Brussels, 12/02/2014 (Agence Europe) - On Tuesday 11 February, the Council of the EU definitively approved the reform of the public procurement directives (conventional markets and non-standard sectors) as well as the introduction of a regulatory framework for concessions to be awarded.
Amongst other things, the reform of the existing directives will simplify the procedures for the award of public contracts (reducing lead times and the paperwork required), make it easier for SMEs to get involved (splitting a contract into a number of lots will be encouraged) and will roll out the conversion of electronic contracts (see EUROPE 10997). It aims to stimulate technological innovation and also reinforces respect for environmental and social roles, particularly in the event of subcontracting. Case-law of the European Court laying down conditions allowing cooperation between public entities to be exempt from competition will also be included in the European legislation.
Concessions. Concessions differ from conventional public procurement contracts in that the tenderer bears a proportion of the risk arising from the contract and will be paid, at least partly, from running the structure provided or service rendered in the framework of the contract (e.g. toll tunnel, operating a public transport line, etc). By introducing an application threshold of €5 million, the specific directive leaves the public authorities a lot of leeway to grant concessions. One of the political battles over this dossier was about excluding the drinking water sector (see EUROPE 10873). (MB/transl.fl)