I would appreciate if you could please publish a clarification concerning my statement on unsolicited bids that Raj Meetarbhan?s editorial has mentioned in your issue of 10th July 2008. (Editor?s note : We quoted a statement made by Ali Mansoor saying that unsolicited bids are a recipe for disaster).

My statement needs to be situated in the appropriate context. Indeed, the point I was making reflected concerns within Government that have now been addressed in the recent legislation passed by the National Assembly in the Finance Act 2008.

The absence of provisions in the PPP Act 2004 to manage unsolicited bids was creating a situation where the worst of all worlds was possible. There was no clear price discovery process to ensure value for money and, as a result, this could lead to long, drawn out and difficult negotiations that often take longer than a standard bidding process.

The amendments to the PPP Act 2004 address these issues and strike a balance between allowing new ideas and ensuring a price discovery process that generates value for money by subjecting unsolicited bids to essentially the same procurement process as for standard Government solicitation for goods and services.

The amended PPP Act 2004 makes provision for well defined procedures to be followed when unsolicited bids are considered. A promoter submitting an unsolicited offer would not in any case be awarded the contract directly and may end up being by-passed by an alternative market offer. The unsolicited bidder will have to satisfy a number of established criteria including participation in a competitive bidding process once the project concept is accepted by Government. The new legal framework accepts innovative ideas and initiatives emanating from private promoters and at the same time ensures a transparent competitive environment to manage such proposals.

Clearly it is a positive response to the concerns within Government that I expressed at the time. Moreover, as with all processes, now that there is a clear method, it can be improved on the basis of actual practice.