How Early Market Engagement Improves Competition, Transparency, and Project Readiness

Early Market Engagement is ADB’s structured way of consulting suppliers before bidding to ensure projects are realistic, competitive, transparent, and aligned with market capacity and innovation. From 2026, it becomes mandatory for internationally advertised ADB-financed contracts, embedding early market insight into project design and procurement decisions.

Early Market Engagement (EME), as outlined by the Asian Development Bank (ADB) and its procurement teams, is a practical approach for public-sector borrowers to engage with the market before formal bidding commences. The idea is simple: instead of designing projects in isolation, governments and project agencies can engage suppliers early to understand what the market can realistically deliver. This early dialogue helps test assumptions about cost, technology, timelines, and risks, while maintaining a transparent and fair process. ADB presents EME not as negotiation, but as structured listening that improves project design and reduces surprises later.

Why Engaging Early Improves Projects

The document explains that many procurement problems arise because project expectations do not match market reality. EME addresses this gap by allowing borrowers to refine technical specifications, budgets, and schedules before they are finalized. When suppliers are alerted early, more firms are likely to prepare and compete, which improves value for money and inclusiveness. Early engagement also opens the door to innovation, giving suppliers space to share new technologies and sustainable practices that may not emerge in a traditional bidding process. At the same time, EME helps identify risks such as capacity limits or supply chain constraints early enough to adjust project plans.

Common Ways to Talk to the Market

ADB outlines several practical ways to carry out EME, ranging from simple to more interactive approaches. These include market sounding sessions, project roadshows, workshops, and roundtables where suppliers can react to early ideas. Information tools such as advanced contracting notices and requests for information are used to gather structured feedback, while webinars, virtual briefings, and online Q&A portals ensure wide and equal access. Innovation calls or challenges are highlighted as a way to encourage creative solutions. The key message is that borrowers should choose methods that fit the project’s size, risk, and complexity while ensuring transparency.

How the Process Works Step by Step

The document describes EME as a process that unfolds before, during, and after engagement. Before engagement, borrowers define the key questions they want the market to help answer, such as budget realism or delivery models, and set clear rules on confidentiality and conflicts of interest. Inclusive outreach is emphasized so that all potential suppliers have equal access. During engagement, the market is consulted through briefings, discussions, surveys, and information requests, with negotiations clearly prohibited. Information must be shared consistently, and records must be carefully maintained. After engagement, insights are used to adjust project design, procurement strategies, evaluation methods, and risk allocation before bidding documents are finalized, ensuring lessons are actually applied.

A New Standard for ADB-Financed Procurement

ADB positions EME as a core part of modern procurement rather than an optional extra. The document announces that all ADB-financed projects with concept notes approved after 1 January 2026 must conduct EME for contracts advertised internationally, with the level of effort matched to project complexity and market conditions. To support this shift, ADB offers training, a dedicated EME webpage, and a new guidance note. Overall, the message is clear: early market engagement strengthens competition, improves transparency, and leads to more realistic and successful development projects by grounding procurement decisions in real market insight.