Provisions of Beijing Municipal Government on
Invitation-to-Bid and Bidding Procedures for the Project Ownership
(Trial Implementation)

Promulgated: September 2002
By: Beijing Development Planning Commission
Beijing Government Department Planning office

Chapter ¢ñ.General Provisions

Article 1. In accordance with the Law of the People's Republic of China on Invitation-to-Bid and Bidding and the Regulation of Beijing Municipality on Invitation-to-Bid and Bidding, as well as other laws and regulations, and considering the practical situation of the City, these Provisions are enacted in order to further reform the investment and financing systems of the City, utilize domestic and international capital, technology and business management experience extensively through the market mechanism, and increase the economic benefit and the level of project construction and operation thereof.

Article 2. Of the projects listed below, where there exists the need to conduct invitation-to-bid for the project ownership, these Provisions will be applicable:
(1) infrastructure projects that are capable of being granted concessions for operation;
(2) construction projects for 2008 Olympic Games venues and related facilities; and
(3) those projects as determined by the People's Government of Beijing Municipality (hereinafter "Municipal Government")

Article 3. The Municipal Government is the Tendering Authority of the invitation-to-bid for the project owner. The municipal Government authorizes Beijing Development Planning Commission("BDPC")to be responsible for the work in relation to the invitation-to-bid for the project owner, and relevant administrative departments-in-charge of the Municipal Government shall provide assistance and cooperation thereto, in accordance with their duties respectively.

Article 4. Invitation-to-bid for the project owner shall, normally, be an open invitation-to-bid. Where the special situation not suitable for open invitation-for-bid, and upon the approval of the Municipal Government, an invited bidding will be permitted.

Article 5. Invitation-to-bid for the project owner shall follow the principles of openness, fairness, justice, honesty and good faith.

Article 6. The information of invitation-to-bid for the project owner, the public announcement of invitation-to-bid and that of pre-qualification, and the result of the pre-qualification, the result of the bidding, etc. shall be published at "Beijing Investment Platform" website, and are subject to public supervision of the society.

Chapter ¢ò. Preparatory Works

Article 7. Determination of invitation-to-bid project. In accordance with the decision of the Municipal Government, the need of the municipal construction and the need of development of all sectors, the BDPC, after soliciting the opinions of relevant departments of the Municipal Government, shall propose the list of projects that will be for invitation-to-bid. Major and important projects must be submitted to the Municipal Government for approval.

Article 8. Determination of invitation-to-bid plan. In accordance with need of the project, the BDPC holds consultation with relevant departments-in-charge of the Municipal Government to determine the plan of the invitation-to-bid for the project owner. The plan of the invitation-to-bid for major and important projects must be submitted to the Municipal Government for approval. The content of the plan of the invitation-to-bid for the project owner shall consist of:
(1) Basic conditions of the project: geographical location of the project, scope of lands occupied, nature of the land use and the manner of the use, surrounding environments, and other basic conditions that need to be explained.
(2) Basic requirements of the project: scale of construction, function, major technological, economic and environmental standards, estimation of investment, source of funds, the operation of the concession project, return of investment, and other basic requirements that should be enumerated.
(3) Responsibilities and rights of the project owner, ways to make profit, term of concession, and other requirements.
(4) Relevant policies and supports: Policies such as those concerning tax and charges, land use, import and export, and provision of credit line, etc. Promises concerning supply of resource, price, investment return.
(5) Requirements of qualification of the project owner: Industrial qualification, financial strength of financing ability, operation management ability, experts and technical strength, credibility, experience and achievement, and other requirements.
(6) Arrangement of invitation-to-bid works: scope of invitation-to-bid(domestic or international), manner of invitation-to-bid(open invitation or invited bidding), time and planned schedule of invitation-to-bid, cost of invitation-to-bid and plan concerning its source, manner and major standards for bid evaluation, conditions and manner of proposed pre-qualification.
(7) Relevant legal issues (applicable to international invitation-to-bid): application of law, use and interpretation of languages, dispute resolution, and other legal issues that should be explained.

Article 9. Invitation-to-bid through agency. BDPC selects a tendering agent with appropriate qualification to enter into an agency agreement.
The tendering agent shall handle the matters of invitation-to-bid within the scope of the agency agreement.

Article 10. Preparation of invitation-to-bid document. Where there is a pre-qualification process, the additional pre-qualification document shall be prepared. The pre-qualification document and invitation-to-bid document shall be prepared strictly in accordance with the requirements of the approved plan of invitation-to-bid for the project owner.
Where the invitation-to-bid is handled by an agent, the pre-qualification document and invitation-to-bid document shall be prepared by the tendering agent, and shall be reviewed by relevant administrative departments-in-charge and experts, as arranged by the BDPC.

