Philippines - Multilateral Development BanksPhilippines-Multilateral-Development-
Multilateral Development Banks
Asian Development BankOverview
Manila is the seat of the Asian Development Bank, Asia’s premier multilateral finance institution and development partner to its 45 developing member countries, including the Philippines. ADB’s $30 billion average annual lending presents a doorway to business opportunities in most of Asia’s fastest growing economies.
In 2018, ADB financed development projects in the following sectors: (i) energy ($10 billion); (ii) transport ($6 billion); (iii) industry and trade ($5 billion); (iv) public sector management ($4 billion); water supply and urban infrastructure ($3 billion); (iv) education ($3 billion); (v) agriculture ($3 billion); (vi) finance ($3 billion); (vii) health ($0.7 billion); and (viii) ICT ($0.1 billion). Additionally, ADB lends directly to the private sector through its Private Sector Department. In 2018, ADB committed nearly $10 billion for its private sector operations.
ADB procurement contracts are competitively bid and adhere to the principles of open, fair and transparent competition. Its revised procurement policy recognizes life cycle costs and value for money, which should make U.S. companies and technologies more competitive. In 2018, U.S. consultants, contractors, goods and equipment suppliers secured a total of 295 contracts worth $279 million under ADB financed projects.
The Asian Development Bank (ADB) is headquartered in Manila. ADB is one of three top development partners of the Philippines, along with the Japan International Cooperation Agency and the World Bank. The Philippines is a founding member of the bank, and one of its largest borrowers.
In 2018, ADB’s total commitments, including loans, grants and technical assistance to borrowing member countries reached $36 billion dollars. The following sectors received ADB assistance: (i) energy ($10 billion); (ii) transport ($6 billion); (iii) industry and trade ($5 billion); (iv) public sector management ($4 billion); water supply and urban infrastructure ($3 billion); (iv) education ($3 billion); (v) agriculture ($3 billion); (vi) finance ($3 billion); (vii) health ($0.7 billion); and (viii) ICT ($0.1 billion).
ADB lending and grant activities lead to significant business opportunities for consulting firms, contractors, sub-contractors and suppliers of goods, equipment and services. About sixty percent (60 %) of ADB total assistance were used to procure goods, equipment and services through a variety of procurement methods, but mostly through Open Competitive Bidding. Cumulatively, U.S. firms have won more than $9 billion in ADB contracts and remain competitive particularly in consulting contracts. In 2018, U.S. firms won $279 million in contract awards under ADB financed projects. This translates to a $1.54:$1.00 return-on-investment ratio for the United States.
ADB adopted the new procurement policy and regulations in July 2017 in response to the evolving needs of its developing member countries and the bank’s increased lending operations. The new policy features two new principles: value for money and quality. Other features include a complaint mechanism, alternative procurement arrangements, and procurement of high level technology.
In 2018, ADB approved the following projects in the Philippines:
1. Expanding Private Participation in Infrastructure Program (Subprogram 2): $300 million loan
2. Inclusive Finance Development Program (Subprogram 1): $300 million loan
3. Emergency Assistance for Reconstruction and Recovery of Marawi: $400 million loan; 8 million grant
4. Integrated Flood Risk Management Sector: $1.3 million Technical Assistance (TA)
5. Railway Project Implementation Support and Institutional Strengthening: $2 million TA
ADB’s Private Sector Department provides loans, equity investments and credit guarantees directly to private sector entities. In 2018, ADB committed nearly $10 billion for its private sector operations. Included in this is the $2 million technical assistance to support the Philippine National Oil Company in developing an LNG hub in Batangas, Philippines.
From 2019 through 2021, ADB plans to invest more than $7 billion in loans, and an additional $53 million for technical assistance grants. These investments will support projects in railway, roads, flood control, secondary education, water supply and sanitation, disaster risk financing, social assistance.
Procurement for ADB-funded contracts is open to all ADB member countries. Some 40 of ADB’s 68 member countries are developing member countries (DMCs) which borrow actively from the bank. The DMCs cover the entire breadth of the Asia-Pacific region, extending from the Pacific Island countries through the South, East and Southeast Asia rsegions, and five (5) countries in Central Asia. The bank’s largest borrowers are India, China, Indonesia, Bangladesh, and Philippines. The United States is one of the 19 nonregional member countries. The U.S. and Japan are the largest shareholders, with about 15.57 percent shareholding each.
To complement its headquarters’ operations, there are thirty-one (31) resident missions and representative offices in other ADB member countries. There are also representative offices in Washington, D.C., Tokyo, and Frankfurt. A dedicated unit within the ADB headquarters in Manila serves as the Philippine Country Office
.
