Once PPP has been structured and the preparatory work is underway, the transaction manager, responsible for ensuring that the process runs smoothly, transparently, and timely, should be in place.
During the transaction stages, it is important to have more formal interaction with potential bidders on the specifics of the transaction as designed. During these interactions, the government needs to guard against potential manipulation of the PPP design and process by the bidder to its advantage. Likewise, bidders should not enjoy any advantage (e.g., additional information) in the bidding process through such consultations. Discussions must avoid any bias toward a particular bidder and should be broadly held with sector stakeholders as well. The government may find it useful to be supported by PPP advisors in its interactions with potential bidders.
Two specific points of interaction with the potential bidders are:
Bid conference. During the bid conference, the government presents an outline of the project and bidders are invited to react and question. However, in a formal setting surrounded by competitors, some bidders may withhold concerns, be unwilling to share good ideas, or may collude with other bidders to push for a particular change.
Bid document consultation. Alternatively (or in addition to a bid conference), bidders may be invited to individually comment on the draft bidding documents, including the draft contract. This approach allows the government to identify issues of concern across the range of bidders. Government should send each bidder a full set of the responses to all questions raised, thus avoiding any semblance of favoritism.
A bidder will expect to have a clear understanding of the time line, the sequence of activities, the decision points, and the decision makers. This information should be given to bidders in writing and should be regularly reviewed and reconfirmed. This clarity is necessary to provide bidders with a sense of confidence in the transparency and reliability of the process.