The interest of the private sector is assessed by organizing a procurement briefing/conference open to any interested private parties. The main purpose of this step is to get some initial feedback from the market on the feasibility of the proposed PPP project. Relevant basic information on the project is provided to the interested parties which may include the type of services to be procured and the demand for such services, type of PPP deal (BOT, BOO, etc.), likely tenure of contract, obligations of the parties in broad terms, revenue sharing arrangement, financing, exit arrangements, etc.

Purpose of market sounding

Both the government and interested investors are benefited through this pre-procurement engagement and consultation. The interested investors get an idea of the project and government’s plan and the government agency gets initial response of the private sector concerning the project including a better picture of the capacity and interest of the private sector in implementing the project.

How each party is benefited