Business Seminar 20 May 2019 Infra

Business Opportunities
Seminar 2019
ADB’s Operations for

Development of
Quality Infrastructure
20 May 2019
Yasushi Tanaka
Principal Transport Specialist
Transport and Communications Division
South Asia Department
ADB Commitments in 2018 ($21.6 billion)
By Sector By Country
Industry and Trade
3%
Education 8%
India
Energy 16%
Finance
23% Others
9%
32%
China
12%
Water
10% Transport
Bangladesh
22%
10%
Public Sector Viet Nam
Management Agriculture 4% Indonesia
11% 11% Pakistan 10%
5% Uzbekistan
5% Philippines 6%
2
Topics
1. Transport Sector Program in Southeast and

South Asia Departments
2. Procurement and Civil Works Contract

Management
3. Advanced Civil Works Contracts
4. High-Level Technology Fund
3
1. Transport Sector Program in
Southeast and South Asia Departments
Southeast Asia Country Program
Lending Pipeline: $6.4 billion (2019–2021)
PHI
$5.4
billion
MYA
INO
LAO
CAM
$545 $300
million
million $50 $30
million million
Source: Country Operations Business Plans (Philippines, Myanmar, Indonesia, Laos, Cambodia)
Lending Products
Projects Value Year
PHI
($ million)
Malolos-Clark Railway Project (Tranche 1) 1,300 2019
Infrastructure Preparation and Innovation 200 2019
MYA
Facility (Additional)
Metro Manila Bridges Project 180 2019
EDSA Greenways Project 100 2019
INO
South Commuter Railway Project (Tranche 1) 1,200 2020
Malolos-Clark Railway Project (Tranche 2) 1,000 2021
LAO
Laguna Lakeshore Road Transport Project 500 2021
(Tranche 1)
Bataan-Cavite Bridge Project (Tranche 1) 500 2021
Metro Rail Transport Line 4 Project (Ortigas- 500 2021
CAM
Rizal)
Lending Products
PHI
Pipeline: $5.4 billion (2019–2021)
MYA
Rail 64%
(non-urban)
INO
Metro 9%
(urban)
LAO
Road 23%
(non-urban)
CAM
4%
Multimodal
Lending Products
Projects Value Year
PHI
($ million)
Rural Roads and Access Project 70 2019
Second GMS Highway Modernization 275.3 2020
MYA
Project
Railway Modernization Project 200 2020
INO
Project Value Year
($ million)
National Roads Development 300 2020
LAO (Kalimantan) Project
GMS = Greater Mekong Subregion
CAM
Lending Products
PHI
MYA
Project Value Year
($ million)
Second Northern GMS Transport 50 2021
INO
Network Improvement Project
(Additional)
LAO Project Value Year

