By Makereta Komai, PACNEWS Editor in Samarkand, Uzbekistan
A new procurement approach introduced by the Asian Development Bank (ADB) is increasing competition, widening bidder participation, and improving the quality of infrastructure projects across the Pacific, according to the bank.
ADB Director General for the Pacific Department, Emma Veve said the “Merit Point Criteria” procurement system—piloted in the Pacific since 2021—is shifting project selection away from a sole focus on lowest-cost bids towards broader quality-based assessments.
“Traditionally, choosing the lowest price bid doesn’t necessarily give you the best outcome,” Veve told PACNEWS.
She said the Pacific has been used as a testing ground for the reform, with around 75 percent of internationally advertised contracts in Pacific developing member countries—excluding Papua New Guinea—now applying merit-based evaluation criteria.
Veve said early results show increased competition in procurement processes, with more firms participating in tenders and a wider range of international bidders entering the Pacific market.
“We’re seeing more firms per bid on average, and firms from countries that weren’t previously active in the Pacific are now participating,” she said.
Under the system, bids are assessed not only on price but also on factors such as skills transfer, use of local labour, and domestic sourcing of materials, depending on project priorities.
Veve said this approach allows governments and ADB to better align procurement outcomes with national development goals, including building local capacity.
“We can give additional weighting to companies that build the skills of the local labour force or use more domestic inputs,” she said.
She said early indications suggest stronger engagement from Pacific-based contractors, particularly firms from Fiji expanding their work regionally, as well as increased joint ventures between international and local companies to improve competitiveness under the merit system.
While she said it is still early to assess long-term project outcomes, ADB is closely monitoring performance of projects already awarded under the system.
Veve cited the recently completed Queen Salote Wharf project in Tonga as an example of successful delivery under ADB-supported procurement processes, noting that it was completed within budget and on time.
She said the project also contributed to broader development outcomes, including skills development for local workers and increased participation of women in non-traditional construction roles.
ADB says it will continue to refine the Merit Point system based on country needs and project experience, with the aim of improving infrastructure quality while ensuring stronger participation from Pacific contractors and communities.
