ENG-2007 — Page 105

The Economy ▪ 65

Government Procurement and Supplies Management

Hong Kong, China is a signatory to the World Trade Organisation Agreement on Government Procurement (WTO GPA). Government procurement is undertaken in accordance with the principles

the principles of openness,

of openness, transparency, fairness, public accountability, value for money and non-discrimination. Open tender procedures are widely used while restricted or single tender procedures are adopted where open competitive tendering would not be an effective means, such as in cases involving compatibility with existing equipment, patent or proprietary items. For complex and critical purchases, prequalification exercises may be conducted before tendering to ensure that suppliers are technically competent.

Purchases of goods and related services with values above predetermined thresholds of the WTO GPA are undertaken by the Government Logistics Department (GLD). These goods and related services are normally obtained by competitive. tendering, without preference to any particular source of supply, to ensure that user departments' needs are met at the best possible price, having regard to life-time cost and reliability of supply. Consideration is given to purchasing environmentally friendly products where available and appropriate.

To facilitate sourcing and market research, GLD maintains and regularly updates. the Supplier Lists comprising local and overseas suppliers for different categories of commodities and services.

Notices for open and prequalification tenders are published in the Government Gazette and local newspapers. Suppliers on the relevant Supplier Lists and, in case of procurement covered by WTO GPA, consulates and overseas trade commissions will also be informed where appropriate. To allow easy access by suppliers, GLD also puts its tender notices on the Internet. Since April 2000, subscribers to the Electronic Tendering System have been able to download tender documents and submit tender offers electronically.

In 2007, GLD procured and awarded contracts on behalf of all user departments with a total value of $3.79 billion. Items bought from 33 different territories included:

• computer equipment and software, pharmaceutical products, water treatment chemicals, specialised vehicles, fuel oils and telecommunication equipment;

commonly used items supplied and delivered by term contractors to user departments on an as-and-when-required basis; and

• essential and emergency items purchased and held in bulk by GLD. User departments can place orders for these items when required.

Websites

Economic Analysis and Business Facilitation Unit, Financial Secretary's Office: www.info.gov.hk/fso/eabfu/eng/

Financial Services and the Treasury Bureau: www.fstb.gov.hk Government Logistics Department: www.gld.gov.hk

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