Alexa ADB signs 2nd alternative procurement arrangement for co-finance

Dhaka, Thursday   30 January 2020

Akash

ADB signs 2nd alternative procurement arrangement for co-finance

 Economy Desk daily-bangladesh.com

 Published: 06:01 PM, 7 December 2019  

File Photo

File Photo

The Asian Development Bank (ADB) recently signed an agreement with the European Bank for Reconstruction and Development (EBRD) on alternative procurement arrangements (APA), allowing co-financed projects to follow a single procurement framework.

ADB signed a similar agreement with the World Bank last year, said an ADB release issued here.

Under ADB’s procurement framework, the APA allows one bank to be the lead co-financier on a project, and the procurement of all, or a portion of, the contracts under the project to follow the lead co-financiers procurement policies and procedures.

“We entered into such an agreement with EBRD and the World Bank because they have a bigger number of co-financed projects with us than any other multilateral development banks,” said the Director-General of ADB’s Procurement, Portfolio, and Financial Management Department Risa Zhijia Teng.

The arrangement allows co-financed projects to be implemented more efficiently by applying a single framework to the whole project, thereby reducing the end-to-end procurement time and transaction costs for ADB’s clients.

ADB is negotiating with other multilateral agencies the opportunity to use similar arrangements under co-financed projects. This will lessen the burden on executing and implementing agencies that have traditionally used multiple procurement frameworks on a single project.

DailyBangladesh/SA