($ million)
Integrated Roads Network Improvement 30 2020
Project (Tranche 1)
CAM
Lending Products
PHI
MYA
Rail 58%
(non-urban)
INO
Metro 8%
(urban)
LAO
3%
Multimodal
Road 31%
CAM
(non-urban)
South Asia Country Program
Lending Pipeline: $9 billion (2019–2021)
IND
$4.9
billion
BAN
SRI
$1.9 NEP
billion $1.5 BHU
billion MLD
$560
million
$59 $14
Source: Country Operations Business Plans (India, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives)
million million
Lending Products
Projects Value Year
IND
($ million)
Mumbai Metro Rail Systems Project 926 2019
BAN Promoting PPP in Madhya Pradesh Road 490 2019
Sector Project
Delhi–Meerut Regional Rapid Transit 350 2019
SRI
System Investment Program (Tranche 1)
Chhattisgarh Roads Connectivity Project 350 2019
NEP Rajasthan State Highway Investment 280 2019
Program (Tranche 2)
BHU SASEC Road Connectivity Investment 50 2019
Program (Tranche 3)
MLD SASEC = South Asia Subregional Economic Cooperation
Lending Products
Projects Value Year
IND
($ million)
Tamil Nadu Industrial Connectivity 484 2020
BAN Project
Indore Metro Rail Project (Phase 1) 250 2020
SASEC Roads Investment Project 200 2020
SRI
Second Rural Connectivity Investment 140 2020
Program (Tranche 3)
NEP
BHU
MLD
Lending Products
Projects Value Year
IND
($ million)
Maharashtra State Highway Project 350 2021
BAN Delhi–Meerut Regional Rapid Transit 300 2021
System Investment Program (Tranche 2)
Tuticorin Port Expansion Project 300 2021
SRI
Chennai Metro Investment Program 200 2021
(Tranche 1)
NEP Second Uttarakhand State Highways 200 2021
Investment Project
Sikkim Major District Roads Project 75 2021
BHU
MLD
Lending Products
IND
BAN Port 6%
SRI
Metro 41%
NEP (urban)
BHU
Road 53%
(non-urban)
MLD
Lending Products
Projects Value Year
IND
($ million)
SASEC Chittagong-Cox’s Bazar Rail Project 265 2019
BAN Phase 1 (Tranche 2)
SASEC Dhaka-Northwest Corridor Road 200 2019
Project Phase 3 (Tranche 1)
SRI
SASEC Chittagong Port Enhancement 73
Cox’s Bazar 2019
Project
NEP Multimodal Transport Project Readiness 35 2019
Facility (PRF)
Dhaka Metro Line 5 (South) PRF 10 2019
BHU
SASEC Dhaka-Northwest Corridor Road 250 2020
Project Phase 2 (Tranche 2)
MLD
Lending Products
Projects Value Year
IND
($ million)
Dhaka Metro Line 5 (South) Project 250 2020
BAN (Tranche 1)
SASEC Dhaka-Southwest Corridor Road 200 2020
Project (Tranche 1)
SRI
SASEC Tongi-Akhaura Railway Project 150
Cox’s Bazar 2020
SASEC Chittagong-Cox’s Bazar Railway 300 2021
NEP Project Phase 1 (Tranche 3)
SASEC Dhaka-Chittagong Expressway 200 2021
Project (Tranche 1)
BHU
MLD
Lending Products
IND Pipeline: $1.9 billion (2019–2021)
BAN Road 44%

(non-urban)
SRI
Metro 13%
NEP (urban)
BHU Rail 37%

(non-urban)
2% 4%
MLD Multimodal
Port
Lending Products
Projects Value Year
IND
($ million)
Colombo Suburban Railway Efficiency 150 2019
BAN Improvement Project
Integrated Road Investment Program 150 2019
(Tranche 5)
SRI
Second Integrated Road Investment 150 2019
Program (Tranche 2)
NEP Kelani Valley Railway Investment 100 2020
Program (Tranche 1)
BHU Program (Tranche 3)
MLD
Program (Tranche 4)
Lending Products
Projects Value Year
IND
($ million)
SASEC Port and Logistics Development 200 2021
BAN Project
Kelani Valley Railway Investment 200 2021
Program (Tranche 2)
SRI
Program (Tranche 4)
NEP SASEC Road Connectivity Investment 200 2021
Program (Tranche 1)
Integrated Road Investment Program 93 2021
BHU (Tranche 5)
MLD
Lending Products
IND
BAN
Road 58%
SRI (non-urban)
NEP
Rail 29%
BHU
(non-urban)
MLD 13%
Port
Lending Products
Projects Value Year
IND
($ million)
Tribhuvan International Airport Capacity 200 2019
BAN Enhancement Sector Development
Program
SASEC Highway Improvement II Project 150 2019
SRI
Preparing Urban Transport Projects 10 2019
(Project Readiness Facility)
NEP SASEC East-West Highway Investment 200 2020
Program (Tranche 1)
BHU
MLD
Lending Products
IND
Pipeline: $560 million (2019–2021)
BAN
SRI 36%
Aviation
NEP
BHU
Road 64%
MLD
(non-urban)
Lending Products
IND
BAN
Project Value Year

SRI ($ million)
SASEC Air Connectivity Project 26.29 2020
NEP Road Connectivity Project 33 2021
BHU
Project Value Year
($ million)
Greater Male Infrastructure Project 14.42 2021
Lending Products
IND
Pipeline: $9 billion (2019–2021)
BAN
Road 53%
(non-urban)
SRI Rail 13%

