Šajā tīmekļa vietnē tiek izmantotas sīkdatnes. Turpinot lietot šo vietni, jūs piekrītat sīkdatņu izmantošanai. Uzzināt vairāk.
Teksta versija
LEGAL ACTS OF THE REPUBLIC OF LATVIA
home
 
The translation of this document is outdated.
Translation validity: 01.05.2017.–17.04.2019.
Amendments not included: 21.02.2019.
Text consolidated by Valsts valodas centrs (State Language Centre) with amending laws of:

25 August 2010 [shall come into force from 7 September 2010];
5 September 2013 [shall come into force from 20 September 2013];
19 September 2013 [shall come into force from 18 October 2013];
20 April 2017 [shall come into force from 1 May 2017].

If a whole or part of a section has been amended, the date of the amending law appears in square brackets at the end of the section. If a whole section, paragraph or clause has been deleted, the date of the deletion appears in square brackets beside the deleted section, paragraph or clause.

The Saeima1 has adopted and
the President has proclaimed the following law:

Law on Public-Private Partnership

Division A
General Provisions

Chapter I
General Provisions

Section 1. Terms Used in this Law

The following concepts and terms are used in this Law:

1) public-private partnership - co-operation between the public and private sector simultaneously characterized by the following features:

a) the co-operation takes place between one or several public partners and one or several private partners involved in the public-private partnership procedure;

b) the co-operation takes place in order to meet public needs in performing construction work or providing services;

c) it is a long-term co-operation lasting up to 30 years but in the cases laid down in this Law - even longer;

d) the public and private partner pool and use the resources available thereto (e.g. property, financial resources, knowledge and experience);

e) the public and private partner share the responsibility and risks;

2) contractual public-private partnership (hereinafter - the contractual partnership) - the type of public-private partnership where the co-operation between the public and private sector takes place by the public and private partner entering into and fulfilling a partnership procurement contract or a concession contract;

3) institutional public-private partnership (hereinafter - the institutional partnership) - the type of public-private partnership where the co-operation between the public and private sector takes place by jointly establishing a joint venture in accordance with the procedures laid down in this Law with which the public partner enters into a partnership procurement contract or a concession contract as with a private partner;

4) partnership procurement contract - a public construction work contract entered into in written form in financial interests (if it also provides for the management of the constructed structure) or a public service contract (if it also provides for construction work that is an insignificant part of the subject matter of this contract) entered into by and between a public partner and a private partner for a time period exceeding five years;

5) concession contract - a works concession contract or a services concession contract entered into by a public and private partner;

6) works concession contract - a contract entered into in written form in financial interests according to which the private partner executes the construction work referred to in Annex 1 to this Law, or constructs or designs a structure and executes the construction work referred to in Annex 1 to this Law or constructs a structure, or constructs a structure, using any means in line with requirements of the public partner, and obtains the right to use this building as remuneration (Clause 8 of this Section) or the abovementioned right together with remuneration. Concurrently, the operating risks of this structure are also transferred to the private partner according to the contract (Clause 9 of this Section);

7) services concession contract - a contract entered into in written form in financial interests according to which the private partner provides and manages the services not referred to in Annex 1 to this Law, and obtains the right to use these services as remuneration (Clause 8 of this Section) or the abovementioned right together with remuneration. Concurrently, the operating risks of these services are also transferred to the private partner according to the contract (Clause 9 of this Section);

8) the right to exploit the structure or services - the right to receive a payment from end-users of the structure or service or the right to receive remuneration from the public partner the amount of which depends on the demand of end-users for the structure or service, or to receive both the payment from end-users of the structure or service and the abovementioned remuneration from the public partner;

81) structure - the common result of the construction work referred to in Annex 1 to this Law which is sufficient in order for the structure to ensure some economic or technical function;

9) structure or service exploitation risks - economic risks when revenue of the private partner depends on the demand of a structure or service end-user for the structure or service (demand risk) or on whether this structure or service is being offered to an end-user in accordance with the requirements laid down in the entered into concession contract (availability risk), or on both the demand risk and availability risk;

10) end-user - a person, except for the public partner and the private partner that in the case when a concession contract is entered into, uses the structure or service exploited by the private partner;

11) public-private partnership contract - a partnership procurement contract or a concession contract;

12) partnership procurement procedures - the procedures for the award of a partnership procurement contract;

13) concession procedures - the procedures for the award of a concession contract;

