Chapter I General Principles

Article 1 These measures are drawn up for the purposes of improving the management of tendering of purchasing companies for foreign government loan projects, regulating tendering procedures of the purchasing companies, increasing the transparency of tendering, raising work efficiency, ensuring the tendering going fairly, publicly and effectively.

Article 2 These measures apply to the tendering of purchasing companies by making use of " foreign government loan" (including untied loan of Japan Bank for International Cooperation, loan of North Investment Bank) and other foreign preferential loan projects approved by the State Council according to the management of foreign government loan (loan project in short below)

Article 3 "Purchasing companies" in terms of these measures means the companies having Grade A Qualification Certificate of International Tendering issued by the Ministry of Commerce (except for the companies to which the loan country has other requests).

Article 4 The "borrower" in terms of these measures means the organs or legal entity signing loan transferring agreement with loan transferring bank and undertaking the obligations of returning fund for foreign government loan project.

Chapter II Tendering Procedures

Article 5 The Ministry of Finance should issue circular to all financial departments of provinces, autonomous regions, municipalities directly under the Central government, cities specifically designated in the state plan (financial departments in short below) about loan project that meet the requirements for them to choose the tendering of purchasing companies.

Article 6 Local financial departments should organize or guide, supervise the borrower to carry out tendering of purchasing company at the receipt of the circular of the Ministry of Finance. All tendering works of purchasing company for loan project must be finished within 40 working days after the Ministry of Finance issues the circular.

Article 7 The borrower should send tendering invitation (see Appendix 1 for the pattern) to more than three (including three) purchasing companies at the same time. The invitation should be sent for the bundled project relating to more than two sub-projects as one project.

The closing date stipulated in the tendering invitation for purchasing companies to submit the application for being an agent (see Appendix 2 for the pattern) should not be less than 10 working days from the date the tendering invitation is sent out to the date the agent application is sent to the borrower (take the postmark or the unit of the borrower signing for receiving it as the criterion).

Article 8 The purchasing company that has received tendering invitation should fill in the application for being an agent in accordance with the requirements. The application should be signed by executive manager or deputy executive manager and affixed the official seal. Purchasing company should seal up the application and submit to the borrower according to the date and address stipulated in tendering invitation. If purchasing company does not submit the application according to this provision, it should be deemed as an invalid tendering.

If the purchasing companies that received agent application are less than three within the time limited, the borrower should invite other purchasing companies to bring up to three companies to attend the tendering except for the purchasing companies that have already sent the invitation. If the accumulated purchasing companies that receiving the agent application are still less than three after the second tendering, it does need to send out new invitations, the tender may be evaluated among the purchasing companies that have received the agent application.

Article 9 The purchasing companies may make syndicated tender on the principles of voluntary consultation. The companies making syndicated tender should name one company as the auspices and sign cooperation agreement together, stipulate the responsibilities, rights, obligations and plan of each side. The auspices should attach cooperation contract and the basic information of its cooperative partners when it submits the application. The marks the auspices got is taken as the criterion while tender evaluation.

Article 10 The borrower should organize and establish an evaluation commission consisting of five to seven evaluation members (evaluation members in short below) (evaluation commission in short below). The representative of the borrower's unit should be the person in charge of evaluation commission, responsible for the overall evaluation works,

As for the second kind of the project, local financial department may send representative to attend the evaluation commission and perform the obligation of evaluation members. As for the third kind of the project, local financial department will not send representatives to attend the evaluation commission in principle.

Article 11 The application for being an agent of the purchasing company should be sealed up and submitted to the borrower. The responsible person of the evaluation commission takes care of evaluation meetings, opens all the applications for being an agent at the same time, all evaluation members give marks separately on the spot according to the evaluation standard stipulated in Chapter III of these measures.

After the marks are given, the highest and lowest marks are omitted, the marks given by other evaluation members are added together, and the purchasing company having the highest marks wins the tender.

If more than two purchasing companies get the same mark and higher than other companies, the companies are voted by the evaluation members on the spot (it needn't to give marks), whoever gets the most votes wins the tender.

Article 12 The evaluation commission should keep secret of the content of the agent application submitted by purchasing companies. No evaluation member should give away the content before the publication of the tender evaluation result. It is strictly forbidden that the purchasing companies taking part in the tendering exercise their influence on evaluation members by un-proper means and it is strictly forbidden that any unit and individuals interfere in tender evaluation.

Article 13 The evaluation commission should submit the information of evaluation members, the process of tender evaluation, detailed information of giving the marks to each purchasing company and the result of tender evaluation to local financial department within 5 working days after tender evaluation. Local financial department should examine and verify the result of tender evaluation in accordance with relative provisions of these measures at the receipt of the report on tender evaluation and submit it to the Ministry of Finance for record within 5 working days and send a copy to both the purchasing company that wins the tender and related borrower. Local financial department must not alter the result of tender evaluation made by the evaluation commission. If it has different opinions, it may put them forward in the record report.

