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Tendering and Awarding the Contract

62. Objectives of this Phase

The objectives of this phase are as follows:

  • To conduct a smooth procurement process and avoid interruptions and re-scheduling.
  • To deliver a contract that will demonstrate Value for Money (VfM) and will benefit both parties.
  • To secure a prompt, rapid, and effective approval for signature.
  • To handle the selection process in an effective manner, ensuring transparency.
  • To ensure that, at the time the PPP contract is executed, the government will have a high degree of certainty that the winning bidder will secure the required financing and deliver the required outcomes according to schedule.
  • To effectively utilize competition to deliver the optimal Value for Money outcome for the government.

To meet these objectives, the procuring authority must:

  • Design the RFP appropriately: The procuring authority’s ability to manage the tender process as smoothly as possible, and maximize value through competition, will depend on the regulation of the tender process (time, requirements of the offers, qualification/selection criteria, and evaluation criteria), that is, the design of the RFP (as explained in chapter 5).
  • Apply general principles of good procurement: Many features and characteristics of the PPP tender process are the same as in any public procurement process. The same general principles of good procurement will apply for a PPP procurement (transparency, fairness, and so on). Transparency in tendering is the essence of a fair and competitive process. The tender process should meet international standards for transparency and provide a level playing field for bidders.
  • Recognize the complexities of PPPs: While general principles of good procurement apply to PPPs, PPPs also have special characteristics that must be considered in the conduct of the tender and awarding processes. These special characteristics are set out in section 3.
  • Recognize the specific characteristics of the project: Each project will have unique requirements. These requirements must be addressed both in the structuring and drafting of the tender package (discussed in chapter 5), and in the conduct of the tender and awarding processes (discussed in sections 4 to 13).
  • Follow the applicable laws and policy requirements governing procurement in the relevant jurisdiction: The PPP tender process must be adapted to the applicable laws and policy requirements governing procurement in the relevant jurisdiction. These laws and policy requirements are affected by a wide range of factors, including the overall legal system and the past historical experience that the government has had of contracting with the private sector. Consequently, there is significant variation in the tender process from one country to another. Nevertheless, the underlying principles and objectives of the process are much the same everywhere. In some cases, the general laws and policy requirements governing procurement will not be well suited to the specific needs of PPP projects, as outlined in section 3. Therefore, if the objectives set out are to be realized (see chapter 2 for a discussion of the establishment of an appropriate PPP framework), the government will need to put in place specific requirements for PPPs, rather than relying on general laws and policy requirements.

 

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