14) public-private partnership procedures - the partnership procurement procedures and concession procedures;

141) concession procedure document - any document drawn up or referred to by the Concession Procedure Commission in order to describe or determine the elements of concession or concession procedure, including the concession notice, a notice on changes or additional information, technical specification, descriptive documents, a draft concession contract, regulations of the concession procedure, and additional documents;

15) public partner - one or several of the following subjects may act as a public partner:

a) the State as the initial legal person governed by public law;

b) a derived legal person governed by public law;

c) the legal person referred to in Clause 16 of this Section;

d) an association in which all members are the persons referred to in Sub-clause "a", "b" or "c" of this Clause, or a foundation in which all founders are the persons referred to in Sub-clause "a", "b" or "c";

e) a public service provider within the meaning of the Law on the Procurement of Public Service Providers;

16) legal person acting as a public partner - a legal person governed by private law which concurrently conforms to Sub-clause "a" and Sub-clause "b" or "c" of this Clause:

a) it has been established or is operating in order to ensure the needs of the public which are not of commercial or industrial nature;

b) it is subordinate to or under decisive influence of the State, a derived public person or such legal person which conforms to the criteria referred to in this Clause (this influence manifests itself as the majority of voting rights upon electing the members of the monitoring or executive authority or upon appointment of the administration thereof);

c) the activity thereof is financed, by more than 50 percent, by the State, a derived public person or such legal person governed by private law which conforms to the criteria referred to in this Clause;

17) public needs which are not of commercial or industrial nature - needs that are not related to direct availability of goods and services on the market and that are important for meeting the public interests;

18) representative of the public partner:

a) the direct administration institution, the body of a public person or a natural person to whom the relevant State administration task is delegated in accordance with the procedures laid down in the State Administration Structure Law and that is determined in the decision of the Cabinet referred to in Section 16, Paragraph six of this Law if the public partner is the State as the initial legal person governed by public law;

b) the indirect administration institution, the body of a public person or a natural person to whom the relevant State administration task is delegated in accordance with the procedures laid down in the State Administration Structure Law and that is determined in the decision of the derived public person referred to in Section 16, Paragraph six of this Law if the public partner is a derived public person;

c) the board of directors of a capital company if the public partner is a State or local government capital company;

d) an institution of a legal person governed by private law that in accordance with the laws and regulations regulating its operation is entitled to represent this legal person if the public partner is another legal person governed by private law that is not a State or local government capital company;

19) candidate - a natural or legal person or the subjects referred to in Clause 15 of this Section, or an association of such persons in any combination thereof which offers on the market to perform construction work, supply goods or provide services accordingly, and participates in the partnership procurement procedure or the concession procedure;

20) lender's proposed candidate - a person proposed by the lender in accordance with the procedures laid down in this Law in order for the representative of the public partner to enter into a new public-private partnership contract therewith if the initial contract is terminated early;

21) private partner - a candidate or a special purpose entity established thereby (in case of the contractual partnership) or a joint venture (in case of the institutional partnership) with whom the public partner has entered into a public-private partnership contract;

22) joint venture - a capital company established by the public partner and the candidate (the private shareholder) determined as a result of the public-private partnership procedure;

23) shareholder contract - a contract that, in case of institutional partnership, is entered into by shareholders or stockholders (hereinafter - the shareholder) of a joint venture and that regulates the exercising of rights of the public partner and the private partner as shareholders of the joint venture in order to facilitate the fulfilment of the public-private partnership contract;

24) lender - the person who grants financing to the private partner in order to ensure fulfilment of the obligations of the public-private partnership contract;

25) information exchange agreement - an agreement entered into by the public partner and the lender in accordance with the procedures laid down in this Law and that governs the procedures for the exchange of information between the public partner and the lender ensuring fulfilment of the public-private partnership contract and exercising of the lender's intervention right;

26) special purpose entity - a commercial company established by the candidate determined as a result of the public-private partnership procedure in the cases laid down in this Law in order for the public partner to be able to enter into a public-private partnership contract with this commercial company;

27) Monitoring Authority - an institution determined by the Cabinet that fulfils the functions referred to in Section 9 of this Law;

28) Concession Procedure Commission - a commission established by the representative of the public partner or representatives of several public partners for the implementation of the concession procedure;

29) Complaint Review Commission - a commission established by the Procurement Monitoring Bureau in order to review complaints regarding concession procedure violations;

