In July 13, 2001, Beijing won the front right for the 2008 Olympics. Since then, Beijing turned into the rapid development period, charactering as "New Beijing, New Olympics", in the next few years, Beijing will be built a modern international metropolis with the characteristic of elegant environment, convenient transportation, perfect establishment, civilization and safety.

There plans to use 35 venues, and four large sub-establishments as Olympic village, reporter village, main news center and international broadcast and TV center in the 29th Olympics. And there will be 15 new establishments requiring to build in Beijing, and 11 establishments to transform and expand.

As for such big construction of gym establishments, they would drive the development of society and economy of Beijing, and satisfy the people for culture and physical training. At the same time, how to make use of social power to raise money, reduce the government's investment, and fully consider the utilization of them after the competition, become a problem for us to explore, and seek after a new thought or new measure in government investment and financing.

After the review and argumentation, by using foreign advanced management experience for reference, and combining with out fact, Beijing government fixes on the thought of " constructing and running the project through the introduction of the government and marketing operation", and proceed the invitation for bid of corporation cooperation party to both internal and external economy entity for the construction of Olympic venues and correlative equipments by means of international Vulgate market operating mechanism.

I Basic thoughts and principals of invitation bid of corporation cooperation party
1. Basic thoughts
In China, the big gym establishments are always established by the government, and managed also by the department in charge of the government. Under this system, the gym establishment functions in singleness, and commonly is difficult to make a profit during the evening run, and needs the support of the nation and the local government in its management, even becomes the burden of the governmental finance. But in the developed western countries, they have tried to make use of the social capital to construct and run this kind of project 20 years before, which correspondently reduces the investment burden and running risk of the government.

Therefore, Beijing government puts forward the basic thought of "exploring a new fundraising and financing pattern, and do a good job of marketing financing in current Olympics", that is, for the new Olympic gyms and the related constructions charged by Beijing government, they would adopt bid for cooperation party to construct, and the successful bidder would be responsible for financing, design, construction and run of the project. This principal has got the affirmation of the State Department and the International Olympic Committee (ICO).

Thoughts in detail: The government organizes, introduces, coordinates and supervises the whole financing work by means law, code, economic policies and other regulation and control pattern. The government also bids the project corporation of both internal and external economic entities for the Olympic gyms by the international Vulgate commercial mechanism. And according to the market principal, the government chooses the excellent designs, constructing proposals that satisfy the requirements of the 29th Olympics and Disadvantage people Olympics; chooses the capable corporation with financing experiences so to ensure the fully prepared, in-time and economical financing of the project capital; chooses the experienced constructing and managing groups to ensure that the project could be complete, and deliver to use on time with high quality; chooses the available running proposal in order to make the project reach the maximum commercial run after the Olympics in 2008.

This time, adopting the bid for corporation in the Olympics project is the need to follow the market economic requirements and financing system reform, and is an act of the government to follow the international Vulgate routine, and is an attempt for government to proceed the reform of financing system.

2. Principles
Principle of system and mechanism innovation. To daringly innovate in the management system and mode of the government, to explore government financing mode of new big social commonweal project, to promote the economic development through the investment and construction of gyms and the related constructions, to drive the demands for consumption through construction of the gyms and cultural equipments and making preparations for the Olympics. At the same time, to break the old-fashioned system of government investing, departments in charge running, finance allowance as running to the bad.

Main principle should be government introducing and market financing. The bidding work for the Olympics project should bring the organizing and introducing role of the government into play, and fully use the financing channel and mode of market system to raise money. By facing to the big and unique market of both international and internal, the government should pay more attention to attract the participation of external enterprises and institutions, and by this chance of the Olympics, to make the famous big companies, professional companies to participate in the economic construction of Beijing.

Open, fair and transparent principle. The bidding work for corporation of the Olympic project accepts the whole course supervision of the 29th Olympics Supervision Committee, and at the same time, accepts the supervision and inspect of all circles of society and the bidders. Each important tache of the invitation for bid must open to both external and internal, and cooperate with the press and media, and publicize the progressing situation to society in time, so as to form the real "sunshine project" or "transparent project".

Principle of sustained development. The government confirms the corporation through the project bidding, which is blending with the planning design, construction, financing, and run. The government must also fully consider the utilization of them after satisfying the demands of the Olympics, which should fully, embodied the commercial run in the process of design.

Principle on strengthening the management and protecting from the financing risk. The government should adopt the pattern of marketing risk sharing to decentralize the risk of raising money. It should also avoid the risk over-centralized in the government or other investors of financing burden, construction risk, and capital refund, and avoid the capital risk centralizing in the period of construction.

The project bidding for corporation includes: National Palaestra, National Stadium, National Swimming Center, Wukesong Cultural and Physical Center, Shunyi Olympic Hydro-park, Beijing Village Racing Fields, Meeting Center, Olympic village and the correspondent equipments.

Authorized by Beijing government, Beijing Development and Plan committee is in charge of the bidding work of National Palaestra, National Stadium, National Swimming Center, Meeting Center, Olympic village and the correspondent equipments, and consigned by Haidian government and Shunyi government, in charge of the bidding work of the Wukesong Cultural and Physical Center, Shunyi Olympic Hydro-park, Beijing Village Racing Fields.

