Open, transparent, and best-value procurement processes create a level playing field for private sector companies, while allowing countries to affordably generate and procure energy goods and services. USAID promotes transparent, competitive energy procurement practices, including auctions, quality standards, and the legal and regulatory frameworks that enable a wide range of private sector participation in the energy sector.
Transparent, competitive procurement based on the best value enable more private sector participation in the energy sector and lead to better value for and often lower prices for consumers.
In South Asia, legacy procurement practices have led to less participation and often followed a cookie-cutter approach that didn’t differentiate the uniqueness of the energy sector and emerging technologies. Reforms will allow countries to offer more attractive prices for energy and services, and enable greater access to innovative technologies and expertise, removing barriers that otherwise prohibit a wider participation.
The transparent and best value procurement pillar of the Asia EDGE initiative in South Asia is working with technical and procurement divisions of the public agencies to help them improve procurement processes and governance. The assistance aims to create a level playing field for companies in the competitive procurement process thereby increasing competition. The pillar also fosters the development of legal, regulatory, and market reforms that are conducive to high-quality private sector investment.
Activities under this pillar include establishing efficient procurement processes at the national and sub-national level, developing new models for public-private partnerships (PPPs), improving the bankability of energy projects, and providing transaction support for mobilization of private investment. The activities also cover developing and deploying innovative financing mechanisms to increase the availability of financing for the public and private sector.