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Tendering and Awarding the Contract

6Introduction

This phase covers the period from the launching of the project to the point of financial close. This chapter assumes that the government has chosen to tender the project, rather than negotiating directly with a potential private sector contractor. The benefits of choosing a tender process are discussed in chapter 1.

During the Structuring Phase, explained in chapter 5, the tender process has been designed, including qualification criteria, evaluation criteria, and the requirements for submission of both qualifications and proposals.

As explained in chapter 5, in relation to the tender process, the tender package will also include regulations on timing (deadlines for the submission of qualifications and proposals, the time limits for asking for clarifications, and the expected timing of any dialogue phase), as well as other regulations related to any dialogue or interactive types of processes.

Regardless of the level of detail in the Request for Proposal (RFP), the tender process must be managed proactively to drive value through competition and ensure that obstacles and threats do not jeopardize the process. In a dialogue or interactive process, the procuring authority will face special challenges in managing the dialogue or interaction in order to preserve confidentiality while maintaining transparency and fairness in the process. Specific information will be provided in this chapter on this issue.

As there are a range of distinct tender processes (see appendix to chapter 4), this chapter sets out the main milestones and activities that are present in all processes to be handled by the procuring authority through the selection and awarding of the contract. It also includes specific information on dialogue and interactive processes[1].

In addition, despite the fact that this PPP Guide is structured around the vision and needs of the procuring authority, the special appendix included in this chapter will present the views of the future private partner. This describes how the private sector partner needs to organize and manage the tasks of bid preparation and submission, as well as executing the contract and raising the finance to commence the works.

BOX 6.1: Learning Objectives

Readers will be able to:

  • Understand the mechanics of the approvals/authorizations necessary through to financial close
  • Manage any potential need for changes or re-scheduling in the procurement process
  • Handle the qualification and evaluation processes
  • Understand the need for any conditions prior to contract signature
  • Understand the distinction between commercial close and financial close, and the key elements of the financial close process.

[1] For the sake of simplicity, the explanation of the process will not include the fact that in some processes the proposal may be staged. This involves submitting at least two proposals, the initial and the final offer.

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