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China Issues Decree for Public Bidding in Building Sector
The State Development Planning Commission of China has recently issued a decree in Beijing on public bidding in the building sector, further elaborating the Law for Inviting and Submitting Tenders that went into effect on January 1 this year.
The decree, which went into effect on May 1, further defines the range of construction and engineering projects subject to public bidding.
It provides that public bidding must be held for infrastructure projects in the fields of power, transport, post and telecommunications, urban facilities and environmental protection.
Utilities projects in the sectors of science and technology, education, culture, health, social welfare, and housing should also go through public bidding.
Other projects include those using all forms of state-owned capital such as local and central budgets and funds raised through the issue of government bonds.
Contracts using loans and aids from foreign governments and international organizations, such as the World Bank and the Asia Development Bank should be granted through public bidding.
Civil construction and engineering contracts worth more than two million yuan, material purchase contracts worth one million yuan each and prospecting, designing and other service contracts worth of 500,000 yuan each must all go through public bidding.
The Law for Inviting and Submitting Tender was passed at the eleventh meeting of the Ninth National People's Congress (NPC) Standing Committee last august. It is widely hailed as a major effort by the Chinese government to curb wide-spread corruption in the building market.
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