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Investor Marketing & Pre-Qualification

Marketing

Marketing the PPP is an essential component of PPP design and tender activities that is too often given short shrift. The ways in which government should interact with investors change in approach and objective along the PPP transaction timeline.  

Very early interaction with possible investors (even prior to launching the PPP project) assures the government that there will be enough interest in the project to generate competition (and go a long way to assuring value for money).

This early interaction should be followed by a Request for Expressions of Interest accompanied by the publication of a project teaser, sent directly to known interested parties and advertised more broadly through appropriate channels.  This allows the government to build its target list of investors and continue with more intensive communication with this group of companies. This could include conducting investor conferences, meetings, or road shows to present the project. The scale and location of meetings can be tailored depending on the profile of the investors.

Continued close communication with the investors who expressed interest, up until the formal launch of the bidding process is very important, especially if there are external shocks (such as a downgrade of the country's credit rating, or an improvement in investment conditions in other regions that might draw investors away). This not only serves to maintain their comfort and interest, but allows the government to ensure the project is structured in a way that will appeal to investors.

In situations where the market is not well known or is particularly fluid, it is very useful to conduct a Request for Qualifications early on in project development. Where the market is well understood the REOI can be folded into the RFP as a first hurdle.

Pre-qualifying investors

The next step may be to carry out a bidder pre-qualification process, to select the companies and consortia that will be invited to submit proposals. Not all countries select qualified bidders in advance, instead assessing qualifications as part of an open bidding process.

The pre-qualification process consists of preparing and issuing the Request for Qualifications (RFQ)—along with advertising the launch of the tender process, and evaluating the information received to select a group of qualified bidders.

For procurements that include a pre-qualification stage, the procurement process is officially launched when the RFQ is issued. The RFQ typically includes enough information on the project for potential bidders to decide whether they are interested, and information on how the project will be procured. It should also clearly set out the process and requirements for the qualification process.

Information on the project at this stage could include an overview of technical and service requirements, key commercial terms (although not typically a draft contract), and a list of the further information that will be made available at the procurement stage. Information on the qualification process typically includes the qualification criteria, the information required from firms and the format in which that information should be presented, and the timeline and process for evaluation.

Firm qualification criteria can be quantitative or qualitative. They typically involve considering the sponsoring firms’ financial robustness, previous experience with similar projects, and the experience of key members of the management team.

 

Learn More

    • 2014
    • Asian Development Bank (ADB), World Bank Group (WBG), Inter-American Development Bank (IDB), PPIAF

    Investor Marketing and Prequalification

    PPP Reference Guide Version 2.0

    Section 3.5.2 and 3.5.3 of the PPP Reference Guide deal with marketing of the PPP and prequalification of bidders.  Marketing the PPP helps attract bidders and investors. This is particularly important in the early stage of a PPP program—governments need to make a positive effort to build bidder interest, to increase competitive pressure. Marketing also helps identify who might be the potential bidders.  The next step may be to carry out a bidder pre-qualification process, to select the companies and consortia that will be invited to submit proposals. This section describes the pre-qualification process which consists of preparing and issuing the Request for Qualifications (RFQ)—along with advertising the launch of the tender...

    • 2010
    • Edward Farquharson, Clemencia Torres de Mästle, E.R. Yescombe, and Javier Encinas
    • PPIAF

    How to Engage with the Private Sector in Public-Private Partnerships in Emerging Markets

    This guide reviews the necessary steps to successfully engage and manage a public-private partnership (PPP) from the early stages. It presents a framework that highlights the requirements, options, and challenges that governments face when embarking into PPPs, and explains how to address them so that a sound PPP program can be implemented and the benefits for both public and private partners can fully materialize. This book draws on experiences from both mature and developing PPP markets across the world, and case studies illustrate the key messages throughout. It discusses the policies, processes, and institutions needed to select the right projects and then manage preparation for market and operation. It identifies the underlying...

    • 2014
    • European Investment Bank (EIB)

    The EPEC PPP Guide

    The European PPP Expertise Centre (EPEC) has published several versions of its Guide to Guidance over the last few years. The Guide to Guidance is principally aimed at public procuring authorities considering the use of public-private partnership (PPP) arrangements. Given the positive feedback it has received, EPEC decided to turn the Guide to Guidance into a webtool rebranded as the EPEC PPP Guide. The aim of the EPEC PPP Guide is to give users easy access to regularly updated PPP guidance and allow them to interact with the EPEC team (e.g. propose new guidance, rate the EPEC PPP Guide).  

