ADB signs first Alternative Procurement Arrangement with World Bank

Under ADB’s new 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-financier’s procurement guidelines and procedures.

The Asian Development Bank (ADB) has signed its first Alternative Procurement Arrangement (APA) with the World Bank, allowing procedures on cofinanced projects to follow a single procurement framework.

Under ADB's new 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-financier's procurement guidelines and procedures.

"The new arrangement allows cofinanced projects to be implemented more efficiently by applying a single framework to the whole project. It will reduce transaction costs for ADB's clients. The use of APAs is a further step toward reducing procurement timelines in line with Strategy 2030," said Director General of ADB's Procurement, Portfolio, and Financial Management Department Ms Risa Zhijia Teng.

Strategy 2030 is ADB's long-term plan to respond effectively to the Asia and Pacific region's changing needs. ADB is negotiating with other multilateral agencies to expand the number of co-financed projects that will use similar arrangements. This will lessen the burden on executing and implementing agencies that have traditionally used multiple procurement frameworks on a single project and project implementation.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 67 members—48 from the region. In 2017, ADB operations totalled $32.2 billion, including $11.9 billion in co-financing.