THE EFFECT OF PROCUREMENT AGENT MECHANISM ON THE STANDARDIZING THE MARKET COMPETITION China General Consulting & Investment Co., Ltd. Shi Yeqing, Chief Marketing Officer

The Milestone of Procurement Agent mechanism’s Development In China

Loan / Grant Projects Of International Financial Organizations And Foreign Governments

Guidelines On WB And ADB

July 6, 2006 Seminar On 20 Years Of MOF-ADB Partnership

China is one of the best countries in the implementation of the ADB loan projects and debt-service reputation. — Haruhiko Kuroda July 2006

The Purchaser shall have the right to choose,on its own,a procurement agent. A procurement agent is an intermediary organization set up in accordance with law to engage in bid invitation as an agent and provide service in this field. Law Of The People’s Republic Of China On Bid Invitation And Bidding Article 12 Article 13

The Effect Of Procurement Agent mechanism Professional services from procurement agent turn scattered point demand into Concentrated demand To facilitate a creation of the open and public trading platform between the Purchaser and the Seller The development and perfection on the industry of Procurement Agent will improve the market competition order

Different Units A A B B Different Requirements a a b b Different Backgrounds i1i1 i1i1 i2i2 i2i2 Different Goals G1G1 G1G1 G2G2 G2G2 … … … … … … … … Specialized Operations from Procurement Agent

Different Units A A B B Different Requirements a a b b Different Backgrounds i1i1 i1i1 i2i2 i2i2 Different Goals G1G1 G1G1 G2G2 G2G2 … … … … … … … … Specialized Operations from Procurement Agent Project Procurement

Specialized Operations from Procurement Agent Project Planning Project Implementation Project Beginning Project Monitoring Project Evaluation Project Procurement

Specialization Professional Organizational Structure Professional Practitioners, Enhance the professionalization of the Organization Professional Management mechanism And Management Rules Powerful Information Repository

Improve efficiency and ensure the progress and to safeguard the smooth progress of the project; Provide value-added services for the employer on its choosing of a good reputation, low price and capability contractor Improve efficiency and ensure the progress and to safeguard the smooth progress of the project; Provide value-added services for the employer on its choosing of a good reputation, low price and capability contractor ADB Financed Wenchuan Earthquake Reconstruction Project Many management levels Weak Implem entation 23 Counties 386 Contracts ￥ : 3 billion Specialized Operations from Procurement Agent

Training For The Bidders And Sub-employers Of The Wenchuan Earthquake Reconstruction Project

The Effect Of Procurement Agent mechanism Professional services from procurement agent turn scattered point demand into Concentrated demand To facilitate a creation of the open and public trading platform between the Purchaser and the Seller The development and perfection on the industry of Procurement Agent will improve the market competition order

Third Party: Open, Justice, And Transparency Purchaser Technology Market Bidder P.A

Potential Bidder Bidder Purchaser bidder Bidder bidder Bidder P.A Third Party: Open, Justice, And Transparency

The Effect Of Procurement Agent mechanism Professional services from procurement agent turn scattered point demand into Concentrated demand To facilitate a creation of the open and public trading platform between the Purchaser and the Seller The development and perfection on the industry of Procurement Agent will improve the market competition order

Propagation Machine: Further Promote The Perfection Of The Market Competition Order Towards higher goals Enrich the services Enhance the ability to create value for the market and customers

China General Consulting & Investment Co., Ltd.