• Body of Knowledge:
    Appendix Bid Preparation and Submittal the private sector perspective
    6.1 Introduction and Purpose
    This section describes the approach taken by the private party in a PPP project. The private party is the private sector entity that is successful in securing the right to implement and operate the procuring authority’s PPP project. A variety of names may be used to describe this private party....
  • Body of Knowledge:
    Appendix Bid Preparation and Submittal the private sector perspective
    6.7 Responding to the RFP and Submitting a Tender Response
    The complexity of the procuring authority’s PPP project requires the consortium to adopt a project management approach to ensure that all necessary experts and skills are managed in an effective and timely manner. Upon signing the Letter of Intent (LOI), Memorandum of Understanding (MoU), or...
  • Body of Knowledge:
    Appendix Bid Preparation and Submittal the private sector perspective
    6.4 Putting a Consortium Together
    Following a successful PPP project screening, partnerships will be forged between like-minded organizations and a consortium will be formed with a view to responding to the procuring authority’s RFP. Implementing the PPP project will require the implementation of material construction, operations,...
  • Body of Knowledge:
    Tendering and Awarding the Contract
    5. Time to Prepare and Submit Offers: Requirements for Proper Assessment and Preparation by the Prospective Bidders
    As introduced in section 2 of chapter 5, it is essential to give the bidders sufficient time to prepare a sound and high quality offer. Especially in open tender models, one of the common pitfalls in a PPP procurement is that the procuring authority allows bidders insufficient time for this work....
  • Body of Knowledge:
    Appraising PPP Projects - Appendix A - Procurement Procedures
    2. Main Types of PPP Tender Processes
    Open Tender or One-stage Tender Process In this form of open tender, the RFP is published at the same time as the contract, and launching implies the invitation to propose, with the tender open for bidding to any potential bidder. The proposal requirements also include the qualification...
  • Body of Knowledge:
    Appraising PPP Projects
    6.2 Inputting the Capital Expenditures
    The initial capital expenditures (initial Capex) group represent the expenses incurred from the private consortium’s preparation of its proposal until the commissioning of the asset. These expenses commonly occur before the project company obtains any revenue. The expenses are mostly obtained from...
  • Body of Knowledge:
    Appendix Bid Preparation and Submittal the private sector perspective
    6.5 Bringing Advisers on Board
    Specialized knowledge is required to ensure a winning bid, and the consortium bidding for the procuring authority’s PPP project will be keen to put this in place as soon as possible. Despite the fact that large sponsors have internal resources that can be used to deal with the preparation of the...
  • Body of Knowledge:
    Structuring and Drafting the Tender and Contract
    7.3 Technical Capacity or Experience
    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...
  • Body of Knowledge:
    Structuring and Drafting the Tender and Contract
    7.1 Legal Qualification
    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...
  • Body of Knowledge:
    Tendering and Awarding the Contract
    6.4. Assessing Potential Changes to the Contract and RFP
    As a result of questions asked by bidders through the clarification process, it may become apparent that the procuring authority needs to materially change aspects of the contract, tender requirements, or criteria. Conducting a proper appraisal and structuring/drafting process, through meaningful...
  • Body of Knowledge:
    Tendering and Awarding the Contract
    4. Overview of the Phase
    Generally, there are four main stages into which any tender process may be divided. Pre-qualification (in open tenders with a pre-qualification stage) or short listing (in a process with a short listing or pre-selection of candidates). Bid period – from launching through bid submission or...
  • Body of Knowledge:
    Establishing a PPP Framework
    1.9.4 Promoting Procurement and Good Governance, and Reducing Corruption
    High value transactions attract the risk of corruption. Private players may attempt to improperly influence transactions and public officials may attempt to extract private profit from public office. Corruption in PPPs can be minimized using the mechanisms outlined above clear processes and...
  • Body of Knowledge:
    PPP Introduction and Overview
    8.3. Examples of Project Cancellation due to Improper Process Management [112]
    8.3.1. Arising during Pre-Tender and Tender Phases The following are common examples of poor management during the pre-signature phase of the project process that reflect errors and risks of project failure (to be regarded as a non-exhaustive list). The appraisal may conclude that the project...
  • Body of Knowledge:
    Appendix Bid Preparation and Submittal the private sector perspective
    6.2 How the Private Party Targets Markets and Selects PPP Projects
    There are many private parties involved in a PPP project and each has its own specific reasons for investing in such a project. Influencing factors include a party’s investment appetite, together with its corporate strategy; the mandate it has to invest in specific sectors/countries; and how...
  • Body of Knowledge:
    Structuring and Drafting the Tender and Contract
    7. Defining Qualification Criteria: Structuring and Drafting the RFQ
    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....
  • Body of Knowledge:
    Appendix Bid Preparation and Submittal the private sector perspective
    6.3 Bid Preparation and the Decision to Submit a Response to the RFP
    Following on from a successful PPP project screening, and once partnerships have been formed between like-minded organizations in the consortium (see section 6.4), the two main activities that the consortium will carry out are preparing the response to the procuring authority’s RFP and making the...
  • Glossary
    The following glossary of terms has been prepared by the authors. Some of these definitions are based on external sources, adapted for this PPP Guide, while others have been developed by the authors to reflect common usage and good practice. The main external sources used to develop this Glossary...
  • Body of Knowledge:
    Establishing a PPP Framework
    1.6.6 Privately-Initiated Projects
    As an alternative approach to originating and developing PPP project ideas, some governments accept unsolicited or privately-initiated PPP projects. By welcoming “privately-initiated” projects, governments can harness information and ideas that private firms have about how to provide services...
  • Body of Knowledge:
    Tendering and Awarding the Contract
    7. Qualification Matters
    In a one-stage process with open tender, qualifications are presented at the same time as the offer. The procuring authority must first assess qualifications before evaluating the bids. Separating these two steps sequentially is generally regarded as good practice, and some jurisdictions regulate...
  • Body of Knowledge:
    Strategy Delivery and Commissioning
    8.5. Amendments and Renegotiation of PPP Contracts
    Managing the changing environment and emerging risks through amending and adapting contracts is key to de-stressing projects. As such, there are very few, if any, absolute prohibitions on amendment of PPP agreements in any jurisdiction with significant PPP projects. The European Union (EU) has one...