A Guide for U.S. Suppliers Doing
Business
with the
African
Development Bank
by Tapan
Banerjee
U.S. Commercial Service
The African Development
Bank (AfDB) is a multilateral
bank whose shareholders
include 53 countries in Africa
and 24 countries from the
Americas, Asia, and Europe.
The United States is the
second-largest, non-regional
shareholder, with
approximately 6.62 percent of
the bank’s total share
holdings.
The AfDB is concerned with
poverty reduction through
employment creation,
improvements in standards of
living, infrastructure
development, and good
governance. Therefore, the
bank funds projects, lines of
credit, grants, and studies
with an eye to these
objectives.
The primary industries of
focus are agriculture and
rural development, water
supply and sanitation,
transportation, education,
health, power supply, finance,
and combined projects
involving several sectors.
Most projects are intended to
benefit local communities,
regions, and areas of
particular countries; they
normally do not involve
large-scale undertakings, such
as construction of airports
and corporate and residential
real estate.
How Much Does The AfDB
Commit Each Year To Finance
Projects, Lines of Credit, and
Grants?
In general terms, the bank
commits $2 to $3 billion
annually, and part of this sum
goes to jointly co-financed
projects with other
multilateral and bilateral
organizations. From a
cumulative standpoint, 1967 to
2001, the bank has committed
approximately $30 billion.
In recent years, financing
to the private sector has
played a more prominent role
in the bank’s financial
commitments. In 2001, the AfDB
financed approximately $241
million in project loans and
lines of credit to the private
sector.
What Is International
Competitive Bidding?
International competitive
bidding (ICB) is a method for
the procurement of goods and
services requiring
notification of the
international community.
Bidders from eligible member
countries, which include the
United States, are given an
equal opportunity to bid. The
majority of AfDB-funded
contracts are tendered through
ICB.
What Is Limited
International Competition?
Limited international
competition (LIC) is
essentially ICB by direct
invitation without open
advertisement. LIC is normally
utilized when the contract
values are small, there is a
limited number of suppliers,
and/or if there are special
circumstances. With LIC, the
borrower must prepare a list
of potential suppliers and
contractors making an effort
to draw them from a wide range
of eligible member countries.
The borrower must submit the
list to the bank for comments
and approval. The general
procurement notice will
indicate if LIC is to be
utilized.
In order to be considered
for inclusion on the list for
LIC, U.S. companies are
strongly encouraged to submit
a letter of interest to the
executing agency in response
to the general procurement
notice.
What Is National
Competitive Bidding?
National competitive
bidding (NCB) is the
competitive bidding procedure
normally used for public
procurement in the country of
the borrower. In some
instances, NCB may be the most
efficient and economical way
of procuring goods or
services, which by their
nature and scope are unlikely
to attract foreign
competition. U.S. companies
are eligible to submit bids;
however, procurement notices
are only published within the
respective country.
ICB and NCB are the two most
common methods of procurement.
For more information on other
types of procurement, please
refer to the AfDB’s Rules of
Procedure for Procurement of
Goods and Works.
Where Do I Find
Procurement Notices?
The invitations to bid
(specific procurement notices)
appear in the UN Development
Business journal, ADB Business
Bulletin, and at least one
major newspaper in the
borrower’s country. For
special contracts, procurement
notices may be published in
leading technical journals,
magazines or newspapers. Also,
bank rules stipulate that any
company that has sent a letter
of interest in response to the
general procurement notice
must be sent the corresponding
procurement notices.
The AfDB Commercial Liaison
Office also transmits specific
procurement notices through
our Trade Opportunities
Program.
When Does
Pre-qualification of Bidders
Apply?
The AfDB requires
pre-qualification of bidders
for large, complex or turnkey
contracts to ensure, in
advance of bidding, that
invitations to bid are
confined to capable firms. For
suppliers of goods or
equipment, pre-qualification
may be required where quality
and/or performance is of
primary importance, and/or
supplier back-up and
maintenance services are
critical.
The bank requires that
pre-qualification be based
upon the following criteria:
experience and past
performance on similar
contracts; knowledge of
working conditions in
developing countries;
capabilities with respect to
personnel, equipment, and
construction or manufacturing
facilities; financial
position; and current
commitments. There is no limit
to the number of firms that
may pre-qualify, and the bank
must approve the list of firms
submitted by the borrowing
government.
The invitation to pre-qualify
will be published in various
international media, like UN
Development Business, and
indicate the criteria for
pre-qualification. The notice
will indicate where the
pre-qualification documents
can be obtained and when the
completed forms must be
submitted.
What Is The Timeline
for Submission of Bids?
The bank requires at least
60 calendar days from the date
of publication of the
invitation to bid (specific
procurement notice) for bid
submissions. For contracts
involving larger works, the
requirement is 90 calendar
days to allow prospective
bidders to investigate the
site before bid submission.
The date of publication in UN
Development Business is the
start date for the bid period.
How Are Bids Evaluated?
The specific procurement
notices will list the
evaluation factors to be
utilized by the borrowing
government. In most cases, it
is the lowest evaluated cost
bid that is chosen among
comparable bids.
What Steps Do I Need To
Take To Be Successful?
Consult the general
procurement notices in UN
Development Business; ADB
Business Bulletin; the AfDB
Commercial Liaison Office Web
site; and/or
international/local journals,
newspapers, and magazines.
Send a letter of interest
to the executing agency of the
borrowing government outlining
what types of goods and
services you can provide. This
will facilitate your company
being notified when
corresponding invitations to
bid (specific procurement
notices) are issued.
Consult the invitations to bid
(specific procurement notices)
in UN Development Business;
ADB Business Bulletin; the
AfDB Commercial Liaison Office
Web site; and/or
international/local journals,
magazines, and newspapers. For
information about the AfDB,
see http://www.afdb.org.
If you have questions or need
additional information about a
project, contact the AfDB
Liaison Office at Tel: +228
224-11250 or Email:
Tapan.Banerjee@mail.doc.gov.
Date Updated: March 27, 2007
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