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May 21, 2012

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Railway bidding to be fair and clear

BIDS for railway contracts in China will open to local markets soon to ensure the transparency and fairness of the bidding process and prevent power-for-money deals, according to a document released yesterday.

The document was released by the Ministry of Railways and the national office of the leading group on the management of outstanding problems in construction projects.

It instructs that the current railway project transaction centers, under the ministry and 18 railways bureaus, where bids are traded, are to be canceled.

Instead, all railway-related projects should enter "local public resources trading markets" according to authorization or the location of the projects, said the document, which described the move as "a significant transformation for China's railway projects' bidding management."

Bids for all large and medium-sized construction projects under the administration of the railways ministry went to the jurisdiction of the Beijing Engineering Construction Trading Center, a local market for project transaction, at the end of 2011.

The document said the mechanism for regulating engineering tender should be reformed to ensure fairness, competitiveness and freedom from corruption.

Efforts should be made to "prevent officials' meddling in project bidding, collusion and trading power for money," it said.

Construction projects under the administration of 18 railways bureaus will enter local markets in two batches before the end of June, the document said. It also calls for enhanced supervision of railway project bidding and promoting electronic bidding.

Illegal charging of bidding fees or manipulating bidding would be severely dealt with, it added.

Railway project bidding has been criticized after a crash of two high-speed trains in Zhejiang Province killed at least 43 people and injured over 200 others in July.




 

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