Unsolicited project proposals for PPPs in Indonesia have two stages. The first covers the time from when a project proponent presents a project to the government until all internal assessments and approvals are finished and the project is ready to be tendered. The second stage is a competitive tender, which may well differ in the incentives or benefits in the project proponent's unsolicited proposal.
The first of three steps in the first stage to get a project approved for an unsolicited proposal begins with a letter of intent proposing the project and a concept suggestion (and includes documentation showing the proponent is able to carry out the project). The contracting agency decides whether to continue with the proposal.
The second step involves the contracting agency's evaluation of the project proponent's feasibility study, and whether the proponent fulfills the requirements to join the tender. Three things need to be done for this: (i) the proponent submits the feasibility documents to the contracting agency, (ii) the agency evaluates and assesses the feasibility study and prequalification requirements, and (iii) the agency approves or rejects the proposal. The third step is the process to get the contracting agency's approval for the project proponent to be formally designated as the project's initiator. This step has four parts in which (i) the proponent completes the feasibility study and prequalification requirements, (ii) the proponent obtains environmental permits and location stipulation, (iii) the agency decides whether to go ahead with the proposal, and (iv) the agency sets compensation for the project proponent.
The second stage involves a competitive tender process up to financial close. During this stage, the approaches tend to differ in incentives or benefits to those offered to the project's original proponent. Compensation for the project initiator is provided after the review of the proposal assessment by giving one extra point within 10% of total evaluation points and granting the project proponent the right to match, according to the tender results, no later than 30 days from the announcement of the best offer in the tender process.