AFTER announcing the city would invite tenders for five of its State-owned enterprises (SOE) from international capital, Mayor Yu Youjun was asked why the city had chosen some its best-performing State companies — most of them concerned with infrastructure building, in particular.“We want to reform our SOEs in a steady pace. Choosing these well-performing companies will help assure a steady progress in the international bidding,” answered Yu. “Another reason is that people’s need for public facilities is moving to a higher level, which in turn necessitates us to further our service in areas such as energy and water. We have big expansion plans, which will need plenty of capital. The government is not able to supply all the money. So we will need to raise the money through many channels to speed up expansion of the public utilities and push our investment environment up to a new level,” Yu continued, adding that the bidding-related reform would also help enhance the city’s utility service.Shenzhen will put in at least 20 to 30 billion yuan into its municipal works. Yu said the water company would supply not just tap water but also drinkable tap water. He also mentioned the city would build eight to ten more wastewater treatment plants by 2005 and the gas line would be connected to every household after three or four years. And Shenzhen still has a shortage of 300,000 -500,000 kilowatts electricity, Yu said.As to the question who is interested in bidding for these companies, Yang Jinjun, an official in charge of the bidding, said that dozens of the world’s top 500 companies have expressed their keen interest. So far 13 multinational companies had shown an interest in investing in Shenzhen Food Products General Co., one of the five to be tendered, said Li Decheng, the deputy mayor. Another 13 companies, according to Li, had expressed their desire to bid for Shenzhen Energy Group, also one of the five.Alongside the five companies Shenzhen’s another five important SOEs — Airport Group, Yantian Port Group, Shenzhen International Trust and Investment Corporation, the Metro Company and the Shenye Group — will be liberalized. Now the five companies are under the control of the city’s State assets management company. The liberalization means that their managers, to be given more authorities, will need to report only to a State assets office of the Municipal Government. Meanwhile, the city will sell more smaller companies.Li Decheng pointed out that another purpose to tender the SOEs was to optimize their organizational structure and management by introducing competitive foreign companies as strategic partners.As to the question of why foreign partners will not be allowed to take controlling shares in the four companies to be tendered, Wang Suiming, another deputy mayor, said the government would put limit to the price of such things as water and electricity that are among people’s basic needs, and the government would be the controlling shareholder. The food company, however, plans to sell 70 percent of its shares to two foreign companies.