By Song Hongmei (chinadaily.com.cn)
Updated: 2007-12-10 15:39

China's central government units have saved 5.1 billion yuan ($690 million) through government procurement over the five years since China implemented the Government Procurement Law in 2003, People's Daily reported today.

The central units raised their government procurement to 10 billion yuan this year, compared with 710 million yuan in 2003, according to statistics cited by the newspaper.

The annual rate of funds saved in government procurement reached 16.9 percent and the figures exceeded 50 percent for some projects, the newspaper reported.

"Ordinary people consider group purchasing to save money. The government should also try to spend less and save taxpayer money in its procurement," said Zhang Zhenguo, deputy director of the central government's procurement center.

The procurement center will buy some exhibition cupboards for the Palace Museum and begins taking bidding now, according to an announcement released Thursday on the website of the procurement center, zycg.gov.cn.

Such purchasing information is released on the website almost every working day as more goods and services ranging from office equipment and stationery to government car maintenance services are listed in a purchase catalogue.

"However, central units' government procurement currently only accounted for one eighth of total purchases, which is a far cry from the State Council's proposition that government procurement be the primary source of government purchases at all levels," said Gao Zhigan, chief of the general affairs division of the procurement center.

Gao said there is still huge potential for government procurement in saving costs for administrative departments.

In addition to improving cost efficiency, the country also aims to use government procurement to spur economic growth in less developed areas and small and medium-sized enterprises. It also plans to spend more on procuring environmental protection.

The policy of government procurement and its purchasing targets will have a direct impact on investment choices as well as production and sales modes of suppliers, said Xu Huandong, a school of government professor with the Central University of Finance and Economics.