They can accelerate infrastructure development, harness private sector creativity, and introduce new approaches to addressing public needs. Properly used, unsolicited proposals can be a valuable complement to solicited projects.
However, while legal, unsolicited proposals also present significant risks that should not be underestimated.
Risks and challenges
One major concern is the possibility of regulatory capture, where a private proponent becomes so influential that it exerts undue influence over the government’s priorities, project design, or contractual terms.
Instead of the government determining what the public needs, public policy may gradually become driven by private commercial interests.
Another danger is that unsolicited proposals may undermine proper planning. Government agencies may become overly dependent on private-sector proposals rather than undertaking comprehensive infrastructure planning based on long-term public needs. This shifts the initiative from the public sector to private proponents.
Transparency is another challenge. Although the PPP Code requires publication, competitive challenge, and compliance with strict procedures, there remains a risk that project specifications may be drafted in a manner that gives the original proponent an unfair competitive advantage. If this occurs, the competitive challenge process may become competitive in form rather than in substance.
The public-interest test
Unsolicited proposals may likewise encourage lobbying, undue influence, or even corruption if safeguards are weak. The prospect of exclusive negotiations, combined with the complexity of PPP transactions, creates opportunities for conflicts of interest and preferential treatment.
There is also the danger of governments accepting projects that are financially attractive to investors but do not necessarily address the most pressing public needs. Public infrastructure should be driven by the public interest, not merely by profitability.
These risks do not mean that unsolicited proposals should be discouraged. Rather, they underscore the importance of robust governance.
Strong project evaluation, independent review, transparency, meaningful competition, conflict-of-interest rules, public consultation, and vigilant oversight are indispensable.
Partnership for and with the people
The true test of an unsolicited proposal is not whether it is innovative or profitable, but whether it genuinely advances the public interest.
A PPP should never become a vehicle for private gain at the expense of the people it is meant to serve.
In the end, the measure of a PPP is simple: it must remain a partnership for and with the people, not merely between government and business. —Ed: Corrie S. Narisma
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