6.1. Purpose of RFP Stage

The purpose of the RFP stage is to invite financial offers from the bidders pre-qualified at the RFQ stage in order to select the private partner for the project. As such, the information sought in the RFP is normally restricted to financial offers only. The financial offer which is the bidding parameter for the selection of the bidder in this stage should be decided keeping in view the nature of the project and its revenue stream.

The RFP should be simple and transparent and should require the bidder to quote only the value for a single objective financial parameter. Normally, depending on the viability of the project, the bidding parameter could be fixed either as the premium or the grant. The premium may be in the form of an upfront payment or the revenue share which is offered by the bidder to the public entity. The grant refers to the amount which is sought by the bidder from the public entity for undertaking the project.

Options for Selection Criteria

Other criteria used for selection would include objective technical/financial parameters such as:

• Level of service, quality of assets offered;

• Lowest quantum of land;

• Lowest present value of asset based support from the Government;

• Lowest unit value or present value of payments by contracting Authority;

• Highest present value of future payments;

• Lowest concession period;

• Lowest unit value or present value of user fees;

• Highest premium on (or present value of) equity shares offered.