Abnormally low bids in PPPs: Analysis of evidence and a proposed statistical test

Hinojosa S.; Muñoz R.; Oviedo G. · Utilities Policy (2025) · DOI: 10.1016/j.jup.2025.102021

Resumen

This study examines the presence of abnormally low bids in public-private partnership (PPP) project tenders across Latin America. To this end, a representative database of PPP processes in Latin America was developed. Surprisingly, the findings indicate a notable absence of abnormally low bids. This result stands in stark contrast to recent studies. The analysis of 122 PPP projects spanning diverse countries and sectors provides a foundation for constructing a statistical test to identify abnormally low bids.