Brussels, 03/06/2014 (Agence Europe) - On Monday 2 June, the European Commission opened infringement proceedings against Bulgaria, requesting information about the granting of public contracts to the company South Stream Bulgaria which it says breaches EU public procurement rules.
On Tuesday 3 June, a European Commission spokesman said the Commission was formally requesting information from the Bulgarian authorities and had asked the country to suspend work on the project while the investigations are being carried out and until EU law is fully respected.
The Commission says the public procurement rules are not being respected by Bulgaria. The main concern is that South Stream Bulgaria, a company that was set up specially, has been awarded the contract to design, finance, construct and operate the gas pipeline without the competitive procedure which is expected in such cases. Secondly, the intergovernmental agreement between Bulgaria and Russia provides for the possibility for downstream contracts to be awarded by preference to Russian and Bulgarian bidders without publication in the Official Journal. The Commission says the required transparency, non-discrimination and equal treatment laid down in the treaties are not being respected.
The infringement proceedings were opened on Monday because work in relation to contracts granted by Bulgaria is about to start. The Commission spokesman said: “We have done so because the awards are taking place now. And work is about to start. So it was urgent to act. Of course we are also looking at the situation in other member states which are involved in the project (Ed: Austria, Croatia, Greece, Hungary and Slovenia.). And we expect them to carry all contracts in full compliance with the treaties. And we will take action if necessary”. (MB)