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Corporation Bidding

Generally speaking, corporation bidding refers to choosing project owner (shareholder) through bidding process. If shareholders are chosen in this way for BOT or Quasi-BOT projects, these projects are also called corporation bidding. Corporation bidding is not limited to BOT projects or Quasi-BOT projects, in many situations there is no project period specified for shareholders chosen in this way, and there is no need to transfer the project facility at the end of project period, virtually it is only one of the major tools of infrastructure industrialization.

Corporation bidding introduces the bidding approach into financing activities, namely it introduces market mechanism into the financing domain. The result of bidding is the decrease of prices for public utilities by adopting the market principle, which will be beneficial to urban residents. Bidding also increases the transparency of financing process and avoids possible moral problems during financing activities. Corporation bidding will be the main financing means for large-scale public utility projects.

 


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Corporation Bidding
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