Article 11. The content of the invitation-to-bid document shall mainly consist of:
(1)Notice to Bidder: preparation of bid document, requirements of bid, arrangement for bid opening and bid evaluation, terms on the effectiveness of bid, manner and standard of bid evaluation; and the use and interpretation of languages in the related document where there is an international invitation-to-bid.
(2) Explanation of basic conditions of the project.
(3) Requirements of qualification of the project owner.
(4) Relevant plans (development plan, design plan, financing plan, plan for purchase of goods and services, operation plan, and plan of transfer, etc.) that the bidder is required to provide and the feasibility study reports thereto, graphics, and relevant materials.
(5) The bid letter, power of attorney, prove of bidder's qualification and credibility, earnest money for the bid or other forms of security, performance bond or other forms of security that the bidder is required to provide.
(6) Main contract terms and the agreements.
(7) Requirements on bid price and the calculation thereof; requirements of currency that is to be used in bid and the calculation of the exchange rate thereof, as well as allocation of risk with respect to the exchange rate, where there is an international invitation-to-bid.
(8) Other issues that need to be explained.

Article 12. The content of the pre-qualification document shall mainly consist of: principal information and requirements of the project. Source of the capital for the project,, preferential policies of supporting conditions available to the project, manner of the pre-qualification, conditions for being selected during pre-qualification stage, list of materials and documents that the bidder is to provide and format requirements thereto.

Chapter ¢ó. Invitation-to-bid

Article 13. Public announcement of invitation-to-bid. The public announcement of invitation-to-bid shall be published in newspapers, journal, information networks or other media as designated by the State or the Municipal Government, if there is an open invitation-to-bid
The public announcement of invitation-to-bid shall contain items such as: general information of the project, scope of rights granted to project owner and the term of such rights, requirement of the qualification of the bidder, access to the invitation-to-bid document, and deadline for the submission of the bid document, etc. The minimum period from the date of issuing the invitation-to-bid document to the deadline for submission of the bid document shall not be less than twenty days.

Article 14. Send the invitation. The invitation-to-bid document shall be sent to at least three legal persons or other organization that are capable of undertaking the project and have good reputation and qualification, if there is an invited bidding.
The letter for the invited bidding shall consist of items listed under the second paragraph of Article 13.

Article 15. Pre-qualification. The public announcement of pre-qualification shall be published in newspapers, journals, information networks of other media as designated by the State or the Municipal Government, if the special situation of the project warrants a pre-qualification. The pre-qualification shall be conducted in accordance with the manner required by the pre-qualification document. Upon the completion of the pre-qualification, the shortlist notice will be sent to the selected applicants, meanwhile the results of the pre-qualification will be notified to other applicants.

Article 16. Clarification and modification to the invitation-to-bid document. The clarification on, or modification to, the invitation-to-bid document made by the tendering agent in the form of minutes of meetings or other written forms, shall be a component of the invitation-to-bid document. If the content modified relates to the change of the content of the invitation-to=bid plan, such modification shall be submitted to the BDPC for approval.
The tendering agent shall notify in writing all the recipients of the invitation-to-bid document, of the content that is clarified or modified, at least fifteen days prior to the deadline for submission of bid document, as set out in the invitation-to-bid document.

Chapter ¢ô. Bidding

Article 17. Bidder. A bidder may be a legal person or other organization, it may also be a consortium formed by two or more owners or other organizations.
A legal person or other organization may only bid in the capacity of one bidder, and it may not repeatedly bid at the same time in two or more capacities of independent bidders or members of consortiums.

Article 18. Consortium bid. Where the bid is made in the name of a consortium, the documents for bid submission or pre-qualification submission shall consist of:
(1) An Agreement of Consortium Joint Bidding signed by legal representatives of all members of the consortium. Such agreement shall explicitly state and define all of the joint obligations that all members of the consortium undertake for all the contractual clauses, as well as independent obligation that each and every member of the consortium undertakes. All members of the consortium bear joint and several liability.
(2) A Power of Attorney signed by legal representatives of all members of the consortium shall clearly appoint one member of the consortium to be the leader, who is to contact others and handle matters related to the bidding, and to be in charge of presiding and negotiating activities during the implementation of the contract, on behalf of the consortium.
(3) Qualification documents of all members of the consortium as required by invitation-to-bid document or pre-qualification document.

Article 19. Bid Document. A bidder shall prepare and submit its bid document in compliance with the requirements of the invitation-to-bid document in both content and format.
Prior to the deadline for submission of bid document, as set out in the invitation-to-bid document, a bidder may supplement, modify, or withdraw its bid document already delivered and shall notify the tendering agent in writing. Such supplement or modification shall form part of the bid document.