National Palaestra is the main Palaestra in the Olympics in 2008. It is about to start working late this year according to the requirements of construction time limit, and it is the first project bided in 7 projects bidding for corporation.

National Palaestra is the symbolized building in Beijing Olympic Park, and also the biggest, multi-functional Palaestra with international advanced level. During the Olympics, it will hold 100,000 people, and the temporary seats would be 20,000. It takes on the opening ceremony, the closing ceremony, and the track and field competition.

After the Olympics, National Palaestra will hold 80,000 people; it can take on the special or important matches (such as: World Track and Field Championship, Football Championship of World Cup), each routine matches, and non-competition items.

Due to the particularity of National Palaestra, in order to reduce the financing cost and running cost, and consulting the running pattern of both internal and external similar projects, Beijing government will provide the capital support more than 51% of the total investment by referring to the experiences of both internal and external similar projects. And the government will consign Beijing State-owned Capital Running Ltd. Company to plunging into the project company as the investing representative.

Aim for government to investment is as follows: (1)The government will confirm the concept design of the Palaestra so as to assure that National Palaestra will become the symbolized building in the Olympic Park; (2)The government will rigidly insure the schedule and quality of it and insure its use in the Olympics; (3)The government's investment can reduce the running cost, and make the Palaestra become people's physical place appropriate for the consumption standard of the mass.

As for the investment outside the government, Beijing introduces the running system of marketing mechanism, and adopts the international bidding mode to choose the cooperation party of National Palaestra Project Corporation, signs the running contract with the state-owned company, and establishes the project company together. And besides the government's investment, the project company is responsible for design of this project, the financing, investment, construction, running and delivery.

III Ridding procedure of National Palaestra
This ridding work for project corporation adopts the pattern of "one-time rid, and two-step prosecution".

First, to proceed the "qualification examination beforehand, and intent collection", and to evaluate the bid qualification, construction planning, thoughts of financing plan, intent of running scheme etc, then to confirm five tryout passers.

Then to rid in these five tryout passers, and to review the optimized design, construction planning, financing plan, and delivery plan, finally confirm the bidder.

According to the thoughts above, the whole ridding work will be divided into the following stages:

1.Stage of bid preparation:
April 2002 to Oct. 2002, the government made full preparation for the work pan of each stage and all documents before the bid.

In April 2004, Beijing Planning Committee established "Olympic Project Office" to charge of the corporation bidding organizations for gyms and related constructions project, and coordinate the work. And it also establish the assist work group by selecting and engaging the famous companies both internal and external as the finance advisor, counselor institutions and bidding agent institutions as the Olympic project office. They are as follows, finance advisor: National Development Bank/Puhua Yongdao combo, Hong Kong SHBC, counselor: UK State International Law Office, Jingtian Goncheng Law Office, bidding agent institution: National Credit Bidding Ltd. Company.

?In order to ensure the standardization and law system of the bidding work of the Olympic projects, "Olimpic Project Office"drafted out the document of Management solution to Olympic project inviting for bid and bidding etc. It also established Primary suggestion on the impletation plan of Olympic gyms and related project financing and project corporation inviting for bid and bidding work and Primary suggestion on the general planning of Olympic gym construction, and worked out General planning proposal for 29th Olympic project construction in Beijing, 2008, and then approved by the State Department.

At the same time, it began to propagandize for the bid of Olympic project, and actively recommended and introduced the bid project of the Olympic gyms for the project corporation. It respectively hold the expository meeting of project corporation bid in Beijing on Aug. 2002,and in Hong Kong on Sep. 2002, and hold news conference on Oct. 2002, and information opening meet in Beijing on Dec. 2002, and invited related news press, foreign embassy to China and the enterprises to attend, which played an important role in recommending and driving the bidding work.

In Sep. 2002, It put the corporation bidding website of Olympic project on the platform of Beijing invest men, and established the specification of invitation for bid, the project introduction, bidding measures, and solution of problems etc. By the end of June 2003, its visitors exceeded 5 million; it has become an important platform for the public to understand the construction of Olympic project, and the development of invitation for bid and bid of the Olympic project.

2. Stage of qualification examination and intent collection:
From Oct. 2002 to Feb. 2003.

Document on examination and intent collection was put on sale on Oct. 28, 2002.

The Examining and Commenting Committee reviewed the seven application files during Jan. to Feb. 2003, and report to Beijing government to approve, and then confirmed five eligible proposers of the National Palaestra project that can enter into the second stage.

3. Stage of Bids and Tender: Feb. of 2003----by the end of June of 2003

On the April of 21st, 2003, the bid documents for the corporation cooperators of National Stadium Project has been issued.

In the last ten-day of May of 2003 and the middle ten-day of June, the " Olympics Project Office" of the City Planning Commission held twice meetings to clarify and answer various kinds of questions put forward by the bidders, and made full exchanges with these bidders about the bids and tenders. The "Olympics Project Office" separately issued corresponding clarification documents three times on the various kinds of questions raised by the bidders.

