BAN
Bangladesh
Bangladesh Resident Mission
(See
Departments and Offices.)
BHU
Bhutan
Bid Evaluation
The borrower is responsible for evaluating bids in accordance with procedures and conditions prescribed in ADB’s Guidelines for Procurement. The borrower may seek the assistance of consultants, if necessary.
Where procurement is subject to international competitive bidding, the borrower must submit its evaluation and recommendation to ADB for its concurrence on awarding the contract. ADB checks that the entire process of evaluation has been properly carried out and, if satisfied, approves the borrower’s recommendation. In most cases where procurement is not subject to international competitive bidding, the borrower must furnish ADB, after the contract is awarded, with a summary and evaluation of bids received, justification for the award, and a copy of the final contract. ADB reserves the right to refuse financing the contract in case of misprocurement. In accordance with ADB’s policies against fraud and corruption in procurement, ADB reserves the right to reject financing of parts or entire loans and allows for blacklisting of consultants and contractors in cases where corrupt or fraudulent practices were involved in project implementation.
Apart from considering price in evaluating bids, other factors, such as the efficiency and reliability of the equipment offered by various bidders, operating costs, timely delivery, period of completion of construction, and availability of service and spare parts may be taken into account as specified in the bidding documents. These factors should be expressed in monetary terms, wherever possible, to determine the lowest evaluated bid. The lowest priced bid may not necessarily be the lowest evaluated, substantially responsive one.
(See also Disbursements; and Procurement)
BIMP-EAGA
(See
Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area.)
BME
benefit monitoring and evaluation
Board of Directors
The Board of Directors consists of 12 Directors (each with an Alternate Director), with eight representing countries in Asia and the Pacific. The Board of Governors elects the Board of Directors every two years. The President chairs the Board of Directors and, under its guidance, conducts ADB’s business. Three Vice-Presidents assist the President.
Responsibility for the direction of ADB’s general operations rests with the Board of Directors. The Directors, representing member governments, are resident in Manila. The Board of Directors exercises all powers delegated to it by the Board of Governors. It considers and approves decisions on all loans, guarantees, and equity investments; technical assistance grants exceeding $1 million; and ADB’s borrowing program. It also approves the administrative budget and submits accounts relating to each financial year for approval by the Board of Governors.
The Board of Directors normally meets twice a week.
Policies are laid down by the Board of Directors within the general framework of ADB’s Charter. These policies are generally in the nature of guidelines to enable ADB to respond with flexibility to the needs of its DMCs.
The Board Committees include the Audit Committee, Budget Review Committee, and the Inspection Committee.
Board of Governors
The Board of Governors is ADB’s highest policy-making body. It consists of one representative from each member. All the powers of ADB are vested in the Board of Governors, which may delegate its powers to the Board of Directors, except on certain matters such as admission of new members, change in the authorized capital stock of ADB, election of Directors and the President, and amendments to the Charter.
(See also Annual Meeting)
BOO
build-own-operate
Borrowings
ADB has been an active borrower in world capital markets since 1969. Its borrowing program is broadly determined by several factors, including ADB’s lending operations, cash flow requirements, liquidity policy, and perceptions of current and future market conditions.
In the early years of operations, ADB’s capital was the major source of funds for ordinary lending, but since the early 1980s, borrowings have accounted for a greater share than capital and reserves. Borrowings continue to make an increasingly larger contribution to financing ADB’s ordinary operations as ADB increases its lending operations.
The major objectives of ADB’s borrowing program are the following:
-
low-cost funding to produce low-cost funds for disbursement requirements, either directly on a fully hedged basis through currency-liability and interest rate swap transactions, or as financial derivative instruments;
capital markets presence to preserve ADB’s strong reputation and maintain access to the world’s capital markets;
long-term funding to emphasize borrowings in the longer maturity range to the extent that the related borrowing costs remain attractive, with a view to minimizing fluctuations in ADB’s lending rates and ensuring a reasonable maturity relationship between borrowings and loans;
establishment of benchmark issues to increase, where possible, the size of ADB’s public bond issues to provide “benchmark issues” that increase liquidity in the secondary markets, broaden the distribution of ADB bonds and favorably align ADB’s funding and trading spreads with those of other supranational borrowers;
development of regional capital markets to tap new markets, especially where contributions to developing capital markets in Asia and the Pacific can be achieved;
expansion of the investor base to diversify ADB’s investor base by borrowing in the private placement markets of various currencies, either directly on a fully hedged basis through liability-swap transactions or as financial derivative instruments; and
bridge financing to make use of short-term bridge financing in such a way that any longer term negative impact on the lending rate is minimized should there be requirements for disbursement currencies or debt service currencies when market conditions are not attractive for bond issues with longer maturities.
Within the context of the objectives of the borrowing program, ADB pursues a funding strategy that takes advantage of the major capital markets in which its borrowing advantage has been demonstrated and of swap-market arbitrage opportunities that indirectly provide cost-efficient terms for target currencies. With few exceptions, ADB transacts borrowings on a negotiated basis with its managers to ensure appropriate terms and conditions for both the investor and the issuer. ADB pursues a diversified multimarket and multicurrency borrowing program. ADB intends to maintain its presence in the key currency capital markets, such as US dollars, yen, and euro by undertaking large global and/or benchmark public bond issues to ensure that ADB’s debt securities will achieve broad primary market distribution and active secondary market trading performance.
