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The Swiss challenge explained

Last checked: 20 October 2026 · Explainers

In a Swiss challenge, a government publishes a private company's unsolicited proposal and invites others to make better offers 3. If a competitor makes a more attractive offer, the original proponent can match it and win the contract 3. The World Bank treats this as a right to match 2. The 2017 World Bank guidelines strongly discourage it 1. The Philippines, the Indian state of Andhra Pradesh and Nigeria have official rules for it 5,3 7.
Other name
Right to match 2
2017 guidelines position
Strongly discouraged 1
Philippines challenge period
Not less than 90 calendar days and not more than one year 5
Philippines time to match
30 calendar days 6
Andhra Pradesh law
Andhra Pradesh Infrastructure Development Enabling Act, 2001 (Act No. 36 of 2001) 3
Nigeria guidance
ICRC Swiss Challenge Guide for MDAs, 11 August 2025 7

How a Swiss challenge works

The Andhra Pradesh Act defines the approach. After the original proposal is made available, the agency invites competitive counter proposals and keeps proprietary information confidential. Applicants then have a chance to better the original proposal. If the government finds a counter proposal more attractive, the original proponent may match it. If the original proponent cannot match, the project goes to the bidder with the more attractive counter proposal 3.

  • A private party submits an unsolicited proposal to a public agency 7.
  • The agency reviews the proposal and the proponent's capacity 3.
  • The agency publishes the project and invites counter proposals 7.
  • The agency compares the counter proposals with the original 7.
  • The original proponent may match the best counter proposal 7.
  • The agency awards the contract to the original proponent if it matches, or to the best rival if it does not 7.

What the 2017 World Bank guidelines say

Volume I of the World Bank and PPIAF guidelines says the right to match significantly limits competitive pressure. The guidelines strongly discourage it and recommend a bid bonus or automatic short listing instead 1.

Volume I gives two examples. In the Philippines, allowing only 60 working days for a rival to submit a bid mostly led to USP proponents winning. In Italy, officials said the right to match results in the proponent winning in 85 per cent of cases. Italy eliminated it in 2007 and reintroduced it in 2008 1.

The World Bank PPP Reference Guide states that all 11 PPP contracts awarded from unsolicited proposals in the Philippines by 2006 went to the original proponent 2.

National rules compared

JurisdictionRuleChallenge periodTime to match
Philippines, BOT Law 4Section 4-A of RA 6957 as amended by RA 7718 460 working days after three weeks of newspaper notices 430 working days 4
Philippines, PPP Code 5Section 10 of Republic Act 11966 590 calendar days to one year 530 calendar days 5
Andhra Pradesh, India 3Act No. 36 of 2001, sections 2(ss) and 19(II) 3Not stated in the Act text 3Not stated in the Act text 3
Nigeria 7ICRC Swiss Challenge Guide for MDAs 7Not stated in the guide 7A stipulated timeframe, days not stated 7

India: the Andhra Pradesh Act

The Andhra Pradesh Infrastructure Development Enabling Act, 2001 applies the Swiss challenge to Category II projects that a private participant starts through its own proposal. That participant is the Original Project Proponent 3.

The proponent submits its capability details, the technical, financial and commercial details of the proposal, and the principles of a concession agreement. The agency first checks its technical, commercial, managerial and financial capability 3.

If another bidder wins, the agency reimburses the proponent's reasonable preparation costs, set by government norms. The proposal then becomes the agency's property. A 2017 amendment (Act 3 of 2017) removed the detailed matching steps from section 19 3.

The Philippines and Nigeria

Under the Philippine PPP Code the implementing agency publishes an invitation within 7 calendar days of approval and issues challenge documents within 20 calendar days after that. The original proponent has 30 calendar days to match or better the best challenger's financial proposal. In a tie, the original proponent wins 6.

Nigeria's Infrastructure Concession Regulatory Commission (ICRC) issued its Swiss Challenge Guide for MDAs on 11 August 2025. Under the guide the original proponent is prequalified automatically and holds a right of first refusal to match a more responsive offer. After award the ICRC carries out due diligence on the preferred bidder and issues a certificate of compliance before approval by the Project Approval Board or the Federal Executive Council 7.

Common questions

Who usually wins a Swiss challenge?

In the cases the World Bank reviewed, mostly the original proponent. All 11 Philippine contracts from unsolicited proposals by 2006 went to the proponent 2. Italian officials put the rate at 85 per cent 1.

Does the original proponent get its costs back if it loses?

In Andhra Pradesh the agency reimburses reasonable preparation costs set by government norms when another bidder wins 3.

How long is the challenge period in the Philippines?

Under the PPP Code it is not less than 90 calendar days and not more than one year 5. The older BOT Law used 60 working days 4.

What happens in a tie?

Under the Philippine PPP Center's process, the original proponent wins a tie 6.

Rules and fees change. Check the official site linked above before you apply or pay. Spotted an error? Email [email protected] with the official link.

Sources

  1. World Bank Group: Policy Guidelines for Managing Unsolicited Proposals in Infrastructure Projects, Volume I (July 2017)
  2. World Bank PPP Reference Guide: Dealing with Unsolicited Proposals (undated, accessed 20 October 2026)
  3. Government of Andhra Pradesh via FAOLEX: Andhra Pradesh Infrastructure Development Enabling Act, 2001, as amended to 2017
  4. NEDA (now DEPDev): The Philippine BOT Law, RA 6957 as amended by RA 7718, and its Implementing Rules and Regulations (2012 edition)
  5. Republic of the Philippines via LawPhil: Republic Act No. 11966, Public-Private Partnership Code of the Philippines (5 December 2023)
  6. PPP Center of the Philippines: Processing Unsolicited PPPs under the PPP Code and its IRR (accessed 20 October 2026)
  7. Infrastructure Concession Regulatory Commission, Nigeria: Swiss Challenge Guide for MDAs (11 August 2025)

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