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Lou Hong: Standardize and Promote Government Procurement of PPP Projects

来源: 中国政府采购网打印June 06, 2016 12:47 Source: China Government Procurement Network [ Print ]

The "Thirteenth Five-Year Plan" proposes to innovate the provision of public services, which can be purchased and provided by the government, and the government no longer directly undertakes them; those that can be provided by the government and social capital in cooperation, and extensively involve social capital. I would like to take this opportunity to brief you on the progress of government procurement in PPP projects, and discuss a few things about how to regulate government procurement activities in PPP projects.    

I. Progress of government procurement in PPP projects   

The essence of PPP is a special procurement activity carried out by the government to innovate the provision of public services. It belongs to the management scope of government procurement according to law. However, compared with the traditional service project procurement model, the PPP model has established a new management concept and operating process. The government and social capital have a long cooperation period, high performance risk prevention and control requirements, a complex procurement contract system, and higher professional requirements. At the just-concluded Fifteenth China Economic Forum, Deputy Minister Shi Yaobin pointed out that the promotion of the PPP model is the coordination of public services and the supply mechanism and an important content of the supply-side structural reform. Therefore, improving the professional level of government procurement of PPP projects and vigorously promoting the implementation of PPP projects is one of the key tasks of government procurement at present and in the future.

One year after the Ministry of Finance's "Guidelines for Government and Social Capital Cooperation Model Operation Guide (Trial)" and "Administrative Measures for Government and Social Capital Cooperation Projects Government Procurement Management" were issued, all localities and departments according to the requirements of the Ministry of Finance will cooperate with social capital in PPP projects. The choice of the participants is included in the scope of government procurement management, and the strict and standardized procedures ensure the standardization and transparency of procurement. In particular, the newly-approved competitive negotiated procurement method by the Ministry of Finance has been widely used in practice, promoting a Implementation of the approved PPP project. However, from the situation we track and understand, while the government procurement of PPP projects has achieved initial results, there are still many challenges, which are mainly reflected in the following two aspects:   

First, there are misunderstandings in ideology, and the awareness of purchasing according to law is not strong. Some places have overlooked that PPP is an important part of the supply-side structural reform and it is the management of the entire life cycle. It still treats PPP as a market-based financing method, adheres to the traditional investment thinking, and mainly depends on the government's own resources to find social capital. , While ignoring the market competition mechanism of the survival of the fittest, and evading the constraints of the government procurement legal system in operation, the project "is similar to God."    

Second, there is impatience in the operation and the procurement process is not standardized. In designing the procurement system for PPP projects, the Ministry of Finance has set up mandatory pre-qualification procedures. In addition to verifying market response, allowing social capital to participate in projects in advance to reserve time and space for subsequent procurement, and improving the efficiency of competitive negotiation methods, etc., An important consideration is to avoid quick successes and short-term gains, to prevent "wearing new shoes from government procurement and taking the old road", and forming new government debt. Practice has proved that this kind of worry is not "unfounded." We found that some localities have adopted the method of “get on the car first and then pay the ticket” in the project procurement. First, the social capital collaborators were directly designated in the form of the minutes of the government meeting, and then the financial department applied for a single-source procurement. In some places, in order to avoid the "second tender" and disregard the characteristics of project requirements, the selection of social capital partners and the project construction party are combined into one, and the bidding method is adopted. The actual implementation effect is not ideal.     

These issues not only affect the procurement quality and effectiveness of PPP projects, but also are not conducive to the cultivation of the social capital market. They also lay down legal risks for the implementation of subsequent projects and must be regulated in the next work.    

Considerations on standardizing government procurement activities for PPP projects    

If PPP is a "marriage" between the government and social capital, the development of project procurement activities is the process of "love and running in" between the government and social capital, and through this process, a statutory "marriage certificate" for the government procurement contract is formed. ". From this perspective, the choice of social capital partners of a PPP project is not only a technical issue in procurement, but also a key issue related to the realization of the value for money value of the project and the effective subsequent implementation of the project. In this process, both parties must follow the contract spirit, treat each other sincerely, negotiate on equal footing, and focus on the following links.    

The first is to do a good job of linking project identification, preparation and procurement stages. From what we know, the proportion of successful one-time procurement of current PPP projects is not high. One of the important reasons is the insufficient amount of social capital involved in procurement activities. Without the active participation of social capital, PPP will be a "shaved head and a hot spot", and effective measures must be taken to expand the participation of social capital. On the one hand, the project implementation agency should make information disclosure in the project identification and preparation stage, so that social capital can follow and track the project situation from the beginning of the project, and can put forward suggestions and suggestions that are conducive to fair competition and project implementation. , Can have enough time to do all the preparations before participating in procurement. On the other hand, the financial department should do a good job of internalizing the verification of the project implementation plan with government procurement demand management, supplier qualification conditions, and review of procurement activities to ensure that the government implementation content of the project implementation plan meets compliant, complete and clear government procurement requirements. Management requirements, to ensure that the content of social capital conditions of the implementation plan meets the requirements of statutory supplier qualification provisions for government procurement, and to ensure that the content of competition factors of the implementation plan meets the requirements of the government procurement review system.   

