PROCURING UNSOLICITED BIDS WITHOUT LOOSING THE INNOVATION INGREDIENT: IMPLEMENTATION LESSONS FOR PUBLIC PRIVATE PARTNERSHIPS FOR DEVELOPING COUNTRIES
Abstract
Over the years the unsolicited PPP proposals also known as contractor facilitated financ-ing proposal are gaining momentum. The purpose of this paper was to explore the prac-tice of procuring unsolicited bids for PPPs from an international perspective to inform best practices for adoption in developing countries that are witnessing increasing offers from USP proponents. Existing literature acknowledges that unsolicited proposals (USPs) are largely unacceptable in traditional procurement but are acceptable in the environment of PPPs. While USPs are acceptable they have remained under researched as guidance on procedure for their management, remains relatively absent and at times shallow in national PPP policy, legal and regulatory frameworks. Based on a systematic review of literature, the study provides guidance on how to manage USPs in developing countries that are experiencing a rise in PPPs and USPs.
References
Abdel Aziz A, Nabavi H. 2014. Unsolicited proposals for PPP projects: Private sector perceptions in the USA. Constr Research Congress. p. 1349–1358.
Abdel Aziz AM, Nabavi H. 2011. Unsolicited proposals in public-private partnerships projects – Analysis of state regulations in the USA. 3rd International Construction Specialty Conference, the Canadian Society of Civil Engineers, June 14–17, Ottawa, ON, pp. CSC-155-1–CSC-115-10.
African Development Bank (2021). African Economic Outlook. From Debt Resolution to Recovery.
Ahmad, U., Ibrahim, Y., & Minai, M. S. (2018). Malaysian public–private partnerships: Risk management in build, lease, maintain and transfer projects. Cogent Business & Management, 5(1), 1550147.
Ali, A. M., Salah, H., Awad, M., Asmus, H., & Al-Jawaldeh, A. Enhancing nutrition specific interventions through public health policies and public-private partnerships in the Eastern Mediterranean Region: a desk review. F1000Research, 10(17), 17.
Alonso-Conde, A. B., Brown, C., & Rojo-Suarez, J. (2007). Public private partnerships: Incentives, risk transfer and real options. Review of Financial Economics, 16(4), 335-349.
Angus C. 2017. Unsolicited proposals - Issues back grounders. Parliamentary Research Service e-brief. New South Wales. [Accessed March 2018]. https:// www.parliament.nsw.gov.au/researchpapers/Documents/Unsolicited%20proposals.pdf.
Baxter, D., & Casady, C. B. (2020). Encouraging and Procuring Healthcare Public-Private Partnerships (PPPs) Through Unsolicited Proposals During the Coronavirus (COVID-19) Pandemic.
Bloomfield, P. (2006). The challenging business of long‐term public–private partnerships: Reflections on local experience. Public Administration Review, 66(3), 400-411.
Börzel, T. A., & Risse, T. (2005). Public-private partnerships: Effective and legitimate tools of international governance. Complex sovereignty: Reconstructing political authority in the twenty first century, 195-216.
Brinkerhoff, D. W., & Brinkerhoff, J. M. (2011). Public–private partnerships: Perspectives on purposes, publicness, and good governance. Public administration and development, 31(1), 2-14.
Broadbent, J., & Laughlin, R. (2003). Public private partnerships: an introduction. Accounting, Auditing & Accountability Journal.
Casady, C. B., & Baxter, D. (2020). Pandemics, public-private partnerships (PPPs), and force majeure| COVID-19 expectations and implications. Construction Management and Economics, 38(12), 1077-1085.
Cherkos, F. D., & Jha, K. N. (2021). Drivers of Road Sector Public-Private Partnership Adoption in New and Inexperienced Markets. Journal of Construction Engineering and Management, 147(3), 04020186.
Custos, D., & Reitz, J. (2010). Public-private partnerships. The American Journal of Comparative Law, 58(suppl_1), 555-584.
Dewulf, G., Blanken, A., & Bult-Spiering, M. (2012). Strategic issues in public-private partnerships. London: Wiley-Blackwell.
Domingues, S., & Sarmento, J. M. (2016). Critical renegotiation triggers of European transport concessions. Transport Policy, 48, 82-91.
Dugan, I. (2010). Private investors push into public projects. The Private Equity Analyst.
Egger, M., Smith, G. D., Schneider, M., & Minder, C. (1997). Bias in meta-analysis detected by a simple, graphical test. Bmj, 315(7109), 629-634.