    • 2004
    • Government of South Africa
    • Government of South Africa

    Public-Private Partnership Manual, South Africa

    Main Introduction and Table of Contents

    South Africa is amongst the leading countries in the world in the law, policy and systems it has established for public private partnerships. The South African National Treasury’s PPP Manual is a best practice guide for PPP practitioners. Each module of the PPP Manual is issued as a National Treasury PPP Practice Note in terms of the Public Finance Management Act, 1999 (PFMA). It should be read with Standardised PPP Provisions, issued as National Treasury PPP Practice Note Number 01 of 2004.  

    • 2012
    • Government of Singapore

    Public Private Partnership Handbook

    This document published by Singapore's Ministry of Finance provides an introduction to the concept of Public Private Partnership (PPP) covering PPP delivery models and the roles of the public and private sectors in PPP Projects. It also explores the structuring process, procurement process, and management of a PPP relationship in depth.

    • 2015
    • Government of Australia

    National Public Private Partnership Guidelines - Volume 2: Practitioners’ Guide, Australia

    The Practitioners’ Guide is one of the detailed guidance documents that form part of the Guidelines. It provides guidance to government departments and agencies across jurisdictions on how PPP processes should be implemented in a consistent manner. The Practitioners’ Guide is specifically drafted to apply to the implementation of a project from the point of a government decision to proceed with a project as a PPP. It does not attempt to address issues related to the process for government approval of the project or the process for assessing different procurement options. Once government has approved the project to proceed as a PPP, the Procuring Agency must deliver the project consistent with these Guidelines. However, given these...

    • 2009
    • PPIAF
    • PPIAF

    Toolkit for Public-Private Partnerships in Roads and Highways

    The Toolkit is a reference guide for public authorities in developing countries for the development of PPP (public-private partnership) programs in the highways sector, particularly in assisting in PPP policy development, project preparation and the sourcing and monitoring of external expertise. It provides guidance in the definition of strategy and policy for PPP, the characteristics of PPP projects and the stages for their preparation. Module 4, "Laws & Contracts" https://ppiaf.org/sites/ppiaf.org/files/documents/toolkits/highwaystoolkit/4/index.html examines the legal framework and regulatory environment for PPPs.  It provides a framework for diagnosis and reform and provides the basis for preparation of PPP contracts. Module 5,...

    • 2007
    • World Bank Group (WBG)

    Sample Bidding Document: Procurement of Management Services

    This sample Bidding Document for Procurement of Management Services (SBDMS) was prepared by the World Bank to be used on a voluntary, trial basis, for the procurement of management services through International Competitive Bidding (ICB) in projects that are financed in whole or in part by the World Bank. It is consistent with the May 2004 edition of the Guidelines for Procurement under IBRD Loans and IDA Credits, revised October 2006.

    • 1998
    • Michel Kerf, R. David Gray, Timothy Irwin, Céline Levesque, and Robert R. Taylor
    • World Bank Group (WBG)

    Concessions for Infrastructure

    A guide to their design and award

    This report aims at helping policymakers and advisers better understand some of the most important and difficult aspects of concession design, award, implementation, monitoring, and modification. Concession is broadly defined as any arrangement in which a company receives from the government the right to offer a service under conditions of significant market power.

    • 2007
    • Government of Pakistan

    Project Preparation and Feasibility Guidelines for PPP Projects in Pakistan

    Project feasibility guidelines set out a simple methodology by which implementing agencies/institutions will be able to: Carry out an initial exclusionary screening of projects to select projects suitable for development as PPPs; carry out a preliminary feasibility study to further develop the project concept and verify its potential viability before a full feasibility study is undertaken; complete a feasibility study that ensures that a decision to proceed with the project as a PPP is based on awareness of costs, risks, and value for money; conduct a risk appraisal methodology; devise a basic flow diagram including combining project and social safeguards appraisal methodologies; carry out a necessary due diligence process.

    • 1993
    • Government of Philippines

    Republic Act No. 7718, Philippines

    The Philippine BOT Law and its Implementing Rules & Regulations

    An act amending certain sections of republic act no. 6957, entitled “An act authorizing the financing, construction, operation and maintenance of infrastructure projects by the private sector, and for other purposes.”

    • 2014
    • Asian Development Bank (ADB), World Bank Group (WBG), Inter-American Development Bank (IDB), PPIAF

    Marketing a Inversionistas y Precalificacion

    Asociaciones Publico-Privadas: Guia de Referencia Version 2.0

For legal and regulatory resources go to PPPIRC

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