30) public partner resources - tangible property or aggregation of properties owned by the public partner that without separate payment is transferred to the private partner for use or is invested in the equity capital of the joint venture in accordance with the public-private partnership contract;

31) the most economically advantageous tender - the tender selection criterion, where such factors as delivery or contract fulfilment terms, exploitation expenses and other expenses, their efficiency, quality of construction work or services, aesthetic and functional description, conformity with the environmental protection requirements, technical advantages, availability of spare parts, delivery safety, price and other factors related to the subject of the concession contract that are to be particularly determined and objectively comparable or evaluated are taken into consideration;

32) contract value - the total payment for the fulfilment of a public-private partnership contract (not taking into consideration the value added tax.). It also applies to the total amount of the financial resources (not taking into consideration the value added tax) the private partner would obtain by exercising the rights and obligations ensuing from a public-private partnership contract and that may also include payments of an end-user;

33) sub-contractor - a person hired by the candidate or a person hired by him or her in turn which performs construction work or provides services for the fulfilment of a public-private partnership contract;

34) handling cycle - all consecutive and interconnected stages which include research and development, production, sale and its conditions, transportation, use, maintenance which refers to the entire period of existence of the structure or provision of the service from recovery of raw materials or production of resources until waste disposal, demolition of the structure, and termination of provision or use of the service;

35) electronic means - means which are appropriate for processing of the data received or sent via the electronic communications network (also for digital compression) and storage thereof, as well as for transmission of data via electronic communications networks;

36) common procurement vocabulary (CPV) - a nomenclature approved by the European Union which is applied to public-private partnership procedures;

37) publication management system - a State information system under supervision of the Procurement Monitoring Bureau and available on the website of the Procurement Monitoring Bureau which ensures preparation and submission of such information to the Procurement Monitoring Bureau or publication of such information on its website which, in accordance with laws and regulations, should be prepared and submitted to the Procurement Monitoring Office or published on its website and which contains information on the persons on whom administrative penalty - a prohibition to hold offices of public officials - has been imposed for violations in the field of public procurement and public-private partnership;

38) purchaser profile - a website of the public partner or the representative of the public partner available to the public on the Internet or the State electronic information system for the receipt of tenders and requests to participate where information on the planned public-private partnership procedures, regarding subsequent invitations to submit tenders, regarding suspended procedures, contracts entered into, as well as other information related to public-private partnership contracts specified in laws and regulations.

[25 August 2010; 5 September 2013; 20 April 2017]

Section 2. Purpose of this Law

(1) The purpose of this Law is to facilitate co-operation between the public and private sector by efficiently using resources of the public partner and the private partner for meeting public needs, to ensure openness of the concession procedure, free competition of private partners, as well as equal and fair attitude towards them.

(2) The purpose of this Law is to ensure transparency of the fulfilment of the public-private partnership contract entered into and to promote the fulfilment of its obligations until expiry of the validity of the relevant contract, promoting continuity of the construction work and services provided for in this contract.

[20 April 2017]

Section 3. Exceptions to the Application of this Law

(1) This Law shall not be applicable if the public partner enters into a services concession contract for the following:

1) the purchase or lease of land, existing structure or other immovable property or the acquisition of other rights to such immovable property with any financial resources;

2) the purchase, development, production or co-production of such broadcast material which is intended for audio and audiovisual electronic mass media services, if the contract is awarded by electronic mass media, or for the contracts for provision of transmission or broadcasting which are awarded to electronic mass media;

3) the services of arbitration and the services, which are provided for the conciliation of parties;

4) the services of certification of documents provided by notaries;

5) the legal services the providers of which are appointed by courts or which are assigned by external laws and regulations to perform specific tasks under supervision of courts;

6) the legal services related to exercising of the public authority;

7) the financial services related to the issue, purchase, sale or transfer of securities or other financial instruments, services and activities of the Bank of Latvia which are performed through the European Financial Stability Facility and the European Stability Mechanism;

8) the loans which are related or not related to the issue, sale, purchase or transfer of securities or other financial instruments;

9) the services in the field of civil protection, civil defence and prevention of natural disasters which are provided by associations, foundations or unions and to which one of the following CPV codes refers to: 75250000-3, 75251000-0, 75251100-1, 75251110-4, 75252000-7, 75222000-8, 98113100-9, and 85143000-3, except emergency medical services related to the transportation of patients;