Engel, E., Fischer, R., & Galetovic, A. (2008). Public-private partnerships: When and how. Cowles Foundation for Research in Economics, Yale University.
Forrer, J., Kee, J. E., Newcomer, K. E., & Boyer, E. (2010). Public–private partnerships and the public accountability question. Public administration review, 70(3), 475-484.
Franco, A., Malhotra, N., & Simonovits, G. (2014). Publication bias in the social sciences: Unlocking the file drawer. Science, 345(6203), 1502-1505.
Garrido, L., & Vassallo, J. M. (2021). Is Ex-Post Fiscal Support to PPPs Sustainable? Analysis of Government Loans Granted to Shadow-Toll Roads in Spain: A Case Study. Sustainability, 13(1), 219.
Gerrard, M. B. (2001). Public-private partnerships. Finance & Development, 38(3), 48-48.
Guasch, J. L., Benitez, D., Portables, I., & Flor, L. (2014). The Renegotiation of PPP Contracts: An overview of its recent evolution in Latin America. International Transport Forum Discussion Paper.
Heron, R. A., & Lie, E. (2006). On the use of poison pills and defensive payouts by takeover targets. The Journal of Business, 79(4), 1783-1807.
Ho, S. P. (2006). Model for financial renegotiation in public-private partnership projects and its policy implications: Game theoretic view. Journal of construction engineering and management, 132(7), 678-688.
Hodge, G. A., & Greve, C. (2007a). Public–private partnerships: an international performance review. Public administration review, 67(3), 545-558.
Hodge, G., & Greve, C. (2010a). Public‐private partnerships: governance scheme or language game?. Australian Journal of Public Administration, 69, S8-S22.
Hodges J. 2003. Unsolicited proposals: The issues of private infrastructure projects. World Bank. [March 2017]. http://siteresources.worldbank.org/ EXTFINANCIALSECTOR/Resources/2828841303327122200/257Hodge-031103. pdf.
Hodges, J. T., & Dellacha, G. (2007). Unsolicited infrastructure proposals: How some countries introduce competition and transparency.
Isett, K. R., Mergel, I. A., LeRoux, K., Mischen, P. A., & Rethemeyer, R. K. (2011). Networks in public administration scholarship: Understanding where we are and where we need to go. Journal of public administration research and theory, 21(suppl_1), i157-i173.
Jamali, D. (2004). Success and failure mechanisms of public private partnerships (PPPs) in developing countries. International Journal of Public Sector Management.
Javed, A. A., Lam, P. T., & Chan, A. P. (2014). Change negotiation in public-private partnership projects through output specifications: an experimental approach based on game theory. Construction management and economics, 32(4), 323-348.
Joudyian, N., Doshmangir, L., Mahdavi, M., Tabrizi, J. S., & Gordeev, V. S. (2021). Public-private partnerships in primary health care: a scoping review. BMC Health Services Research, 21(1), 1-18.
Kaharuddin, S. K., Adnan, H., & Baharuddin, H. E. A. (2021). Assessing the Emerging Factors on Stakeholder Management in Public–Private Partnerships (PPP) in Malaysia. In Collaboration and Integration in Construction, Engineering, Management and Technology (pp. 515-519). Springer, Cham.
Kazee, S. (2007). Unsolicited bids in the context of disposal of municipal immovable property. Local Government Bulletin, 9(5), 22-23.
Lecy, J. D., Mergel, I. A., & Schmitz, H. P. (2014). Networks in public administration: current scholarship in review. Public Management Review, 16(5), 643-665.
Locke, E. A. (1968). Toward a theory of task motivation and incentives. Organizational behavior and human performance, 3(2), 157-189.
Marques, R. C. (2018). Empirical evidence of unsolicited proposals in PPP arrangements: A comparison of Brazil, Korea and the USA. Journal of Comparative Policy Analysis: Research and Practice, 20(5), 435-450.
McKee, M., Edwards, N., & Atun, R. (2006). Public-private partnerships for hospitals. Bulletin of the World Health Organization, 84, 890-896.
Moiseichev, E. Y., & Studenikin, N. V. (2020). Selection of a Private Partner for PPP Project Implementation. Launch of PPP Projects Under “Unsolicited Proposal” (Private Initiative). In Public-Private Partnerships in Russia (pp. 167-185). Springer, Cham.
