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Sector: State Highway  |  Module 2: Work through the PPP process

Market sounding - the EOI

An Expression of Interest (EOI) is often included in the procurement process for projects where the number and identity of potential bidders is not well known. The purpose of an EOI is to give the Sponsor an idea of how much interest and availability there is among private firms.

An EOI is a kind of ‘market sounding’ exercise in which the Sponsor tests how many service providers there are in the market at that time. This information can then be used to prepare the RFQ and / or RFP documents.

The decision to include an EOI will have been made when the procurement process options were assessed (see Phase 2 “Design of the procurement process” for more details).

An EOI is not required for all projects and often the procurement process will skip straight to the RFQ stage. The decision to include the EOI should be based on an assessment of the need for further market sounding against the cost of the EOI process.

Since there is some overlap in the information collected in an EOI and RFQ these two stages are often merged into an EOI-cum-RFQ. This simply combines the contents of the two stages and conducts them together. The objective of an EOI-cum-RFQ is to both test the level of interest among firms and to evaluate firms to reduce the number of applicants to a shortlist.

Note, the Central Government has mandated a 2 stage bidding process for Central Sector PPP projects in India, i.e., Request for Qualification and Request for Proposals stage.

 

 

 

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