10) the services which are provided by another public partner or an association of public partners which, in accordance with external laws and regulations, have an exclusive right to provide the relevant service;

11) the services in order to ensure the activities referred to in Section 3, 4, 5, 6, or 7 of the Law on the Procurement of Public Service Providers with the private partner which, in accordance with external laws and regulations, has an exclusive right to provide the relevant service. The public partner shall notify the European Commission regarding awarding of such exclusive right. Provisions of this Law shall be applicable to the concession award notice if the laws and regulations of the relevant sector do not provide for such obligation to notify;

12) the air transport services based on the issue of a licence for operation within the meaning of the law On Aviation;

13) the lottery services to which the CPV code 92351100-7 refers with the private partner which, in accordance with external laws and regulations, has an exclusive right to provide the relevant service. Information on such awarding of concession shall be published in the Official Journal of the European Union.

(2) This Law shall not be applicable if a concession contract is entered into according to provisions of other procedures and it is awarded:

1) according to an international agreement which, in accordance with the laws and regulations of the European Union, has been entered into by a European Union Member State with one or several states which are not European Union Member States, or administrative units of such states regarding work, supplies or services in connection with the participation of the states having signed the agreement in implementation of a joint measure or the use of its results. Public partner shall inform the European Commission about every agreement of this kind;

2) according to a particular procedure of an international organisation;

3) according to a particular procedure of an international organisation or international financial institution if the concession contract is fully financed by the relevant organisation or institution. If the international organisation or international financial institution finances concession in the amount of at least 50 per cent, parties shall agree on the applicable concession procedures.

(3) This Law shall not be applicable if the public partner enters into a concession contract which conforms to Section 3 of the Law on the Procurement in the Field of Defence and Security, and the concession contract is awarded:

1) according to particular procedural provisions under international agreements which have been entered into by one or several European Union Member States and one or several states which are not European Union Member States;

2) according to particular procedural provisions under international agreements relating to the stationing of troops which refer to the private partners of a European Union Member State or the private partners of a state which is not a European Union Member State;

3) according to a particular procedure of an international organisation, irrespective of whether the public partner of a Member State of the international organisation enters into a contract with the private partner specified by the international organisation which has been awarded a contract by the relevant international organisation according to the specific procedure, or its public partner awards a contract according to the particular procedure.

(4) This Law shall not be applicable to awarding a concession contract which conforms to Section 3 of the Law on the Procurement in the Field of Defence and Security, if:

1) the Cabinet, in accordance with external laws and regulations, has recognised the information on a concession contract or its implementation as an official secret;

2) its application could possibly harm the protection of essential State security interests. The Cabinet shall decide on the protection of essential State security interests on a case-by-case basis. The basis for the application of this exception shall not constitute protected information in itself, if its protection can be ensured in a concession procedure in accordance with this Law or the Law on Procurement in the Field of Protection and Security;

3) the concession contract is awarded in accordance with a co-operation programme implemented by two or more states which is targeted at research and development to create a new product or which is necessary for further handling cycle of this product or part thereof. If an agreement on implementation of such co-operation programme has only been entered into by and between European Union Member States, they shall notify the information to the European Commission on the part of research and development expenditure against the total expenditure of the co-operation programme, regarding breakdown of costs among Member States, as well as part of procurement to be implemented by each Member State;

4) the concession contract is entered into with the public partner of another state which operates on behalf of the relevant foreign state or a derived public person thereof (a person equivalent to derived public persons) in relation to construction work or services which are directly related to military equipment or information on which is protected information, or which are directly intended for military purposes or for such structures or provision of such services, information on which is protected information;

5) the concession contract is entered into in a state which is not a European Union Member State, in the situation when the troops are stationed outside the territory of the European Union, and the concession contract necessary for the provision of international operations or international training is to be entered into with the private partners that operate in the area of such operations or training;

6) another exception specified in this Law is applicable.

(5) This Law shall not be applicable if the concession contract is entered into for the following public water management services:

1) the extraction and storage of drinking water, preparation of drinking water for use, and supply thereof to the central water pipe network until a service user;

2) the hydraulic engineering projects, irrigation or land drainage - provided that the volume of water intended for the supply of drinking water is more than 20 per cent of the total volume of water which is ensured by the abovementioned projects or irrigation or drainage equipment if it is related to the activities referred to in Clause 1 of this Paragraph;

3) the wastewater collection from a service user in the central sewerage systems and discharge thereof to the waste water treatment plants, waste water treatment and discharge in the environment if it is related to the activities referred to in Clause 1 of this Paragraph.

