Guidelines for Public Private Partnership Pre-Qualification of Bidders

Abstract

The justification for promoting Public Private Partnership (PPP) in infrastructure lies in its potential to improve the quality of service with lower costs, besides attracting private capital to fund public projects. This, however, is predicated on a policy and regulatory framework that provides a fair, transparent and competitive environment. Flaws in the framework can lead to unintended outcomes; a cautious and diligent approach is, therefore, necessary while formulating the rules of engagement. One of the key factors that determines the success of a PPP project is the criteria for selection of the project sponsor, especially as such projects typically involve large capital investments for providing essential infrastructure services to users on a long-term basis. A bidder lacking in sufficient technical and financial capacity can well jeopardise the project and compromise the services that the government is committed to provide.