Unsolicited Proposals

The PPP Act 2004 was amended in July 2008 to include, amongst others, a process to manage unsolicited proposals. A step-by-step process for the management of unsolicited proposals is described below:

1. A private promoter (herein after referred to as the Original Proponent) submits a project concept and the proposed cost of a detailed feasibility study to the contracting authority.
2. The contracting authority will examine the project concept in line with the relevant sector strategies and investment programme. The contracting authority will make an assessment as to whether the project can be considered for implementation under a PPP arrangement.
3. Within 15 working days of receipt of project concept, the contracting authority will have to submit the project concept together with its assessment to the Public-Private Partnership (PPP) Committee.
4. The PPP Committee may approve or reject the project concept. The Committee will inform the contracting authority of its decision.
5. If the project concept is retained, the contracting authority must within 5 working days request the original proponent to submit to the Committee –
   1. details of his technical, commercial, managerial and financial capabilities;
   2. a feasibility study containing the technical and commercial details of the project; and
   3. the nature of information which is proprietary.
6. The original proponent will not be requested to submit his price proposal at this stage.
7. The PPP Committee will assess the feasibility study and evaluate the technical proposal.
   1. If the technical proposal is accepted, the PPP Committee will request the contracting authority to proceed with an Invitation to bid. Pre-selection of bidders will not be required.
   2. If the technical proposal is rejected, the process will end. The original proponent will not receive compensation for the cost of the feasibility study.
8. If the technical proposal of the original proponent is accepted, the contracting authority must prepare Request for Proposal (RFP) documents which will be based on information contained in the technical proposal of the original proponent. The RFP documents must be approved by the Central Procurement Board (CPB) before bids are invited.
9. The original proponent will be requested to submit his financial proposal to the CPB. The other bidders must submit their technical and financial proposals.
10. Mention will be made in the RFP documents to the effect that -
    1. the PPP project has emanated from an original proponent whose technical proposal has been accepted by the PPP Committee;
    2. the original proponent will be awarded the project if his price is within 10 % of the price of the preferred bidder; and
    3. If the original proponent is not awarded the contract, the contracting authority will compensate the original proponent the approved cost of the feasibility study. The contracting authority will claim such cost from the successful bidder.
11. The CPB will evaluate bids received and will give its approval for the award of the project to the successful bidder.