The USAID Sector Reform and Utility Commercialization (SRUC) Haiti CPU Transaction Project aimed to engage a private partner to manage the Caracol Power Utility (CPU) in the long term. The procurement objective was to select a technically and financially well-qualified private partner that would invest in additional generation and distribution capacity, replace depreciated assets, and accept all financial risks without subsidies from the Government of Haiti.
To achieve this goal, the project followed fundamental principles recommended in the Guidebook and based on international leading practice. Transparency was a key principle, with information sharing and evaluation criteria being essential components. Neutrality was also emphasized, with tender rules designed to provide no scope for discretion and sufficient time for potential private partners to assess the opportunity and prepare bids. Non-discrimination was another fundamental principle, with equal treatment of foreign and domestic bidders.
The project drew on international experience, particularly from the United Nations PPP Guidebook, which highlighted the importance of good governance in public-private partnerships. The guidebook noted that over 80 PPPs had been awarded since 1991, with responsibility for concessions coordinated by the Ministry of Public Works. The electricity sector in Chile was cited as a positive example of PPP and privatization, with the sector being 100% privatized and unbundled since 1986.
Chile’s experience with PPPs was characterized by competitive and open procurement processes, with post-tender negotiation avoided and transparent results made public. The country’s PPP contracts were designed to restrict renegotiations during the contract term, giving more confidence to investors. A standard infrastructure procurement process was identified as having three key steps: Request for Expressions of Interest (EOI), Request for Proposals (RFP), and Selection of Winning Bidder and Contracting.
The pre-qualification process was a critical step in the procurement process, with the advertisement of EOI domestically and internationally, direct solicitations, and project information being made available to potential bidders. The pre-qualification criteria were made available to parties expressing interest, and pre-qualified bidders were published on the Internet. Pre-qualified bidders had the right to request tender documents, including the information memorandum, obligations of the private partner, tender rules, proposal requirements, and bid evaluation criteria. They also had the right to site visits and data room access.