PPP procurement processes take longer than many traditional types of procurement. There are many reasons for this, including:
• the need for government to determine and articulate not only its short-term requirements, but also its long-term requirements, before calling for tenders;
• the need to short-list bidders before requesting detailed proposals - most bidders won't invest in the significant cost of preparing a detailed proposal unless the field of potential bidders has been narrowed;
• the due diligence undertaken by debt and equity financiers; and
• the need to finalise contracts with a larger number of counterparties.
Consequently, the cost of bidding PPPs is significant. Some private sector participants say it is excessive.