(non-urban)
NEP
Metro 25%
(urban)
BHU
0.4% Port 6%
MLD
Multimodal 2%
Aviation
Quality Infrastructure
• High performance
• High cost-effectiveness
• Short construction period
• Long life
• High safeness
• User friendliness
• Environmental and social friendliness
• Climate and disaster resilience
• Effectiveness for climate change mitigation
• User inclusiveness and gender responsiveness
• Innovativeness
26
2. Procurement and
Civil Works Contract
Management
FIDIC (International Federation of Consulting
Engineers) Works Contracts
28 Source: FIDIC
Responsibility Allocations in FIDIC Contracts
Red Yellow Gold Silver
Employer’s Employer Employer Employer Contractor

requirements
Detailed design Employer Contractor Contractor Contractor
and quantity
Ground conditions Employer Employer Employer Contractor
Delay by Employer Employer Employer Employer

authorities
Exceptional Employer Employer Employer Contractor
climatic conditions
Damage by natural Employer Employer Employer Contractor
events
Maintenance Employer Employer Contractor Contractor
29
Editions of FIDIC Red/Pink Book
Pink Book
Red Book
(for MDB projects)
First Edition in 1999 First Edition in 2006
Second Edition in 2010
Second Edition in 2017 Third Edition ?
MDB = Multilateral Development Bank
30
Changes of Red Book Structure
First Edition in 1999 Second Edition in 2017
1. General Provisions 1. General Provisions
2. The Employer 2. The Employer
3. The Engineer 3. The Engineer
4. The Contractor 4. The Contractor
5. Nominated Subcontractors 5. Subcontracting
6. Staff and Labour 6. Staff and Labour
7. Plant, Materials and Workmanship 7. Plant, Materials and Workmanship
8. Commencement, Delays and Suspension 8. Commencement, Delays and Suspension
9. Tests on Completion 9. Tests on Completion
10. Employer’s Taking Over 10. Employer’s Taking Over
11. Defects Liability 11. Defects after Taking Over
12. Measurement and Evaluation 12. Measurement and Valuation
13. Variations and Adjustments 13. Variations and Adjustments
14. Contract Price and Payment 14. Contract Price and Payment
15. Termination by Employer 15. Termination by Employer
16. Suspension and Termination by Contractor 16. Suspension and Termination by Contractor
17. Risk and Responsibility 17. Care of the Works and Indemnities
18. Insurance 18. Exceptional Events
19. Force Majeure 19. Insurance
20. Claims, Disputes and Arbitration 20. Employer’s and Contractor’s Claims
21. Disputes and Arbitration
31
Overview of Changes
1. The 2017 second edition has generally kept the same structure
as that of the 1999 first edition. Structure of the 2017 second
edition has been streamlined.
2. The overall text, including appendix, is significantly increased

from 68 pages to 123 pages (by 80%). Much of the 1999 texts
have been changed and amended. Many detailed procedures
have been introduced, e.g. (i) the Engineer’s instructions,
agreement, and determination, (ii) development of construction
program, (iii) review of the Contractor’s documents, (iv)
suspension and termination, (v) tests on completion, (vi) defects
of designs and work, and (vii) claims and disputes.
3. New time bars have been introduced, and the time bars in the
1999 first edition have been extended, e.g. (i) contract award
date and commencement date, (ii) termination, and (iii) test on
completion.
32
Clause 1: General Provision
1. GENERAL PROVISIONS (7.6 pages) 1. GENERAL PROVISIONS (14.5 pages)
1.1 Definitions 1.1 Definitions
1.2 Interpretation 1.2 Interpretation
1.3 Communications 1.3 Notices and Other Communications
1.4 Law and Language 1.4 Law and Language
1.5 Priority of Documents 1.5 Priority of Documents
1.6 Contract Agreement 1.6 Contract Agreement
1.7 Assignment 1.7 Assignment
1.8 Care and Supply of Documents 1.8 Care and Supply of Documents
1.9 Delayed Drawings or Instructions 1.9 Delayed Drawings or Instructions
1.10 Employer’s Use of Contractor’s Documents 1.10 Employer’s Use of Contractor’s Documents
1.11 Contractor’s Use of Employer’s Documents 1.11 Contractor’s Use of Employer’s Documents
1.12 Confidential Details 1.12 Confidentiality
1.13 Compliance with Laws 1.13 Compliance with Laws
1.14 Joint and Several Liability 1.14 Joint and Several Liability
1.15 Limitation of Liability
1.16 Contract Termination
1. In the 2017 edition, “the Contract shall be governed by the law of the country or
other jurisdiction stated in the Contract Data, excluding any conflict of law rules.”
(Subclause 1.4).
33
Clause 3: The Engineer
3. THE ENGINEER (1.8 pages) 3. THE ENGINEER (5.7 pages)
3.1 The Engineer
3.1 Engineer’s Duties and Authority 3.2 Engineer’s Duties and Authority
3.3 The Engineer’s Representative
3.2 Delegation by the Engineer 3.4 Delegation by the Engineer
3.3 Instructions of the Engineer 3.5 Engineer’s Instructions
3.4 Replacement of the Engineer 3.6 Replacement of the Engineer
3.5 Determinations 3.7 Agreement or Determinations
3.8 Meetings
1. The Engineer’s qualifications, and roles and responsibilities have been more clearly
defined (Subclause 3.1). “The Engineer shall be (i) a professional engineer having
suitable qualifications, experience, and competence, and (ii) fluent in the ruling
language.” However, there is any restriction on his affiliation.
2. The Engineer’s responsibility to arrange for management meetings and keep a

