Summary DescriptionCHINESE MODEL BIDDING DOCUMENTSPROCUREMENT OF GOODSUNDERNational Competitive Bidding (ncb) Ministry of FinanceThe Peoples Republic of China January 2012 PrefaceIn order to regulate and standardize procurement activities of World Bank financed projects in China, in 1991 the Ministry of Finance (MOF) organized to produce and published Model Bidding Documents for World Bank Financed Projects (MBDs), which were revised in 1993 by MOF and the World Bank based on trial use of these documents. In 1995, the World Bank revised its Procurement Guidelines and then developed and published Standard Bidding Documents (SBDs) for World Bank financed projects, and requested that its borrowers must use SBDs in World Bank financed projects. After extensive consultations, MOF and the World Bank agreed to revise and update MBDs developed since 1991 in reference to SBDs. The revised and updated MBDs were re-published in 1997. Over the past 20 years, use of MBDs has played a positive role in regulating and standardizing procurement activities of World Bank financed projects in China and has also produced favorable impacts on the development of Chinas relevant procurement systems. In October 2001, multilateral development banks and relevant international financial institutions produced and published Harmonized Bidding Documents and Users Guide. These harmonized documents extensively reflect “best practice” results of these international institutions. The World Banks SBDs prepared based on the harmonized bidding documents have since been used in international competitive bidding activities for World Bank financed projects in China. In recent years and in response to the developing and changing situation, international financial institutions including the World Bank have been revising and improving their procurement policies and begun to emphasize and promote the use of country procurement systems in projects financed by them. Meanwhile, in recent years Chinas domestic project development environments have experienced remarkable changes, procurement related laws and institutions have been improving, and carrying out open tendering and use of SBDs in public procurement have been widely accepted. These have had some positive effects on bidding activities, especially national competitive bidding (NCB) activities of projects financed by the World Bank and other international financial institutions. Based on the above and considering that the operations of Asian Development Bank (ADB) have also been managed by MOF since the 1998 institutional reform, in order to adapt to a developing situation, further strengthen management of projects financed by international financial institutions and regulate and standardize relevant procurement activities, with the assistance from the World Bank and ADB, MOF conducted comprehensive revision of Model NCB Procurement Documents for World Bank Financed Projects and changed the name to Model NCB Procurement Documents for Projects Financed by International Financial Institutions (the new MBDs) to enable their broader application. The new MBDs have adequately considered Chinas relevant procurement laws and regulations as well as requirements in the World Banks and ADBs procurement guidelines and policies, reflecting the cost-effectiveness, efficiency and transparency principles that shall be complied with in the procurement cycle and stressing the requirements of fighting against fraud and corruption in procurement. The new MBDs apply to NCB procurement activities for all lending and grant projects financed by the World Bank and ADB in China. In the meantime, MOF encourages use of new MBDs for NCB procurement activities of projects financed by other international financial institutions. The new MBDs include National Competitive Bidding Document for Procurement of Goods and National Competitive Bidding Document for Procurement of Civil Works. The two documents have both Chinese and English versions so that they can meet the needs of different language users. The new MBDs comprise three parts and nine chapters. Part One provides bidding procedures, including Instructions to Bidders, Bidding Data Sheet, Bid Evaluation and Qualification Criteria, Bidding Document Format and Eligible Countries; Part Two specifies procurement requirements, including Demand for Supply of Goods or Buyers Requirements; Part Three relates to contract, including General Conditions of Contract, Special Conditions of Contract and Contract Format. Considering their widespread application and project-specific conditions, the new MBDs include fixed clauses and variable clauses. Fixed clauses are universally applicable clauses that cannot be changed; variable clauses are clauses that can be adjusted according to project-specific conditions a