) is a one-stop forum for consultants, contractors, manufacturers, and suppliers looking to provide goods and services for ADB projects.

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Registration for the event is through the BOF 2015 online registration page. The deadline for registration is on 18 February 2015.

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ADB Procurement experts will be available on Days 1 and 2 to meet with participants on a first come, first served basis.

• At the end of the seminar participants will have: Gained insight of ADB's policies and procedures for the procurement of goods and works, and the recruitment of consultants; Learned the best ways to prepare responsive bids and proposals ; Received first-hand information on contracting opportunities by sector currently available under ongoing ADBfinanced projects, and upcoming ADB pipeline projects. Explored areas of cooperation with other BOF participants.

Thank you

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