record of each management meeting has been introduced (Subclause 3.8).
34
Clause 4: The Contractor (1)
4. THE CONTRACTOR (9.0 pages) 4. THE CONTRACTOR (15.5 pages)
4.1 Contractor’s General Obligations 4.1 Contractor’s General Obligations
4.2 Performance Security 4.2 Performance Security
4.3 Contractor’s Representative 4.3 Contractor’s Representative
4.4 Subcontractors → Clause 5: Subcontracting
4.5 Assignment of Benefit of Subcontract → Clause 5: Subcontracting
4.4 Contractor’s Documents
4.5 Training
4.6 Co-operation 4.6 Co-operation
4.7 Setting Out 4.7 Setting Out
4.8 Safety Procedures 4.8 Health and Safety Procedures
1. Submission procedures of documents that the Contractor shall prepare and review,
including specifications, permits, licenses, and other regulatory approvals, as-built
records, and O&M manuals are defined (Subclause 4.4).
35
Clause 4: The Contractor (2)
4. THE CONTRACTOR (9.0 pages) 4. THE CONTRACTOR (15.5 pages)
4.9 Quality Assurance 4.9 Quality Management and Compliance
Verification Systems
4.10 Site Data 4.10 Use of Site Data
4.11 Sufficiency of the Accepted Contract 4.11 Sufficiency of the Accepted Contract
Amount Amount
4.12 Unforeseeable Physical Conditions 4.12 Unforeseeable Physical Conditions
4.13 Rights of Way and Facilities 4.13 Rights of Way and Facilities
4.14 Avoidance of Interference 4.14 Avoidance of Interference
4.15 Access Route 4.15 Access Route
4.16 Transport of Goods 4.16 Transport of Goods
4.17 Contractor’s Equipment 4.17 Contractor’s Equipment
4.18 Protection of the Environment 4.18 Protection of the Environment
4.19 Electricity, Water and Gas 4.19 Temporary Utilities
1. The Contractor shall prepare and implement a quality management system to
demonstrate compliance with the requirements of the Contract, and a compliance
verification system to demonstrate that the design, materials, employer-supplied
materials, plant, work and workmanship comply in all respects of the Contract
(Subclause 4.9).
36
Clause 6: Staff and Labour
6. STAFF AND LABOUR (1.9 pages) 6. STAFF AND LABOUR (3.2 pages)
6.1 Engagement of Staff and Labour 6.1 Engagement of Staff and Labour
6.2 Rates of Wages and Conditions of Labour 6.2 Rates of Wages and Conditions of Labour
6.3 Persons in the Service of Employer 6.3 Recruitment of Persons
6.4 Labour Laws 6.4 Labour Laws
6.5 Working Hours 6.5 Working Hours
6.6 Facilities for Staff and Labour 6.6 Facilities for Staff and Labour
6.7 Health and Safety 6.7 Health and Safety of Personnel
6.8 Contractor’s Superintendence 6.8 Contractor’s Superintendence
6.9 Contractor’s Personnel 6.9 Contractor’s Personnel
6.10 Records of Contractor’s Personnel and 6.10 Contractor’s Records
Equipment
6.11 Disorderly Conduct 6.11 Disorderly Conduct
6.12 Key Personnel
1. The Employer can designate key personnel in bidding documents. The Contractor
shall appoint the persons named in its bid to act in the relevant position of key
personnel. All key personnel shall be based at the site for the whole time (Subclause
6.12).
37
Clause 8: Commencement, Delays and
Suspension (1)
8. COMMENCEMENT, DELAYS AND 8. COMMENCEMENT, DELAYS AND
SUSPENSION (3.3 pages) SUSPENSION (5.6 pages)
8.1 Commencement of Works 8.1 Commencement of Works
8.2 Time for Completion 8.2 Time for Completion
8.3 Programme 8.3 Programme
8.4 Advance Warning
1. The Contractor shall submit an initial program for the execution of the works to the
Engineer and submit a revised program whenever any program ceases to reflect
progress; and the program shall be prepared using the designated software
(Subclause 8.3).
