One of the contracts issued that was declared misprocured by ADB because the bidder failed to meet minimum post-qualification financial threshold requirements, and which was then paid for by the executing agency, was completed successfully and within budget by the national company. That work was of high quality. Though appointment of national contractors for civil works was one of the project's key goals as a means of encouraging development of the private sector for future work, this was a case in which ADB's procurement guidelines blocked the loan financing of a national contractor who, as it turned out, was capable of doing the job. It is recommended that, for future contracts, means be found to introduce greater flexibility into the post-qualification financial criterion in conjunction with a close review of the company's past experience. In such cases, the criterion might be flexibly adjusted prior to contract award through close consultations between the executing agency and ADB.
Third Road Upgrading (Sector) Project