China, People's Republic of : Enhancing Competition in Public Service Delivery
The impact of the technical assistance (TA) is to promote competition in public service delivery in the People's Republic of China (PRC). The outcome is to enhance market-based rules and transparency in public service delivery. The TA will produce four outputs under two components: (i) Component A will assist the Ministry of Finance (MOF) to enhance the public procurement system with output 1 on developing a government procurement system assessment tool and output 2 on drafting policy recommendations for improvement to the existing public procurement system. (ii) Component B will help the China Public Private Partnership Center (CPPPC) under MOF to further develop the PPP information disclosure system with output 3 on drafting policy recommendations for PPP disclosure and output 4 on PPP disclosure guidelines drafted. The TA amounting to $660,000 with $600,000 financed by TASF-other sources was approved on 5 October 2016 with a closing date of 30 September 2018.
East Asia Department
Request for information
China, People's Republic of
- Public sector management
|Project Name||Enhancing Competition in Public Service Delivery|
|Country / Economy||China, People's Republic of
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
|Sector / Subsector||
Public sector management / Public administration
|Gender||No gender elements|
The impact of the technical assistance (TA) is to promote competition in public service delivery in the People's Republic of China (PRC). The outcome is to enhance market-based rules and transparency in public service delivery. The TA will produce four outputs under two components: (i) Component A will assist the Ministry of Finance (MOF) to enhance the public procurement system with output 1 on developing a government procurement system assessment tool and output 2 on drafting policy recommendations for improvement to the existing public procurement system. (ii) Component B will help the China Public Private Partnership Center (CPPPC) under MOF to further develop the PPP information disclosure system with output 3 on drafting policy recommendations for PPP disclosure and output 4 on PPP disclosure guidelines drafted. The TA amounting to $660,000 with $600,000 financed by TASF-other sources was approved on 5 October 2016 with a closing date of 30 September 2018. The Executing Agency is the MOF with MOF's Treasury Department, the Implementing Agency for component A and CPPPC the Implementing Agency for component B.
In 2017, Component B was restructured as follows: It is proposed to redirect output 3 to 'Recommending additional policies actions to improve information disclosure of PPP projects and output 4 to 'Disseminating information disclosure guidelines for PPP Projects and PRC's PPP knowledge . The proposed changes are considered as minor changes, since they do not change the TA's impact and outcome and do not substantially affect the TA's components, benefits, or implementation arrangements. The updated DMF with the new activities of component B is included in Appendix 1.
Under output 3, CPPPC will pilot the use of Source (formerly International Infrastructure Support System), a cloud based digital collaborative platform designed to speed up the delivery of infrastructure projects. Source was initially established by ADB through technical assistance in support of an infrastructure system in Asia. The Sustainable Infrastructure Foundation (SIF), a not-for-profit Swiss Foundation headquartered in Geneva, operates and coordinates the provision of Source in conjunction with multilateral development banks (MDBs), including ADB, European Bank of Reconstruction and Development, Inter-American Development Bank, World Bank etc. as members of the Supervisory Committee of SIF. Source is expected to improve information disclosure between the various stakeholders, including central government agencies, local governments, private sector and the public. Source is provided free of charge to national government agencies and the development and support costs funded by the MDBs.
Under output 4, CPPPC will disseminate the approved new information disclosure guidelines through a series of workshops to the local governments and the private sector. CPPPC will strengthen its international collaboration with ADB and UN-ESCAP on PPP knowledge and dissemination within the frame of a South-South cooperation. CPPPC will also work on the first Annual PPP Transparency Report to be published in the PRC on the model of the Annual Public Finance Report.
|Project Rationale and Linkage to Country/Regional Strategy||
The PRC still lacks a national government procurement assessment system that can measure procurement efficiency centrally and locally, identify systematic issues affecting performance, and provide guidance on potential enhancements. It also needs tools that can examine actual procurement practices and provide the information required to establish a program of continuous improvement. The general public raised some concerns on public procurement efficiency and effectiveness in media reports that suggest the government procurement system's operational procedures and fiduciary oversight could be improved. Furthermore, the GPL needs to be aligned with international good practices. During the negotiations that led to the accession of the country to the World Trade Organization, the PRC agreed the GPL would comply with the basic spirit of the World Trade Organization Agreement on Government Procurement.
Providing information to buyers, sellers, and other market participants is also essential for effective competition in public service delivery. Lack of information causes inefficiency that unnecessarily adds to the cost of transactions or prevents them altogether, and deters private investors from taking risks. Information shortages can also erode confidence among the broader community about the quality of local governments, which carry most of the responsibility for service delivery in the PRC. Opening access to information about how governments work would help open public services to competition.
