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Procurement Guidelines

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Appendix 2<br />

Domestic Preferences<br />

Preference for Domestically Manufactured Goods<br />

1. The borrower may, with the agreement of ADB, grant a margin of preference<br />

in the evaluation of bids under international competitive bidding (ICB) procedures<br />

to bids offering certain goods manufactured in the country of the borrower,<br />

when compared to bids offering such goods manufactured elsewhere. In such<br />

cases, bidding documents shall clearly indicate any preference to be granted to<br />

domestic manufactured goods and the information required to establish the<br />

eligibility of a bid for such preference. The nationality of the manufacturer or<br />

supplier is not a condition for such eligibility. The methods and stages set forth<br />

hereunder shall be followed in the evaluation and comparison of bids.<br />

2. For comparison, responsive bids shall be classified in one of the following<br />

three groups:<br />

(a) Group A: bids exclusively offering goods manufactured in the country of<br />

the borrower if the bidder establishes to the satisfaction of the borrower<br />

and ADB that (i) labor, raw material, and component from within the<br />

country of the borrower will account for 30% or more of the EXW price of<br />

the product offered, and (ii) the production facility in which those goods<br />

will be manufactured or assembled has been engaged in manufacturing/<br />

assembling such goods at least since the time of bid submission.<br />

(b) Group B: all other bids offering goods manufactured in the country of the<br />

borrower.<br />

(c) Group C: bids offering goods manufactured abroad that have been<br />

already imported or that will be directly imported.<br />

3. The price quoted for goods in bids of groups A and B shall include all duties<br />

and taxes paid or payable on the basic materials or component purchased in the<br />

domestic market or imported, but shall exclude the sales and similar taxes on the<br />

finished product. The price quoted for goods in bids of group C shall be on CIF or

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