How to win a technical assistance project from ADB

Last year, the Asian Development Bank approved $433.8 million worth of technical assistance, contributing a mere 2 percent to total operations in 2013 — more than $21 billion in financing was signed off that year. Technical assistance helps developing member countries build their capacity to manage donor funding and forge mutually beneficial regional relationships. It helps the bank determine, design and implement development projects that would have systemic impact on a borrower country’s socio-economic development. And while the combined value of technical assistance operations is minuscule compared with loans and grants, it is in this area where individual consultants and development consulting firms can get the most business from ADB. Of consulting services contracts worth more than $100,000 awarded in 2013, 188 were for technical assistance projects. Loans came at a close second with 177 contracts, but grants were a far third, with just 449 such projects awarded that year. Including contracts worth $100,000 and below, 370 technical assistance projects were approved in 2013. With the business opportunities available in the technical assistance sphere, competition is tough and consultants who may want to penetrate the ADB and win some of these contracts may find it difficult to gain an upper hand. Here are some tips on what individual consultants and development consultancy firms should do to win a technical assistance project from ADB. Understand policy and strategy Before consultants can start submitting technical assistance proposals, they need to first understand ADB’s technical assistance policy, eligibility, consultant requirements and general procedure for selecting a consultant. For instance, there are seven types of technical assistance, and each determines the scope of work, the sectors that will be covered and the size and source of the funding, among other factors. Understanding the differences could help consultants target the type of technical assistance that fits into their areas of expertise, or identify areas they can improve on to be able to deliver what is required from the types of technical assistance they want to target. Consultants should also understand Strategy 2020, ADB’s overarching corporate policy that, among other things, identifies the bank’s focus areas. The strategy notes three key goals: inclusive economic growth, environmentally sustainable growth and regional integration; and five drivers of change: private sector development and operations, good governance and capacity development, gender equity, knowledge solutions, and partnerships. Knowing which sectors ADB is focusing on is essential as well. Presently, 80 percent of ADB operations focus on infrastructure, environment, regional cooperation and integration, finance sector development, and education. Pick your priority countries Choosing the right location could be a make-or-break decision when it comes to working with ADB. Consider submitting proposals for technical assistance operations in “less crowded” countries such as the Solomon Islands, Papua New Guinea, East Timor, Afghanistan, Pakistan, Cambodia and the Pacific island nations. This is crucial especially for consultants who will be applying for ADB technical assistance projects for the first time. Only 30 percent of the 3,000 individual contracts awarded in 2013 went to entities with no prior experience working with the bank. Submitting proposals for operations in “more crowded” countries — such as Laos, Thailand and Vietnam — where up to 30 bidders often compete for a project limits opportunities for these first-timers further. Regardless of where consultants are interested to carry out technical assistance work, they need to have some type of experience in the Asia-Pacific region. Get to know in-country personnel At ADB, there is a strong sense of “comfort in familiarity” and risk aversion. This is primarily why ADB contracts are often awarded to same individuals and firms, and market penetration can be challenging. To overcome these challenges, firms should spend some time grasping the cultural nuances and undercurrents of the bank. “Consistent interaction” and “adaptation” are critical to doing business with ADB. Establishing professional relationships with bank personnel is one way to enter the ADB market and win projects. In-country staff can help clarify specific on-the-ground contracting practices, and understanding these principles will go a long way toward getting a consultant noticed. Prospective partners can also attend ADB’s business opportunity fairs and seminars held in different member countries. ADB project officers are almost always agreeable to meeting in-person with potential partners. Cold calls for appointments are also generally accepted. Forecast upcoming projects There are ways for consultants to identify potential opportunities even before they are advertised. After identifying priority locations, consultants should review relevant ADB’s country partnership and regional cooperation strategies. Technical assistance opportunities are anchored on the strategic directions outlined in these documents, which usually identify how much ADB has allocated for technical assistance for developing member countries and which sectors will be prioritized. Consultants could also benefit from Devex’s Early Intelligence reports. These reports identify procurement opportunities — including for technical assistance — before donors such as ADB announce calls for proposals. Monitoring which entities have won previous technical assistance contracts from the bank is helpful as well. At the very least, consultants can identify firms or individuals they can partner with for future collaboration, especially if they’ve worked in similar projects. Register and network online All individual consultants and development consulting firms that want to do business with ADB need to register online with the bank’s Consultant Management System. The website manages procurement at ADB, from releasing project information to accepting proposals and communicating with interested consultants. ADB accepts proposals only through this website, although it does make exceptions for consultants that are having difficulty accessing the system. Development consulting firms need to provide detailed information on past project details, CVs of their experts and proof of incorporation. As this is a time-consuming activity, consultants should complete their profiles well in advance to save time during actual submission of proposals. On some occasions, ADB will not release calls for proposals and shortlists firms and individuals in the system instead. The bank goes through the profiles and selects consultants whose experience and expertise match requirements of the technical assistance opportunity. These short-listed candidates are then invited to submit a final proposal. Read more: ▪ International development procurement: 7 things you need to know ▪ Elements of the best project proposals ▪ Conducting due diligence on local partners: Why and how Do you have more suggestions on how to win a technical assistance project from ADB? Let us know by placing a comment below. Join the Devex community and gain access to more in-depth analysis, breaking news and business advice — and a host of other services — on international development, humanitarian aid and global health.