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Respected Vice Premier Zeng Peiyan,
Distinguished Guests,
Ladies and Gentlemen,
Good morning! On the occasion of the 6th anniversary of promulgation of the Tendering and Bidding Law of the People's Republic of China, the first High-level Forum of China on Tendering and Bidding is inaugurated today, thanks to the joint efforts of the relevant ministries and all cycles of the society. First of all, on behalf of the Ministry of Water Resources, I would like to give my heartfelt congratulations on the convening of the event. I would also like to take this opportunity to brief you the situation on the enforcement of Tendering and Bidding Law in water project construction.
1. Tendering and Bidding Law must be properly enforced in water project construction
Water infrastructure is the foundation of the national economy. Particularity and complexity are the special features of water project construction despite of common features comparing with other infrastructures construction.
Firstly, public good is the outstanding feature of water project, and water project construction is closely connected with public interests and security; therefore quality and safety of project construction must be secured. Water infrastructures undertake important public service tasks such as flood control, water supply, irrigation and power generation, therefore, the quality of project construction has a direct impact on the development of economy and society as well as the safety of people’s life and property. Once a water project fails, it likely to lead to a disastrous consequence, which would not only harm the development of economy and society, but also cause greater and broader damages to the public security and safety of people’s life and property than the other infrastructures. Hence project quality and safety must be guaranteed in water project construction.
Secondly, water project construction mainly relies on government finance, so we must guarantee the efficiency and effectiveness of the investment. The feature of public good of water project determines that majority of investment for water project construction should be covered by the government budget, which is the money from the taxpayers. Therefore, we must manage and use the funds properly and control the budget properly in the spirit of being responsible to the country and the people, so as to ensure the efficiency of investment and realization of project benefits.
Thirdly, water projects are divided into different types and highly associated with complicated technologies and special expertise. Differ from ordinary infrastructure projects, water project varies a lot in term of type and complexity. Water projects can be categorized as public good, quasi-public good and commercially-operated projects according to their natures. They can also be categorized as projects of flood control, water supply, irrigation, power generation and ecological projects according to their objectives. The water projects can be categorized as super-large water project such as the Three-Gorges Project and South-to-North Water Transfer Project, as well as large, medium and small projects according to their scales. Water project also relates to multi-subjects of hydraulic engineering, river system, machinery and electrical equipment, civil engineering, road and bridge construction, information system and resettlement and so on. The variety of water project and complexity of technologies it involve make it clear that the management and construction of water project must be professionalized.
The particularity and complexity of water project construction calls for a conformity of its management system, approach and concept to the interests of our country and people, to the reality of water project construction and the public security. It is thus requested that Tendering and Bidding Law must be strictly applied. Competent bidders with strong capacity, high level and good reputation should be selected for project construction, so as to properly control budget, speed up the progress of project construction, and guarantee the quality, safety and benefit of the project.
2. Overall implementation of Tendering and Bidding Law in water project construction
Tendering and bidding approach was firstly introduced through water project in the infrastructure construction in China. The tendering and bidding for the construction of Lubuge Hydropower Station in July 1982 arose strong reaction at that time. From mid-1980s to 1990s, tendering and bidding system had been trialed and gradually popularized in the water sector, resulting in good results and accumulated experiences. After the promulgation of the Tendering and Bidding Law in 1999, tendering and bidding system has been fully applied in water project construction. Recent years, the ratio of tendering and bidding of above-norm water projects approaches to 100%, the ratio of tender and bidding of supervision closes to 100%, and the ratio of tender and bidding for the procurement of above-norm key equipment and materials reaches to over 90%. The following measures are adopted in regulating tendering and bidding activities in the water sector.
Firstly, to build and improve the Legislation system. In order to implement the Tendering and bidding Law, the Ministry of Water Resources promulgated 17 regulations and technical standards exclusively or jointly with other relevant ministries, including Management Regulations on Tendering and Bidding of Water Construction Projects. Meanwhile the water administrative departments of provincial People’s Governments and river basin authorities formulated and promulgated 133 managerial regulations on the management of tendering and bidding, which forms a counterpart system for the Tendering and Bidding Law, and play an important role in regulating the tendering and bidding activities of water projects.
Secondly, the responsibility of administrative supervision is clarified and supervision and management is strengthened. In accordance with the stipulations of Tendering and Bidding Law, the Ministry of Water Resources promulgated the Provisional Regulation on Supervision of Tendering and Bidding in Water Project Construction and Regulations on Administrative Supervision of Tendering and Bidding in Water Project Construction consecutively. A hierarchical administration system is set up for the administrative supervision and management of tendering and bidding, and clearly defines the obligation and responsibility of administrative supervision and management. Water administrative departments at all levels should exercise the duty of administrative supervision over tendering and bidding activities in water project construction in accordance with the law, so as to standardize and systemized the work of administrative supervision.
Thirdly, to establish reputation system and regulate market activities. In 2004, the Ministry of Water Resources established a reputation record system for contractors and employers, which combined the reputation information of enterprises with the regulation system in the market. The implementation of reputation supervision and punishment on lost of reputation greatly improve the order of market in water project construction.
Fourthly, administration should be enforced in accordance with the law and unlawful activities of breaking or violating law should be investigated and prosecuted. The Ministry of Water Resources detected and punished several illegal cases in the tendering and bidding activities in ways of inspection, check and investigation according to report, which effectively regulates the tendering and bidding activities in water project construction.
3. Implementation of Tendering and Bidding Law safeguards the large-scale construction of water project
After the 1998 catastrophic floods, the Party Central Committee drew up a series of plans for water undertaking. The Ministry of Water Resources, on the basis of requirement of scientific outlook on development, implements the guidelines proposed by the Party Central Committee and sticks to the principles of sustainable utilization of water resources, a harmonious coexistence between men and nature, putting people at the center, integrating government role with the market mechanism, and managing water in accordance with law and scientifically. In terms of water project construction, the implementation of Tendering and Bidding Law greatly promote the reform of construction and management system of water infrastructures. A water project construction system that centers on legal person responsibility system, tendering and bidding system and construction supervision system is built and developed, and effectively ensured the smooth implementation of large-scale construction of water projects. During the 10th Five-year Plan Period, the accumulative value of fixed-asset investment reached 362.5 billion Yuan, which equals to the total value of the period from 1949 to 2000. A number of water infrastructures of great importance to the national economy and the people’s livelihood and of overall importance were completed. The construction projects of levees and dykes alongside the large rivers and lakes witnessed a breakthrough; The ill and risky reservoirs in large and medium scale were consolidated; A great number of water complex and water resources allocation projects were built, which greatly enhances the capacity of flood control and water resource regulation of our country. Rural water infrastructures were reinforced, and the availability of drinkable water and irrigation reliability were obviously improved; Meanwhile, prevention of soil erosion was reinforced and eco-environment was gradually improved. During the 10th Five-Year Plan Period, the project investment and quality were effectively controlled by means of administrative enforcement in accordance with the law, tendering and bidding, and reinforcement of supervision as well as regulated management. The market order of water project construction was effectively regulated and no significant quality or safety accident occurred in project construction. The projects generated a great deal of social, economic and ecological benefits.
It has been demonstrated that the implementation of tendering and bidding system in water project construction is not only an objective to achieve, but also an effective measure. Improving and strengthening administrative supervision of tendering and bidding activities is a long-term and arduous task. We shall continuously summarize experiences, make improvement and regulate tendering and bidding system in water project construction, so as to ensure project quality, save investment and improve efficiency and benefits.
Finally, I wish a great success of the Forum and good health of all fellow delegates. Thank you.
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