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Section 1b INTRODUCTION Guidelines on The Use of Consultants by Asian Development Bank and Its Borrowers
Table of Contents Eligibility Associations between Consultants  Advance Contracting and Retroactive Financing  ADB Review, Assistance, and Monitoring  Misprocurement References to ADB
Eligibility  Guidelines on The Use of Consultants by Asian Development Bank and Its Borrowers
Eligibility Para 1.13 To foster competition, ADB permits firms and individuals from all ADB member countries to offer consulting services for projects to be financed by ADB.  Any conditions for participation shall be limited to those that are essential to ensure the firm’s capability to fulfill the contract in question.
Eligibility Para 1.13 However, the following considerations will also be taken into account: Consultants may be excluded if, by an act of compliance with a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations, the borrower’s country prohibits any payments to any country, person, or entity. Where the borrower’s country prohibits payments to a particular consultant or for particular goods by such an act of compliance, that consultant may be excluded.
Eligibility Para 1.13 Government-owned enterprises or institutions in the borrower’s country may participate only if they can establish that they  (i)	are legally and financially autonomous,  (ii)	operate under commercial law, and  are not dependent agencies of the borrower or sub-borrower.
Eligibility Para 1.13 As an exception to (b), when the services of government-owned universities or research centers in the borrower’s country are of unique and exceptional nature, and their participation is critical to project implementation, ADB may agree on the hiring of those institutions on a case-by-case basis. On the same basis, university professors or scientists from research institutes can be contracted individually under ADB financing.
Eligibility Para 1.13 Government officials and civil servants may only be hired under consulting contracts, either as individuals or as members of a team of a consulting firm, if they  are on leave of absence without pay;  are not being hired by the agency they were working for immediately before going on leave; and  their employment would not create a conflict of interest (see para 1.10).
Eligibility Para 1.13 (e)	A firm or individual, sanctioned by ADB in accordance with subparagraph (d) of paragraph 1.23 of these Guidelines or ADB’s Anticorruption Policy and Integrity Principles and Guidelines (both as amended from time to time), shall be ineligible to be awarded an ADB-financed or ADB-administered contract or to benefit from an ADB-financed or ADB-administered contract, financially or otherwise, during the period of time determined by ADB.
Associations between Consultants  Guidelines on The Use of Consultants by Asian Development Bank and Its Borrowers
Associations between Consultants  Para 1.14 Consultants may associate with each other in the form of a joint venture or of a sub-consultancy agreement to  complement their respective areas of expertise,  strengthen the technical responsiveness of their proposals, and  make available bigger pools of experts, provide better approaches and methodologies, and,  in some cases, offer lower prices.  Such an association may be for the long term (independent of any particular assignment) or for a specific assignment.
Associations between Consultants  Para 1.14 If ADB or a borrower employs an association in the form of a joint venture,  the association will appoint one of the firms to represent the association;  all members of the joint venture shall sign the contract and shall be jointly and severally liable for the entire assignment.  Borrowers shall not require consultants to form associations with any specific firm or group of firms, but may encourage association with qualified national firms.
Advance Contracting and Retroactive Financing  Guidelines on The Use of Consultants by Asian Development Bank and Its Borrowers
Advance Contracting and Retroactive Financing  Para 1.15 ADB encourages advance contracting and retroactive financing, where appropriate, to accelerate project implementation.  The borrower may wish to proceed, with ADB’s approval, with the selection (though not contracting) of consultants before the loan agreement is signed.  In such cases, the selection procedures shall be in accordance with these Guidelines, and ADB shall review the process used by the borrower.
Advance Contractingand Retroactive Financing  Para 1.15 A borrower undertakes such advance contracting at its own risk, and any “no objection” issued by ADB with regard to the procedures, documentation, or proposal for award does not commit ADB to make a loan for the project in question.  If the contract is signed, reimbursement by ADB of any payments made by the borrower under the contract prior to loan signing is referred to as retroactive financing and is only permitted within the limits specified in the loan agreement.  In particular circumstances, advance recruitment action may be applied to recruitment of consultants for ADB TA or delegated TA.
ADB Review, Assistance, and Monitoring  Guidelines on The Use of Consultants by Asian Development Bank and Its Borrowers
ADB Review, Assistance, and Monitoring  Para 1.16 To ensure borrowers comply with these Guidelines, ADB conducts prior reviews for recruitment of loan and delegated TA consultants.  Prior reviews require the borrower to make submissions for ADB’s approval at different stage of the recruitment process for all selection methods.  The frequency and depth of prior reviews are linked to the capacity of the borrower.  Fewer submissions are required from borrowers demonstrating substantial capacity and experience. In particular circumstances, the requirement for prior reviews may be dropped in favor of post-reviews.
ADB Review, Assistance, and Monitoring  Para 1.16 The requirement, the frequency and depth of prior reviews, and the thresholds for applying post-reviews will be agreed by the borrower and ADB during project preparation and incorporated in the procurement plan (see paras 1.6 and 1.27).
