3.3. Bidding Phase
| The primary focus of the communication effort during the project bidding phase should be on the universe of private developers who could potentially bid for this project. A fair contest among qualified bidders is critical for efficient price discovery. Engaging the private sector through an active communication focus is therefore critical in the bidding phase. In addition, communication during this phase should also signal the transparency and integrity of the bid process. Public and Government scrutiny of PPP projects is generally intense, particularly during the bidding process. Communication actions during the project bidding phase should facilitate transparent and equitable sharing of information with all stakeholders and with this objective, a continuous dialogue with all parties involved must be maintained. |
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To ensure a keen contest, attempts should be made to identify and engage wide a set of private players as potential bidders and position the project as an attractive investment opportunity
In this regard, it is critical to underscore that interactions with potential bidders should go beyond just floating bid documents and conducting pre-bid meetings. This is particularly so when the project does not have direct precedence and/or if earlier PPP projects have not evoked adequate bidder response. Developing an active engagement strategy to attract private operators and facilitate a keen contest during and prior to the bidding phase is an important element of communication in a PPP project. There are two stages of interactions with the private sector:
1. Early stage interactions - It is important to identify and compile the universe of bidders during the project preparation phase. In the bidding phase of the project, it is necessary to engage the private sector through a series of pre-marketing efforts such as contacting and marketing the opportunity to potential bidders and sharing a Preliminary Information Memorandum that provides project details through a range of channels, including road shows and presentations at conferences.
During these interactions, the procuring agency should highlight facets of the project that make it an attractive investment opportunity including a stable policy environment where it exists and examples of successful projects implemented earlier in the context of say, the same State or sector. When a project does not have precedents, the procuring agency may need to highlight the innovative nature of the project and/or its potential for replication.
2. Formal Consultations with Bidders - Pre-bid meetings are a key element of a communication strategy that helps build trust and confidence among stakeholders. The pre-bid meetings need to be seen as a crucial communication tool at the disposal of the public entity.
Although the focus during this phase is on the bidders, it is essential to maintain a base level of communication with other stakeholders. The focus of communication during this phase within Government is on keeping all Government stakeholders informed. During this phase, the public entity may also require specific approvals, such as approval of bid documents and pre-qualified bidders after the evaluation of responses to the RFQ from a superior Authority.
Direct interaction with users during the bidding phase is likely to be limited to providing updates on the project. Judgement should be used to decide on stakeholders with whom more active consultations might be required to keep them updated. This could include political leaders, advocacy groups and other such parties.