Module 8 - Procurement

Each country has its own unique approach to soliciting and evaluating PPP project proposals. Many countries have special legal instruments concerning PPPs. It is likely that the procurement process is also outlined in their legal instruments. In other countries where there is no such special law on PPPs, governments normally follow a procurement process in line with the general public procurement process of the country. Considering the complexity of PPP procurement compared with conventional public procurement, some countries have outlined detailed steps to be followed in a PPP-procurement process.

In a developing PPP market however, it is difficult to outline a suitable procurement process at the outset. Considering the complexity and limited experience at the beginning, some countries have taken a cautious and pragmatic approach in procurement. Developing a flourishing PPP industry requires care and consideration of lessons learned through initial projects. In the early years of PPP development many governments approve projects on an ad-hoc basis but taking care of general public procurement guidelines or rules to establish an experience base for the country. Once this experience base is established a more formal process can be finalized by the controlling authority/ministry.

IDevice Icon Objectives of Module 8

On completion of this module you should have a basic understanding of:

  • good governance in PPP procurement
  • pre-procurement activities; and 
  • the various steps in the procurement process, in including issues such as pre-qualification, tendering, evaluation and financial closure.

Copyright © 2008 by Transport Policy and Development Section, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).