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01 Mar 2023
ADB’s Procurement Reforms Aim to Deliver Better Quality and Value for Money – Independent Evaluation Report
MANILA, PHILIPPINES (1 March 2023) — The Asian Development Bank’s (ADB) Procurement Policy Framework (PPF) is laying the foundation for the organization to modernize its procurement system and harmonize with those of other multilateral development banks, says an independent evaluation report released recently.
With ADB managing around $9.5 billion in procurement contracts for goods and services every year, the evaluation report reviews PPF implementation and identifies lessons and directions to help ADB in delivering better quality and value for money.
“Procurement plays a big part in development effectiveness and the quality of public procurement practices is a major determinant of effective public spending,” said Independent Evaluation Department Director General Emmanuel Jimenez. “The shift from a rule-based system with emphasis on compliance to a more principles-based approach which introduced quality and value for money as two new core procurement principles is a significant step forward.”
These reforms are still in the early stages of implementation which began in earnest in 2019 only to be delayed by COVID-19. ADB must continue with its promising start and ensure that corporate behavioral change and process improvements remain salient as it takes on the pressing challenges of sustainable and green procurement in the years ahead, the report says.
The report recommends that ADB’s corporate culture and structure be updated to ensure that strategic procurement planning becomes an integrated, holistic practice to improve identification and prudent management of procurement risks.
To successfully deliver quality and value for money, “ADB must better communicate complex procurement concepts to its client countries and among ADB staff, while managing contracts based on criticality, and not their size. This should be supported by sustained investments in long-term country capacity building and in improved procurement data management systems to strengthen transparency and governance,” evaluation team leader Eungji Kim added.
About Independent Evaluation at ADB
ADB's Independent Evaluation, reporting to the Board of Directors through the Development Effectiveness Committee, contributes to development effectiveness by providing feedback on ADB's policies, strategies, operations, and special concerns in Asia and the Pacific.
