Prepare and Manage the Tender Process

The objective of awarding a concession or license through a competitive bidding or tender process is to identify the best contracting party through a sound, competitive, inclusive, and transparent process.

Competitive bids are commonly used for the development of infrastructure projects to promote value for money.

Competitive bidding is also becoming more widespread in the extractive industries, especially where there is already geological information available on a particular mineral or petroleum reserve. The alternative to a competitive bidding process is to award mineral or petroleum rights on a first come, first served basis.

The documentation governing the tender process needs to be well-drafted and comprehensive, setting out the material terms and conditions for agreement, pre-conditions and parameters for the investment and ensuring the tender process is conducted transparently.

For more information on competitive bids and unsolicited bid proposals for infrastructure projects, including guidelines, standardized bidding documents and checklists, see Procurement Processes and Bidding Documents on the World Bank’s Infrastructure Resource Center.

To learn more about the mineral resource tenders, see the World Bank’s Mineral Resource Tenders and Mining Infrastructure Projects:  Guiding Principles.

Key Tools At This Stage

OECD Procurement ToolboxThe EPEC PPP GuideMining Contracts - How to Read and Understand ThemOil Contracts - How to Read and Understand Them

Contract Negotiation Stage: Prepare for a Negotiation