The Asian Development Bank (ADB) is strengthening its commitment to financing infrastructure and development projects that deliver long-term value by emphasizing a procurement approach that balances quality, sustainability, and cost-effectiveness. At the heart of this strategy is the Merit Point Criteria, an evaluation method designed to ensure that projects are awarded not simply to the lowest bidder, but to proposals that offer the greatest overall value.

As governments across Asia and the Pacific invest heavily in transport, energy, healthcare, education, and climate-resilient infrastructure, ADB’s procurement framework aims to ensure that every dollar invested contributes to durable, efficient, and socially beneficial outcomes.

Moving Beyond the Lowest Price

Traditional procurement systems often prioritize the lowest financial bid. While this approach can reduce initial project costs, it may overlook important factors such as technical capability, innovation, environmental performance, maintenance requirements, and long-term operating costs.

ADB’s Merit Point Criteria addresses this challenge by evaluating bids using a balanced scoring system that combines both technical quality and financial competitiveness. Rather than selecting the cheapest proposal automatically, the framework identifies the submission that provides the best overall value.

How the Merit Point Criteria Works

The Merit Point Criteria is a structured evaluation methodology in which procurement teams assign weighted scores to various factors that are important for the project. These criteria may include:

• Technical quality and engineering solutions.
• Project implementation methodology.
• Experience and qualifications of the contractor.
• Environmental sustainability measures.
• Climate resilience.
• Innovation and technology adoption.
• Operational efficiency.
• Lifecycle maintenance costs.
• Delivery schedule.
• Financial proposal.

Each criterion receives a predetermined weight based on the project’s objectives, allowing decision-makers to evaluate proposals comprehensively rather than relying solely on price.

Delivering Better Value for Public Investment

ADB’s procurement philosophy focuses on obtaining the greatest value from development financing. This means considering the entire lifecycle of a project—from planning and construction to long-term operation and maintenance.

For example, a proposal with slightly higher construction costs may ultimately provide greater value if it reduces maintenance expenses, improves energy efficiency, extends infrastructure lifespan, or lowers environmental impacts over several decades.

Such an approach helps governments maximize returns on public investment while improving service delivery for citizens.

Supporting Sustainable Development

Sustainability has become a key consideration in modern infrastructure planning. ADB encourages borrowers to incorporate environmental protection, climate adaptation, energy efficiency, and resource conservation into procurement decisions.

Projects evaluated under Merit Point Criteria can reward contractors that demonstrate:

• Reduced carbon emissions.
• Efficient use of natural resources.
• Environmentally responsible construction practices.
• Renewable energy integration.
• Improved waste management.
• Climate-resilient infrastructure design.

This aligns procurement with broader sustainable development objectives.

Encouraging Innovation

The evaluation system also creates opportunities for companies offering innovative technologies and advanced engineering solutions.

Rather than discouraging creativity through rigid price competition, Merit Point Criteria allows procurement authorities to recognize innovations that improve project performance, reduce long-term costs, enhance safety, or increase operational efficiency.

This encourages private-sector investment in research and technological advancement.

Flexibility for Different Projects

Every development project has unique objectives. ADB’s evaluation framework allows borrowers to customize the weighting of different criteria depending on the project’s priorities.

For example:

• A hospital project may place greater emphasis on healthcare functionality and patient safety.
• A renewable energy project may prioritize environmental performance.
• A highway project may assign higher weight to engineering quality and durability.
• A digital infrastructure project may focus on cybersecurity and technological capability.

This flexibility ensures procurement decisions remain aligned with project-specific goals.

Strengthening Transparency and Accountability

A structured scoring system promotes fairness by establishing clear evaluation criteria before bids are submitted. Contractors understand how proposals will be assessed, reducing uncertainty and increasing confidence in the procurement process.

Transparent evaluation methods also support accountability by documenting how decisions are made, helping reduce disputes and strengthening public trust.

Long-Term Benefits for Borrowing Countries

For developing economies, effective procurement can have lasting economic impacts. Better project selection leads to infrastructure that lasts longer, requires fewer repairs, delivers improved public services, and generates greater economic returns.

By encouraging high-quality construction and efficient project delivery, the Merit Point Criteria supports stronger infrastructure while helping governments make better use of limited public resources.

A Modern Approach to Development Procurement

As infrastructure challenges become increasingly complex, procurement systems must evaluate more than just construction costs. Factors such as resilience, environmental responsibility, innovation, operational efficiency, and long-term value are becoming equally important.

ADB’s Merit Point Criteria reflects this evolving approach by combining technical excellence with financial responsibility. Through balanced evaluation methods, the framework seeks to ensure that development projects financed by the Asian Development Bank deliver sustainable benefits, strengthen public infrastructure, and create lasting value for communities across Asia and the Pacific.