(6) This Law shall not be applicable when entering into a concession contract the major purpose of which is to ensure or use public electronic communications networks maintained by a public partner corresponding to Section 1, Clause 15, Sub-clause "a", "b", "c", or "d" of this Law, or one or several publicly available electronic communications services provided.

(7) This Law shall not be applicable if a public partner corresponding to Section 1, Clause 15, Sub-clause "e" of this Law enters into a concession contract for the performance of its activities in a state which is not a European Union Member State and neither infrastructure of the European Union, nor a territory belonging to the European Union is used.

(8) This Law shall not be applicable if a public partner corresponding to Section 1, Clause 15, Sub-clause "e" of this Law enters into a concession contract for the activities referred to in Section 3, 4, 5, 6, or 7 of the Law on the Procurement of Public Service Providers if they have been recognised as performed in a freely competitive environment in the relevant European Union Member State where they are to be performed.

(9) This Law shall only be applicable to the services concession contracts for the research and development services, the CPV codes of which range from 73000000-2 to 73120000-9, 73300000-5, 73420000-2, and 73430000-5, if the following conditions are met concurrently:

1) only the public partner will benefit from the results of the service provided, using these results only for the needs thereof;

2) the public partner will fully pay for the service provided.

[20 April 2017]

Section 3.1 Mutual Concession Contracts between Public Partners

(1) Within the meaning of this Section, such public partner shall be considered a partner which conforms to Section 1, Clause 15, Sub-clause "a", "b", "c", or "d" of this Law or which conforms to Section 1, Clause 15, Sub-clause "a", "b", "c", or "d" of this Law and performs the activities referred to in Section 3, 4, 5, 6, or 7 of the Law on the Procurement of Public Service Providers.

(2) This Law shall not be applicable if the public partner enters into a concession contract with a person who conforms to the following indications concurrently:

1) it is under such control of the public partner which manifests itself as the right to influence strategic objectives and decisions of action of the person under control, or under control of such person which is controlled by the public partner in the abovementioned manner;

2) more than 80 per cent of its activities constitute carrying out of specific tasks within the interests of the controlling public partner, or within the interests of other persons which are controlled by the abovementioned public partner;

3) there is no direct private shareholding therein, except for a type of private shareholding which, in accordance with the laws and regulations governing commercial law and the Treaty on the Functioning of the European Union, does not include the right to influence and control decisions of such person and does not have a decisive influence on such person.

(3) This Law shall not be applicable, if the controlled person corresponding to the indications of Paragraph one of this Section which is also concurrently the public partner, enters into a concession contract with the controlling public partner or another person who is under control of the controlling public partner within the meaning of Paragraph one, Clause 1 of this Section, if a person with which the concession contract is entered into does not have private shareholding, except for a type of private shareholding which, in accordance with the laws and regulations governing commercial law and the Treaty on the Functioning of the European Union, does not include the right to influence and control decisions of such person and does not have a decisive influence on such person.

(4) This Law shall not be applicable if the public partner enters into a concession contract with a person who conforms to the following indications concurrently:

1) it is under the joint control of several public partners which manifests itself as the right to influence strategic objectives and decisions of action of the person under control;

2) more than 80 per cent of its activities constitute fulfilment of specific tasks within the interests of the jointly controlling public partners or other persons controlled by the abovementioned public partners;

3) there is no direct private shareholding therein, except for a type of private shareholding which, in accordance with the laws and regulations governing commercial law and the Treaty on the Functioning of the European Union, does not include the right to influence and control decisions of such person and does not have a decisive influence on such person.

(5) Within the meaning of Paragraph four of this Section, the public partners shall exercise joint control of a person if:

1) the administration institutions of the controlled person are composed of representatives of all public partners (individual representatives may represent several or all involved public partners);

2) all public partners jointly have the right to influence strategic aims and decisions of action of the person under control;

3) the controlled person acts within the interests of the public partners.

(6) This Law shall not be applicable to the concession contracts which, according to the exclusive right specified in external laws and regulations, have been entered into between two or more public partners, if the following conditions are met concurrently:

1) the co-operation between the public partners is established or implemented according to the concession contract to provide public services within their competence;

2) the co-operation is implemented in the public interests;

3) the share of the public services provided in an open market by the public partners involved for the purpose of which co-operation is implemented, is below 20 per cent.

