Regional: Improving the Capacity and Integrity of Procurement Processes in Central and West Asia

Sovereign Project | 48107-001 Status: Approved

Summary

This regional capacity development technical assistance (TA) project seeks to maintain the Asian Development Bank's (ADB) efficiency and effectiveness to support better project implementation in accordance with ADB's midterm review of Strategy 2020. This TA is providing consultants to provide training and on-the-job assistance during key stages of procurement and project implementation.

Latest Project Documents

Consulting Notices

See also: CMS

No notices are currently available for this project.

Procurement Notices

See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents

None currently available.


Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

 
Project Name Improving the Capacity and Integrity of Procurement Processes in Central and West Asia
Project Number 48107-001
Country Regional
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8665-REG: Improving the Capacity and Integrity of Procurement Processes in Central and West Asia
Technical Assistance Special Fund US$ 1.50 million
TA 8665-REG: Improving the Capacity and Integrity of Procurement Processes in Central and West Asia (Supplementary)
Afghanistan Infrastructure Trust Fund US$ 90,000.00
TA 8665-REG: Improving the Capacity and Integrity of Procurement Processes in Central and West Asia (Supplementary)
Technical Assistance Special Fund US$ 750,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Sector / Subsector

Public sector management - Public administration - Public expenditure and fiscal management

Gender Equity and Mainstreaming No gender elements
Description This regional capacity development technical assistance (TA) project seeks to maintain the Asian Development Bank's (ADB) efficiency and effectiveness to support better project implementation in accordance with ADB's midterm review of Strategy 2020. This TA is providing consultants to provide training and on-the-job assistance during key stages of procurement and project implementation.
Project Rationale and Linkage to Country/Regional Strategy

As an integral part of its effort to reduce poverty and promote inclusive economic growth in its developing member countries, ADB is committed to strengthening national governance systems and reducing vulnerability to corruption. ADBs 2013 review of governance of procurement processes found that the procurement capacity of executing and implementing agencies is generally weak and that procurement governance is inefficient. Even agencies that have participated in short-term procurement workshops and training, and which have been implementing ADB projects for years, the quality and timeliness of procurement activities have not always improved. ADBs midterm review of Strategy 2020 noted that while project performance improved during 2011/2012, disbursements declined due, in part, to the weak capacity of executing and implementing agencies and prolonged procurement processes. The midterm review recommended better targeting and more intensive development of agency capacity, together with an increase in resources to assist.

In 2013, the 10 developing member countries of Central and West Asia held 25% (or $16.2 billion) of ADBs sovereign portfolio with 126 active projects. Translating these investments into poverty reduction and inclusive economic growth requires that the executing and implementing agencies responsible for implementing those projects are able to secure quality goods, works, and consulting services in a timely manner. For ADB-financed activities, these agencies procure goods, works, and consulting services in accordance with ADBs procurement and consulting guidelines, which emphasize efficiency, transparency, and accountability. The ability of executing and implementing agencies to secure quality goods, works, and services in a timely manner requires a number of related and independent conditions, including (i) the ability of such agencies to prepare proper bidding documents; (ii) the presence of qualified vendors in the local, regional, or global markets; (iii) vendors awareness of a projects need for the goods, works, or services; (iv) interest by qualified and reputable vendors to provide them; (v) vendors ability to submit quality prequalification applications, bids, and proposals; and (vi) the proper evaluation of those bids by executing and implementing agencies. The absence of any of these conditions may delay procurement processes and may result in the award of contracts to unqualified entities, which may lead to underperformance and/or delays in project implementation. As a result, development objectives may not be met.

ADBs procurement governance review found considerable delays in procurement processes, often resulting from additional time needed to correct or clarify bid documents and bid evaluation reports. The review observed that past action plans to strengthen the capacity of agencies implementing ADB-financed activities were insufficient to develop the skills needed to ensure timely, accountable oversight of procurement processes; and recommended to strengthen training programs for executing and implementing agencies and to redeploy or recruit procurement personnel who can contribute to capacity development of these agencies. Additionally, more critical review of submitted bids identified that additional integrity due diligence is needed to verify material information presented within them, to ensure that contracts are awarded to vendors who have the necessary experience and, when relevant, financial resources to execute them successfully.

The executing and implementing agencies are aware of their weaknesses and the delays in procurement which result from the comprehensive clarification process prior to ADB approval of evaluation reports. In 2012 and 2013, during in-house integrity and procurement training missions conducted by staff of the Central and West Asia Department (CWRD) and the Operations Services and Financial Management Department (OSFMD), agencies requested additional procurement assistance and training. In response to these requests, and to address concerns identified by ADB, CWRD designed this TA to improve the quality and efficiency of procurement processes of executing and implementing agencies in participating DMCs in Central and West Asia.