By U.S. Congressional mandate, the Department of Commerce maintains a Liaison Office to the ADB, located in Manila, Philippines, to help U.S. companies access, enter and expand in the Asian markets that benefit from ADB’s lending and grant activities. The ADB Liaison office is integrated into the U.S. Commercial Service – a network of over two hundred offices worldwide - whose mission is to promote and facilitate U.S. exports. The Liaison Office, headed by an American Senior Foreign Service Officer (currently Gregory Harris), began operations in 1992 and works closely with the U.S. Executive Director’s Office at ADB to assist U.S. companies. As part of the U.S. Commercial Service network, the Liaison Office also works closely with the U.S. Commercial Service in the Philippines, other Commercial Service offices in the region, and Department of State offices.
The U.S. Commercial Service Liaison Office to the ADB invites American firms to partner with it to explore ADB commercial opportunities in the bank’s borrowing member countries. The office offers a range of business services including a monthly e-mail project alert service, business counseling and facilitation, advocacy and outreach.
The Commercial Service maintains Commercial Liaison Offices in each of the main Multilateral Development Banks, including the Asian Development Bank and the World Bank. These institutions lend billions of dollars in developing countries on projects aimed at accelerating economic growth and social development by reducing poverty and inequality, improving health and education, and advancing infrastructure development. The Commercial Liaison Offices help American businesses learn how to get involved in bank-funded projects, and advocate on behalf of American bidders. Learn more by contacting the Commercial Liaison Offices to the Asian Development Bank () and the World Bank (http://export.gov/worldbank).
The Office contact information is:
Address: The U.S. Commercial Liaison Office for ADB (CS ADB)
U.S. Embassy Manila
1201 Roxas Boulevard, Manila 1000
U.S. mailing address: FCS-ADB
Unit 8600 Box 1570
DPO AP 96515-1570
E-mail: Office.ManilaADB@trade.gov
Telephones: (632) 516 5093; 301-6169/2181
Fax: (632) 516 6958
Website: www.adb.org
U.S. Procurement, 2018
Origin of Goods and Services
Consulting Services: $27.73 million (192 contracts); Rank 7
Goods, Works, and Related Services: $251.26 million (103 contracts); Rank 15
Total: $279 (295 contracts); Rank 14
Total Cumulative Procurement: $9,215.13 million
Total Contributions to ADB Resources: $5,996.22 million
Procurement/Contribution Ratio: 1.54
Nationality of Contractors
Consulting Services: $29.05 million (190 contracts); Rank 7
Goods, Works, and Related Services: $6.57 million (6 contracts); Rank 40
Total: $35.62 (196 contracts); Rank 27
Total Cumulative Procurement: $3,357.62 million
Total Contributions to ADB Resources: $5,996.22 million
Procurement/Contribution Ratio: 0.56
Since the ADB’s inception in 1966, U.S. firms have won over $9 billion in ADB contracts. For every dollar that the U.S. has contributed to the ADB, U.S. firms have won back $1.54 in ADB procurement contracts. Japan, the largest donor, has won back $0.71.
U.S. firms have fared well in securing ADB-funded contracts. Based on ADB’s 1966 to 2018 data, U.S. firms ranked:
- Second in consulting services contracts for technical assistance (TA);
- Eighteen for consulting services under ADB loans to borrowing members’ governments;
- Fourteenth for procurement of goods, works and services under loans to borrowing member governments; and
- Fourteenth in total procurement under ADB loans, TA and grants.
Contracts:
2014: 274
2015: 321
2016: 333
2017: 258
2018: 295
During the same 2014 to 2018 timeframe, U.S. firms ranked:
- Third in consulting services contracts for TA;
- Twelfth for consulting services under ADB loans to borrowing members’ governments;
- Fourteenth for procurement of goods, works and services under loans to borrowing member governments; and
- Twelfth in total procurement under ADB loans, TA and grants.
| Year | 2014 | 2015 | 2016 | 2017 | 2018 | Total |
| United States | 41.00 | 39.89 | 31.00 | 40.74 | 27.73 | 180.36 |
| Year | 2014 | 2015 | 2016 | 2017 | 2018 | Total |
| United States | 227.33 | 292.29 | 270.55 | 126.03 | 251.26 | 1,167.47 |
| Year | 2014 | 2015 | 2016 | 2017 | 2018 | Average |
| United States | 1.51 | 1.49 | 1.52 | 1.53 | 1.54 | 1.52 |
ADB Annual Report, 2018: ADB’s total operations of $35.8 billion worth of commitments.
Total ADB Operations (loans, grants, technical assistance, and cofinancing), 2018
| Sector | $ billion |
| Agriculture, Natural Resources, and Rural Development | 2.98 |
| Education | 3.05 |
| Energy | 9.59 |
| Finance | 2.79 |
| Health | 0.73 |
| Industry and Trade | 4.79 |
| Information and Communication Technology | 0.10 |
| Public Sector Management | 3.64 |
| Transport | 5.62 |
| Water and Other Urban Infrastructure and Services | 2.51 |
| Multisector | 0.01 |
| TOTAL | 35.82 |
| Region | $ billion |
| Central and West Asia | 8.02 |
| East Asia | 4.14 |
| Pacific | 0.53 |
| South Asia | 10.90 |
| Southeast Asia | 11.39 |
| Regional | 0.84 |
| TOTAL | 35.82 |