The scope of compulsory bidding:
1. Large-scale infrastructure, public utilities and other projects related to social interests and public safety. This is a regulation based on the nature of the project. In terms of the nature of projects, infrastructure and public utilities projects are mostly related to the interests of the public and public safety. In order to ensure the quality of projects and protect the safety of citizens' lives and property, governments all over the world generally require the enactment of relevant laws.
2. Projects invested or financed by the state in whole or in part. This is a regulation on the source of funds. State-owned funds refer to state financial funds (including budgetary funds and extra-budgetary funds) and self-owned funds of state organs and state-owned enterprises and institutions.
3. Projects that use loans or aid funds from international organizations or foreign governments. This kind of project must be invited for bidding, which is generally required by international multi-financial organizations such as the World Bank and foreign governments. In addition, most of these loans belong to the sovereign debt of the country, which is unified by the government and should be regarded as state-owned capital investment in nature.
Extended information:
Reasons for compulsory bidding
From the situation of various countries, since the funds of the government and the public sector mainly come from taxes, it is an inevitable requirement for taxpayers to improve the efficiency of the use of funds.
therefore, these countries generally implement the bidding system in the field of government procurement and public investment, requiring that government investment projects and privately invested infrastructure projects must be subject to competitive bidding, otherwise they will not be supported by financial funds or approved by the examination and approval department.
The specific scope and scale standards of compulsory bidding projects, that is, projects with large investment, what kind of projects need bidding, equipment and materials with large purchase, and what kinds of equipment and materials need bidding, shall be formulated by the the State Council Development Planning Department in conjunction with relevant departments of the State Council, and published after being approved by the State Council.
Baidu Encyclopedia-Compulsory Bidding
Baidu Encyclopedia-Bidding Law of the People's Republic of China