FIDIC Conference, Beijing Sustainable Quality Consulting Services Robert Robertson ADB Director Consulting Services 7 September 2005

Presentation coverage 1 1What is the Asian Development Bank (ADB)? 2 2Need for sustainable, quality consulting services 3 3Revised ADB consulting services Guidelines 4 4ADB’s assistance to the PRC consulting services industry

Asian Development Bank The Asian Development Bank, (ADB) is a multilateral finance institution dedicated to reducing poverty in the Asia Pacific- region. - Two thirds of the world’s poor live in the Asia Pacific region million people live on less than US$1/day - ADB established in Headquarters in Manila, Philippines - 63 member countries staff from 53 countries

Offices HQ in Manila, 26 field offices

S ustaina bility & consultants ADB and its borrowing member countries (DMCs), require consultants who can provide high quality services to assist in developing and implementing long- term sustainable poverty alleviation solutions

“Sustainability” Definition for consulting industry Sustainability means developing strategies and procedures (solutions), that meet the needs of clients and stakeholders today while protecting, sustaining and entrusting the human and natural resources that will be needed in the future modification of a definition developed by the International Institute for Sustainable Development

ADB’s changing needs Consultants need to become aware of ADB and its Borrowers’ changing needs Project are multi-faceted and complex and consultants need to be able to respond to sustainable development requirements if they wish to participate -Solutions are required for: - policy reforms - capacity building - innovative technical solutions

Country Strategy and Program (CPS) Consultants should review CPSs at the ADB web site The CPS - defines the ADB’s medium-term development strategy agreed with the DMC - determines ADB’s country-specific poverty reduction strategy, thematic and sector priorities - is anchored on strong poverty, economic, social and sector analysis

Policy aspects Consultants should review ADB policy reports at the ADB web site Anticorruption, ADB and NGO cooperation, project financing, environment, loan products, gender and development, governance, regional cooperation, resettlement, private sector operations etc

Sector issues Consultants should review ADB policy reports at the ADB web site Agriculture and natural resources - Education - Energy - Forestry - Health - Transportation - Water

Western Roads Development Project in Sichuan & Gansu Provinces Consultant were required to review the Government’s feasibility study and prepare a project suitable for ADB-financing

Western Roads Development Non-traditional engineering services Traffic flow analysis, environmental impact assessment, resettlement, private sector development & commercialization, financial management, pricing policies, road safety, vehicle emissions, etc Traditional engineering services Horizontal & vertical alignment, subsurface investigation, pavement, bridge & tunnel design, construction materials, interchanges, toll station & service area design etc

Quality & Consulting Services - What is the ADB’s policy on quality? - What policies, procedures control quality? - - What level of quality is required? - Who controls quality?

ADB’s Guidelines 1 Quality “The technical qualifications of consultants to perform the required services are the most important criteria in the selection of consultants”

ADB’s Guidelines 2 Economy and Efficiency “The assistance of consultants is needed by ADB and its borrowers to ensure maximum economy and efficiency in the preparation, construction and operations of projects ”

Example - QCBS Quality and cost-based selection QCBS (75%) minimum technical score - 80% technical + 20% price “Quality at market price”

Revised Guidelines 1 - Current Guideline outdated, written in Assignments now more complex - -Expertise requirement has changed - -Consulting firms/organizations employees - -Universities - -NGOs (large and small) - -Government Agencies - -Individual consultants

Revised Guidelines 2 - -Consultant recruitment must - -Be quicker and procedures streamlined - -More variety of selection methods required - -Take account of varying capacity of EAs - -Need to harmonize with other MDBs/IFIs - -Greater use of internet

Greater focus on Quality Use of a quality management system - entry (consultant selection) - shortlisting and evaluation of proposals - during implementation of services (PER) - upon completion of service (PER) - improved DACON and DICON ADB, EAs and consultants will all be involved in ensuring high quality

FIDIC’s comments ADB appreciates the very useful comments FIDIC made on the draft revised ADB Guideline proposals

Sustainable consulting industry Model for a sustainable consulting industry - framework/policies/procedures - guidelines - association/professional body - consulting firms - individual consultants

Capacity Building Capacity building and training - for ADB staff - for EA staff - for the consulting industry - ADB briefings to consultants - ADB web site, handbook - Development of domestic consultant industry seminars (DDC)

TA-4486-PRC Formulation of regulations for the selection and engagement of consultants for Government-financed projects - ADB has been providing support for the development of the PRC consulting industry since With the assistance of consultants ADB has worked with the PRC government to develop Guidelines for the recruitment consultants - In 1999 under TA-3138-PRC draft Guidelines were developed - Under TA-4486-PRC the Guidelines are now being converted into regulations - The intention is that the Guidelines will become law

PRC Guidelines Use of the Guideline will provide for sustainability by providing a process for transparent and fair consultant recruitment on an on-going basis - Guidelines will ensure consultants with required expertise are selected and remunerated at market rate costs for their services - Guidelines are in line with a Government’s goal of achieving - good governance - improved economic efficiency - combating corruption

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