Nathan, C. M., & Sobel, M. (1980). Corporate Stock Repurchases in the Context of Unsolicited Takeover Bids. The business lawyer, 1545-1566.
Nduhura, A., Lukamba, T. M., & Nuwagaba, I. (2020). Governing with citizens’ extended theory in the practice of procurement and public private partnerships–a developing country’s perspective in the energy sector. African Journal of Governance and Development, 9(1), 46-65.
Neuman, W. L., 2014. Social Research Methods: Qualitative and Quantitative Approaches (7th ed.). Hallo: Pearson Education Limited Harlow.
Noorzai, E. (2021). Public–Private Partnership Risks in Conflict Zones and Solutions: Case Study for Afghanistan. Journal of Infrastructure Systems, 27(1), 05021001.
Nwangwu, G. (2019). A comparative analysis of the use of unsolicited proposal for the delivery of public-private partnership projects in Africa. Journal of Sustainable Development Law and Policy (The), 10(2), 207-226.
Osei-Kyei R., Chan A.P.C., Trinh M.T. (2019) Retirement Village Development for the Elderly: Applying the Concept of Public-Private Partnership. In: Farazmand A. (eds) Global Encyclopedia of Public Administration, Public Policy, and Governance. Springer, Cham. https://doi.org/10.1007/978-3-319-31816-5_1285-1.
Osei-Kyei, R., Chan, A. P., Dansoh, A., Ofori-Kuragu, J. K., & Oppong, G. D. (2018). Strategies for effective management of unsolicited public–private partnership proposals. Journal of management in engineering, 34(3), 04018006.
Papajohn, D., Cui, Q., & Bayraktar, M. E. (2011). Public-private partnerships in US transportation: Research overview and a path forward. Journal of Management in Engineering, 27(3), 126-135. (Critique of PPPs as being exploitative).
Park, J., & Chung, E. (2021). Learning from past pandemic governance: Early response and Public-Private Partnerships in testing of COVID-19 in South Korea. World Development, 137, 105198.
Parris, D. L., & Peachey, J. W. (2013). A systematic literature review of servant leadership theory in organizational contexts. Journal of business ethics, 113(3), 377-393.
Pepper, A. (2015). Long-Term Incentive Plans. In The Economic Psychology of Incentives (pp. 10-25). Palgrave Macmillan, London.
Pepper, A., Gore, J., & Crossman, A. (2013). Are long‐term incentive plans an effective and efficient way of motivating senior executives?. Human Resource Management Journal, 23(1), 36-51.
Pongsiri, N. (2002). Regulation and public-private partnerships. International Journal of Public sector management, 15(6), 487-495.
Public–Private Infrastructure Advisory Facility (PPIAF). (2014).Unsolicited proposals–An exception to public initiation of infrastructure PPPs. Washington DC; PPIAF. [Accessed March 2018]. http://ppp.worldbank.
Reich, M. R. (2002). Public-private partnerships for public health. Public-private partnerships for public health, 1-18.
Ringera, W., Tenambergen, W., & Oluoch, M. Effects of Public Private Partnerships in Strengthening Faith-Based Health Systems in Kisii County, Kenya. International Journal of Professional Practice, 9(1), 11-25.
Roehrich, J. K., Lewis, M. A., & George, G. (2014). Are public–private partnerships a healthy option? A systematic literature review. Social science & medicine, 113, 110-119.
Roth, L. (2013). Unsolicited proposals. NSW Parliamentary Research Service.
Sarmento, J. M., & Renneboog, L. (2020). Renegotiating public-private partnerships. Journal of Multinational Financial Management, 100661.
Savas, E. S., & Savas, E. S. (2000). Privatization and public-private partnerships.
Savas, E. S., & Savas, E. S. (2000). Privatization and public-private partnerships.
Seddighi, H., Seddighi, S., Salmani, I., & Sedeh, M. S. (2020). Public-private-people partnerships (4P) for improving the response to COVID-19 in Iran. Disaster Medicine and Public Health Preparedness, 1-6.
Shea, B. J., Hamel, C., Wells, G. A., Bouter, L. M., Kristjansson, E., Grimshaw, J., ... & Boers, M. (2009). AMSTAR is a reliable and valid measurement tool to assess the methodological quality of systematic reviews. Journal of clinical epidemiology, 62(10), 1013-1020.
Shen, L. Y., Platten, A., & Deng, X. P. (2006). Role of public private partnerships to manage risks in public sector projects in Hong Kong. International journal of Project management, 24(7), 587-594.
