President Dr. Zhu Jianyuan

1. Research on the Development Status of China’s Tender Agent System • President Dr. Zhu Jianyuan

2. Dr. Zhu Jianyuan

3. Table of Contents

4. Ⅰ. Introduction Feature—Huge Investment in Fixed Assets Source: National Bureau of Statistics China invested RMB 27 Trillion in fixed assets, 2010. Tendering and Bidding are the main channels of selecting suppliers

5. Ⅰ. Summary of China Tendering Market

6. Ⅰ. Summary of China Tendering Market

7. ⅠSummary of China Tendering Market

8. Ⅰ. Summary of China Tendering Market

9. Ⅰ. Summary of China Tendering Market

10. Ⅱ. Status of China’s Tender Agent System In 1984, Ministry of Commerce (MOC) issued Certificate of Procurement Agent, required in participating in international bidding to procure electronic equipments and machines, to CNTIC because of the WB financing programs. In 1980s, there were already four companies engaged in procurement agent. Development of Tender agency In2000,China Bidding Law was issued , some new tender agency apeared and developed such as Guoxin Tender Group. Till now, There are over 5,000 tender agency in China.Some of them own multi qualifications of different areas, industries and central level.

11. Ⅱ. Status of China’s Tender Agent System Structure of Tender Agency 数据来源：www.chinbaidding.com.cn According to data from MOHURD in Aug 23, 2012, the amont of Engineering project tender enterprises reached at 5113, among which, corporates and privates 93%, playing the main role.

12. Ⅱ. Status of China’s Tender Agent System Proffessional Service Guarantees the Investment Efficiency Popularizationof Tender System Decrease of Supervision Cost of the Government The Positive Role China Tender Agency Playing

13. Ⅱ. Status of China’s Tender Agent System Comparation Between Tender Agency Model and Self-tendering Model • Tender Agency is a intermediary service institute between EA and bidders, carrying out tendering within authority area on behalf of EA • Tender Agency has special site and professional team. • Tender Agency serve EA from different industries, have rich tender practise experience, more proffessional and standard. Tender Agency

14. Ⅱ. Status of China’s Tender Agent System Comparation Between Tender Agency Model and Self-tendering Model • EA conducts project tender directly. • EA lacks special site nor professional team. • EA lacks experience, positivity and • proffession. Self-tendering

15. Ⅱ. Status of China’s Tender Agent System Comparation Between Tender Agency Model and Self-tendering Model • Tender Agency is less than EA with concentration of personnel relatively easy for government supervision. • Tender Agency focuses more on Proffessional ethics and reputation. • Terder Agency deal with a great amount of documents and are responsible for logistics whose tech level is very low. Tender Agency 自主招标

16. Ⅱ. Status of China’s Tender Agent System Comparation Between Tender Agency Model and Self-tendering Model • EA are more than tender agency, which is not easy for governtment supervision. • EA focus more on project management and others. • EA must deals with proffessional documents and make proffesional tech standard. Self-tendering 自主招标

17. Ⅱ. Status of China’s Tender Agent System Comparation Between Tender Agency Model and Self-tendering Model • Tender documentis jointly compiled by several agencies.. • Tender Agency could organize comprehensive bid assessment expert tank in the request of BTL and government. • Small intervention scope. Tender Agency only intervenes for the management from opening bid to signing contract . Tender Agency

18. Ⅱ. Status of China’s Tender Agent System Comparation Between Tender Agency Model and Self-tendering Model • EA must compile tender documents themselves. • EA can build tender assess,ment expert tank. • Large intervention scope.EA is responsible for all stages of a project. Self-tendering

19. Ⅱ. Status of China’s Tender Agent System Comparation Between Tender Agency Model and Self-tendering Model • EA must compile tender documents • themselves. • EA can build tender assess,ment expert tank. • Large intervention scope.EA is responsible • for all stages of a project. Self-tendering

20. Ⅱ. Status of China’s Tender Agent System Comparative Research on Tender Agency Model and Self-tendering 0ne • Tender agency must serve both EA and bidders , supervised by bidding authoritative department. • The pricing oftender agency service is based on cost evaluation and the bid winning price of the project, goods and service required by the bidding projects. Tender Agency Self-tendering

21. Ⅱ. Status of China’s Tender Agent System Comparative Research on Tender Agency Model and Self-tendering 0ne • EA could make its self-decision with regard to the result of tender. However, EA must also be under supervision by government bodies. • No need to set service fee. However the human and material input and the cost of raw materials must be recognized. Self- tendering

22. Ⅱ. Status of China’s Tender Agent System Advantages and Disadvantages of China Tender Agency

23. Ⅱ. Status of China’s Tender Agent System Advantages and Disadvantages of China Tender Agency

24. Ⅱ. Status of China Tender Agency System The Advantages and Disadvantages of tender agency system

25. Ⅱ. Status of China Tender Agency System The Advantages and Disadvantages of Tender Agency System

26. Ⅲ . The Role and Legal Status of Tender Agency Legal Status of Tender Agency The legal status of tender agency is said first in China Bidding Law issued in 1st, Jan 2000. It is stated in the 13th articles: Tender Agency is a social intermediary organization established in accordance with the law and engages in tender agent business.

27. Structure of KONEPS ㅋ Decision Making and Consultation Service Function of Coordination Functions Supervision Service Ⅱ. Status of China Tender System Functions of TenderAgency

28. Ⅱ. Status of China Tender System • Personnels working in China Tender Agency are over 0.8 million, amoung which, personnels on project tender are over 0.4 million.

29. Ⅱ. Status of China Tender System 中国招标代理机构从业人员资质管理 ２００９－２０１１年招标师考试通过情况 数据来源：中国招标师在线（ｗｗｗ．ｚｂｓｏｎｌｉｎｅ．ｃｏｍ） Till now, tender exam has been hold nationally for three years. 23,000 staff get tenderee professional level certificate and finish tenderee registration.

30. Ⅱ. Status of China Tender System 招标代理PA服务的费率 Fees of China Tender Agency ２００９－２０１１年招标师考试通过情况 数据来源：中国招标师在线（ｗｗｗ．ｚｂｓｏｎｌｉｎｅ．ｃｏｍ）

31. Ⅲ. Suggestions • The purpose of the Asian Development Bank (ADB) is: to help developing countries in their efforts to reduce poverty, raise people’s living standards thus realizing the ultimate goal of poverty-free Asia-Pacific (AP). As a regional financial institute in AP, ADB boasts remarkably advanced and valuable experience in the operation and supervision of bidding and tendering and the coordination of economic development policies. As a third information-service party which provides services to China’s bidding and tendering market, Chinabiding.net is always dedicating itself in promoting cooperation and interaction among related parties and pushing the progress of China’s tendering course. We are always ready to cooperate with parties concerned and increase interaction and consultation with ADB in our effort to promote China’s experience in bidding agency and contribute to the bidding system formation and economic development for all Asian countries.

32. Ⅲ. Suggestions • Specifically speaking, we would recommend China Association of Bidding and Tendering (CABT) being at the head of organizing senior experts in China tendering agencies, with the extensive participation of Chinabidding.net, to establish joint promotion agencies. Hopefully these agencies would be ideal platforms for China to introduce valuable experience and systems with regard to tendering agency to countries in Asia and the pacific region. While at the same time, it is also expected that we could learn from the internationally advanced tendering management model and manner, thus promoting the common economic development in Asia at large.