| China's projects to be reduced by 10 to 15 percent through public bidding |
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| Thursday,March 17,2005 Posted: 21:09 BJT(09 GMT) |
Thanks to the public bidding system, China's projects could be reduced cost by 10 to 15 percent on average, said Ma Kai, minister in charge of the State Development and Reform Commission (SDRC) Wednesday.
In some sectors, investors could save as much as 20 percent, Ma said at a symposium commemorating the fifth anniversary of the implementation on public budding.
"In the past five years, the practice of public bidding has become more and more standardized and increasing sectors adopted the public bidding system," Ma said.
China's state legislature approved the Law on Public Bidding in mid-1999. It took effect at the beginning of 2000.
Problems still hinder the development of the market, Ma said, including defects by tenderees in bidding procedures and malpractice by tenderers. Bidding cannot yet be kept free from bribery and other "unsavory practices."
Ma said the SDRC suggested launching regulations for the implementation of the law and further expanding the sectors to use the bidding system.
The government will also strengthen the supervision of the bidding against corruption.
There are currently thousands of agencies in China handling bidding invitation for large projects. As public bidding could reduce the cost by at least 10 percent, they could help China save over 100 billion yuan (12 billion US dollars) each year.
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