ADB Review, Assistance, and Monitoring  Para 1.17 Under special circumstances, for example, where an inadequate number of expressions of interest (EOIs) have been received, and in response to a written request from the borrower, ADB may furnish to the borrower long lists of firms that it expects to be capable of undertaking the assignment.  The provision of the list does not represent an endorsement of the consultants.  The borrower may delete any name or add other names as it wishes; however, the final shortlist shall be submitted to ADB for its approval before the borrower issues the RFP.
ADB Review, Assistance, and Monitoring  Para 1.17 As appropriate, ADB may take part in discussions between the borrower and consultants and, if necessary, may help the borrower in addressing issues related to the assignment.
Misprocurement Guidelines on The Use of Consultants by Asian Development Bank and Its Borrowers
Misprocurement Para 1.18 ADB does not finance expenditures for consulting services if the consultants have not been selected in accordance with the provisions of the relevant agreement and these Guidelines.  If recruitment is not carried out as agreed, ADB will declare misprocurement, and normally cancel that portion of the financing allocated to the services that have been misprocured.
Misprocurement Para 1.18 In appropriate cases, ADB may permit re-issuing of the RFP after declaring misprocurement.  ADB may, in addition, exercise other remedies provided for in the relevant Agreement.  Even if a contract is awarded after obtaining a “no objection” from ADB, ADB reserves the right to declare misprocurement if it concludes that the “no objection” was issued on the basis of incomplete, inaccurate or misleading information, or that the terms and conditions of the contract had been substantially modified without ADB’s approval.
References to ADB Guidelines on The Use of Consultants by Asian Development Bank and Its Borrowers
References to ADB Para 1.19 When the project is to be financed wholly or partly by ADB, reference shall be made to ADB in the RFP and contract documents as follows:  “.......[name of borrower].......has received a [loan] [and/or grant] from the [ordinary capital resources or Special Funds resources] of Asian Development Bank toward the cost of [name of project], and intends to apply a portion of the proceeds of this [loan] [grant] to eligible payments under this Contract. The terms and conditions of the contract (contracts) and payments by the Asian Development Bank will be subject to the terms and conditions of the [loan/grant agreement], including the Guidelines on the Use of Consultants by Asian Development Bank and Its Borrowers. Except as ADB may specifically otherwise agree, no party other than [name of borrower] shall derive any rights from the [loan/grant agreement] or have any claim to the proceeds of the [loan/grant].”
Introduction to Guidelines on The Use of Consultants by Asian Development Bank and Its Borrowers - Part#2

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Introduction to Guidelines on The Use of Consultants by Asian Development Bank and Its Borrowers - Part#2

  • 1. Section 1b INTRODUCTION Guidelines on The Use of Consultants by Asian Development Bank and Its Borrowers
  • 2. Table of Contents Eligibility Associations between Consultants Advance Contracting and Retroactive Financing ADB Review, Assistance, and Monitoring Misprocurement References to ADB
  • 3. Eligibility Guidelines on The Use of Consultants by Asian Development Bank and Its Borrowers
  • 4. Eligibility Para 1.13 To foster competition, ADB permits firms and individuals from all ADB member countries to offer consulting services for projects to be financed by ADB. Any conditions for participation shall be limited to those that are essential to ensure the firm’s capability to fulfill the contract in question.
  • 5. Eligibility Para 1.13 However, the following considerations will also be taken into account: Consultants may be excluded if, by an act of compliance with a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations, the borrower’s country prohibits any payments to any country, person, or entity. Where the borrower’s country prohibits payments to a particular consultant or for particular goods by such an act of compliance, that consultant may be excluded.
  • 6. Eligibility Para 1.13 Government-owned enterprises or institutions in the borrower’s country may participate only if they can establish that they (i) are legally and financially autonomous, (ii) operate under commercial law, and are not dependent agencies of the borrower or sub-borrower.
  • 7. Eligibility Para 1.13 As an exception to (b), when the services of government-owned universities or research centers in the borrower’s country are of unique and exceptional nature, and their participation is critical to project implementation, ADB may agree on the hiring of those institutions on a case-by-case basis. On the same basis, university professors or scientists from research institutes can be contracted individually under ADB financing.
  • 8. Eligibility Para 1.13 Government officials and civil servants may only be hired under consulting contracts, either as individuals or as members of a team of a consulting firm, if they are on leave of absence without pay; are not being hired by the agency they were working for immediately before going on leave; and their employment would not create a conflict of interest (see para 1.10).
  • 9. Eligibility Para 1.13 (e) A firm or individual, sanctioned by ADB in accordance with subparagraph (d) of paragraph 1.23 of these Guidelines or ADB’s Anticorruption Policy and Integrity Principles and Guidelines (both as amended from time to time), shall be ineligible to be awarded an ADB-financed or ADB-administered contract or to benefit from an ADB-financed or ADB-administered contract, financially or otherwise, during the period of time determined by ADB.