2. Any known or probable future events or circumstances which may adversely affect
the work, increase the contract price, and delay the execution of the work shall be
advised in advance (Subclause 8.4).
38
Clause 8: Commencement, Delays and
Suspension (2)
8. COMMENCEMENT, DELAYS AND 8. COMMENCEMENT, DELAYS AND
SUSPENSION (3.3 pages) SUSPENSION (5.6 pages)
8.4 Extension of Time for Completion 8.5 Extension of Time for Completion
8.5 Delays Caused by Authorities 8.6 Delays Caused by Authorities
8.6 Rate of Progress 8.7 Rate of Progress
8.7 Delay Damages 8.8 Delay Damages
8.8 Suspension of Work 8.9 Employer’s Suspension
8.9 Consequences of Suspension 8.10 Consequences of Employer’s Suspension
8.10 Payment for Plant and Materials in Event 8.11 Payment for Plant and Materials after
of Suspension Employer’s Suspension
8.11 Prolonged Suspension 8.12 Prolonged Suspension
8.12 Resumption of Work 8.13 Resumption of Work
1. The Contractor shall be entitled to extend time for completion if the measured
quantity of any work item is greater than the estimated quantity by more than 10%
(Subclause 8.5).
39
Clause 11: Defects Liability
→ Clause 11: Defects after Taking Over
11. DEFECTS LIABILITY (2.4 pages) 11. DEFECTS AFTER TAKING OVER (5.1 pages)
11.1 Completion of Outstanding Work and 11.1 Completion of Outstanding Work and
Remedying Defects Remedying Defects
11.2 Cost of Remedying Defects 11.2 Cost of Remedying Defects
11.3 Extension of Defects Notification Period 11.3 Extension of Defects Notification Period
11.4 Failure to Remedy Defects 11.4 Failure to Remedy Defects
11.5 Removal of Defective Work 11.5 Remedying of Defective Work off Site
11.6 Further Tests 11.6 Further Tests after remedying Defects
11.7 Right of Access 11.7 Right of Access after Taking Over
11.8 Contractor to Search 11.8 Contractor to Search
11.9 Performance Certificate 11.9 Performance Certificate
11.10 Unfulfilled Obligation 11.10 Unfulfilled Obligation
11.11 Clearance of Site 11.11 Clearance of Site
1. If a defect appears or damage occurs during the defect notification period, a notice
shall be given to the Contractor by the Employer. Promptly thereafter, the Contractor
and the Employer shall jointly inspect the defect or damage, and the Contractor shall
then prepare and submit a proposal for remedial work (Subclause 11.1).
2. Overall, detailed defect remedial procedures have been introduced.
40
Clause 14: Contract Price and Payment
14. CONTRACT PRICE AND PAYMENT (6.5 14. CONTRACT PRICE AND PAYMENT (10.9
pages) pages)
14.1 The Contract Price 14.1 The Contract Price
14.2 Advance Payment 14.2 Advance Payment
14.3 Application for Interim Payment 14.3 Application for Interim Payment
Certificates
14.4 Schedule of Payments 14.4 Schedule of Payments
14.5 Plant and Materials intended for the 14.5 Plant and Materials intended for the
Works Works
14.6 Issue of Interim Payment Certificates 14.6 Issue of Interim Payment Certificates
14.7 Payment 14.7 Payment
14.8 Delayed Payment 14.8 Delayed Payment
14.9 Payment of Retention Money 14.9 Payment of Retention Money
14.10 Statement of Completion 14.10 Statement of Completion
14.11 Application for Final Payment Certificate 14.11 Final Statement
14.12 Discharge 14.12 Discharge
14.13 Issue of Final Payment Certification 14.13 Issue of Final Payment Certification
14.14 Cessation of Employer’s Liability 14.14 Cessation of Employer’s Liability
14.15 Currencies of Payment 14.15 Currencies of Payment
1. The Engineer may withhold an IPC if he/she finds any significant error or
discrepancy in the Statement or supporting document until such error or
