Clear Rules

June 08, 2007 (LBO) – A top World Bank official Thursday warned of the dangers of governments accepting unsolicited proposals in public-private partnership projects, saying it could lead to controversy and corruption allegations. Governments accepting unsolicited proposals in public-private partnership (PPP) projects should introduce some form of competitive bidding, World Bank Country Director Naoko Ishii said.

This is to ensure transparency and that the project is properly priced, she told the Sri Lanka Economic Summit 2007 organised by the Ceylon Chamber of Commerce.

One way to do it was to allow other private firms to bid, but give the company that originally made the proposal a pre-determined and transparent advantage.

"¦the important issue is that the rules of the game are clear, and that these are embedded in PPP procurement guidelines," Ishii said.

Even in PPPs that have broad public support, controversy can rise if there are concerns about transparency of the process of the project award and developer selection.

"An issue that often results in controversy is approval of unsolicited proposals," Ishii said.

Unsolicited proposals are PPP projects that are not on the government's priority l