Hello everyone. Welcome back. Last time we talked about the US government procurement dollar. Then we touch upon little about the Multilateral Development Bank, MDB, and in particular for the Asian Development Bank. So today I want to spend a little bit of time for the trend of public procurement in other major market at the MDB, and the United Nation, which is very important market for the listener or the students from Asian country. I assume that we have many students from the Asian country. So these element of the MDB is very important especially for the United Nation. So we talked about the definition of an MDB, because MDB is institution created by the group of the country that provides the financing and professional advice for the purpose of developing or development. So MDB, even as a bank, a large membership including both developed country and donor and developing country that borrow or recipient country. In Asian Development Bank, there are many donor like Korea and Japan. But also we have many recipient at the borrowing country. The benefit of the MDB is there to support economic development of the borrowing country, and also has a very long-term loan structure and well below market rate. Normally, ADB provides a great incentive for the country in Asian country. India currently as number one borrower of the Asian Development Bank. If you look at the global contacts MDB, there are many MDBs available. But we normally define the tough five MDB. The World Bank, the first. The bank actually, just after World War II. That is how the MDB concept was born, followed by the European Bank for Reconstruction and Development Bank, EBRD. Then 1964 we had the Asian Development Bank, and Islamic Development Bank. Also we have the African Development Bank. But there are many other specialized group of the MDB like, IDB, the Inter-American Development Bank is a focus on Latin America, and we also have Development Bank of Latin America, new development bank, AIIB which is new addition to MDB initiated by the Chinese government, Asian Infrastructure Investment Bank. We also have many other regional development bank, like, Caribbean Development Bank. So most of these MDB have similar structure like what I said earlier. They are in the business of the supporting undeveloped country. They raise the money both from the donor country and also from the market, and to provide the professional service, we call it technical assistance. Asian Development Bank for example, spend a lot of money to providing the recipient country with TA, the Technical Assistance. They're helping them to get the concept, they're helping them to establish a concept of having a different structure of development and the projects. Before they actually allocate any loan to any specific country, ADB will do first sort feasibility study by way of supporting technical assistance. So we are not going to talk about in detail how as an industry, how you can apply, how you can participate in the TA, technical assistance business with ADB. It is quiet open format ADB, and once a year and every year, March. They have a business opportunity, say, where you can participate, you maybe meet the vendor, so the door is wide open. You can go if you can have an access to talk with the country manager and the project manager to discuss any upcoming project a country or region that you are belong to. So MDB is there to support you. But any business out of MDB also consider as a public procurement. Among all other MDB, because the Asian Developed Bank is something that we feel very tangible, and near in our region in the Manila, Philippine. Therefore, I want to talk about the MDB versus the other. So MDB has different market and size. The fund by ADB go to $32 billion program in 2017. They keep spending a lot more money especially with the university healthcare issue. I can see different sector, energy and the waste environmental desktop spend a lot of money, and also, many MDBs spending money for Green Climate Fund, GCF fund relate environmental impact to the project finance. United Nation procurement is very unique in a way that United Nation, it is a symbol of the people. We have more than 194 on the member country, including North Korea by the way. All other member country, you have legal right to participate UN procurement through UNGM. UN Global Marketplace is a domain name that you can login, have a look at all the information available. It's a common procurement portal of the United Nations system of organizations. Basically, UNGM is a single portal that brings together all the UN procurement staff and vendor community all together. United Nation currently represent, it depend on what you're about to, annually you can say $17 billion public procurement for the product and the services. Unless your country has a sanction from the United Nations Security Council, your country allow to participate public procurement of United Nation. United Nation create polar site called UNGM, act as a single window, through which a potential supplier can register with the UN organization using UNGM as their vendor database. Actually in UNGM, we will not go into detail over how you have to register. You can register the basic level, level 1, level 2. You have a way to register, it's not that complicated, but you have to submit some information. Once you register at UNGM as a vendor, you have legal right to participate any tender posted in UNGM. Through the UNGM, more than 90 percent of the total UN requirement is basically posted in UNGM. There are some UN procurement not posted in UNGM because there are some items like shopping or small micro purchase less than $5,000 or some instance less than $150,000, they can go single source or sole source without putting their tender in public sight but most of them has open format and you can participate in the public tender. UNGM is a polar site for