(7) In order to determine a percentage of the activities referred to in Paragraph two, Clause 2, Paragraph four, Clause 2, and Paragraph six, Clause 3 of this Section, the average financial turnover or another indicator related to the relevant activity (for example, costs of services, supplies or construction work of the controlled person or the public partner) for the last three years until awarding of the concession contract shall be taken into account. If the controlled person or the public partner has been established or has commenced activities after the set deadline or if due to its reorganisation data on its financial turnover or indicators related to its activity are not available or no longer apply, the percentage of the activity may be proved by using commercial activity forecasting methods.

[20 April 2017]

Section 3.2 Contracts Entered into with a Related Company, Joint Venture or Public Partner which is Part of the Joint Venture

(1) Within the meaning of this Section, the related company shall be considered the following:

1) a commercial company, cooperative society registered in Latvia, European economic interest group, European cooperative society or European commercial company registered in Latvia which consolidates its annual statements with annual statements of the public partner corresponding to Section 1, Clause 15, Sub-clause "e" of this Law (hereinafter in this Section - the public partner) in accordance with the Law on the Annual Financial Statements and Consolidated Financial Statements;

2) any company in which the public partner, in accordance with the Group of Companies Law, has a decisive influence, or which has a decisive influence in the public partner, or in which another company has a decisive influence while concurrently having a decisive influence in the public partner.

(2) In accordance with Paragraphs three and four of this Section, this Law shall not be applicable to the concession contracts which the public partner enters into with the related company, or which the joint venture, established solely by the public partners to perform any of the activities referred to in Section 3, 4, 5, 6, or 7 of the Law on the Procurement of Public Service Providers, enters into with a company which is related to any of such public partners.

(3) Paragraph two of this Section shall not be applicable to the following:

1) the works concession contracts if at least 80 per cent of the average total turnover of the related company regarding construction work executed over the last three years constitute construction work executed for the public partner or other companies related to this company;

2) the services concession contracts if at least 80 per cent of the average total turnover of the related company regarding services provided over the last three years constitute services provided to the public partner or other companies related to this company.

(4) If the related company has been established or commenced activities later and the relevant data on its average turnover over the last three years are not available, the percentage of the activity referred to in Paragraph three of this Section shall be proved by using commercial activity forecasting methods.

(5) If more than one company related to the public partner performs equal or similar construction work or provides equal or similar services, the percentage referred to in Paragraph three of this Section shall be calculated by taking into account the total turnover which consists of the construction work performed or services provided by such related companies.

(6) If the joint venture has been established for the purpose of performing the relevant activity for at least three years and each public partner is a part of the joint venture for at least this period of time, this Law shall not be applicable to the concession contracts that:

1) are entered into between the joint venture which is established solely by the public partners to perform any of the activities referred to in Section 3, 4, 5, 6, or 7 of the Law on the Procurement of Public Service Providers, and any of such public partners;

2) are entered into by and between the public partner and the joint venture of which the public partner is a part.

(7) Upon a request of the European Commission, the public partner shall inform it of the related companies and joint companies which enter into contracts by applying the exceptions referred to in this Section, regarding the type and contract value of the concession contract, as well as submit the necessary proof to the European Commission that the relationship between the public partner and the related company or the joint venture conforms to provisions of this Section.

[20 April 2017]

Section 4. Legal Arrangements

(1) The Public Procurement Law shall be applied to partnership procurement contracts unless this Law lays down otherwise.

(2) Public service providers shall apply provisions of the Law on the Procurement of Public Service Providers to partnership procurement contracts, unless this Law lays down otherwise.

(3) The provisions of this Law shall be applied to the concession contracts and institutional partnership.

(4) A concession contract, the subject matter of which is both construction work and services, shall be awarded according to the legal arrangements applicable to the type of procurement which characterises the main subject matter of the relevant concession contract. The main subject matter and the applicable concession procedure shall be determined for a concession contract the subject matter of which partly includes the services referred to in Annex 2 to this Law and other services, according to the highest estimated contract value of services.

(5) If the subject matter of a contract includes concessions to which this Law applies, as well as other elements to which this Law does not apply, and different parts of the contract may be separated objectively, the public partner is entitled to apply appropriate legal arrangements to each part of the contract or enter into a full contract and apply this Law. If parts of the contract may not be separated objectively, the applicable legal arrangements shall be determined by the main subject matter of the contract, except in the case referred to in Paragraph nine of this Section.

