UNSOLICITED PROPOSAL

ISSUES:
I. What is an Unsolicited Proposal?
II. What agency accepts Unsolicited Proposals for Solar Power
Plant Projects?
III. What are the requisites for the acceptance of Unsolicited
Proposals?
IV. What are the documents that must be included in the
proposal?
V. What is the process after submission of the proposal?

CONCLUSIONS:
I.

Unsolicited proposals refer to project proposals submitted by the

private sector, not in response to a formal solicitation or request
issued by an Agency/LGU and not part of the list of priority projects
as

identified

by

Agency/LGU,

to

undertake

Infrastructure

or

Development Projects which may be entered into by Agency/LGU

subject to certain requirements/conditions.1
II. The Department of Energy (DOE) is the appropriate agency which
accepts Unsolicited Proposals to undertake a Solar Power Plant
Project.

1 Revised BOT Law Implementing Rules and Regulations, Rule 1 Section 1.3 (d.d.)

III. An Unsolicited Proposal may be accepted by the DOE on a

negotiated basis provided that all the following conditions are met:
(1) such project involves a new concept or technology and/or are not
part of the list of priority projects; (2) no direct government
guarantee, subsidy or equity is required, and (3) the government
agency has invited by publication, for three (3) consecutive weeks in
a newspaper of general circulation. If no comparative or competitive
proposal or no complying bid is received by the agency, the original
proponent shall immediately be awarded the contract. In the event
that a comparative proponent submits a price proposal better than
that submitted by the original proponent, the latter shall have the
right to match such price proposal within thirty (30) working days
from receipt of a notification from the agency of the result of the
comparative or competitive bid. Should the original proponent fail to
match the price proposal of the comparative proponent within the
specified period, the contract shall be awarded to the comparative
proponent. On the other hand, if the original proponent matches the
price proposal of the comparative proponent within the specified
period, the project shall immediately be awarded to the original
proponent. 2

2 Revised BOT Law Implementing Rules and Regulations, Rule 10 Section 10.1

IV. The unsolicited proposal must include a cover letter, feasibility study
which should indicate relevant assumptions, company profile, the
draft contract, and other documents that are needed even if
proprietary in nature. The cover letter shall indicate the basic
information on the proposal such as its expected output and
outcome, implementation period, and general description of the new
concept or technology, among others, and must include the
company profile of the unsolicited proponent. The feasibility study,
draft contract, and other documents that are needed even if
proprietary in nature shall be submitted in a sealed envelope. 3 The
DOE shall acknowledge receipt of the proposal within seven (7)
calendar days and advise the proponent whether the proposal is
complete or incomplete within thirty (30) calendar days from
submission thereof. If incomplete, the DOE shall return to the
proponent its submission indicating what information is lacking or
necessary and the DOE may entertain thereafter other same or
similar project proposal.4
Outline of Proposal:5
3 Revised BOT Law Implementing Rules and Regulations, Rule 10
4 Ibid.
5
http://www.doe.gov.ph/sites/default/files/pdf/e_ipo/P2_energy_projects_and_registrat

I. Company Profile / Background

a) Briefly describe the company, its history and the sector in
which it operates
b) List of Key Officials
c) List and Overview of the major power projects accomplished
by the company if applicable
II. SEC/DTI Registration (SEC Certified Articles of Incorporation, ByLaws and General Information Sheet)
III. Project Profile
a) Project background (exact location, official name of the facility,
commissioning date, commercial operation date, and off-take
of electricity)
b) Feasibility Study
c) Technical Description
d) Total Investment Cost (include breakdown of the entire project
cost and assumptions)
e) Financial Statement
V. Upon receipt of the proposal, the DOE shall: 1) appraise the merits
of

the

project;

2)

qualify

the

proponent;

3)

assess

the

appropriateness of the contractual arrangement and reasonableness

of the risk allocation; 4) recommend a reasonable Rate of Return
(ROR); and, 5) inform the ICC and the PPP Center of its receipt of an
Unsolicited Proposal. 6
Within one hundred and twenty (120) calendar days upon receipt of
the complete proposal, the DOE shall inform the proponent whether
ion_procedures.pdf
6 Ibid.

the latters proposal has been accepted or rejected. In case of

acceptance, DOE shall endorse the unsolicited proposal and submit
all pertinent documentation to the ICC/Approving Body. 7

7 Ibid.