ADB reforms procurement processes

Manila, Philippines: The Asian Development Bank (ADB) has altered the way clients procure plant and equipment, civil works, and consultant services to improve the efficiency of implementing projects it finances.

Slow procurement processes and practices have been holding back project implementation which, in turn, leads to unnecessarily high costs for clients.

"We are changing the way clients can secure the services of advisors, construction companies, or buy plant and equipment to implement ADB-funded projects. This reform is very timely," said ADB Managing Director General, Juan Miranda.

Faster project implementation will improve results on the ground.

"Being faster does not mean being lax on competition and transparency," said Director General of ADB's Operations Services and Financial Management Department, Sean O'Sullivan. "These reforms will help us overcome a number of persistent challenges.

By taking a risk-based approach and by simplifying our procurement processes, we expect improved disbursement performance and project implementation," he said.

The main changes are cut procurement timelines by more than half, increase the thresholds for national competitive bidding processes, allow clients greater flexibility when choosing procurement methods, delegate greater authority to ADB country offices on procurement matters Link fiduciary oversight to agency, project, and contract risks,

Streamline internal prior and post-procurement reviews, Overhaul procurement documentation and establish a procurement review system and provide tailor-made capacity-building programs.

The change to procurement processes is one of several reforms coming out of a mid-term review of ADB's long-term strategic framework, Strategy 2020.

This review culminated in an action plan aimed at helping ADB respond better and faster to changing market conditions in both low- and middle-income countries, including on issues such as inclusion, regional cooperation, and climate change.

The reforms will foster greater efficiency, delegation and proximity to clients, innovation, higher leveraging of finance and knowledge, and greater private sector investment.