(6) If the subject matter of a contract includes both concessions to which this Law applies and elements of a procurement contract to which the Public Procurement Law or the Law on the Procurement of Public Service Providers applies, the contracting right shall be awarded in accordance with the Public Procurement Law or the Law on the Procurement of Public Service Providers respectively if the contract value of the part of the procurement to which the specific law is applied, is equal to or exceeds the thresholds of contract values specified therein.

(7) If a contract is intended to ensure activities in several areas referred to in the Law on the Procurement of Public Service Providers, the public partner may choose to enter into individual contracts regarding each area of activity or enter into a full contract. If the public partner chooses to enter into individual contracts regarding each area of operation, the contract shall be awarded according to the legal arrangements which characterise individual characteristics of the relevant activity. If the public partner chooses to enter into a full contract, the contract shall be awarded according to the legal arrangements which are applicable to the activity intended as the main activity of the contract, except for the case referred to in Paragraph nine of this Section.

(8) If, in accordance with Paragraph seven of this Section, it is impossible to determine objectively which activity is intended as the main activity of the contract, the contracting right shall be awarded:

1) in accordance with the Public Procurement Law, if the Public Procurement Law applies to any of the activities intended under the contract;

2) in accordance with this Law, if neither the Public Procurement Law, nor the Law on the Procurement of Public Service Providers applies to any of the activities intended under the contract.

(9) If the subject matter of a contract includes both concessions to which this Law applies and elements of a procurement contract or activities to which the laws and regulations governing procurement in the field of defence and security apply, and the public partner has decided to enter into a full contract or parts of the contract may not be separated objectively, the applicable legal arrangements shall be determined on the basis of the following indications:

1) if Article 346 of the Treaty on the Functioning of the European Union applies to any part or activity of the contract, the contract may be awarded without applying this Law, provided that awarding of a full concession contract is justified on objective grounds;

2) if the Law on the Procurement in the Field of Defence and Security applies to any part or activity of the contract, the contract may be awarded in accordance with the Law on the Procurement in the Field of Defence and Security, provided that awarding of a full concession contract is justified on objective grounds;

3) if a contract corresponds to both Clause 1 and Clause 2 of this Paragraph, Clause 1 of this Paragraph shall be applicable.

(10) It shall not be permitted to divide contracts or enter into a full contract in order to avoid application of this Law, the Public Procurement Law, the Law on the Procurement of Public Service Providers, or the Law on the Procurement in the Field of Defence and Security.

(11) The provisions of the Commercial Law shall be applied to the establishment, operation and termination of operation of a joint venture unless this Law lays down otherwise.

(12) The procedures for managing capital shares of a public person in a joint venture shall be governed by the Law on Management of Capital Shares and Capital Companies of a Public Person.

(13) If several public partners enter into one public-private partnership contract with a private partner, the provisions of the State Administration Structure Law regarding the co-operation in the State administration shall be applied as far as this Law does not prescribe otherwise.

(14) If any features characterising aid for commercial activity may be established within the framework of a public-private partnership, control arrangements of aid for commercial activity shall be applied to the granting of the aid.

(15) Provisions of Chapter XIV of this Law shall not be applied to the public partner who ensures financing of the public partnership from the financial resources thereof.

[20 April 2017]

Section 5. Scope of Application of this Law

(1) This Law prescribes:

1) the procedures by which public partners and representatives of public partners shall act if they jointly enter into one public-private partnership contract;

2) the procedures for taking the decision on the initiation of a public-private partnership procedure;

3) the information to be included in a public-private partnership contract, as well as the procedures by which the public-private partnership contract may be amended or terminated before its expiry;

4) the procedures for disbursing compensation when terminating a public-private partnership contract before its expiry;

5) the procedures for the establishment of a special purpose entity and the procedures by which a public-private partnership contract is entered into with a special purpose entity;

6) the procedures for entering into an information exchange agreement and exercising of the lender's intervention right;

7) the procedures for registration and availability of public-private partnership contracts;

8) regulations for activities with the public partner resources transferred to a private partner.

(2) In the field of concessions the Law prescribes:

1) exceptions to the application of this Law;

2) the procedures for the exchange of information, concession procedure documentation and document preservation;

3) the procedures for the establishment of the Concession Procedure Commission and activity thereof;

4) the procedures for the establishment of the Complaint Review Commission and activity thereof;

5) concession procedures and procedures for their application;

6) [20 April 2017].

