The Ministry of Communications will issue new rules on bid management and invitation in profiting highway construction, in an effort to include non-public capital in construction of the nation's highway infrastructure and protect investors' legal rights.
The term profiting highway refers to authorized toll roads, bridges and tunnels financed and constructed by domestic and overseas economic organizations, in accordance with the Management Statute for Charging Highways.
The legislation requires domestic and overseas bidders to have a registered capital, total assets, and net assets of no less than 100 million yuan (13.24 million U.S. dollars), 600 million yuan, and 250 million yuan respectively. Also, their net assets must account for 35 percent or more of projected investments.
They must also have profited over the past three consecutive years, and have their annual financial reports audited by legal intermediary institutions.
Tenderees are allowed to raise qualification requirements for bidders. Bidding warrant money is usually 0.3 percent of investment, but the maximum is five million yuan.
Two or more organizations can bid for a project as a consortium, and each member must meet tenderees' qualification requirements. If a consortium wins the bid, members should sign an agreement with tenderees together.
(China Daily September 7, 2007)
