Development of Policy, Legal, and Insitutional Framework for - ppiaf

Development of Policy, Legal, & Institutional Framework for the PPP Program in Malawi
Final Report
7. Specify adequate levels of government support to PPP projects;
8. Propose an approach for conciliation or, if necessary, dispute
resolution; and
9. Institute an agency which will coordinate PPP transactions and
assume charge of sectors that are not assigned to specific line
ministries.
The legislation will also specify that:
1. All bid documents be prepared in line with the provisions of the PPP
legislation, sector policy and model concession agreements. On its part,
the Government will provide incentives which will assist the private
sector in the preparation of the project documentation;
2. The bid documents shall include project studies undertaken by the
Government, draft concession agreements and offer of Government
support;
3. The notice inviting participation will be adequately publicised, so
as to attract all possible investors;
4. The bid process would be designed to assess the Developer’s
technical, commercial (if required), managerial and financial
capabilities;
5. All proposals will be evaluated on a common platform to the extent
possible;
6. The Directorate of Public Procurement or other competent
authority shall certify that the bidding process has been in line with
the provisions of this Act, the Sector Policy and the Model
Concession Agreement, if the same has been formulated;
7. Revenue objectives of the Government shall be of secondary
importance in determining the selection criteria, and minimising
user costs will always be of primary importance;
8. For developer selection through competitive bidding in BOOT,
BOT, BOO projects, the Government shall use one or a combination
of more than one of the following criteria:
• Lowest bid in terms of the present value of user fees;
• Highest revenue share to the Government;
• Highest up-front fee;
• Shortest concession period;
• Lowest present value of the subsidy;
• Lowest capital cost and operational and maintenance cost
for projects having a definite scope;
• Highest equity premium; and
• Quantum of State Support solicited.
THE INSTITUTE FOR PUBLIC-PRIVATE PARTNERSHIPS 90