The government has actively promoted PPPs since late 2013. MOF established the China Public Private Partnership Center (CPPPC) in July 2014 to cover PPP policy advisory, consultations, capacity development, project financing, information disclosure, and international cooperation. Local governments have copied the central government's initiatives, including through the compilation of demonstrative projects and the establishment of PPP centers.
High-quality information disclosure on PPPs to the public would help the reforms of the 13th Five-Year Plan for National Economic and Social Development, 2016--2020 for the delivery of public services. The use of PPPs to deliver public services is rising rapidly across a broad range of sectors. CPPPC reported 9,285 PPPs as under development or implementation as of June 2016, most of which are with local governments.The total investment value of about $1.6 billion for these PPPs is comparable to the annual general budget expenditure by local governments of about $2.5 billion and annual local government infrastructure spending of almost $700.0 billion.
Competition in public service delivery promoted (PRC's 13th Five Year Plan (20162020)).
|Description of Outcome||
Market-based rules and transparency in public service delivery enhanced
|Progress Toward Outcome||
The TA is under implementation.
The TA is likely to be extended to complete reporting requirement under Component A and to do additional work on SOURCE Digital Platform for improved disclosure of PPP projects.
|Description of Project Outputs||
Government Procurement System Assessment Tool developed
Policy recommendations on existing procurement system improvement drafted
Policy Recommendations on PPP disclosure drafted
PPP Disclosure Guideline drafted
|Status of Implementation Progress (Outputs, Activities, and Issues)||
The consultants contracts were extended to finalize the final reports under the component.
The consultants were fielded for conducting trainings on SOURCE (formerly International Infrastructure Support System) database and working on the PPP information disclosure. The Chinese translation was completed in May 2019. The system was introduced to ADB regional departments through internal learning/knowledge sharing sessions. The 2018 PPP Market Transparency Report in the PRC (bilingual) was completed in September 2019.
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||The TA is composed of two components. Component A will assist MOF's Treasury Department in enhancing the present procurement system. Component B will help China PPP Center (CPPPC) to further develop the PPP information disclosure system. ADB field missions and reached an understanding on the objectives, scope, implementation arrangements, costs and TORs for the TA.|
|During Project Implementation||Treasury Department and CPPPC will actively play the roles of IAs, guide the consultants to produce highly quality research reports and practical policy suggestions.|
|Consulting Services||The consultant will be hired as individual consultants, in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).|
The proposed TA will be implemented over an 18-month period from 15 September 2016 to 6 January 2019.
Under Component A, the TA will provide a total of 12 person-months inputs of individual consulting services, including one international consultant (Procurement Specialist) for 4 person-months and two national consultants (one Procurement Specialist and one Public Finance Management Specialist) for 8 person-months.
Component B was revised as follows: (i) Two international consultants increased from 1 to 3 person-month (PM); (ii) Two national consultants increased from 9 to 10 PM; and (iii) Training and workshops keep their initial allocation. The international consultants will be: (i) Senior PPP specialist / Team Leader (1 PM) to coordinate component B, including communicating and disseminating best practices policy and actions for information disclosure at the CPPPC; and, (ii) Project Coordinator (2 PM) to oversee the implementation and implementation of Source. The national consultants will be recruited as (i) PPP/Information Specialist (4 PM); and (ii) Transparency and Information Management Specialist (6 PM).
|Responsible ADB Officer||An, Bo|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||Public Mgt, Financial Sector and Regional Coop Division, EARD|
Ministry of Finance
|Concept Clearance||19 Aug 2016|
|Fact Finding||30 Aug 2021 to 30 Aug 2021|
|Approval||05 Oct 2016|
|Last Review Mission||-|
|Last PDS Update||23 Sep 2019|
|Approval||Signing Date||Effectivity Date||Closing|
|05 Oct 2016||26 Oct 2016||26 Oct 2016||30 Sep 2018||30 Sep 2020||27 Jul 2020|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|600,000.00||0.00||0.00||0.00||0.00||0.00||600,000.00||17 Jun 2022||382,847.42|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
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In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|Enhancing Competition in Public Service Delivery: Technical Assistance Completion Report||TA Completion Reports||Aug 2021|
|Enhancing Competition in Public Service Delivery: Technical Assistance Report||Technical Assistance Reports||Oct 2016|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
|Tender Title||Type||Status||Posting Date||Deadline|
|National PPP / Information Specialist||Individual - Consulting||Closed|
|National Transparency and Information Management Specialist||Individual - Consulting||Closed|
|Senior PPP Specialist||Individual - Consulting||Closed|
None currently available.