Unsolicited Proposals in Infrastructure: A growing reality for governments, requiring robust management frameworks

This discussion paper by the International Institute for Sustainable Development (IISD) analyzes the rise of unsolicited proposals (USPs) in infrastructure procurement. It synthesizes findings from a Public-Private Infrastructure Advisory Facility (PPIAF) report, highlighting the risks USPs pose to transparency and value-for-money, and provides recommendations for governments to establish robust management frameworks. The paper specifically examines the tension between the expediency of USPs and the principles of sustainable public procurement (SPP), which emphasizes life-cycle costs and strategic needs analysis.

• Unsolicited proposals (USPs) are becoming increasingly common, with 85 per cent of countries reviewed in the PPIAF study choosing to allow them. There is a growing trend toward formalizing these processes, as 70 per cent of those countries have developed legal frameworks for managing USPs.
• USPs present significant risks to public interest, including a lack of transparency, the avoidance of competition and due diligence, and increased opportunities for political patronage and corruption. Governments may be swayed by the 'salesmanship' of private firms rather than conducting rigorous due diligence on fully developed projects.
• Public sector motivations for accepting USPs often stem from a lack of financial and human capacity to identify and procure projects, or a desire to bypass lengthy competitive processes for 'quick wins,' especially during crises like natural disasters or the need to exploit new natural resources.
• To mitigate risks, the PPIAF recommends that governments always implement a competitive procedure following a USP to ensure fair market pricing. Common mechanisms to introduce competition include the 'Swiss challenge' (where the proponent can match the winning bid), bonus systems, automatic short-listing for the final stage, or regular open procurement.
• The document suggests a differentiated approach to USP management based on a country's PPP maturity. Low-capacity countries should focus on simple, clear rules; limited-capacity countries should establish strict minimum requirements and an empowered PPP unit; and high-capacity countries should limit USPs to 'unique and innovative concepts' not available through other means.
• USPs may conflict with sustainable public procurement (SPP) because they often bypass the critical 'needs analysis' phase, where governments define infrastructure requirements based on long-term performance and outputs rather than technical inputs. This can distract officials from strategic planning and the internalization of life-cycle costs.

APA

International Institute for Sustainable Development (n.d.). Unsolicited Proposals in Infrastructure: A growing reality for governments, requiring robust management frameworks. https://www.iisd.org/system/files/publications/unsolicited-proposals-infrastructure-procurement-discussion-paper.pdf

Chicago

International Institute for Sustainable Development. Unsolicited Proposals in Infrastructure: A growing reality for governments, requiring robust management frameworks. n.d. https://www.iisd.org/system/files/publications/unsolicited-proposals-infrastructure-procurement-discussion-paper.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Unsolicited Proposals in Infrastructure: A growing reality for governments, requiring robust management frameworks |url=https://www.iisd.org/system/files/publications/unsolicited-proposals-infrastructure-procurement-discussion-paper.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopmentndunsolicited, author = {{International Institute for Sustainable Development}}, title = {{Unsolicited Proposals in Infrastructure: A growing reality for governments, requiring robust management frameworks }}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/publications/unsolicited-proposals-infrastructure-procurement-discussion-paper.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }