A guidebook on public-private partnership in infrastructure

CHAPTER 5 
PROJECT IMPLEMENTATION:
PROCUREMENT AND CONSTRUCTION
 
Key Tasks 
The key tasks in this stage include: 
• Considering the legal and governance aspects in 
procurement 
• Deciding the implementation arrangements 
• Undertaking the pre-procurement activities
• Conducting the procurement process 
• Overseeing construction and commissioning 
 
A. LEGAL AND GOVERNANCE ASPECTS IN PROCUREMENT 
The legal basis of 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.
Good governance in procurement 
The PPP procurement process needs to be a transparent, neutral process 
based on the common principles of good governance. It should promote competition 
and ensure a balance between the need to reduce the length of time and cost of the 
whole procurement process. The main objective of such a process is to acquire the 
best proposal that serves the purpose of the government and provides the value for 
money. The main characteristics of such a procurement process include: 
• Open and unbiased tendering process that provides equal opportunity to 
all prospective bidders; 
• Not a one-way process; 
• The schedule of requirements is finalized through a two-way 
communication and is based on what best possible solution the private 
sector can offer; 
• Avoids costly retendering; 
• Ensures wide participation of the private bidders by eliminating costly 
design efforts before the contract is finally awarded; and

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A Guidebook on Public-Private Partnership in Infrastructure 
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• Where applicable, a two-step tendering process is considered to avoid 
costly design exercises in the first stage. 
Section D outlines a procurement process that considers these elements in good 
governance.