If the Ministry of Finance has no objections to the resolution on tender evaluation, the result of tender evaluation will go into effect 10 working days after the record report is submitted to the Ministry of Finance. If there is any disagreement, the Ministry of Commerce should inform by letter local financial department and relative purchasing company within 10 working days at the receipt of the record report.

The borrower should sign Trust Agreement (see Appendix 3 for the pattern) with the purchasing company winning the tender within 15 working days as of the date when the result of tender evaluation goes into effect.

Article 14 After tendering for purchasing company, all original materials about tender and the record of giving marks should be put into files by the borrower for checking up for a period of 5 years.

Article 15 As for following special circumstances, the Ministry of Finance will inform local financial department to carry out tender for purchasing companies by different ways:

1. Though the borrower has not been made clear yet, the purchasing company should be determined;

2. To carry out the project of more than two departments or provinces (autonomous regions, municipalities directly under the Central government, cities specifically designated in the state plan) by binding them together;

3. The loan country has special requirements;

4. It is emergency to carry out the project, and the tendering for purchasing company can not be finished in time;

5. Other circumstances.

Chapter III Evaluation Standard of the Evaluation Commission

Article 16 For the loan project of more than $ 5 million (including $5 million):

1. As for the accumulated amount of loan project used for trust agent in recent 3 years, 25 marks for more than $30 million (including $30 million; 20 marks for less than $30 million USD, more than $20 million (including $20 million USD); 15 marks for less than $20 million, more than $10 million (including $10 million; 10 marks for less than $10 million, more than $5 million (including $5 million; 5 marks for less than $5 million.

2. As for accumulated amount of arrived goods for importing set of equipment of the project without loan in recent 3 years, 20 marks for more than $30 million (including $30 million), 15 marks for less than $30 million, more than $10 million (including $10 million); 10 marks for less than $10 million, more than $5 million (including $5 million), 5 marks for less than $5 million.

3. 0-10 marks for the achievements of undertaking project tendering business in this trade;

4. 0-15 marks for the qualifications, ability and achievements of the persons to be responsible for purchasing business;

5. 0-15 marks for work plan and the planned workload;

6. 0-10 marks for other technical factors that need to be considered according to the characteristics of the project.

Article 17 As for the project less than $5 million:

1. As for the accumulated amount of loan project as trust agent in recent 3 years, 25 marks for more than $20 million (including $20 million); 20 marks for less than $20 million, more than $10 million (including $10 million); 15 marks for less than $10 million, more than $5 million (including $5 million); 10 marks for less than $5 million, more than $3 million (including $3 million); 5 marks for less than $3 million.

2. As for the accumulated amount of arrived goods for importing set of equipment of the project without loan in recent 3 years, 20 marks for more than $20 million (including $20 million); 15 marks for less than $20 million, more than $10 million (including $10 million); 10 marks for less than $10 million, more than $5 million (including $5 million); 5 marks for less than $5 million.

3. 0-10 marks for the achievements of undertaking project tendering in this trade;

4. 0-15 marks for the qualifications, ability and achievements of the persons to be responsible for purchasing business;

5. 0-15 marks for work plan and the planned workload;

6. 0-10 marks for other technical factors that need to be considered according to the characteristics of the project

Article 18 0-5 marks may be added to or cut off from the purchasing company within one year's tender evaluation as of the date of the issuing the circular because it is praised by the Ministry of Commerce by circular for outstanding contributions or criticized for any problems in the work.

Article 19 If the service charge to be collected by purchasing company does not accord with the Temporary Regulations for the Management of Purchasing Works Under Foreign Government Loan (No 34), it will be handled as wasted tender.

Chapter IV Supervision, Examination and Management of Tendering

Article 20 Local financial departments should enhance the supervision, examination and management of the process of tendering and the implementation of the trust agreement. If it is found during the works that the borrower does not carry out tendering for the purchasing company in accordance with these measures, local financial departments should take effective measures in time to solve and correct by the specified time and report the problems and the result of settlement to Ministry of Finance and related competent department.

Article 21 If serious problems against the law and discipline are found during the examination, local financial department should report to the departments of discipline inspection, supervision, justice and the Ministry of Finance, and cooperate relative departments to do well the investigation and verification. The problems confirmed to be true should be transferred to relative department to be solved in time.

Article 22 To the units that act against internal laws, regulations and relative provisions of loan country to carry out tendering of purchasing company for loan project against the regulations, the Ministry of Finance will criticize them by announcement, make suggestions to cancel their tender qualifications and take other necessary measures in light of circumstances.

Chapter V Supplementary Articles

Article 23 Local financial department should work out detailed implementation rules in accordance with these measures and relative regulations of the Ministry of Finance about purchasing of foreign government loan. The detailed implementation rules should not conflict these measures.

Article 24 Tendering for purchasing companies for loan project of relative departments of the State Council, the enterprise groups. of cities specifically designated in the state plan and the enterprises directly under the Central government should be handled according to these measures.

Article 25 Relative provisions of current regulations for the management of foreign government loan that do not tally with these measures should take these measures as criterion.

Article 26 These measures come into effect on the date of printing and distribution.