Directive 47/CT-TTg bidding activities in development investment projects, regular purchase

THE PRIME MINISTER 

Directive No. 47/CT-TTg dated December 27, 2017 of the Prime Minister on on improvement of bidding activities in development investment projects and regular purchase funded by the state budget

Over the years, the promulgation and implementation of Law No. 43/2013/QH13 on bidding (hereinafter referred to as “Law on bidding”) and the Government’s Decree No. 63/2014/ND-CP providing guidelines for certain articles of Law on bidding in terms of selecting contractors and instructional Circulars issued by Ministries have effectively improved the management, instruction, inspection and supervision of bidding activities by regulatory authorities, project owners, procuring entities and bidders, gradually professionalize bidding activities. According to reports submitted by the Ministry of Planning and Investment, bidding activities by ministries and local authorities over the years have been carried out quite well, the average saving rate is quite good in 2016 (7.11%), quantity of contract packages from online bidding increases quickly in each year with high rate of execution and ensure transparence of information. Besides, to intensify, encourage and facilitate development of domestic products for gradually replacing imports, the Prime Minister promulgates the Directive No. 13/CT-TTg dated April 04, 2017 on increasing the use of domestic materials and goods for bidding on development investment projects and regular purchase funded by the state budget.

However, beside achievements, bidding activities by ministries, local authorities and enterprises also have many shortcomings such as the bidding period is prolonged due to subjective reasons, the bidding activities are not effective as expected; parties involved in the bidding (competent persons, project owners, procuring entities, bidding consultants, etc.) fail to fulfill their responsibilities as prescribed by law and let many mistakes and violations occur during the execution of contracts; there is still a situation of shifting responsibility to the Prime Minister for duties assigned in accordance with power; the transparence of information is not ensured as prescribed; violations have not been handled absolutely; transformation with complex and sophisticated expressions such as bid rigging, cover bidding, subdivision of contract packages for direct contracting, stipulation of unreasonable and inappropriate conditions in bidding documents, especially obstruction of the participation by contractors has not been eliminated.

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