Tied to procurement capacity is the environment in which ADB projects occur, and corresponding governance risks. Procurement processes are part of a projects larger financial management and governance responsibilities, and, as such, procurement processes may be strengthened or constrained by governance matters.

This TA seeks to maintain ADBs efficiency and effectiveness to strengthen the capacity of developing member countries to conduct procurement activities and responsibly implement projects. It complements and reinforces procurement-related initiatives being conducted by OSFMD and other regional departments. Working with OSFMD to draw on lessons learned from these initiatives, CWRD will continue to develop appropriate activities for longer-term sustainability of procurement capacity development in Central and West Asia.

Impact Enhanced operational effectiveness of ADB projects in Central and West Asia
Project Outcome
Description of Outcome Executing and implementing agencies demonstrate improved procurement and project management capacity
Progress Toward Outcome Lead time for procurement activities are improving, as measured by systems which have been put in place by OSFMD.
Implementation Progress
Description of Project Outputs

1. Procurement training and workshops conducted and contract management activities undertaken

2. Integrity due diligence is conducted

3. Project management assistance provided

Status of Implementation Progress (Outputs, Activities, and Issues)

Under Output 1, three international procurement consultants are working in Afghanistan, the Kyrgyz Republic (to cover the Kyrgyz Republic and Tajikistan) and Uzbekistan (to cover Kazakhstan and Uzbekistan). A fourth consultant provides assistance on contract dispute matters on an on-call basis. A national consultant is helping to administer and coordinate the work of the procurement consultants.

To date, 771 staff from executing and implementing agencies have participated in hands-on training and workshops provided under this TA including Enhancing Procurement and Contract Management Capacity, conducted in Uzbekistan (28-31 October 2014); Developing Procurement Capacity for Improved Outcomes, conducted in Pakistan (24-28 November 2014); training on single-stage, two envelope bidding procedures for small works and bid evaluation report preparation, conducted for the Housing for the Integrated Rural Development Investment Program in Uzbekistan (5 December 2014); and two FIDIC Contract Management Workshops were conducted in Islamabad, Pakistan (9-10 April 2015) and (Lahore, Pakistan 13-15 April 2015). A FIDIC-accredited international specialist will conduct two, three-day workshops in Afghanistan in October 2015. The workshops will focus on contract management to promote improved implementation performance, address contract management issues under turnkey or engineering, procurement and construction contracts. The workshops will highlight contract management practices and provide strategies and solutions for presenting and resolving contract disputes.

International procurement consultants have helped finalize bidding documents for a number of projects, have tender activities and evaluation of proposals, and have provided quality assurance for 19 bid evaluation reports.

Under Output 2, five due diligence activities occurred to verify information presented in proposals, prior to contract award.

On 19 August 2015, ADB''s Vice President (Operations 1) approved a major change in scope and implementation arrangements to (i) provide critical project management assistance under the TA, (ii) allow for delegation to the sector divisions of recruitment and administration for the subsequent consultants; and (iii) increase the TA value by $750,000. This resulted in the inclusion of Output 3 in the project.

Under Output 3, five consultants are being engaged to provide assistance to transport sector projects.

Geographical Location Kyrgyz Republic,Armenia,Pakistan,Kazakhstan,Afghanistan,Uzbekistan,Tajikistan,Turkmenistan,Azerbaijan,Georgia
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design This TA was designed in response to requests made by a number of EAs during training missions and meetings held between April 2013 and February 2014. The value and benefit of the TA has been noted on numerous occasions by project management units.
During Project Implementation Consultations with stakeholders are occurring during project implementation.
Business Opportunities
Consulting Services Consulting positions funded under this TA are posted on CSRN.
Procurement No further procurement is anticipated under the TA.
Responsible ADB Officer Nianshan Zhang
Responsible ADB Department Office of the Director General, CWRD
Responsible ADB Division Portfolio, Results, Safeguards and Social Sector Unit, CWRD
Executing Agencies
Asian Development Bank
Genevieve Abel, Senior Portfolio Management Specialist - Integrity, Central and West Asia
gabel@adb.org
6 ADB Avenue, Mandaluyong City 1550, Philippines
Timetable
Concept Clearance 23 Apr 2014
Fact Finding -
MRM -
Approval 13 Jun 2014
Last Review Mission -
Last PDS Update 04 Sep 2015

TA 8665-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Jun 2014 - 13 Jun 2014 31 Aug 2017 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
2,250,000.00 90,000.00 0.00 0.00 0.00 0.00 2,340,000.00 13 Jun 2014 920,306.59

Safeguard Documents

See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents

See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.