China has experienced substantial economic growth over three decades, with sustained annual GDP growth rates of 8%-10%. In order to maintain the growth, the government seeks to accelerate the process of industrialization and urbanization started in the 12th Five Year Plan (2011-2015).
China has made investment in transport infrastructure a centerpiece of its strategy, with investment in the rail sector specifically increasing, in recognition of lower cost, higher energy efficiency, and lower carbon emission of rail transport compared with road and air transport.
, which includes 16,000 kilometers of rail connecting 160 cities on the mainland. China’s Mid- and Long-term Railway Network Plan (2004-2020), adopted in 2004 and updated in 2008, contains an ambitious program of railway network development, with an aim of increasing the public railway network from 75,000 km to 120,000 km, among which 25,000 route-km will be fast passenger railway routes.
Procurement of high-speed railway projects in China is complex and transaction heavy. The technology is constantly changing due to innovation by designers and manufacturers, and the inclusion of multiple agencies and officials can increase the complexity.
For governments to carry out their day-to-day functions, procurement -- or their ability to purchase goods and services -- is critical. It is both a service function and a strategic policy tool which can help achieve a broad range of social and economic welfare objectives. It cuts across all areas of public administration and builds on cooperation among multiple public and private stakeholders.
. Promoting innovation in procurement means processes that are transparent and efficient, and that facilitate equal access and open competition. to delivering better services with long-term value for money.
Though the Indian government has steadily increased funding for its health sector, per capita allocation is still low; reform is thus critical to effectively utilize the available budget.
The underlying question is: Given a set of resources, how do you procure goods in a way that achieves value for money and maximum efficiency?
Drugs and medical supplies are not procured and distributed in time, and this interruption in the delivery of services in health facilities affect the general population’s health outcomes.
To maintain current growth rates and meet demands for infrastructure, developing countries will require an additional investment of at least an estimated US$1 trillion a year through 2020. In the Mashreq countries, the required infrastructure investment for electricity alone is estimated at US$ 130 billion by 2020, and an additional US$108 billion by 2030.
Public procurement is not among the most popular topics in development circles. However, consider just these three ways in which procurement is probably one of the most indispensable elements that make up a truly capable state:
First, without effective procurement, hospitals wait for drugs, teachers for textbooks, and cities for roads. Whenever a news item surfaces about drugs shortages in hospitals, schools without textbooks or failing road networks, the reader may be looking at a procurement problem. Without efficient procurement, money gets wasted on a very large scale. Many developing countries channel significant proportions of their budgets through the procurement system – even marginal savings can add up very fast. Third, public procurement is a part of the government that citizens see every day. Lack of transparency and corruption in procurement directly affects citizens, and the losses to corruption are estimated in the billions of dollars every year. Corruption in procurement is a big problem that affects rich countries as well.
Vietnam spends an estimated US$25 billion in goods and services each year. Recognizing that an efficient public procurement system is essential to delivering quality public services in a timely manner, the Government has set a mandate to professionalize the public procurement function.