  • 10. Associations between Consultants Guidelines on The Use of Consultants by Asian Development Bank and Its Borrowers
  • 11. Associations between Consultants Para 1.14 Consultants may associate with each other in the form of a joint venture or of a sub-consultancy agreement to complement their respective areas of expertise, strengthen the technical responsiveness of their proposals, and make available bigger pools of experts, provide better approaches and methodologies, and, in some cases, offer lower prices. Such an association may be for the long term (independent of any particular assignment) or for a specific assignment.
  • 12. Associations between Consultants Para 1.14 If ADB or a borrower employs an association in the form of a joint venture, the association will appoint one of the firms to represent the association; all members of the joint venture shall sign the contract and shall be jointly and severally liable for the entire assignment. Borrowers shall not require consultants to form associations with any specific firm or group of firms, but may encourage association with qualified national firms.
  • 13. Advance Contracting and Retroactive Financing Guidelines on The Use of Consultants by Asian Development Bank and Its Borrowers
  • 14. Advance Contracting and Retroactive Financing Para 1.15 ADB encourages advance contracting and retroactive financing, where appropriate, to accelerate project implementation. The borrower may wish to proceed, with ADB’s approval, with the selection (though not contracting) of consultants before the loan agreement is signed. In such cases, the selection procedures shall be in accordance with these Guidelines, and ADB shall review the process used by the borrower.
  • 15. Advance Contractingand Retroactive Financing Para 1.15 A borrower undertakes such advance contracting at its own risk, and any “no objection” issued by ADB with regard to the procedures, documentation, or proposal for award does not commit ADB to make a loan for the project in question. If the contract is signed, reimbursement by ADB of any payments made by the borrower under the contract prior to loan signing is referred to as retroactive financing and is only permitted within the limits specified in the loan agreement. In particular circumstances, advance recruitment action may be applied to recruitment of consultants for ADB TA or delegated TA.
  • 16. ADB Review, Assistance, and Monitoring Guidelines on The Use of Consultants by Asian Development Bank and Its Borrowers
  • 17. ADB Review, Assistance, and Monitoring Para 1.16 To ensure borrowers comply with these Guidelines, ADB conducts prior reviews for recruitment of loan and delegated TA consultants. Prior reviews require the borrower to make submissions for ADB’s approval at different stage of the recruitment process for all selection methods. The frequency and depth of prior reviews are linked to the capacity of the borrower. Fewer submissions are required from borrowers demonstrating substantial capacity and experience. In particular circumstances, the requirement for prior reviews may be dropped in favor of post-reviews.
  • 18. ADB Review, Assistance, and Monitoring Para 1.16 The requirement, the frequency and depth of prior reviews, and the thresholds for applying post-reviews will be agreed by the borrower and ADB during project preparation and incorporated in the procurement plan (see paras 1.6 and 1.27).
  • 19. ADB Review, Assistance, and Monitoring Para 1.17 Under special circumstances, for example, where an inadequate number of expressions of interest (EOIs) have been received, and in response to a written request from the borrower, ADB may furnish to the borrower long lists of firms that it expects to be capable of undertaking the assignment. The provision of the list does not represent an endorsement of the consultants. The borrower may delete any name or add other names as it wishes; however, the final shortlist shall be submitted to ADB for its approval before the borrower issues the RFP.
  • 20. ADB Review, Assistance, and Monitoring Para 1.17 As appropriate, ADB may take part in discussions between the borrower and consultants and, if necessary, may help the borrower in addressing issues related to the assignment.
  • 21. Misprocurement Guidelines on The Use of Consultants by Asian Development Bank and Its Borrowers
  • 22. Misprocurement Para 1.18 ADB does not finance expenditures for consulting services if the consultants have not been selected in accordance with the provisions of the relevant agreement and these Guidelines. If recruitment is not carried out as agreed, ADB will declare misprocurement, and normally cancel that portion of the financing allocated to the services that have been misprocured.
  • 23. Misprocurement Para 1.18 In appropriate cases, ADB may permit re-issuing of the RFP after declaring misprocurement. ADB may, in addition, exercise other remedies provided for in the relevant Agreement. Even if a contract is awarded after obtaining a “no objection” from ADB, ADB reserves the right to declare misprocurement if it concludes that the “no objection” was issued on the basis of incomplete, inaccurate or misleading information, or that the terms and conditions of the contract had been substantially modified without ADB’s approval.
  • 24. References to ADB Guidelines on The Use of Consultants by Asian Development Bank and Its Borrowers
  • 25. References to ADB Para 1.19 When the project is to be financed wholly or partly by ADB, reference shall be made to ADB in the RFP and contract documents as follows: “.......[name of borrower].......has received a [loan] [and/or grant] from the [ordinary capital resources or Special Funds resources] of Asian Development Bank toward the cost of [name of project], and intends to apply a portion of the proceeds of this [loan] [grant] to eligible payments under this Contract. The terms and conditions of the contract (contracts) and payments by the Asian Development Bank will be subject to the terms and conditions of the [loan/grant agreement], including the Guidelines on the Use of Consultants by Asian Development Bank and Its Borrowers. Except as ADB may specifically otherwise agree, no party other than [name of borrower] shall derive any rights from the [loan/grant agreement] or have any claim to the proceeds of the [loan/grant].”