The prequalification of bidders is a typical stage followed in most countries. This stage may also be considered as the beginning of the formal procurement process to select a private investor/service provider. This stage begins with an invitation for expressions of interest (EOI). The main objective is to pre-qualify potential bidders for the project. The purpose of prequalification is to assess the technical and managerial competency and financial soundness of the interested bidders. Prequalification of bidders is not intended to cover any aspect of the proposal for the project or factors related to the indicative contract. These elements are considered at the later stages of the procurement process.

Purpose of prequalification

Sufficient time is given to prospective bidders to submit their EOI. Considering the complexity of the project some countries allow 4-12 weeks for the submission of EOI. The EOI notice may include the following information for the prospective bidders to consider:

Information provided

• Sufficient explanation of the project and basic information;

• Project objectives and its service requirements;

• Services to be delivered by the private sector and the agency’s role in service delivery;

• Main terms of the indicative contract including proposed risk allocation. These terms are similar to those presented at the procurement briefs/conference but modified in response to the results of market sounding;

• Any available technical reports and known project constraints (legal, financial, budgetary, planning etc.);

• The information that tenderers must submit;

• Evaluation criteria and their relative weights. Such criteria may include technical capability, management capacity, financial condition, past performance, etc. The prequalification criteria are chosen to assess the capacity of the intending bidders to deliver the contract;

• The procedure for selection.