Unsolicited Proposals
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Unsolicited proposals explained

Last checked: 20 October 2026 · Explainers

An unsolicited proposal is a project offer that a private company makes to a public agency without a government request 1. The World Bank and PPIAF issued three volumes of guidelines on managing them on 1 July 2017 2. The World Bank names three ways to add competition: a bid bonus for the proponent, a right to match called the Swiss challenge in some countries, and a best and final offer round 3. The guidelines treat these proposals as an exception to public procurement 2.
Definition
A private proposal for an infrastructure or service project made without an explicit government request 1
Main global guidance
World Bank and PPIAF Policy Guidelines, three volumes, dated 1 July 2017 2
Competitive mechanisms
Bid bonus, right to match (Swiss challenge), best and final offer 3
Guidelines view on right to match
Strongly discouraged 1
Example review fee in national law
Kenya: 0.5 per cent of estimated project cost or US$50,000, whichever is lower 5

What counts as an unsolicited proposal

In most public projects the government picks the project, prepares it and then tenders it. An unsolicited proposal (USP) reverses this. A private entity approaches a public agency with a proposal for an infrastructure or service project without an explicit government request. Volume I of the 2017 guidelines calls this an exception to the norm 1.

PPIAF describes USPs as an alternative to traditional project initiation, in which the private sector leads on identifying and developing the project. It states that many public authorities around the world resort to USPs 4.

The guidance comes in three volumes. Volume I holds the main findings and recommendations. Volume II sets out the policy guidelines. Volume III reviews experience with USP policies and projects around the world. The core message is that USPs should be managed and used with caution as an exception to public procurement 2.

The three competitive mechanisms

Governments that accept a USP often still test it against other bidders. The World Bank PPP Reference Guide describes three ways of doing this 3.

MechanismHow it worksExamples named by the World Bank
Bid bonus 3The proponent gets a scoring advantage in an open tender, typically an extra percentage 3Chile 3 to 8 per cent of the financial score, Indonesia and South Korea up to 10 per cent, Uruguay up to 10 per cent of the final score 3
Right to match, or Swiss challenge 3After an open tender the proponent may match the winning bid and take the contract 3The Philippines and Italy 3
Best and final offer 3A two-stage tender. The top two first-round bidders resubmit, and the proponent is invited if it is not in the top two 3South Africa, roads sector 3

What the 2017 guidelines recommend

  • Decide first whether to allow USPs at all. Governments that cannot protect the public interest and secure transparency and accountability are advised not to allow USPs in the short term 1.
  • Keep any bid bonus small, to keep bidding conditions equal 1.
  • Avoid the right to match. Volume I says it significantly limits competitive pressure and the guidelines strongly discourage it. They recommend a bonus or automatic short listing instead 1.
  • Give rivals enough time. Bid periods shorter than about six months limit competition, and private firms say they need at least three to six months for a serious bid 1.
  • Pay development costs with care. In most countries the proponent is reimbursed only if the project is accepted and tendered, which discourages non-serious proposals 1.

Risks the guidelines name

  • Weak public capacity. Volume I says USPs often exacerbate a lack of technical capacity to evaluate, prepare, procure and implement PPPs 1.
  • Fiscal planning problems where USPs fall outside normal budgeting 1.
  • Limited competition and a gap between public and private interests 1.
  • Corruption risk. Volume I states that several of the USP projects studied, particularly those that were directly negotiated, involved corruption allegations 1.
  • Delay. USPs did not speed up delivery in the cases studied. Philippine cases took over 15 years and Ghana's Accra-Kumasi Highway USP was delayed over 11 years 1.
  • PPIAF lists three main risks: public funds diverted from other strategic areas, poor value for money and a lack of transparency 4.

How national laws apply these ideas

Kenya's Public Private Partnerships Act, 2021 lets a private party submit a privately-initiated proposal. The party pays a non-refundable review fee of 0.5 per cent of the estimated project cost or US$50,000, whichever is lower 5.

The Philippines uses a right to match under its PPP Code. After approval, the implementing agency runs a comparative challenge of 90 days to one year, and the original proponent has 30 calendar days to match the best challenger 6.

Common questions

Is a Swiss challenge the same as a right to match?

The World Bank PPP Reference Guide treats them as the same thing. It says some countries call the right to match the Swiss challenge 3.

Do proponents get their development costs back?

Volume I of the 2017 guidelines says that in most countries the proponent is reimbursed only if the project is accepted and tendered 1.

Do unsolicited proposals make projects faster?

Not in the cases the guidelines studied. Philippine USP cases took over 15 years and a Ghana highway USP was delayed over 11 years 1.

Where can I read the 2017 guidelines?

The three volumes are on the World Bank PPP Resource Center. The page says they are available in English, Spanish and French 2.

Rules and fees change. Check the official site linked above before you apply or pay. Spotted an error? Email hello@unsolicitedproposals.org with the official link.

Sources

  1. World Bank Group: Policy Guidelines for Managing Unsolicited Proposals in Infrastructure Projects, Volume I, Main Findings and Recommendations (July 2017)
  2. World Bank PPP Resource Center: Policy Guidelines for Managing Unsolicited Proposals in Infrastructure Projects, Volumes I, II and III (1 July 2017)
  3. World Bank PPP Reference Guide: Dealing with Unsolicited Proposals (undated, accessed 20 October 2026)
  4. PPIAF: Policy Guidelines for Managing Unsolicited Proposals (accessed 20 October 2026)
  5. Kenya Law: Public Private Partnerships Act, 2021 (assented 7 December 2021)
  6. PPP Center of the Philippines: Processing Unsolicited PPPs under the PPP Code and its IRR (accessed 20 October 2026)

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