The Hong Kong government is promoting a plan for the central government to centrally purchase approximately 300,000 tons of steel bars in the first phase.

The Hong Kong Development Bureau today (April 14) invited the market to submit letters of intent regarding the centralised procurement plan for reinforcing bars. In the 2025 Policy Address, the Chief Executive of Hong Kong proposed that the Development Bureau would pilot centralised procurement this year, starting with commonly used materials such as reinforcing bars and prefabricated components to save costs. A spokesperson for the Development Bureau said that the government had commissioned consultants to study the arrangements for centralised procurement and had completed the study on reinforcing bars. Based on preliminary market inquiries, the government plans to adopt a framework procurement contract and sign three-year agreements with multiple qualified suppliers of reinforcing bars. Suppliers who have signed the agreements will be eligible to bid for orders within the framework contract for reinforcing bars during the three-year period. It is reported that, according to current plans, the total procurement volume is approximately 300,000 tons, mainly covering civil engineering projects managed by different departments. Based on current estimates, the above-mentioned procurement volume is expected to meet the reinforcing bar needs of approximately 20 projects to be carried out in the next two years. The government will reserve the necessary procurement costs within the approved project budgets of each participating project to fund this centralised procurement plan. The spokesperson said, "Certain departments have previously used a direct procurement model to purchase common components for their projects and successfully saved expenses. Building on the successful experience of direct procurement, the government hopes to further advance by implementing the centralised procurement plan for reinforcing bars, integrating the overall demand of multiple user departments for engineering projects for the first time, and utilizing the advantages of centralised procurement to purchase major building materials more cost-effectively. The Development Bureau has commissioned the Civil Engineering and Development Department to implement this centralised procurement plan for reinforcing bars." The spokesperson mentioned that using the framework procurement model, signing framework procurement contracts with multiple qualified suppliers allows the suppliers under the framework contract to prepare for bidding on individual batches of procurement in the future, providing flexibility. If individual suppliers face supply disruptions, other signed suppliers can directly supply according to the mechanism without the need for re-tendering, reducing the risk of project delays. The qualifications and specific requirements for suppliers under the framework procurement contract are listed in the letter of intent invitation documents. The government welcomes industry submissions of letters of intent and suggestions on the plan. The collected opinions will help the government further refine the details of the contract tender documents, including the total procurement volume, the number of suppliers under the framework procurement contract, etc. The Development Bureau had previously commissioned the Civil Engineering and Development Department to prepare for an open tender, with the aim of starting centralised procurement of reinforcing bars in the third quarter of this year. The Development Bureau will hold a briefing on the letter of intent on April 22 (Wednesday). The related consultant studies for the centralised procurement plan of prefabricated components are also nearing completion and are expected to invite the market to submit letters of intent around the middle of the year.