ADB Procurement Policy (2017)

The ADB Procurement Policy (2017) is the Asian Development Bank's foundational procurement framework, replacing earlier rules with a principles-based approach that emphasises value for money, fit-for-purpose methods, and proportionate oversight across the full range of ADB-financed projects.

What is the ADB Procurement Policy (2017)?

The 2017 policy rests on five core procurement principles: economy, efficiency, fairness, transparency, and integrity. Rather than prescribing a rigid menu of methods tied to contract value thresholds, the policy calls for a fit-for-purpose approach: the method chosen for each contract should be the one that best suits the complexity, market conditions, and risk profile of the specific procurement. This replaced the old ICB versus NCB framework with a single open-competitive-bidding-ocb-adb method as the default.

The policy also introduced clearer rules on prior-review thresholds, strategic-procurement-planning, and the role of country and project procurement assessments. ADB may allow borrowers to use their own national procurement systems where these are assessed as equivalent to ADB standards, reducing transaction costs for experienced borrowing countries. The framework applies to all loans, grants, and technical assistance operations financed by ADB.

Why the ADB Procurement Policy (2017) matters for bidders

For a supplier pursuing ADB-financed contracts, the 2017 policy has two concrete effects. First, it standardised and simplified the methods and documents you will encounter: if a bidding document uses ADB standard templates, you know it follows the 2017 framework, and the evaluation criteria and award rules are predictable. Second, the fit-for-purpose principle means that ADB procurement coordinators have more flexibility to choose methods suited to local market realities, which can mean shorter timelines or more targeted competition in some sectors. Suppliers should check the project's procurement-plan to see which method applies to each contract package, since the plan is the authoritative source of how the 2017 policy is applied to a specific project.

FAQ

Does the 2017 policy apply to all ADB projects?

Yes, it applies to goods, works, non-consulting services, and consulting services in all ADB-financed operations approved after the policy took effect. Projects approved before 2017 follow the earlier guidelines unless a project restructuring triggers a policy switch.

What does "fit-for-purpose" mean in practice?

It means the procurement method is chosen based on what will deliver the best outcome for a particular contract, rather than defaulting to a single method determined solely by contract value. ADB staff and borrowers document the rationale for method selection in the procurement plan.

Can borrowers use their own national procurement systems under this policy?

Yes, in some cases. Where ADB has assessed a country's national procurement system as sufficiently aligned with ADB standards, the borrower may use national procedures, though ADB supervision requirements still apply.