Siemiatycki, M. (2009). Delivering transportation infrastructure through public-private partnerships: Planning concerns. Journal of the American Planning Association, 76(1), 43-58.
Siemiatycki, M. (2009). Delivering transportation infrastructure through public-private partnerships: Planning concerns. Journal of the American Planning Association, 76(1), 43-58.
Skelcher, C. (2005). Public–private partnerships and hybridity. In The Oxford handbook of public management.
Smith, V., Devane, D., Begley, C. M., & Clarke, M. (2011). Methodology in conducting a systematic review of systematic reviews of healthcare interventions. BMC medical research methodology, 11(1), 1-6.
Stoker, G. (1998). Public-private partnerships and urban governance. In Partnerships in urban governance (pp. 34-51). Palgrave Macmillan, London.
Thune-Boyle, I. C., Stygall, J. A., Keshtgar, M. R., & Newman, S. P. (2006). Do religious/spiritual coping strategies affect illness adjustment in patients with cancer? A systematic review of the literature. Social science & medicine, 63(1), 151-164.
UNCITRAL (United Nations Commission on International Trade Law). (2001). “Legislative guide on privately financed infrastructure project.” United Nations, New York hhttp://www.uncitral.org/pdf/english/texts /procurem/pfip/guide/pfip-e.pdfi (Mar. 2017).
United Nations Commission on International Trade Law (UNCITRAL). 2001. Legislative guide on privately financed infrastructure project. New York: United Nations. [Accessed April 2018]. http://www.uncitral.org/pdf/ english/texts/procurem/pfip/guide/pfip-e.pdf.
Vining, A. R., & Boardman, A. E. (2008). Public—private partnerships: Eight rules for governments. Public Works Management & Policy, 13(2), 149-161.
Wang, B., Cui, Q., & Zhang, S. (2021). Noncompete Provision Design for Transportation PPP Projects. Journal of Construction Engineering and Management, 147(2), 04020159.
Werneck, B., & Saadi, M. (Eds.). (2015). The public-private partnership law review. Law Business Research Limited.
Wettenhall, R. (2003). The rhetoric and reality of public-private partnerships. Public organization review, 3(1), 77-107.
World Bank (2021). Global Economic Prospects.1st Edition.
World Bank Group (WBG). 2017. Policy Guidelines for Managing Unsolicited Proposals in Infrastructure Projects | Volume 1: Main Findings & Recommendations. Washington, DC: Public-Private Infrastructure Advisory Facility (PPIAF).
World Bank Group (WBG). 2018. Procuring Infrastructure Public-Private Partnerships Report 2018: Assessing Government Capability to Prepare, Procure, and Manage PPPs. Washington, DC: International Bank for Reconstruction and Development/World Bank.
Xiong, W., & Zhang, X. (2014). Concession renegotiation models for projects developed through public-private partnerships. Journal of construction engineering and management, 140(5), 04014008.
Xiong, W., Zhao, X., & Wang, H. (2018). Information asymmetry in renegotiation of public–private partnership projects. Journal of Computing in Civil Engineering, 32(4), 04018028.
Zapatrina, I. (2020). Unsolicited Proposals: New Realities in COVID Times. Eur. Procurement & Pub. Private Partnership L. Rev., 15, 255.
Zarco-Jasso, H. (2005). Public–private partnerships: a multidimensional model for contracting. International Journal of Public Policy, 1(1-2), 22-40.
Zawawi, M. I. Z., Kulatunga, U., & Thayaparan, M. (2016). Malaysian experience with public-private partnership (PPP). Built Environment Project and Asset Management.
Zhao, J., Liu, H. J., Sing, M. C., Jin, X., & Ginige, K. (2021). Delivery of Transport Infrastructure Assets: Decision-Making Model to Ensure Value for Money. Journal of Infrastructure Systems, 27(1), 05020008.
Zin Zawawi, M. I., Kulatunga, U., & Thayaparan, M. (2016). Malaysian experience with Public Private Partnerships (PPP)–managing unsolicited proposals. Built Environment Project and Asset Management, 6(5).
Downloads
Published
How to Cite
Issue
Section
License
Authors who publish with this journal agree to the following terms:
1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License that allows others to share the work for non-commercial use with an acknowledgement of the work's authorship and initial publication in this journal.
2. Authors and IPMR are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository, distribute it via EBSCO, or publish it in a book), with an acknowledgement of its initial publication in this journal.