The " Olympics Project Office" of the City Planning Commission in conjunction with bidding agents and consulting agents made out action programs and standards of examinations and determined the list of experts of the Board of Review.

On the 30th of June, 2003, under the surveillance of the Committee of Superintendence of Games of the 29th Olympiad and with the notarization of Notary Office of Beijing City, the authorization unit of bidders----Beijing Development and Planning Commission and the Tendering Agencies----Guoxin Bidding Co. Ltd. jointly took charge of the bidding and opening bids meeting for the corporation cooperators of National Stadium Project, and bid documents for 3 bidders were read on spot, which several combinations separately presented by CITIC Group, Constructional Engineering Controlling Co. of China and Beijing Construction Engineering Co.,Ltd.(Group). The 3 units of the combination include total 28 enterprises covering investment, financing, designing constructional and operations units, which come from 4 countries of China, America, Netherlands and Australia, etc, and there is no lack of famous operators of stadiums.

4. Evaluating & Confirming Bids:
In the first ten-day of the July of 2003, in Boao of Hainan province, the Board of Review recommend the tenderee 2 candidates for winning bids whose integrated grades is near the top.

In the middle and last ten-day of the July of 2003, the tenderee, representatives of governmental investors, the Beijing Organizing Committee and candidates of winning a bid had a talk and put forward to Beijing City Government for approval, and finally the winning bidder for corporation cooperators of National Stadium Project was confirmed.

On the second of August of 2003, the tenderee issued notice of winning a bid to the successful bidder.

On the 9th of August of 2003, signing ceremony for the primary stadium of Beijing 2008 Olympic Games----National Stadium was held and the combination presented by CITIC Group separately signed 3 contracts and agreements, such as Chartered Rights Agreement, National Stadium Agreement and Cooperative Management Contract, with Beijing Municipal People's Government, BOCGO and Beijing State Property Co. Ltd..

IV The Methods of Evaluating Bids For Corporation Cooperators of National Stadium Project and the Constitutes of Evaluation of Bids Commission
1. Methods For Evaluating Bids
The general evaluation methods for the bid and evaluation of a bid of corporation cooperators of National Stadium Project and the system of the evaluation can be divided into 8 factors, such as optimization schemes of structural designs (including investment evaluation), structural designs, financial designs, operations designs, financial analysis, insurance programs, delivery programs and the responses to the relative contracts, and make the scores based on centesimal system.

The ratio of each factor for evaluation bids is stipulated as following:
(A)optimization schemes of structural designs( including investment evaluation) 10%

(B)structural designs15%

(C)financial designs20%

(D)operations designs25%

(E)financial analysis5%

(F)insurance programs5%

(G)delivery programs5%

(H)the responses to the relative contracts15%

As to the above-mentioned 8 factors for evaluation of bids, the Bids Evaluation Commission reviewed and scored base on different groups of bid documents put forward by each bidder and then accounted the scores based on the given ratio, collected the scores of 4 groups, which are the final scores of one bidder. After the confirmation of sequence of bidders, if there are the same final scores, and then sort them according to the scores of operation designs, and the higher one will be take the first.

2. About The Constitutes of Bid Evaluation Commission
The Constitutes of Bid Evaluation Commission is constituted of 17 personnel, and there are 1 member of chairman and 3 vice-chairmen, who will be nominated by the tenderee and confirmed by the over half of votes of the Constitutes of Bid Evaluation Commission. The Constitutes of Bid Evaluation Commission includes representatives of the tenderee, experts of conceptual designs, experts of fields and stadiums, financial experts, accounting experts, insurance experts, the operation and management experts of gymnastic fields and stadiums, the experts of sporting affairs for Olympic Games and legal experts, etc, of which the foreign experts should not be less than one to thirds.

The Bid Evaluation Commission is divided into 4 bid evaluation groups, the first one is in charge of reviewing of responses to the contract documents; the second is responsible for reviewing of optimization schemes of structural designs and structural designs; the third is responsible for reviewing of financial programs and financial analysis; and the last one is responsible for reviewing of operation schemes and delivery programs.

In order to ensure the equality, fairness and scientificaalness of the bids evaluation for this project, during the bidding of the corporation cooperators of National Stadium Project, the Committee of Superintendence of Games of the 29th Olympiad is specially invited for the initial review of qualification of the first stage and review of the intended designs, and supervised the whole process of opening bids of the second stage and the evaluation of bids.

It took 9 months for the bidding works of the corporation cooperators of National Stadium Project, which is shorter nearly one half of the time of corporation bids of foreign similar projects. The smooth implementation of the whole bidding works takes benefits from the correct commands and leading of city Party committee of Beijing, city government and BOCGO, and from the vigorous supports and cooperation of relative departments of city government and BOCGO, and from the participations and supports of many companies and enterprises at home and abroad.

The successful achievement of this bidding work indicates the successful experiences in projects financing and market operations of Beijing city government, which will be a sound base for the further designs, constructions, financing & operations of the National Stadium Project, at the same time, a new mode has been explored for the revolutions of financing system by the city government.