New ADB Policy Aims to Modernize Procurement
Video | 29 August 2018
ADB takes a principles-based and less prescriptive approach for procurement in development projects. Importantly, this approach promotes value for money by considering factors other than cost such as efficiency and quality in implementing this new framework.
In April 2017, ADB approved a new procurement reform framework that will ensure the quality of projects, optimize processing times, and strengthen procurement delivery.
“Through Strategy 2030, ADB will continue to promote better procurement systems using a principles- and risk-based approach.” – President TAKEHIKO NAKAO, Asian Development Bank
The policy became effective in July 2017 for loan and technical assistance projects.
This marked ADB’s transition from a ‘one size fits all’ to a ‘fit to purpose’ approach to procurement.
“In implementing this new framework, ADB will now take a principles-based and less prescriptive approach for procurement in development projects. Importantly, this approach promotes value for money by considering factors other than cost such as efficiency and quality.” – DEBORAH STOKES, Vice-President for Administration and Corporate Management, Asian Development Bank
ADB is also building procurement capability among its partners in developing member countries through guidance notes, user guides, and other published materials.
Under the APA or Alternative Procurement Arrangements, ADB can accommodate rules and procedures of other financial institutions and accredited agencies to reduce transaction costs.
“We are working closely with other MDBs in the process of establishing common procurement principles with an ultimate objective of interoperability across our procurement systems.” – STEPHEN GROFF, Vice President (Operations 2), Asian Development Bank
ADB is deploying more procurement specialists to resident missions to work closely with internal staff and partners.
“The new policy allows ADB teams to prepare projects with increased procurement readiness and deliver end-to-end efficiency by reducing overall procurement time. We are posting more procurement specialists in the field, especially in developing member countries, so there’s closer connection with the people working in our actual operations.” – WENCAI ZHANG, Vice President (Operations 1), Asian Development Bank
By improving the quality of procurement, ADB will be more responsive and customized to the needs of developing member countries.
“The new procurement framework allows for a modern and agile procurement process to effectively support ADB’s operations on the ground, maximizing developmental impact for a sustainable Asia and the Pacific.” – RISA ZHIJIA TENG, Director General, Procurement, Portfolio, and Financial Management Department, Asian Development Bank