discrepancy is corrected in a subsequent Statement (Subclause 14.6).
Clause 15: Termination by Employer
15. TERMINATION BY EMPLOYER (1.8 pages) 15. TERMINATION BY EMPLOYER (4.2 pages)
15.1 Notice to Correct 15.1 Notice to Correct
15.2 Termination by Employer 15.2 Termination for Contractor’s Default
15.3 Valuation at Date of Termination 15.3 Valuation after Termination for
15.4 Payment after Termination Contractor’s Default
15.5 Employer’s Entitlement to Termination 15.4 Payment after Termination for
Contractor’s Default
15.5 Termination for Employer’s Convenience
15.6 Valuation after Termination for
Employer’s Convenience
15.7 Payment after Termination for Employer’s
Convenience
1. The Employer shall be entitled to give a Notice to the Contractor of the Employer’s
intention to terminate the contract (Subclause 15.2).
2. The Employer shall be entitled to terminate the works if the Contractor fails to comply
with (i) a binding agreement, or final and binding determination by the Engineer and
(ii) a decision of Dispute Avoidance/Adjudication Board (DAAB) (Subclause 15.2).
42
Clause 16: Suspension and Termination
by Contractor
16. SUSPENSION AND TERMINATION BY 16. SUSPENSION AND TERMINATION BY
CONTRACTOR (1.6 pages) CONTRACTOR (2.4 pages)
16.1 Contractor’s Entitlement to Suspend 16.1 Suspension by Contractor
Work
16.2 Termination by Contractor 16.2 Termination by Contractor
16.3 Cessation of Work and Removal of 16.3 Contractor’s Obligations After
Contractor’s Equipment Termination
16.4 Payment on Termination 16.4 Payment on Termination by Contractor
1. The Contractor shall be entitled to give a Notice to the Employer of the Contractor’s
intention to terminate the contract (Subclause 16.2).
2. The Contractor shall be entitled to terminate the works (i) if the Employer fails to
comply with (a) a binding agreement, or final and binding determination by the
Engineer and (b) a decision of DAAB, and (ii) if the Contractor does not receive a
Notice of Commencement Date within 84 days after receiving the Letter of
Acceptance (Subclause 16.2).
43
Clause 20: Claims, Disputes and Arbitration
→ Clause 20: Employer’s and Contractor’s Claims
→ Clause 21: Disputes and Arbitration
20. CLAIMS, DISPUTES AND ARBITRATION 20. EMPLOYER’S AND CONTRACTOR’S
(4.2 pages) CLAIMS (4.4 pages)
21. DISPUTES AND ARBITRATION (5.7 pages)
20.2 Appointment of the Dispute 21.1 Contribution of the Dispute Avoidance/
Adjudication Board (DAB) Adjudication Board (DAAB)
20.3 Failure to Agree Dispute Adjudication 21.2 Failure to Appoint DAAB Member(s)
Board 21.3 Avoidance of Dispute
20.4 Obtaining DAB’s Decision 21.4 Obtaining DAAB’s Decision
20.5 Amicable Settlement 21.5 Amicable Settlement
20.6 Arbitration 21.6 Arbitration
20.7 Failure to Comply with DAB’s Decision 21.7 Failure to Comply with DAAB’s Decision
20.8 Expiry of DAB’s Appointment 21.8 No DAAB in Place
1. Procedures to avoid dispute have been defined and the dispute avoidance function
has been added to Dispute Adjudication Board (DAB). Its name has been changed to
Dispute Avoidance/Adjudication Board (DAAB) in the second edition.
2. Employer needs to propose 3 members of DAAB in Data Sheet of the bidding
document, and bidders need to propose 3 members of DAAB in their bids.
44
Summary of Major Changes
1. The Engineer’s responsibility has been strengthened, e.g. (i) arrangement
for management meetings, (ii) keeping a record of each management
meeting, and (iii) agreement and determination.
2. The Contractor’s obligations have been expanded, e.g. (i) preparation of

