ADB to Mandate Merit-Point Criteria in Procurement from 2026 to Boost Quality & Local Jobs
SDG 9: Industry, Innovation & Infrastructure | SDG 8: Decent Work & Economic Growth | SDG 12: Responsible Consumption & Production
Institution: Ministry of Finance | Ministry of Road Transport & Highways | Ministry of Housing & Urban Affairs
On 16 September 2025, the Asian Development Bank (ADB) announced that beginning 1 January 2026, all internationally advertised infrastructure and construction contracts it finances will be evaluated using Merit-Point Criteria (MPC). The system moves beyond lowest-cost bids to weighted scoring of quality, technical capability, innovation, sustainability, and local participation. For high-risk procurements, at least 50% of the evaluation weight will be on technical criteria.
From 2026, ADB will also require that at least half of all person-days on construction contracts are undertaken by local labor, embedding skill development and job creation into projects. Early market engagement with suppliers - through seminars, roadshows, and bilateral dialogues - will become mandatory to ensure competitive participation and reduce implementation risks.
This reform is a paradigm shift in multilateral infrastructure procurement, ensuring that ADB-funded roads, bridges, energy projects, and urban works prioritize long-term durability and community benefits over lowest cost. For India, a major ADB borrower, ministries handling transport, urban development, and power will need to adjust procurement processes and contractor readiness to align with these higher technical and sustainability benchmarks.
Relevant Question for Policy Stakeholders:
How can Indiaβs contracting ecosystem prepare its firms - particularly mid-sized construction companies - to compete effectively under ADBβs new merit-based procurement model without being crowded out by larger international players?
Follow the full release here:
https://www.adb.org/news/adb-require-merit-point-criteria-2026-evolving-its-procurement-approach-enhance-quality