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Unsolicited versus solicited public partnership proposals: is there a trade-off between innovation and competition?
Gonzalo Ruiz Diaz*
Article | Year: 2024 | Pages: 311 - 335 | Volume: 48 | Issue: 48 Received: December 12, 2023 | Accepted: May 18, 2024 | Published online: September 3, 2024
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FULL ARTICLE
FIGURES & DATA
REFERENCES
CROSSMARK POLICY
METRICS
LICENCING
PDF
Author
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Country
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Findings
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Zawawi, Kulatunga and Tayapharan (2016)
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Malaysia
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Lack of competition in UP processes.
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Mallisetti, Dolla and
Laishram (2021)
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India
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Several flaws in their policies regarding implementation features
across the stages of UPs, such as defined objectives, absence of fees and
review timeframes in the submission, time frame and guidance on benchmarking
and market testing in the evaluation and development stages, and the time
frame for bidding and access to information in the procurement stages.
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Takano (2021)
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Peru
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Lack of competition in UP processes particularly at the subnational
government level.
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Marques (2018)
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Brazil, USA, Korea
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Success factors for UP programs: commitment and mutual help are
central to the process, robust and well-developed UP frameworks, competitive
tenders, sound governance practices and leadership of PPP units.
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Camacho, Rodriguez
and Vieira (2017)
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Brazil, Chile
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Difficulties in fostering competition (very few winners that are not proponents).
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Government's knowledge
of S (all technical solutions)
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Modality of
the PPP
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Scenarios
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Results
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Complete information
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SP
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Transfer design risk
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No new technical solution can be offered by the
proponent. Unique source of efficiency is competition.
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No transfer design risk
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No new technical solution can be offered by the
proponent. Unique source of efficiency is competition.
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UP
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Competitive tender
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No new technical solution can be offered by the
proponent. Unique source of efficiency is competition.
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Directly negotiated
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Null increase in welfare.
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Incomplete information
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SP
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Transfer design risk
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Both competition and a technical solution can be
a source of efficiency.
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No transfer design risk
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Unique source of efficiency is competition.
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UP
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Competitive tender
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Both competition and a technical solution can be
a source of efficiency.
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Directly negotiated
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Welfare enhancing effect of technical solutions
is offset with higher tariffs applied by the proponent.
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Source: World Bank (2014).
Source: International Renewable Energy Agency (IRENA).
Country
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Number of
unsolicited proposals
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Percentage
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Brazil
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105
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40.1
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India
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17
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6.5
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Colombia
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13
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5.0
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Peru
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10
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3.8
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Turkey
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9
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3.4
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Mexico
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8
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3.1
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Indonesia
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7
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2.7
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Jordan
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7
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2.7
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Honduras
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6
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2.3
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Philippines
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5
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1.9
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Russian Federation
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5
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1.9
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Bangladesh
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4
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1.5
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Dominican Republic
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4
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1.5
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Malaysia
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4
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1.5
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Pakistan
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4
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1.5
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Others
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54
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20.6
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Total
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262
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100.0
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Source: PPI World Bank.
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September, 2024 III/2024
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