Article 20. Alternative bid. The bidder may provide one alternative plan, in accordance with the basic requirements of the invitation-to-bid document, to be an alternative bid. A complete set of bidding materials shall be submitted for such alternative plan.
The alternative plan shall be one that, besides satisfying the requirements of the invitation-to-bid project, makes partial modification to the original plan, so as to improve the plan, and to enhance the economic, social or environmental benefit of the plan or to be beneficial to the improvement and enhancement of the feasibility of the plan.

Chapter ¢õ. Opening, Evaluation and Winning of Bids

Article 21. Opening of bids. Opening of bids shall be done in public at the same time as the deadline for submission of the bid document, as set out in the invitation-to-bid document; and the place for opening of bids shall be the one predetermined in the invitation-to-bid document. Opening of bids shall be presided over by the tendering agent, and all bidders shall be invited to participate. A notary public may be invited to notarize the opening of bids.

Article 22. Organizing the bid evaluation committee. A bid evaluation committee shall be formed and composed of the representatives from relevant departments-in-charge of the Municipal Government and the tendering agent who are familiar with relevant business, as well as relevant experts. The committee shall have at least five or more, numbered in odd, members and no less than two thirds of the members shall be experts in economic, technology or other fields.

Article 23. Preliminary evaluation. The bid evaluation committee shall conduct a preliminary evaluation of the bid document in accordance with the requirements of relevant laws, regulations, and the invitation-to-bid document. The bid evaluation committee may request the bidder to make necessary clarification, explanation, or rectification to the bid document. The bid evaluation committee reviews and confirms the validity of the bidding.

Article 24. Detailed evaluation. The bid evaluation committee shall adjust commercial and technical deviations to make detailed review, quantification and comparison, in accordance with the evaluation standards and manners, as set out in the invitation-to-bid document, of the bids that pass the preliminary evaluation, and shall recommend one to three candidates to be the bid winner.

Article 25. Post-qualification evaluation. Where there is no pre-qualification procedure for a project, the bid evaluation committee shall carefully conduct qualification review during the bid evaluation stage. No bidder that fails the qualification requirements may be recommended as a candidate to be the bid winner.

Article 26. Bid evaluation report. The bid evaluation committee shall submit a bid evaluation report after the bid evaluation and it shall truthfully state information as follows:
(1) basic information and table of data;
(2) a list of members of the bid evaluation committee;
(3) a record of the opening of the bids;
(4) a table listing the bids that satisfy the requirements;
(5) explanation of the information of non-conforming bids;
(6) a table listing the standards, manner, or factors for the bid evaluation;
(7) an overall evaluation and comparison table;
(8) a list, in order of ranking, of the bidders that have been evaluated;
(9) a list of recommended candidates to be the bid winner; and
(10) matters that need to be handled before the signing of the contract.

Article 27. Determination of Bid Winner. The tendering agent shall review the bid evaluation report, and submit its review opinion to the BDPC. In accordance with the bid evaluation committee's written evaluation report and its recommended candidates for the bid winner, the BDPC will convene discussions with relevant departments of the Municipal Government and other entities to determine the bid winner. The bid winner for major and important project must be submitted to the Municipal Government of approval.

Article 28. Negotiation. If necessary, the BDPC will work together with or entrust relevant entities and experts of further review the financial standing and technical ability of the bid winner, as well as related plans, and to hold negotiations with the bid winner on issues that need to be further clarified and determined.

Article 29. Confirmation of bid winner. The BDPC shall send the Notification to Bid Winner to the bid winner, and shall inform all the unsuccessful bidders of the result.

Article 30. Drafting the legal documents. The BDPC entrusts the tendering agent, or relevant departments and experts, to hold full discussion with the bid winner concerning the specific details of contractual clauses, and to draft contracts and other relevant legal documents. If necessary, the BDPC will work together with relevant entities to discuss and examine legal documents. Major and important project must be submitted to the Municipal Government for approval.

Article 31. Signing the contract. Depending on the specific situations of the project, the BDPC or other administrative department-in-charge authorized by the Municipal Government will sign a written contract with the bid winner.

Chapter ¢ö. Supplementary Provisions

Article 32. Where the people's government of a district or county of Beijing Municipality plans to conduct invitation-to-bid the project owner, these Provisions are applied on a reference basis.

Article 33. Relevant national laws and regulations are applicable to issues not regulated in these Provisions.

Article 34. These Provisions shall go into force as of 1 October 2002.