The Asian Development Bank (ADB), established in 1966, is a multilateral development finance institution owned by its 56 member countries. Its role is to accelerate economic and social development in the Asia Pacific Region by providing financial and technical assistance for projects that promote economic development. The bank's principal functions are: to make loans and equity investments for the economic and social advancement of developing member countries; provide technical assistance for the preparation and execution of the development projects and programs and advisory services; promote investment of public and private capital for development purposes; and respond to requests for assistance in coordinating development policies and plans of developing member countries. Thailand is one of 40 regional members of the ADB, contributing 1.4 percent of its capital. It is also the ADB's sixth highest borrower, with commitments of $150 million.
In January 1995, ADB established the Private Sector Group, with a view to catalyzing bilateral and multilateral capital for developing member countries (DMCs). This group was developed in response to the growing emphasis on private enterprise in its DMCs. The Private Sector Group helps private enterprises undertake financially viable projects that have significant economic merit and mobilize domestic and external resources. For more information, see http://www.asiandevbank.org/private/private.html.
Sources of Information: The United States-Asia Environ-mental Partnership sponsors a commercial environmental specialist in the ADB Liaison Office of the U.S. and Foreign Commercial Service building in Manila, Philippines. This liaison is available to provide information to U.S. companies interested in pursuing ADB contracts. Additionally, the liaison officer can assist in setting up meetings at the ADB, and answer questions on the status and timing of projects, reasons for selection for procurement, procurement disputes, and bank policies.
The Global Environment Facility (GEF) provides grants and concessional funds to developing countries for projects and activities that aim to protect the global environment. Its focus is climate change, biological diversity, international water, and stratospheric ozone. For more information, contact the GEF Secretariat at (202) 473-8324.
As of June 30, 1996, Thailand has received $2.87 billion of funding from the International Bank for Recon-struction and Development (IBRD, World Bank). The majority of bank lending has benefited the energy (about 38 percent), agriculture and rural development (21 percent), and transport sectors (about 22 percent). In fiscal year (FY) 1995, Thailand ranked number three in its region and 10 in the world of bank beneficiaries, with loans totaling $513 million. Thailand's current stage of development calls for bank involvement on policy and technical consulting and financing in formulating long-term strategies. These strategies highlight: development of physical infrastructure, promoting human resource development, alleviating poverty, and improving environmental management through economic and sector work, components of investment projects, and self-standing environmental projects.
U.S. Company Involvement. International Development Association (IBRD/IDA) lends for distinct and carefully selected projects that generally require the borrowing country to purchase goods, civil works, and services in the international marketplace. Approximately 30,000 contracts are awarded annually to firms by borrowers of IBRD/IDA funds. Approximately 70 percent are for goods and equipment, 20 percent for civil works, and 10 percent for consulting services. Many of these contracts are won by small and mid-sized businesses, while others are won by larger companies that subcontract to smaller companies for goods and services.
Procurement. The preferred method of procurement by IBRD/IDA for goods and services is international competitive bidding. In this process, borrowers specify their requirements in bidding documents. Bidding opportunity advertisements must fully describe what is needed and give interested parties enough time to prepare and submit a bid.
Sources of Information. Two primary sources of information on procurement opportunities are the bank's subscription publication, International Business Opportunities Service, and the United Nations biweekly publication Development Business (telephone: (202) 458-2397). Development Business provides procurement information for the World Bank, regional multilateral development banks, the United Nations Development Program, and other development agencies. Additionally, the World Bank has published three brochures to provide assistance in securing World Bank project contracts, Procurement under IBRD Loans and IDA Credits, Use of Consultants by World Bank Borrowers and, and Bidding for Contracts in World Bank Financed Projects, Questions & Answers. These publications can be obtained by calling the World Bank Bookstore at (202) 473-2941. The World Bank also conducts briefings entitled “World Bank Monthly Business Briefings; Export Opportunities Available through World Bank Project Funding.”
Contacts: Ms. Janice Mazur, Commerce Department Procurement Liaison, Office of the U.S. Executive Director; TEL: (202) 458-0118; FAX: (202) 477-2967; E-MAIL: email@example.com.
Mr. Tom Kelsey, Commerce Department Procurement Liaison, Office of the U.S. Executive Director; TEL: (202) 458-0120; FAX: (202) 477-2967; E-MAIL: firstname.lastname@example.org.
International Finance Corporation
The International Finance Corporation (IFC) is the largest multilateral source of equity and loan financing for private sector projects in developing countries. In Thailand for FY96, the corporation approved seven projects for a total of $1,082 million, of which $217 million was for IFC's own account. This represents IFC's largest country program in Asia.
Additionally, the IFC has approved an equity investment of $50 million in the Asian Infrastructure Fund, which will invest in private sector infrastructure projects in the developing economies of Asia.
U.S. Company Involvement. U.S. companies can receive loans from IFC. Larger companies that receive loans frequently need to subcontract to smaller companies for goods and services. These projects can be monitored in Development Business and the winning companies contacted directly. Additionally, a company or entrepreneur, foreign or domestic, seeking to establish a new venture or expanding an existing enterprise can approach IFC directly, either by requesting a meeting or by submitting preliminary project or corporate information. For more information, go to http://www.ifc.org/.