The number of applicants to be pre-qualified and short-listed for the final stage of bidding, i.e. the RFP stage, needs careful consideration. On the one hand, the number of pre-qualified applicants should be adequate for ensuring real competition in bidding. On the other, a large number of short-listed applicants are viewed as a factor that dampens participation by serious applicants, thus diluting competition because credible investors are normally less inclined to spend the time and money necessary for making a competitive PPP bid if the zone of consideration is unduly large.
Moreover, restricting the list to the best available applicants improves the chances of a successful PPP operation. It is also international best practice to short-list about three to four bidders for the final stage of bidding. Considering all these factors, the short-listing of about six to seven pre-qualified applicants should be specified in the RFQ to secure high quality and competitive financial bids.