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International Aid Spend and Opportunities for NZ suppliers

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From time to time we get asked by manufacturers about New Zealand’s aid spend, and why we can’t tie it to NZ suppliers to not only do our bit as good international citizens, but also build our company capability in New Zealand. I had this conversation with Ministry of Foreign Affairs and Trade. They point out that there are bigger benefits to New Zealand companies if aid is not tied to local suppliers but is put out to tender to all comers, as this allows NZ companies to tender in a much bigger international aid pool than if we were just tendering for the NZ aid spend. They gathered some statistics together to prove the point.

The ADB (as of 31 December 2010):

  • New Zealand had contributed $US 139 million to special funds (ie the Asian Development Fund (ADF) and Technical Assistance Fund) since joining in 1966.
  • Companies and consultants from NZ have been awarded $US 414 million in procurement contracts on ADB-financed projects since 1967
  • Procurement contracts for goods and related services, civil works and consulting services totaled $US 10.7 billion in 2009 and $US 7 billion in 2010. Most contracts are awarded on the basis of international competition, which is open to firms and individuals from any ADB member country.
  • From January 1968 to December 2010 contractors and suppliers from New Zealand were involved in 508 contracts for ADB loan projects worth $US 147 million; consultants in 162 contracts for loan projects worth $US 101 million; and consultants in 861 technical assistance contracts worth $US 166 million.
  • The latest ADFF (2009-2012) is worth a total of $US 11.3 billion (includes internally generated, loan repayments, etc as well as donor funds), of which the NZ contribution is approximately $NZ 42 million. (NZ is providing 0.7% of total donor fund pool; Japan 35%).

The World Bank:

  • Major contracts awarded to NZ companies between 1994 and 2010 totaled $US 123 million. Major sectors were energy ($US 36 m), Transport ($US21 m), and Public Administration ($US 20 million).
  • Total value of purchases through 27 contracts in 2010 was $6.1 million (in 2009, $1.03 million, and in 2008, $4 million)

Click here to visit the World Bank procurement website - (however, as anyone who goes to this site will soon find out, most procurement is through the countries which take out the loans etc. Interested folk are directed by the WB to the UN Development Business website and the Development gateway website.

Click here to visit the relevant ADB website.

New Zealand sites worth keeping an eye on include:

  1. www.aid.govt.nz/contracts/current-tenders.html
  2. The Government Electronic Tenders Service (GETS)

By Catherine Beard
Executive Director