initial work program and revision of the program, (ii) training of the
Employer’s employees in the operation and maintenance works, (iii)
preparation and implementation of a quality management system and a
compliance verification system, and (iv) stay of key personnel at site for
the whole time.
3. New conditions to address contract management issues under the first

edition have been introduced, e.g, (i) withholding of payment to the
Contractor for substantial errors in IPC, (ii) determination of new unit
prices, (iii) extension of time for completion caused by increase of
measured quantity, and (iv) insurance for design defects.
4. DAAB composed of 3 members appointed by the Employer and 3

members appointed by the Contractor has been introduced to avoid and
adjudicate disputes. Detailed procedures have been introduced.
45
3. Advanced Civil
Works Contracts
BAN: SASEC Dhaka–Northwest Corridor Road
Project Phase 2
Executing Agency: Roads and
Highways Department
Scope: Widening of the existing

2-lane highway to 6-lanes
Procurement: International
competitive bidding for civil
works with 6-year performance-
based maintenance works
Payment: Admeasurement for

construction works and lump-
sum for maintenance works
47
Project Phase 2
Pink Pink + Performance-
based Maintenance
Employer’s requirements Employer Employer
Detailed design and Employer Employer

quantity
Ground conditions Employer Employer
Delay by authorities Employer Employer
Exceptional climatic Employer Employer

conditions
Damage by natural events Employer Employer
Maintenance Employer Contractor

(6 years)
48
Project Phase 2
Package Road Cost Estimate No. of No. of No. of
Length ($ million) International National Bidders
(km) Bidders Bidders
WP-05 13.6 80.16 11 4 15

WP-06 19.8 84.25 10 3 13
WP-07 28.3 106.79 6 3 9
WP-08 22.5 66.30 8 4 12
WP-09 25.3 86.45 6 3 9
WP-10 29.9 112.08 8 4 12
WP-11 27.2 75.73 7 3 10
WP-12 23.8 68.29 7 5 12
49
Project Phase 2
Package Road Winning Bidder Bid Price for Bid Price for B/A
Length Works Maintenance (%)
(km) ($ million) ($ million)
A B
WP-05 13.6 Not yet awarded - - -
WP-06 19.8 HEGO-Mir Akhter JV 77.07 3.02 3.9
WP-07 28.3 Abdul Monem Ltd. 93.99 1.51 1.6
WP-08 22.5 CPC-Tantia JV 65.01 1.32 2.0
WP-09 25.3 KMC-Monico JV 84.23 4.33 5.1
WP-10 29.9 90.09 1.18 1.3
China Construction
WP-11 27.2 Seventh Engineering 62.31 1.40 2.3
Division Corp. Ltd.
WP-12 23.8 57.44 1.18 2.0
50
IND: Promoting PPP in Madhya Pradesh
Road Sector Project
51
IND: Promoting PPP in Madhya Pradesh Road
Sector Project
EPC
(Silver)
Employer’s Contractor Build
requirements
Detailed design Contractor
and quantity Operate Transfer
Ground conditions Contractor
Delay by Employer
authorities Annuity
Exceptional Contractor
climatic conditions
Hybrid Annuity Model (HAM)
Damage by natural Contractor = EPC + BOT Annuity
events
Maintenance Contractor
52
(10 years)
Sector Project
Executing Agency: Madhya Pradesh Public Works Department
Implementing Agency: Madhya Pradesh Road Development Corp.
Scope: Improvement of the existing 2-lane highway to safe and

climate-resilient structures
Procurement: National competitive bidding for HAM-based

concessionaires
Payment:
o MPPWD pays 60% of contract price and 40% is shared by
concessionaire in equity and/or debt during the design and
construction period.
o MPPWD pays 40% along with interest during the 10-year
operation and maintenance period.
53
Sector Project
Estimated Contract Value ($ million)
Risk: MPRDC has no 10
9
experience in procurement for 8
HAM. Bidding may be less 7

6
competitive and inactive. The 5

4
success of HAM is dependent 3
2
on active lending by 1
0
commercial banks. Less than 5 5 to 10 10 to 15 15 to 20 20 to 25 25 to 30 More than
30
Road Length (km)

