session 3 zhu jianyuan prc final 221111
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8/3/2019 Session 3 Zhu JianYuan PRC Final 221111
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Dr. Zhu Jianyuan
Regulatory and InstitutionalFramework for e-Procurement
in the People’s Republic of China
8/3/2019 Session 3 Zhu JianYuan PRC Final 221111
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Dr. Zhu Jianyuan
Co-author of the first Concession Management Approach in China
Lead co-author of The Law on Bidding
Co-author lead expert of Government Procurement Law
Board Member of the China Tendering and Bidding Association (CTBA)
8/3/2019 Session 3 Zhu JianYuan PRC Final 221111
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• Introduction
• Our Solutions – Establishment ofa Regulatory Framework for e-Procurement
III
• Current Situation and IssuesI
Ⅰ
Table of Contents
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Ⅰ. Introduction
Feature - Huge investment in fixed assets
0
5
10
15
20
25
30
2008 2009 2010
17
22
27
RMB Trillion
China invested RMB 27 Trillion in fixed assets, 2010.Tendering and Bidding are the main channels of selecting suppliers
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9%
17%
6%1%6%
36%
5%
20%Transportation
Chemical products
Energy
Metallurgy & Minerals
IT
Urban infrastructure
& servicesWater conservancy
Etc.
。
Ⅰ. Introduction
Sector distribution for fixed assets investment in 2010
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7
2.1%
3.6%
4.5%
5.3%
5.9%
6.4%6.7%
7.1%
7.5%
8.0%
8.5%
9.2%
2009E 2010E 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E
Percentage of netizen’s online shopping vs. total online retail sales
80
300
640
Source: National Bureau of Statistics,
Ministry of Commerce, public media
By the Development Strategy Department of 360buy.com
100
300
400
600
200
500
0
1.0%
2.0%
6.0%
10.0%
The online retail market size in China is expected to growfrom $ 80 billion in 2010 to $ 300 billion in 2015
Size of online shopping by netizens, 2009-2020
(Unit: $ billion)
1.0%
3.0%
4.0%
5.0%
7.0%
8.0%
9.0%
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24.5%
22.1%
24.8%
28.1%
35.1%
15%
20%
40%
200
500
2006 2007 2008 2009 2010
The best time for e-commerce
Size & rate of penetration rate of Internet in China
Total numberof netizens
Number of online buyers
Penetration rate of online shopping
Source: China National Network Information Center By the Development Strategy Department of 360buy.com
400
300
100
0
N u m b e r o f N e t i z e n s
( i n m i l l i o n s )
35%
30%
25%
10%
5%
0%
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EnvironmentallyFriendly
FosterEfficiency
Relevance ofe-Procurement
Promoteinstitutionalinnovation
Ⅰ. Introduction
Relevance of e-Procurement
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Ⅱ. Current Situation
All
transactions
online
Online
bidding
Online
purchase
TenderingDocuments
Different levels of e-Procurement
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Ⅱ. Current Situation
Multiple dimension of e-Procurement
Civil
Works
ICB
GP
Procure
ment
Agent
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Ⅱ. Current Situation
Different models of e-Procurement
Different
Models
Government
Led
SOE
IT Service
Provider
Procurem
ent Agent
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Lack oftechnical
standards
Absence oflegal
framework
Security oftransactions
Noinformationmechanism
Issues
Structure of KONEPS
Issues encountered in development
Ⅱ. Issues
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Structure of KONEPSⅢ. Our Solutions
Legal framework
Extensive Research
Survey was conducted following issuance by NDRC of the draft legislation on e-Procurement in February, 2009.
Promotion Forum
The 1st China Tendering & Procurement Electronic Development Forum was held inBeijing in April, 2009.
Setup of Working Group
The inception meeting for preparation of "Technical Specification for Electronic
Tendering and Bidding System" was organized by NDRC in December, 2009. NDRCentrusted the China Tendering and Bidding Association (CTBA) with the selection ofthe experts for the Working Group.
Drafting of Regulation
the “Electronic Tendering & Bidding Regulations (Preliminary Draft)” and its annex“Technical Specifications for an Electronic Tendering and Bidding Platform(Preliminary Draft)” were proposed by the NDRC together with relevant departments
of the state council.
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Provide legal basisfor e-Procurement
Draftregulation on
e-Procurement
Ⅲ. Our Solutions
Legal basis for regulation
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Draftregulation on
e-Procurement
Ⅲ. Our Solutions
Multi-leveladministrativeframework
Administrative framework
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Integration ofGovernment PublicService andTransaction Platforms
Ⅲ. Our Solutions
Model
Draftregulation on
e-Procurement
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The Public Service Platform
The Transaction Platform
Principles: government leadership, unified standard, centralized and unified
public information service platform.
the hub of e-information exchange, providing service for the project transaction
system, featuring in public & common service
Focused on transactional services (procurement of goods,
works and services)
Characteristics of KONEPSⅢ. Our Solutions
A three-layer national information network platform system will cover all
industries and regions.
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Ⅲ. Our Solutions
Public service platform at
national level
public service platform at
provincial level
Administrative
supervision
departments of
the State Council
Administrative
supervision
departments at
provincial level
Public service
platform at
municipal level
public service
platform at
municipal level
项目
Transaction
platform system
Transaction platform
system
Administrative
supervisiondepartments at
municipal level
Structure of the Model
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Setup of onlineoversight & complaintmechanisms
Ⅲ. Our Solutions
Draft
regulation on
e-Procurement
Oversight & Complaint Mechanisms
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Technical Specifications of Electronic
Tendering and Bidding Transaction System
▶ the technical specifications of information system,guaranteeing the validity, security, reliability, and
coordination of electronic tendering and bidding
▶ unifying the standards for applicability, terms &
definitions, system structure & function, data interface,
technical support & guarantee, system coding, interface
format, system evaluation, etc.
Ⅲ. Our Solutions
Technical Specification of e-Procurement System
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Technical Specifications of Electronic
Tendering and Bidding Public Service Platform ▶ stating the frame structure, basic service function
of e-Procurement, explaining its relation with the
project transaction system
Ⅲ. Our Solutions
Technical Specification of e-Procurement System
I t t d ill l d t i l h
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5
Internet and e-commerce will leads to social changes
Driven by
technological
revolution
Driven by Commercial
innovationSocial change
The Evolutionof IT
Development stage
The next stage of technological revolution
Emergence of newtechnologies
Development of new technologies
Surge in the use of new technologies
Emergence of
new business models
Consolidation of new business models
Rapid development of new business models
Maturity of
new businessmodels
Socialchange
Invention of tabulator &perforating machine
Invention &Use of
computer
Inventionof the Internet
Beginning of e-commerce
Rise of e-commerce
The publicstart autonomous
learningof new business& technology
The maturity of regulations on
the Internet
Change s in social& cultural behavior
F i n an c i al b
u b b l e s
I n s t i t u t i on al a
d j u s t m en t
. c om
b u b b l e s
T h e a d j u s t m en t of
ol d & n ew
i n s t i t u t i on s
2000 2010 2015