(See also Asian Development Fund)
BOT
build-operate-transfer
Broad-Based Development Institution
ADB has broadened its role beyond project financier in each developing member country (DMC). ADB exercises much more selectivity in sectors, issues, and projects to maximize both project quality and the developmental impact of ADB’s scarce resources. This requires developing well-focused poverty reduction and sector strategies at the country level.
ADB concentrates on its areas of strength, such as dealing with crosscutting issues involving poverty, environment, and social development; and supporting policy reforms in the areas of transition from centrally planned to market economies. It introduces institutional reforms, particularly through capacity building and the promotion of good governance practice. DMCs’ resource mobilization is encouraged by developing well-functioning financial markets, cofinancing, promoting private sector provision of public infrastructure, and formulating and arranging for infrastructure funds. Subregional economic cooperation is also encouraged.
The allocation of ADB resources is based on a closer review of critical needs, performance, and absorptive capacity.
ADB continues its efforts to improve portfolio management, including canceling nonperforming loans and allocating adequate staff and budget resources to ensure that project administration action plans are accomplished.
At the country level, ADB works to ensure effective implementation of ADB policies on technical assistance operations concerning poverty reduction,
participatory approach,
involuntary resettlement,
cooperation with nongovernment organizations, indigenous peoples,
gender and development, good governance, and anticorruption, as well as other key policies on graduation ADF allocation among DMCs.
Policy Coordination Units have been set up in each of ADB’s Programs Departments to mainstream crosscutting issues and strengthen coordination of ADB operations. Where possible, ADB pursues a project financing strategy that maximizes recipient financing and cofinancing for ADB-assisted projects.
ADB is an active catalyst in assisting DMCs in arranging cofinancing through effective use of ADB’s
complementary financing scheme and guarantee facilities.
(See also Long-Term Strategic Framework )
Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area
The Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN (Association of Southeast Asian Nations) Growth Area (BIMP-EAGA) initiative was launched by the four governments in 1994. The objective was to hasten through regional cooperation the development of the economy of Brunei Darussalam and subregions of the three other countries. BIMP-EAGA consists of Brunei Darussalam; East and West Kalimantan, Kalimantan, South Kalimantan, North Sulawesi, Central Sulawesi, South Sulawesi, Southeast Sulawesi, Maluku, and Irian Jaya in Indonesia; Sabah and Sarawak states and the Federal Territory of Labuan in Malaysia; and the Island of Mindanao and Palawan Province in the Philippines. BIMP-EAGA is eyed as a major location in ASEAN for high value-added agro-industries, natural resource-based manufacturing, high-grade tourism, and nonresource-based industries. Its land area of roughly 1.54 million square kilometers, as of the latest assessment done in 1996, was home to about 45.6 million people.
(See also Growth Area; Growth Triangles; and Regional Cooperation)
Budget, Personnel and Management Systems Department
(See
Departments and Offices.)
Business Information
The Office of External Relations prepares news releases for distribution to media on all loan and technical assistance approvals. News releases on loans and technical assistance grants provide technical data, especially on the procurement required for projects. ADB Directors, who are fully informed about projects being considered for ADB financing, also serve as a channel of communication with the members they represent.
ADB requires that on contracts for the supply of goods and services, appropriate members should be canvassed for bids to an extent satisfactory to ADB. Invitations to bid or to apply for prequalification of bidders are advertised in the borrower’s country, usually through publication in a newspaper of general circulation. Invitations are also transmitted to local official representatives of members and to designated addressees in members who are responsible for disseminating information on tendering opportunities.
To promote international competitive bidding in supplying goods and services, and to widen the flow of information on business opportunities against ADB's lending and technical assistance activities, ADB publishes procurement notices in the ADB Business Opportunities (ADBBO) to subscribers of both the print and electronic version. ADB also publishes procurement notices in Development Business issued twice a month by the Division for Economic and Social Information of the United Nations.
Development Business carries three kinds of notices regarding development projects—approved or under consideration by ADB: a general notice that appears at least three months before the first tender or prequalification documents are circulated for a project; specific notices providing details of specific contracts ready for international bidding; and advance information listing proposed projects that are in the early stages of loan processing.
Development Business may be obtained from the United Nations, P.O. Box 5850, Grand Central Station, New York, NY 10163–5850, United States.
ADBBO contains the latest information on projects being considered by ADB for financial and technical assistance. In addition to brief descriptions of these projects, the publication lists details of executing agencies, estimates of loan amounts, consulting services that may be needed, and the status of proposed projects. It also contains specific notice or invitation for bids for contracts that are being tendered, and information on contracts that have been awarded with a value of more than $1 million for the procurement of goods and civil works, and more than $100,000 for consulting services; and list of shortlisted consulting firms for technical assistance projects.
ADBBO is available worldwide at an annual subscription fee of $100, payable in US dollars to Subscriptions, Office of External Relations, Asian Development Bank, P.O. Box 789, 0980 Manila, Philippines. Copies are airmailed to subscribers. ADBBO is also available on ADB’s web site at http://www.adb.org.
ADB also conducts seminars on business opportunities in its members to inform prospective suppliers of goods and services and civil works contractors of procurement opportunities available under ADB projects.
(See also Procurement; Central Operations Services Office; and Seminar Activities)
Top of page