Pre Qualification in Asia Development Bank

1. For this assignment, I have chosen the Asian Development Bank (ADB) to serve as an example for how companies use pre-qualification to decide on project contractors and suppliers. The Asian Development Bank is a Philippine based company aiming for “an Asia and Pacific free from poverty”. The Bank wishes to help the developing members to become successful, modern economies, whether their need is financial, infrastructure, administration, health care services or to prepare for climate changes. ADB´s main assistance devices are loans, grants, policy dialogue, technical assistance and equity investments. The ADB is also active in creating a framework for the private sector to be involved in developmental project investments.

2. For this part of the assignment, I will write about a tender scenario regarding public-private partnerships (PPPs) in the Philippines. The scenario is of the ADB signing a Public-Private Partnership agreement with the government in the Philippines regarding the building of a new hospital in Manila. This agreement will enable ADB to work with health infrastructure development projects together with Philippine companies. I will now focus on which pre-qualifications the suppliers and contractors are required to have to be accepted as a project contractors/suppliers based on ADB’s statements on their web page. I will start by shortly introducing the PPP project and then explain the concept of pre-qualification. Then I will identify and write about the pre-qualification ADB provides on their web site, and discuss this with regards to the tender scenario.

What is a PPP project?

PPP projects, or Public-Private Partnership projects, are long-term relationships between public and private sector to partner in delivering of services. For this assignment, I will write about a PPP project of building a new hospital in Manila, a project between ADB and the government of the Philippines.

Mersey Hospital Project

The Mersey Hospital Project is a Public-Private Partnership (PPP) project for the design, build, finance, operation and maintenance of a new hospital in Manila, Philippines. The project is a design-build project. The PPP project involves that the Government of Philippine hired ADB to carry out the project of building the hospital. Thus, the ADB will carry out the project by using pre-qualified contractors.

Pre-qualification at a glance

Pre-qualification is a process that gives the owner an opportunity to assess the contractor´s or supplier´s eligibility before the bidding process. The process is aimed at selecting the contractors who are capable of carrying out and completing the project in a satisfactory manner (Ng et al, 1999). According to Khosrowshahi (1999) pre-qualification is a “screening process whereby a number of contractors are