Top ADB contracts in 2018 for goods and works

ByCatalina Russu

Top ADB contracts in 2018 for goods and works

The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while continuing its efforts to eradicate extreme poverty. ADB provides loans, technical assistance, grants and equity investments to its developing member countries (DMCs) for a broad range of development projects and programs involving the procurement of goods, works, and services. In the article below, we have listed the largest ADB contracts awarded for goods and civil works with a contract value above US$1.0 million.

By sector. Analyzing the data provided by the ADB, in 2018 the institution spent the majority of its operational procurement funds (referring to goods, works, and related services) on electricity transmission, transport, energy, water supply and sanitation, environment and NRM.

By country. Calculating the value of ADB procurement contracts awarded by country, India appears at the top of the list with 322 contracts amounting US$6.5 billion. This is followed by Pakistan, with 103 contracts amounting to an average of US$1.5 billion. The list continues with Bangladesh – 249 contracts – and a total amount of US$1.4 billion. Over a billion dollars were disbursed from ADB to beneficiaries in China for the implementation of 481 procurement contracts.  , over a billion dollars were allocated to beneficiaries from Sri Lanka for the implementation of 154 procurement contracts.

Let’s take a look at the biggest procurement contracts awarded for each country mentioned above.

In India, the biggest ADB procurement contract in 2018, with a value of US$383.7 million, was awarded for the green energy corridor and for a grid strengthening project. The contracted companies, ABB AB Sweden & Bhel India, represent a consortium of power and automation technologies that enable utility and industry customers to improve their performance while lowering the environmental impact of their activities.

In Pakistan, in  The contract was awarded to the consortium between Siemens and HEI for the construction of supercritical coal L-Fired units with 5-year operation and maintenance within the Jamshoro power generation project. Siemens is a global powerhouse in the fields of electrification, automation, and digitalization, and also for healthcare and for infrastructure solutions. HEI, a subsidiary of state-owned enterprise Harbin Electric Group, is mainly a supplier of equipment and a contractor for the construction of thermal power plants, hydropower plants, combined-cycle power plants and wind power plants as well as substations and transmission lines.

Another high-value procurement contract was awarded in 2018 in Bangladesh for the implementation of an environmentally sustainable water supply project. The total amount of the contract was US$356 million. The supplier contracted by ADB was Gandharbpur Water Treatment SNC, a company specializing in the wastewater collection and treatment sector.

The highest value ADB procurement contract in China was awarded for the construction of a dam for the Pinsham Reservoir. The total amount for this contract was US$33.9 million dollars. The contracted company, Sinohydro Corporation Engineering, represents a Chinese state-owned hydropower engineering and construction company which trades in water conservancy, power generation, expressways, railways, harbor and sea-routes, airports, municipal public utilities, and building industries.

In Sri Lanka, ADB spent US$127.8 million of its procurement funds to contract Vestas Asia Pacific A/S for the construction of semi dispatchable wind park in Mannar Island. Vestas Asia Pacific A/S is the energy industry’s global partner for sustainable energy solutions. The company designs manufacture installs and services wind turbines across the globe. With 102 GW of wind turbines in 80 countries, they have established records for the installation of wind power.

To learn more about Asian Development Bank procurement contracts, click here.