By McKenzie, Paul; Teoh, Jacqueline
The China Business Review , Vol. 30, No. 1
(ProQuest Information and Learning: Foreign text omitted.)
Beijing's hosting of the summer Olympic Games in 2008 presents China with a tremendous opportunity to cement its reputation as an emerging economic powerhouse and to showcase Beijing as a world-class capital city. Yet the task of preparing the city's infrastructure and facilities to host the games is formidable. For this reason, Beijing officials are looking to foreign companies to help supply the long list of goods and services the city needs.
The Beijing Organizing Committee for the XXIX Olympic Games (BOCOG, ... , di 29 jie aolinpike yundonghui zuzhi weiyuanhui)-established in December 2001 under the State Council-has billed the 2008 games as the 11 Green, High-Tech, and People's" Olympics, with projects in each of these areas receiving special attention and most of the available funding. Estimates of the total price tag have ranged from $25 billion to $40 billion. At this stage, more than 140 key projects are in the pipeline, with the majority devoted to basic infrastructure, the environment, and pollution control and reduction. Fully one-third of the projects require some high technology. Numerous cultural and tourism-related projects are also in the planning stages.
Most of the sporting events will take place in Beijing, but Shanghai, Tianjin, Shenyang, Liaoning; Qingdao, Shandong; and Qinhuangdao, Hebei, will also host events. This article concentrates on developments in Beijing, as the tender procedures for work in these other locales should be similar to those in the capital.
The Olympic Action Plan
BOCOG released the official Beijing Olympic Action Plan (the Plan) on July 13, 2002, the first anniversary of the awarding of the games to Beijing. The Plan sets out a detailed blueprint for Olympics-related infrastructure and other public investments. It also lays out an ambitious timeline, dividing the period from the establishment of BOCOG until the opening of the games into preparatory, development, and pre-games operational stages (see box this page). This timeline will drive the scheduling, flow, and nature of foreign investment in games-related projects.
More recently, in October 2002, BOCOG released specific draft plans for environmental protection and the development and structural adjustment of the high-tech and energy sectors. These plans detail the areas of government attention within each sector. Foreign investors interested in Olympics-related opportunities, or seeking to enhance their bids for Olympic venues, should focus their investment and bid strategies on these areas.
The principal government agencies charged with supervising the bid process for Olympics-- related projects are BOCOG and the Beijing municipal development and planning authorities, namely Beijing Development Planning Commission (BDPC,...) Beijingshi fazhan jihua weiyuanhui) and the Beijing Municipal Planning Commission (BMPC, ... Beijingshi guihua weiyuanhui). These representatives of the PRC government have repeatedly emphasized that Olympics-related projects will be awarded through an open tender system, with bids accepted on a global and competitive basis (see p.13). Tenders will be drafted and contracts awarded based on requirements set out in the PRC Bidding Law and the Beijing Municipal Bidding Regulations (together the Bidding Rules); the Olympic Ownership Bidding Measures and the Beijing Municipal Ownership Bidding Regulations (together the Olympics Bidding Rules); and the PRC Government Procurement Law (see p.14).
It is important for companies to distinguish between projects related directly to the Olympic venues (see p.10) and those slated for Beijing's overhaul of infrastructure and services. The latter include a variety of basic infrastructure projects, such as the construction and operation of water- and waste-treatment facilities and power plants, which will also be of interest to companies but will follow a different timeline. …