Domestic Preference

Business Guide | June 2018

Awarding contracts to local firms is deemed to give greater social and economic benefit to local communities, in the form of increased employment, incomes, and tax revenues.

This guidance note brings together ADB practiced approaches to domestic preference in the procurement of goods, works, and consulting services to be implemented for projects financed in whole or in part by a loan or grant from ADB, or by ADB-administered funds under its 2017 procurement policy. The new domestic preference scheme allows more flexibility, with margins of preference that are adjustable within specified ceilings. This guidance note introduces a new domestic preference method for consulting services which allows borrowers to include the "use of national experts for key positions" as an evaluation criterion in technical evaluation. Previously, the only possibility available was to require certain positions to be "national."

Video: What is Domestic Preference?


  • Introduction
  • Summary of the Domestic Preference Application Process
  • ADB’s Practiced Approach to Domestic Preference
  • Appendixes