Centre issues norms for PPP projects

The government today issued norms for pre-qualification of bidders for public-private partnership in the infrastructure sector, aimed at ensuring that only the best get to develop the core sector projects.

The guidelines, released by Planning Commission Deputy Chairman Montek Singh Ahluwalia today, was necessitated due to considerable divergence in the principles and practices followed for selection of bidders in different sectors.

To finalise the rules for pre-qualification and shortlisting of applicants, the Committee of Infrastructure was constituted by an inter-ministerial group headed by the Secretary, Department of Expenditure.

The group held extensive consultations with stakeholders and experts and thereafter submitted its recommendations that were subsequently accepted by the Committee.

The guidelines for pre-qualification of bidders for PPP projects have since been issued by the finance ministry and because the PPP project involves large capital investments for providing essential infrastructure services to users on long term basis, the capacity of projects sponsors assume considerable significance.

A bidder lacking in sufficient technology and financial capacity could jeopardise the project and compromise the services that government is committed to providing.

The selection process will comprise two stages. The first stage of "Request for Qualification" aimed at pre-qualification and shortlisting of applicants, while the second stage related to "Request for Proposal" involving submission of financial offers by shortlisted applicants.

"It is hoped that adoption of these guidelines will enhance the possibilities of a fair, transparent and competitive selection of bidders for delivery of successful PPP projects in infrastructure," a Planning Commission source said.