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What is a PPP project consortium?

"Consortium" as a legal term first appeared in the "Tendering and Bidding Law of the People's Republic of China" promulgated in 1999 (hereinafter referred to as the "Tendering Law"). Article 31 of the Bidding Law stipulates that two or more

Legal persons or other organizations can form a consortium and jointly bid as one bidder.

The term "consortium" continues to be used in the "Government Procurement Law of the People's Republic of China" promulgated in 2002 (hereinafter referred to as the "Government Procurement Law").

Article 24 of the Government Procurement Law stipulates that two or more natural persons, legal persons or other organizations may form a consortium and jointly participate in government procurement as a supplier.

It can be seen from the above provisions that the Government Procurement Law basically follows the definition of consortium in the Bidding and Bidding Law, but expands the composition of the consortium to allow natural persons to become members of the consortium.

According to the legislative intent of the Bidding and Bidding Law, the purpose of forming a consortium is to "jointly bid for all parties", and subsequent government procurement laws expanded the purpose of the consortium to "jointly participate in government procurement", although it is only a few

There is a difference in wording, but this is very important for the introduction of the concept of consortium in the PPP model, because one of the important legal sources for the social capital party’s procurement method in PPP projects is the Government Procurement Law. Different social capital party procurement methods applied in PPP projects are applicable to

Consortium.