4.1.4  Pre-Qualification Questionnaire ("PQQ")

The PQQ is aimed at assessing whether Bidders meet the minimum competency and eligibility requirements, as decided by the Government Entity and other key Stakeholders of the Project.

A broader questionnaire should be detailed to focus on establishing the applicant's Credentials, assessing their ability to raise finance, and their technical competence. At a minimum, the questionnaire should seek answers for:

  Basic information on the respondent:

  Address;

  Contact details;

  Company and Consortium profile;

  Selected key financial indicators;

  Credit rating (if applicable);

  Number of employees; and,

  Number of projects in a similar role successfully carried out.

  Financial information, including audited statements for the past five years, that enable the calculation of tangible net worth;

  Summary of precedent projects, which will serve as detailed Credentials emphasising the applicant's role in the project which may include examples of past experience of having undertaken Projects of a similar nature;

  Summary of similarly structured precedent projects that the Bidder has carried out in the region and internationally; and,

  Experience of having provided and/or raised funds for similar Projects.

Should the Government Entity desire greater international participation on the Project, eligibility requirements should weigh international transaction experience heavily and make global presence a mandatory requirement, for instance. Minimum eligibility requirements could include a minimum tangible net worth, relevant experience in precedent transactions of a similar nature and scope, and international project experience in a country outside the one in which the Bidder derives the greatest proportion of its revenue, amongst others. The Government Entity must ensure that the eligibility criteria are not so restrictive so as to qualify a limited number of Bidders, while still ensuring only high quality Bidders qualify. Generally, 5 to 7 is a good number of pre-qualified Bidders per Project. A significantly higher number will reduce the interest of strong Bidders due to a lower probability of success.