Swiss Bidding Process for Waste to Energy Project in Kochi, India

3 May 2013

By Ben Messenger
Managing Editor of Waste Management World magazine

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The state government in Kochi, India has chosen the 'Swiss Challenge System' of tendering, for its proposed 500 tonne per day Rs. 3.5 billion ($65 million) waste to energy plant in Brahmapuram.
The Swiss Challenge System is a form of public procurement that requires a public authority in receipt of an unsolicited bid for a public project to publish the bid and invite third parties to match or exceed it.
According to a report in The Times of India, urban development minister Manjalamkuzhi Ali said the cabinet has already taken a decision to use the system and tender notifications will soon be released.
"By adopting this model of tendering, we will be able to finalise the bid within three months of releasing the notification," he is reported to have said.
The report explained that as per the Swiss model, a private participant can submit a project proposal and even draft contract terms for undertaking a project initiated by the government. The government will then invite competitive bids from other interested parties.
Under the rules of the system, if a counter proposal is found favourable by the government the original project proposer will be given an opportunity to match it.
"This process will ensure more transparency in finalising the tender. The government will also get the best competitive rate and technology," the minister is reported to have added.
According to the report the state government had previously issued a tender notification, but a high-level technical committee which scrutinised the technical and financial bids submitted by three firms expressed fears that some firms may use unviable projects to raise money from banks only to disappear.