What is ‘Swiss challenge’ approach?

Swiss challenge method is a process of giving contracts. Any person with credentials can submit a development proposal to the government. That proposal will be made online and a second person can give suggestions to improve and beat that proposal.

  • It is a method where third parties make offers (challenges) for a project within a designated period to avoid exaggerated project costs.

Swiss model: 

The government plans to adopt the ‘Swiss Challenge’ mode to invite bids for redeveloping the stations.

How Swiss model operates? 

  • First, the government will invite developers to submit their master plans.
  • After evaluating the proposals, the selected design will be uploaded over the Ministry of Railways website.
  • Financial bids will be invited and the developer quoting the highest upfront premium to be paid to the government will win the bid.
  • However, the project developer, who had originally submitted the plan, will be given an opportunity to match the bid amount.

The government will also ensure that the developer has prior experience in the field of passenger transportation such as railway stations, airports or ports or construction experience in the core sector.

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