Where and when used. Dialogue and interactive processes

Evaluation criteria

Broadly speaking, there are two main types of processes in terms of evaluation criteria.

Deadline – Time to Submit

Due to the complexities of the PPP, it is essential to grant to the bidders sufficient time for proper due diligence and analysis/assessment of the project and the contract from different points of view. Time is also needed for the preparation of a sound and high quality offer. Good practice frameworks provide for a general floor or minimum time to be granted, typically being at least 30 or 60 days.

The RFP governs the bid requirements (what documents must be presented and how, which is developed further in section 8.1 below), the evaluation (rules and methods to evaluate and select – section 8.2), and other relevant matters such as protection for the government (for example, the right to cancel or to negotiate).

In some projects, the pre-qualification process is accompanied by the selection of a short list from the pre-qualified bidders. The pre-qualifying bidders are ranked on the strength of their pre-qualification responses, and a limited number of the highest ranking bidders are short listed to proceed to the RFP stage. Limiting the number of pre-qualifying bidders is generally necessary in two-stage processes that include a Dialogue or Interaction Phase. The most common number of candidates may be in a range of three to five[71].

The technical capacity or experience criteria are essential for project success. Many projects fail because the successful bidder lacks the skills and experience required to manage the challenges and complexities of the particular infrastructure project. Failure can also occur if the successful bidder does not have experience and capacity in all of the required areas of the contract cycle.

Financial or economic capacity criteria are intended to guarantee that the company or group of companies (consortium) that are candidates for the project have a healthy financial situation. The criteria provide evidence that they will be capable of meeting the financial needs of the project, which may be summarized as having funds available to meet equity needs as well as capacity to raise third party funds in the form of long-term debt.

Legal qualification relates fundamentally to the legal conditions that must be satisfied for a bidder to submit a bid according to the local/market or country’s common regulations.

Therefore, legal qualification refers to the formal regularity of the bidder, particularly with respect to its legal personality. The required documentation will usually include the following:[65]

The objective of a qualification process is to set a minimum bar of capability for the bidder company or group of companies (bidding consortium[63]) entering into the PPP contract. Setting qualification criteria will reduce the risk of project failure caused by a lack of capabilities and capacity. However, if the criteria are too restrictive this may limit competition too much.

The project should have been sounded out during the Appraisal Phase (see chapter 4.9.1).