Regional : Strengthening Project Preparation Capacity in Asia and the Pacific (Cluster TA)

Energy / Energy sector development and institutional reform

Transport / Transport policies and institutional development

Water and other urban infrastructure and services / Urban policy, institutional and capacity development

The proposed cluster regional capacity development technical assistance (TA) will contribute to achieving the overall AP3F objective by providing upstream assistance to DMCs,

essentially increasing their capacity to prepare and undertake PPPs and developing the enabling environment for PPPs. The TA will help DMCs address the project preparation gap by supporting a range of activities in DMCs to lay the groundwork (such as legislative and policy reform) necessary for DMCs to be able to tap the AP3F for further assistance in structuring their projects.

Mid-Term Review of ADB's Strategy 2020 identifies PSD and private sector operations as drivers of change in Asia and the Pacific. Under Strategy 2020, ADB will expand work with the private sector to generate greater economic growth in the region. PPP is seen as an important modality to achieve this objective, and Strategy 2020 emphasizes the promotion of PPPs in all of ADB's core operations.

In 2012, ADB Management approved the PPP Operational Plan, 2012- 2020. The Plan provides guiding principles and an operational framework to identify and decide on the types and the sequencing of support to be undertaken. It includes public capacity development, strengthening investment environments, and developing and financing projects.

The proposed TA is also aligned with the Mid-Term Review of Strategy 2020 where private sector development and operations is among the 10 priorities identified that will determine ADB's strategic focus leading up to 2020. In the guidance provided in the Mid-Term Review of Strategy 2020, ADB will systematically expand assistance for private sector development and operations to 50% of annual operations by 2020. It will strengthen the business environments in developing countries to promote private investment. In addition to being a project financier, ADB will become a more active project developer. To support PPP projects, ADB will help build the necessary regulatory and institutional frameworks, support project development, and provide transaction advisory services. It will support innovative financing solutions for projects, including through credit enhancement products and local currency financing. ADB will streamline business processes, particularly for smaller private sector transactions that have significant development impact but come with higher up-front risks and costs.

1. Capacity of DMC officials in preparing infrastructure projects strengthened.

2. Support for ongoing project monitoring and restructuring provided

3. Policy, legislative, and regulatory environment for private sector participation in infrastructure projects

enhanced

Input of 271.9 person-months of international consultants and 127.3 person-months of

national consultants is envisaged. Different methods of consultant selection will be applied,

depending on the size and nature of the contracts. Consultants may be engaged via consulting

firms(s) or individually. Consultants will be engaged using the following procurement modalities:

(i) quality- and cost-based selection using a financial ratio of 90:10; (ii) quality-based selection;

(iii) consultant qualification selection; and (iv) single source selection, as appropriate. All

consultants will be engaged by ADB in accordance with its Guidelines on the Use of

Consultants (2013, as amended from time to time).

All procurement under the TA will be carried out in accordance with ADB's Procurement

Guidelines (2015, as amended from time to time). Disbursements under the TA will be in

accordance with ADB's Technical Assistance Disbursement Handbook (2010, as amended from

time to time).