State-Owned Enterprises

Business Guide | June 2018

A state-owned enterprise (SOE) includes, but is not limited to, any entity recognized by the borrower’s national law as an enterprise in which the state or government exercises direct or indirect (whole or partial) ownership or control.

This guidance note assists borrowers to understand how participation of government or SOEs in contracts financed in whole or in part by an ADB sovereign loan or grant, or by ADB-administered funds, may create issues of unfairness or conflict of interest. The note also clarifies the conditions under which ADB will agree to the participation of SOE bidders in the borrower’s country in such contracts: namely, the SOE (i) can operate as a commercial entity, (ii) is legally and financially autonomous, and (iii) is not a dependent agency of the borrower. The note describes information to be provided by SOE bidders to meet these conditions.

Video: How can a State-Owned Enterprise be eligible to bid for ADB projects?


  • Introduction
  • Types of State-Owned Enterprises
  • Conditions for the Participation of State-Owned Enterprises
  • Appendixes