Mitigation: Road shows in big 8
cities were held to appraise 7
6
the HAM concept and its 5
successful implementation. A 4
3
wide range of contract 2
packages are prepared. 1
0
Less than 30 to 40 40 to 50 50 to 60 60 to 70 70 to 80 80 to 90 90 to 100 More
30 than 100
54
4. High-Level
Technology (HLT)
Fund
Overview of HLT Fund
1. Established in April 2017.
2. Aimed to (i) promote integration of HLTs and innovative solutions into

ADB operations, and (ii) adopt HLTs to address development challenges
in ADB’s development member countries.
3. Funded from the Government of Japan.

o $20 million in 2017
4. Allocated for ADB’s pipeline projects based on project readiness, and

strategic alignment with priority of each of the Sector and Thematic
Groups as well as with the objectives of the HLT Fund.
5. Implemented by work contractors, goods suppliers, consulting entities,

and individual consultants selected following ADB’s procurement policies
and procedures.
56
HLT Fund Commitments in 2017-2018
By Sector By Modality
($ K) ($ K)
Others Direct Charges
2,353 (10%) 1,163 (5%)
Water
Energy
2,610
7,100 (31%)
(12%)
Investment
Project
Urban Technical 9,500 (42%)
4,000 Assistance
(18%) 11,900 (53%)
Transport
6,500 (29%)
57
Transport Projects Supported by HLT Fund
Year Country Project Amount HLT

($million)
2017 Lao PDR Capacity Building for 1.5 Bus rapid transit
Vientiane system
Sustainable Urban
Transport Project
2018 Viet Nam Climate Resilient 5.0 Integrated hydro-
Inclusive meteorological and
Infrastructure for stream gauging
Ethnic Minorities stations for climate
resilient
infrastructure
design and
management
58
Transport Projects Supported by HLT Fund
Year Country Project Amount HLT

($million)
2019 Mongolia Regional Road 1.5 Wire-rope median
Development and barriers for road
Maintenance Project safety
2019 Regional Sensor systems to 0.5 Sensor technology
detect elephants and – thermal imaging
prevent elephant – cameras or
train accidents geophones
59
Priority HLT for Transport Sector
1. Efficient construction and new materials
2. Transport infrastructure asset management
3. New vehicle/fuel technology for reducing emissions and
energy consumption
4. Improving public transport and freight operation and
management.
5. Improving transport efficiency and safety
6. Monitoring traffic, data management, traffic information,
transport payment system and enforcement.
7. Shared mobility and new sustainable transport modes
8. Providing mobility as a service platform and business
model
9. Traffic survey, analysis and modeling and big data
application
60
Thank you.
For contact:
ytanaka@adb.org

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Business Opportunities

ADB’s Operations for

1. Transport Sector Program in Southeast and

2. Procurement and Civil Works Contract

3. Advanced Civil Works Contracts

4. High-Level Technology Fund

LAO Project Value Year

MLD SASEC = South Asia Subregional Economic Cooperation

IND Pipeline: $1.9 billion (2019–2021)

BAN Road 44%

BHU Rail 37%

Project Value Year

SRI Rail 13%

Employer’s Employer Employer Employer Contractor

Delay by Employer Employer Employer Employer

Second Edition in 2010

Second Edition in 2017 Third Edition ?

MDB = Multilateral Development Bank

2. The overall text, including appendix, is significantly increased

2. The Engineer’s responsibility to arrange for management meetings and keep a

2. The Contractor’s obligations have been expanded, e.g. (i) preparation of

3. New conditions to address contract management issues under the first

4. DAAB composed of 3 members appointed by the Employer and 3

Scope: Widening of the existing

Payment: Admeasurement for

Detailed design and Employer Employer

Delay by authorities Employer Employer

Exceptional climatic Employer Employer

Maintenance Employer Contractor

WP-05 13.6 80.16 11 4 15

Scope: Improvement of the existing 2-lane highway to safe and

Procurement: National competitive bidding for HAM-based

HAM. Bidding may be less 7

competitive and inactive. The 5

Road Length (km)

cities were held to appraise 7

packages are prepared. 1

2. Aimed to (i) promote integration of HLTs and innovative solutions into

3. Funded from the Government of Japan.

4. Allocated for ADB’s pipeline projects based on project readiness, and

5. Implemented by work contractors, goods suppliers, consulting entities,

Year Country Project Amount HLT

Year Country Project Amount HLT

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