4.1.1  SOLICITED PROPOSALS

Solicited proposals originate from the LGU. It follows the project preparation or feasibility study stage, and appraisal or project approval. Solicited proposals are projects identified from the regional/provincial/local development investment programs (RDIP/PDIP/LDIP) and have been approved by the local sanggunian and the appropriate local development councils or the Investment Coordination Committee for PPP implementation. Project proponent refers to the private sector entity with contracted responsibility for the project. In this section, "proponent" is used interchangeably with "bidder" in the context of procurement parlance. A viable proponent is one that has an adequate base to implement a project, with the base consisting of proponent equity and firm commitments from reputable financial institutions to provide, upon award, sufficient credit lines to cover the total estimated project cost.

The procurement of solicited proposals may involve one of two options, as provided for under RA 7718. The procurement process under option 1 has four distinct steps and is distinguished from the abbreviated process of option 2, with the inclusion of pre-qualification as a distinct step. The different steps are (1) pre-qualification (2) tendering (3) submission, and (4) receipt and opening of bids

In option 1, prequalification is undertaken prior to the issuance of request for proposals while in option 2 it is incorporated in the tendering step and followed by submission and receipt and opening of bids. In short, option 2, the qualification documents are simultaneously submitted together with the technical and financial proposals. The figure below illustrates the procurement process for options 1 and 2.

Figure 2-9: General PPP Procurement Process for Solicited Proposals