Though State Cabinet has accorded its approval to select the Master Developer for the core capital city through ‘Swiss Challenge’ method, the process will be under scrutiny as the system is not rated as the best by the Central Vigilance Commission.
Swiss Challenge is an unsolicited proposal (UNP) submitted to the government agency by a private sector company/organisation with exclusive intellectual property for a public infrastructure project.
And the government allows others with similar capabilities to participate and submit their proposals. If any proposal is better in terms of cost and technology, the original proponent of UNP is asked to match it or better it to get the project. If he fails, then it would be awarded to the best bidder.
The CVC, sources said, had earlier observed that there was some level of discomfort with widespread use of unsolicited proposals/Swiss challenge in the public sector on grounds of lack of transparency, and lack of fair and equal treatment of potential bidders.
It advocated fully competitive and transparent procedures for infrastructure procurement for PPP projects.
The Planning Commission of India had in the past advised some State governments to adopt Swiss Challenge route as an exception rather than a rule, sources said.
These views were taken to the notice of the government but after weighing pros and cons, the Cabinet voted for the Swiss Challenge method.
The proponents of Swiss Challenge, however, argue that it would encourage the private sector to bring useful and innovative ideas for project development and bring in cost efficiency as the project development costs are borne by the private sector proposer and rapid project development to keep costs low.
The government has also decided to amend the AP Infrastructure Development Enabling Act, 2001 to incorporate various guidelines issued by the CVC, Planning and Finance departments of Government of India.
In the last 14 years, several changes had taken place in awarding projects through PPP, BOT, annuity and such other methods and the Act has to be amended suitably to factor in the latest developments, sources said.
The system is not rated as the best by the Central Vigilance Commission
