Cabinet's signal to invite bids on infrastructure projects using Swiss Challenge method

Q: YES, it is true. The method had been approved by the Supreme Court and the Central Vigilance Commission.

Anirudh Patel, Mumbai

22nd September 2015

Real estate News in Mumbai

supreme court

infra projects

swiss challenge method

central vigilance commission

bidding for infra projects

private players

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Replies (3)

Hi everybody!
Still, there were risks related to transparency or fair competition, the method was useful where governments had limited technical and financial capacity to develop projects.

Presently, 5-states including Madhya Pradesh, Rajasthan, Punjab, Gujarat, and Andhra Pradesh have taken steps to implement the Swiss Challenge method.

Nitesh Patil, Pune

23rd September 2015

Comment

Which are the key departments, the Delhi Government agreed to implement this method? Has the method approved by the Supreme Court and the Central Vigilance Commission?

Himangi deshmukh, Delhi-NCR

22nd September 2015

Comment

Well Himangi,
The Delhi government agreed to implement the method in 10 departments such as tourism, transport, communication, water, roads, housing, environment, security, redevelopment board and solid-waste management.

Yes, the method has been approved by the Supreme Court and the Central Vigilance Commission.

Sandeep Mhatre, Mumbai

22nd September 2015

But it is mostly seen that infrastructure projects are usually considered and planned by the government. The private sector comes in during the financing and implementation stage, leaving little scope for innovation of the concept.

Himangi deshmukh, Delhi-NCR

22nd September 2015

It is true but in some cases, the private player itself plans the project and submits uninvited proposals, but the government faces a challenge in judging such uninvited projects due to lack of competition and transparency. Therefore, the most common system governments in several countries in the West use to manage uninvited proposals is the Swiss Challenge method.

Sandeep Mhatre, Mumbai

22nd September 2015

Hi Anirudh,
What is Swiss Challenge method? Can you give few example of this method?

Sameer Khan, Delhi-NCR

22nd September 2015

Comment

Hi Sammer,
In the Swiss Challenge method, private players plan a project and submit an uninvited or his own proposal to undertake it. The government then invites counter proposals. The most innovative idea gets the contract.

Some major infrastructure projects in South Asia like the Yongin-Seoul Expressway in South Korea are successful examples of the method.

Sandeep Mhatre, Mumbai

22nd September 2015