Brussels, 17/07/2013 (Agence Europe) - On Wednesday 17 July, the national ambassadors to the EU (Coreper) confirmed the provisional agreement on the legislative package revising the European rules on the awarding of public procurement contracts and bringing in a framework for concessions. This compromise was reached in late June between the Irish Presidency and representatives of the European Parliament (see EUROPE 10875).
The main objective of the revision of the so-called markets directives (2004/17 and 2004/18) is to simplify the procedures for the award of public procurement contracts. Public authorities will have greater latitude in their choice of procedures, time limits for responding to calls the tender will be reduced, with increased use of e-tendering, and economic operators - mainly SMEs - will be subject to simplified obligations, particularly in terms of declarations and certification. In order to make it easier for SMEs to get involved in public purchasing, measures such as the allotment of contracts will be encouraged.
The legislative package also aims to allow public entities to pursue more cross-cutting policies, such as compliance with social and environmental standards, and technical innovation. Companies will be obliged to comply with the environmental and employment laws of countries in which the contract is carried out or face being excluded from the procedure. Countries will have the option of bringing in joint liability between the company awarded a contract and the company or companies to which it sub-contracts some of the contract awarded to it.
For the first time, rules on “public-public” cooperation are brought in on the basis of the abundant case-law of the Court. Public authorities will be able to award contracts to another entity (100% public or also comprising private capital) as long as it exercises similar control over this entity as it exercises over its own services and the contracting entity realises 80% of its turnover with the public authority.
Concessions. Concessions (e.g. toll tunnels) differ from public procurement contracts in that the concession-holder bears part of the risk linked to the contract and is paid, at least in part, for carrying out the work or service in question. By bringing in an application threshold of €5 million, the directive leaves the authorities a great deal of latitude in granting concessions. One of the political battles sought to exclude the drinking water sector (see EUROPE 10873).
The agreement is expected to be definitively approved by the European Parliament in the autumn and enter into force two years later (30 months for the provisions on electronic public procurement). (MB/transl.fl)