Identification & Screening
2.2
Unsolicited project identification
Some governments allow private firms and other non-government entities to initiate and submit projects to the public sector for consideration. Unsolicited Proposals (USPs) should be subject to the same PPP identification, screening, and selection procedures as publicly initiated projects, to determine: (i) whether the project (as presented or with some adjustments) is in the public interest and merits further consideration, and (ii) if a PPP delivery model is the best implementation approach.47
Additionally, once the project has been identified as a good fit for PPP delivery, it must follow the same transparent procurement process that would ensure competition and the selection of the best offer. The onus is on the government to be the gatekeeper of project selection. Special attention must be taken during procurement, so that the USP proponent is not perceived as receiving preferential treatment from the government. The following textbox illustrates the experience with USPs in Jamaica.
Textbox 3.2: Jamaica Acknowledges Benefits and Challenges of Unsolicited Proposals “The PPP Programme accommodates unsolicited proposals because they indicate PPP projects that would be successful in the market, and may contain new ideas that add value for both the private sector and the public at large. Private firms are naturally on the look-out for profit-making opportunities – that is, instances where they can add value or reduce costs. So, they may spot opportunities that require government involvement – for example, because they use an asset owned by the Government – which the Government has not identified. At the same time, unsolicited proposals also bring challenges. If the Government negotiates directly with a Proponent, it loses the benefits of competition, so it may not achieve maximum value for money. Other firms may complain that direct negotiations are unfair, since they were not given an opportunity to participate, or profit by offering a better deal. On the other hand, if all unsolicited proposals are simply put out to competitive tender, few firms will bring unsolicited proposals, since their investment in developing the proposal will not benefit them financially. The PPP Policy specifically considers how unsolicited proposals will be considered and treated. The details of the procedural requirements for the submission of unsolicited proposals are contained in the PPP Procedures Manual.” Due to their controversial nature, USPs can become a highly contentious public policy issue. In May 2012, Jamaica’s Office of the Contractor General (OCG) issued a “Public Statement” voicing their concerns on a number of large infrastructure projects, which at the time were the subject of USPs. The OCG described USPs as “corruption enabling devices”; and called for USPs to “be excised from the Government’s Dyke Road Fishing Complex, Jamaica: Built as part of Highway 2000, to Procurement Guidelines”. The following relocate fisher folk who had been illegally occupying lands adjacent to the day, the Jamaica Civil Society Coalition new Highway, as part of the project’s social responsibility programme. issued a similar statement, entitled: “A Review of Recent Government Infrastructure Procurement Decisions”. This illustrates a commendably high level of concern among civil society, and certain arms of the Government of Jamaica, in ensuring the maximum transparency in public procurements. Sources: Office of the Contractor General. Open Statement by the OCG Regarding the Proposed Highway 2000 North South Link and the Container Transshipment Hub Projects. May 1, 2012. Accessed June 2016 at: http://www.ocg.gov.jm/ocg/releases/openstatement-ocg-regarding-proposed-highway-2000-north-south-link-and-container; Government of Jamaica. Shaping new partnerships for national development. Policy and Institutional Framework for the Implementation of a Public-Private Partnership Programme for the Government of Jamaica: The PPP Policy. pp. 30. 2012
There are strong public policy reasons for subjecting USPs to an even higher level of scrutiny, which will be discussed in the Business case and Procurement Modules of this Toolkit.
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