26 November 2020
Myanmar’s Public-Private Partnership (“PPP”) Centre, under the Ministry of Planning, Finance and Industry, has issued Order 1/2020 (“Order”) relating to the tender process for unsolicited project proposals, that is, proposals made by the private sector directly to a government entity for a PPP project.
Unsolicited project proposals worth more than MMK2 billion will be processed under the procedures listed under the Order. Those worth less than MMK2 billion will proceed under existing procedures issued by the President’s Office. The first step under the new procedures will be to review the soliciting investor’s financial statements for financial soundness as well as its track record for the project proposed. Officials must also check all documents and information provided against the rules of the Myanmar Project Bank, which have been issued by the President’s Office. All proposed projects must be in line with Myanmar’s national strategic plan.
A decision will be made on whether to reject the proposal or call for a re-submission. If the unsolicited project proposal is accepted, the government has three options – proceed with a “Swiss challenge”, standard tender process or direct negotiation for implementation.
If the project proposal is deemed to be important to the country, a “Swiss challenge” will likely be called. A “Swiss challenge” requires the government to publish the bid and invite third parties to match or provide a counter-proposal. The relevant government department must also obtain the approval of the Project Bank with advice from the PPP Centre.
If the relevant government entity considers that a soliciting investor is an entity that is exceptionally reputable and has the international experience to carry out the requisite project, the government entity may in its discretion proceed to engage in direct negotiation for the implementation of the project with such soliciting investor. A directly negotiated project proposal must be submitted to the Myanmar Government for approval.