Swiss Challenge Procedure Over takes Tender Procedure

The Cabinet has approved the use of Swiss Challenge  Procedure  instead of  current  tender procedure in future to entertain unsolicited proposals for project implementation. It is a system adopted by some countries when selecting private sector investors for this purpose.

 This is a deviation from calling competitive bids through tenders .

The Cabinet Paper stated that it is a new selection process popular in many countries when selecting private sector investors to engage in development projects when proposals are presented by them without offers being called for by the government. Then, other investors are called upon to make better offers than the original one and if a better offer is offered, the original investor is invited to match it. The Cabinet will draft the necessary guidelines to be followed in this regard.

Observers say that it is too early to comment on this issue without going through the entire process including the guide lines to be drafted.