Kenneth Reidbord

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• Presented by
• Kenneth Reidbord
• Senior Commercial Officer/Director
• US Commercial Service Liaison Office to the ADB

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US Commercial Service Liaison Office to the ADB

• GOAL US fair share of ADB market opportunities
• Risk Mitigation
• Works directly with U.S. firms/sponsors/private
  projects developers
• Provides
• Advocacy/Commercial Diplomacy
• Information
• Procurement Alerts/ Market Briefs
• Market Advice
• Business Facilitation

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US Commercial Service Liaison Office to the ADB

• Major Distinction
• REGIONAL RESPONSIBILITY
• Regional market generated from ADB grants and
  lending
• 38 countries
• Many active sectors
• Consulting, professional services procurement

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The Asian Development Bank

• Multilateral development financial institution
• Helps improve the standard of living in
  Developing Member Countries

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The Asian Development Bank
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The Asian Development Bank

• How ADB helps
• Policy dialogue
• Loans
• Technical assistance
• Grants
• Guarantees
• Equity investments

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The Asian Development Bank

• Projects and Programs Focus
• Economic growth
• Human development
• Gender and development
• Good governance
• Environmental protection
• Private sector development
• Regional cooperation

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ADB-Funded Activities by Category

• Loans
• Technical Assistance Grants
• Co-financing/Private Sector

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ADB Main Activities Business Opportunities

• Business Opportunities for
• Suppliers of goods and equipment
• Contractors
• Consultants

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US Shareholding and Voting Power(as of Dec 2005)
US Shares 552,210 (15.63 of total shares)
Votes 565,597 (12.80 of total membership,
36.43 of total nonregional membership)
Paid-in capital subscription 553
million Overall Capital subscription 7.89
billion
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US Contract Awards - 2006

• TOTAL 276 million
• Goods and related services, Civil works
• 230 million
• Consulting Services
• 45 million
• Development Finance Institutions
• 79 thousand

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ADB and the Private Sector

• Focal sectors
• Financial banks, non-bank financial
  institutions, SMEs, micro enterprise
• Infrastructure energy, water supply,
  telecommunications

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ADB and the Private Sector

• ADB assistance
• Equity investment
• not to exceed 25 of the total share capital or
  75 million
• ADB cannot be the largest single investor in an
  enterprise.
• ADB does not assume responsibility for managing
  an enterprise.

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ADB and the Private Sector

• Project Evaluation Criteria
• Financially viable
• Reasonable cost
• Preference for infrastructure projects awarded
  thru competitive bidding

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Private Sector Financing

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Private Sector Development

• ADBs 2000 PRIVATE SECTOR
  DEVELOPMENT STRATEGY
• PSOD to engage in selected transactions
• Public sector seeks out private sector
  regulatory reforms
• Public sector looks for private sector
  opportunities in public sector projects

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Private Sector Development

• ADBs 2000 Private Sector Development Strategy
• PSOD does discrete transactions
• The PSOD has been Very Successful at a Time When
• Private Sector Banks Are Struggling
• Banking System Is Flush With Liquidity
• Capital markets are dis-intermediating banks
• WHY?

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Private Sector Development

• ADB is an attractive partner in transactions
• Catalytic Effect
• If ADB is in, we are in if ADB is out
  we are out
• Lighthouse effect
• The first dollar is the hardest to get ADB
  is often the needed catalyst

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Private Sector Development

• Why does the private sector come to ADB?
• Not low cost money market terms
• Not better credit terms
• Not an easier/short approval process
• In short - no preferred terms!

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Private Sector Development

• Important Factors
• Asian institution
• One stop shopping
• Decision making in region
• THESE ARE NOT UNIQUE ADVANTAGES

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Private Sector Development

• WHAT IS PSODs REAL PRODUCT?
• NOT MONEY!
• 4 - 7 Trillion in Surplus Funds
• Strengthening of the Capital Markets
• Saving rates are higher in DMCs than
• in developed countries.

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Private Sector Development

• WHAT IS PSODs REAL PRODUCT?
• Risk Mitigation
• Regulatory Dialogue
• Knowledge Transfer expertise
• ADB is uniquely positioned in these products!

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Private Sector Development
CORE OPERATIONS

• Financial Services
• Trade Finance
• Housing
• SME Finance
• Restructuring
• Banking System

• Infrastructure
• Power
• Water
• Telecom
• Ports
• Roads
• SOEs

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Private Sector Development

• PSOD projects helped by ADB regulatory reform
• India India Mortgage Guarantee Corp.
• PRC Chengdu Water Supply Project
• Vietnam FSPL II
• Bangladesh Lafarge Surma Cement Project

• PSOD projects originated by Public Sector
• Mongolia Trade and Development Bank
• India Dahej Liquified Natural Gas Terminal
• India Tala Delhi Transmission Project
• Pakistan SME Guarantee Facility
• Bangladesh AES Meghnaghat Power Project
• PRC Chendu Water Supply Project
• India LNG Petronet

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Private Sector Development
PRIVATE SECTOR On the Ground Experience
Public-Private Partnership Is The Key!
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Private Sector Development
Support DMC governments in creating enabling
conditions for business
Fight Poverty In Asia
Catalyze private investments
Generate business opportunities in ADB financed
public sector projects

• Source Private Sector Development Strategy,
  March 2000.

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Important Contacts

• Advocacy Center Liaison Office to the ADB
• Name Kenneth Reidbord, kenneth.reidbord_at_mail
  .doc.gov
• Cecile Santos, cecile.santos_at_mail.doc.gov
• Address American Business Center
• 25th Floor, Ayala Life FGU Center
• 6811 Ayala Avenue, Makati City 1226, Metro
  Manila
• Tel. [phone]-1346
• Fax [phone]
• Websites www.buyusa.gov/adb, www.adb.org