Unsolicited versus solicited public partnership proposals: is there a trade-off between innovation and competition?

Author

Country

Findings

Zawawi, Kulatunga and Tayapharan (2016)

Malaysia

Lack of competition in UP processes.

Mallisetti, Dolla and
Laishram (2021)

India

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.

Takano (2021)

Peru

Lack of competition in UP processes particularly at the subnational government level.

Marques (2018)

Brazil, USA, Korea

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.

Camacho, Rodriguez
and Vieira (2017)

Brazil, Chile

Difficulties in fostering competition (very few winners that are not proponents).

Government's knowledge
of S (all technical solutions)

Modality of
the PPP

Scenarios

Results

Complete information

SP

Transfer design risk

No new technical solution can be offered by the proponent. Unique source of efficiency is competition.

No transfer design risk

No new technical solution can be offered by the proponent. Unique source of efficiency is competition.

UP

Competitive tender

No new technical solution can be offered by the proponent. Unique source of efficiency is competition.

Directly negotiated

Null increase in welfare.

Incomplete information

SP

Transfer design risk

Both competition and a technical solution can be a source of efficiency.

No transfer design risk

Unique source of efficiency is competition.

UP

Competitive tender

Both competition and a technical solution can be a source of efficiency.

Directly negotiated

Welfare enhancing effect of technical solutions is offset with higher tariffs applied by the proponent.

Country

Number of unsolicited proposals

Percentage

Brazil

105

40.1

India

17

6.5

Colombia

13

5.0

Peru

10

3.8

Turkey

9

3.4

Mexico

8

3.1

Indonesia

7

2.7

Jordan

7

2.7

Honduras

6

2.3

Philippines

5

1.9

Russian Federation

5

1.9

Bangladesh

4

1.5

Dominican Republic

4

1.5

Malaysia

4

1.5

Pakistan

4

1.5

Others

54

20.6

Total

262

100.0