The Asian Development Bank (ADB) has launched a merit points criteria to improve its procurement system for significant projects in the Pacific region. Emma Veve, ADB’s Director General for the Pacific Department, revealed in a recent PACNEWS interview that this new approach is now integrated into all procurement processes across the Pacific. This entails evaluating companies not solely on their bid prices but also on various criteria, such as partnerships with local firms and contributions to labor skill development within the host nation.
Last year, ADB implemented this merit points system for contracts exceeding USD $10 million, allocating 70% of the assessment to merit points and 30% to financial bids. Veve noted a notable increase in bids from Indian and Fijian companies, which were previously less involved in the Pacific market. The merit system enhances transparency and enables ADB to foster more competition among bidders while balancing project costs.
In an encouraging update, ADB reported that it disbursed a record US$1.9 billion in new financing to Pacific Developing Member Countries last year, with a significant portion allocated for climate financing. Veve indicated that only a small percentage of ongoing projects are at risk, reflecting the bank’s successful project readiness efforts. Nevertheless, there are challenges, particularly regarding the slower evaluation outcomes of older projects that were designed without new procurement requirements.
Aside from the merit points system, Veve assured that the ADB aligns with the Pacific Islands Forum Quality Infrastructure Principles, emphasizing local firm involvement, capacity building, and environmental sustainability in project delivery. Increasing competition and choice in procurement processes is crucial for attracting a diverse range of bidders to the Pacific, which currently faces challenges in attracting contractors.
Overall, the ADB’s proactive procurement reforms and emphasis on quality over price symbolize a positive shift toward enhancing project outcomes in the Pacific region. These developments reflect a significant step in fostering sustainable investment and local engagement, essential for the growth and prosperity of Pacific island nations.
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