United Nation procurement, therefore, provide an excellent platform to introduce your product and services to many UN organizations country. Also you can complete the one single registration form. If you're dealing with less than $50,000 of the business, you can get by with a basic registration, and then if you are talking about less than half a million dollar business volume, you can register at level one. Anything more than half a million dollar plus, you have to register level 2. This registration is available on UNGM site. You can easily can do that. Also UNGM enable all the supply vendors to keep all of the upcoming tender notice, so did every tender for EOI, Expression of Interest, and any other P-out-of-Q, and ITT, Invitation to Tender. All these information are available in UNGM. You can subscribe for a small amount of money for Tender Alert Service, as a vendor you can receive relevant business information opportunity, they will email you directly. The reason I explained to you this way, UNGM or UN public procurement, it is relatively easy in comparison to any other public procurement because most of the UN member country, they are not using English as their native language. Therefore, UN procurement, their request for proposal, all of the documentation is in plain English, and there is many different template available. If you go through different steps of UNGM procurement database and the procedure, you can easily can follow how you have to apply, how you have to register, how you actually even register expression of interest. Therefore, UNGM facilitates the portal interchange of the vendor information with UN system, and then therefore, all the information and the vendor information is available to all UN organizations. The UNGM, act as the important procurement tool shortlist, in other word, they're pre-qualifying for competitive bidding. I had the opportunity to look back last 10 years, how the UN procurement had been done, that you can see from this slide from 2009. In 2009 you have about $13 billion procurement the dollar spent for United Nation, and then now, actually is going up to the $18 billion plus in 2017. At the moment, the United States of America and the UAE are the very strong. If you look at the which country, if you are in Southeast Asia, you can have a look at which country you're from, and you can look at it, whether your country are in top 10 UN supplier list. We can have a look at the matter of interest the United State of America. American-based [inaudible] larger portion of the procurement, about more than nine percent. India, is the second. People from India, you already are in the public procurement UN, if not please do have a look at it, maybe this course will give you some moderation to have a look at it. So UNGM a registry of business, you may be able to secure some visions. Also interesting enough, Google country of five different Arab Emirates, assembling all of the Arab Emirates. They're the number three procurement supplier for the United Nations, is very interesting. As you know, there are no factory, a very small number of factory available, but they are the hub of the [inaudible]. Transformed the city into international and the hub. Therefore, the UAE, Dubai and Abu Dhabi became a number three, most important supplier. They're selling more than $800 million, of goods and services to United Nation. Belgium is number five, France and UK and Northern Ireland actually doing [inaudible] Switzerland. Thanks to most of the WHO headquarter in Geneva, and Netherlands also a country for a larger number, Denmark and Kenya. As you can see, if you are from Asian countries, Southeast Asia and Korea, is no way to see in here, as you can see. China, is nowhere to see, any other country Thailand, Indonesia, and Malaysia, all other country that I can remember our neighboring country or any Asian country, you are not there. So if you are not there your country, is not in a top 10 supplier to United Nation. This is a good opportunity for you to have a look at it and find a way to secure more business with the UN. Before, I close this session I want to talk about the ICB. What is the meaning of the ICB? Introduction, the process or procedure. This is actually very important element, I will briefly introduce this section and then we're going to continue to in the next chapter. ICB, is the stand for, International Competitive Bidding. Remember, what I said was the domestic competitive, environment and the national competitive procurement. Then international competitive bidding, this is in number three, competitive procurement side. We normally call it ICB, International Competitive Bidding, is the most appropriate, is the most proper method of procurement under any of the international organization or any national procurement need. So if you limit your procurement in the national procurement, you're not going to see any other competitor from any other country, that would limit your opportunity to achieve best value for money. As I said earlier, the best value for money, is one one single term you're going to hear over and over, again during this course. There's most important concept, that we are going to talk about a lot. All the element, what we are going to talk about in this [inaudible] course about public procurement. Our aim is to achieve the best value for money, for beneficiary and the entity. As I remembered what I said about the public procurement. Number one, where the money comes from. Number two, rules and regulation. Number three, who is going to be beneficiary? The best value for money, is the beneficiary, you as the public entity, you want to keep best value out of spending $1. That's what it mean by that. I will stop here and then when we come back, we're going to talk more about a specific issue and the process and procedure to put in place ICB. Thank you very much. Have a nice day.