The second is to choose the appropriate procurement method based on the characteristics of procurement needs. According to the current "Tendering and Bidding Law" and "Government Procurement Law", there is no procurement without budget and unclear procurement, which is inconsistent with the requirement of social capital intervention when the preliminary preparations such as project approval are initiated by PPP. adapt. In order to solve this problem, the Ministry of Finance identified a new procurement method of competitive negotiation in accordance with the law, allowing PPP project implementing agencies to repeatedly negotiate with social capital on the improvement of procurement requirements, and only entered into the project review phase until the two parties reached an agreement. In terms of system pre-qualification, information disclosure, purchase result confirmation negotiation, PPP contract confirmation, etc., the whole process has been connected with the PPP project management requirements, and in accordance with international practice, it no longer proposes social capital that competes according to law to obtain the status of a partner. The requirements of the second tender selection contractor. Project implementation agencies and financial departments shall select and apply various competitive procurement methods in accordance with the law in accordance with the project's demand characteristics and efficiency requirements, combined with prequalification. Among them, for projects that can be described in detail with core boundary conditions and technical and economic parameters and are not changed during procurement, procurement should be adopted for tendering; otherwise, competitive negotiation and competitive negotiation should be adopted for procurement. Only in the case of statutory circumstances can single-source procurement be used.   

The third is to do a good job in the organization of procurement activities and information disclosure. The PPP model follows the principles of fairness, justice, openness, and good faith, and the pursuit of value for money is completely consistent with the principle of statutory government procurement and the value goal pursued. This is also a common practice in countries around the world to include PPP projects in government procurement. An important reason for management. Fairness emphasizes rules and standards, fairness emphasizes results and dispute handling, publicly emphasizes procedures and social supervision, and good faith emphasizes contractual spirit. Without strict procedures, there will be no legal procurement results, and without adequate information disclosure, there will be no effective social supervision. Centralized procurement agencies and government procurement social intermediary agencies must operate PPP projects in strict accordance with the requirements of the relevant procedures of the government procurement legal system, and do a good job of procurement needs, prequalification, procurement documents, procurement results, procurement contracts, performance acceptance, and other links in accordance with the law. Information disclosure to prevent procurement failures due to procedural violations and subsequent legal disputes arising therefrom.  

Fourth, sign and execute project procurement contracts in accordance with law. The design of the government procurement system in any country revolves around the conclusion of procurement contracts. The process of purchasing activities is the process of forming equal rights and obligations between the two parties. Therefore, countries around the world require buyers and suppliers to enjoy the right to enter into government procurement contracts voluntarily, provided that they comply with the relevant provisions of the government procurement law. The same is true of PPP project procurement. When the project implementing agency chooses the social capital to enter into a contract with it, it must strictly implement the statutory methods and procedures of government procurement, and strictly sign the PPP project contract in accordance with the matters identified in the procurement documents and the procurement results determined by law. Once the project contract is concluded, legal protection is formed for the project implementing agency and social capital, and neither party can change and adjust the terms of the project contract at will. Therefore, both the project implementation agency and social capital should raise awareness of the seriousness of the project contract. In the key aspects of procurement activities such as pre-qualification, procurement demand formation process, procurement document formulation, procurement contract text formulation, procurement results confirmation negotiation, etc. The core terms of the contract concerned were agreed upon to prevent subsequent performance risks.  

Promoting the PPP model in the field of public services is an important task entrusted to the financial department by the Party Central Committee and the State Council, with great responsibility and glorious mission. In the next step, the Treasury Department (Government Procurement Management Office) of the Ministry of Finance will continue to improve the relevant system research and top-level design in accordance with the deployment of the Ministry of Finance's PPP work leadership group, cooperate with relevant departments to do business guidance on PPP project procurement, and continuously optimize PPP projects Government procurement methods, procurement procedures, and supervision methods, and solidly promote the government procurement management related work of PPP projects, helping to promote the smooth and efficient implementation of PPP work. Financial departments at all levels must not stigmatize their missions, carry heavy burdens, bravely carry heavy burdens, play good moves, take the initiative to fight, and promote the rapid PPP "from blueprint to reality" and landing and fruition! ( Inspector, Treasury Department, Ministry of Finance)

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