The Bidding Process in Public Private Partnership (PPP) Projects

  Cost Management   Knowledge Shelf  

What is PPP?

There is no  single definition of Public Private Partnership (PPP). PPP broadly refers to long-term, contractual partnerships between public and private sector agencies, specifically targeted toward financing, designing, implementing, and operating infrastructure facilities to provide services that have been traditionally provided by the public sector.

As per the Viability Gap Fund (VGF) Scheme of the Government of India:

“The Public Private Partnership (PPP) Project means a project based on contract or concession agreement between a Government or statutory entity on the one side and a private sector company on the other side, for delivering an infrastructure service on payment of user charges.”

As per the gidelines of the IIPDF scheme of the Department of Economic Affairs, Ministry of  Finance, the Government of India has defined Public Private Partnership (PPP) as:

“Partnership between a public sector entity (Sponsoring authority) and a private sector entity (a legal entity in which 51% or more of equity is with the private partner/s) for the creation and/or management of infrastructure for public purpose for a specified period of time (concession period) on commercial terms and in which the private partner has been procured through a transparent and open procurement system.”

Significance of Bidding in …

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