(3) In the field of institutional partnership the Law prescribes:

1) the procedures for selecting a private shareholder of a joint venture;

2) the procedures for the establishment of a joint venture, particularities of its operation and the regulations for terminating its operation;

3) the procedures by which a public-private partnership contract is entered into, amended or terminated in case of an institutional partnership;

4) the procedures for disbursing compensation when terminating a public-private partnership contract before its expiry in case of an institutional partnership;

5) the procedures for entering into an information exchange agreement and exercising of the lender's intervention right in case of institutional partnership.

(4) In the field of public-private partnership monitoring the Law prescribes:

1) the authorities monitoring the public-private partnership process and the competence thereof in monitoring matters;

2) the procedures for determining and financing the Monitoring Authority and approval of the laws and regulations governing the activity thereof;

3) the functions, rights and obligations of the Monitoring Authority;

4) the procedures by which the Monitoring Authority operates as a public-private partnership competence centre;

5) the procedures for controlling the fulfilment of the public-private partnership contracts.

[20 April 2017]

Section 6. Joint Public-Private Partnership Contracts of Public Partners

(1) One public-private partnership contract with a private partner may be entered into by several public partners.

(2) If several public partners enter into one public-private partnership contract, the representatives of public partners shall enter into a written agreement on the following:

1) which representative of the public partner shall conduct the partnership procurement procedure or concession procedure;

2) the procedures for taking decisions if a joint decision of public partners or representatives of public partners is required;

3) the procedures for the co-ordination of opinions if an individual decision of each public partner or representative thereof is required;

4) which representative of the public partner shall enter into an information exchange agreement with the lender and the procedures for the exchange of information between the representatives of public partners for the fulfilment of this contract, unless the lender prefers entering into an information exchange contract with each representative of the public partner;

5) the procedures by which they shall cover the necessary expenses;

6) the procedures by which the representative of the public partner who conducts the partnership procurement procedure or concession procedure shall inform other representatives of public partners of the course of the relevant procedure.

(3) The condition of Paragraph two, Clause 2 of this Section regarding taking of a joint decision of public partners or representatives of public partners shall be applicable, if this Law does not stipulate that the decision is to be taken by each public partner or each representative of the public partner.

(4) The representative of the public partner who in accordance with Paragraph two, Clause 1 of this Section conducts the partnership procurement procedure or concession procedure:

1) shall establish the Concession Procedure Commission in accordance with the procedures laid down in this Law where the persons proposed by other representatives of public partners are included;

2) shall provide information, notices or receive information that is provided for in the Public Procurement Law, the Law on the Procurement of Public Service Providers or this Law or in the public-private partnership contract;

3) shall preserve Concession Procedure Commission documents in accordance with the procedures laid down in Section 22 of this Law.

(5) If this Law lays down that the decision of the Concession Procedure Commission is binding on the representative of the public partner, such a decision shall be also binding on all representatives of public partners who have signed the contract referred to in Paragraph two of this Section.

(6) The representative of the public partner who in accordance with Paragraph two, Clause 1 of this Section conducts the concession procedure shall be determined in the Regulations of the Concession Procedure (hereinafter - the Regulations) and, if necessary, also in other concession procedure documents, as well as the Monitoring Authority shall be informed thereof in writing.

(7) If in case of an institutional partnership a public-private partnership contract is entered into by several public partners, all such public partners or any of such public partners may become the shareholders of the joint venture.

(8) If in case of institutional partnership there are several public partners in a joint venture as shareholders of the joint venture, each public partner as a joint venture shareholder shall individually exercise the rights laid down in this Law or perform the activities provided for in this Law unless this Law lays down that the relevant right shall be exercised or the relevant activity shall be performed jointly by all public partners of the joint venture.

(9) If several public partners enter into one public-private partnership contract, the Monitoring Authority shall send opinions and other documents to each representative of the public partner.

[20 April 2017]

Section 7. Selection of Institutional Partnership

(1) A joint venture may be established for the fulfilment of a public-private partnership contract if the public partner wishes to perform reinforced control of the fulfilment of the public-private partnership contract and to take part in the management of the capital company, and conforms to the following provisions:

1) according to the State Administration Structure Law the commercial activity which will be performed by the joint venture according to the public-private partnership contract may be performed by the public partner as well;

2) the joint venture will perform some administration task assigned to the public partner according to the laws and regulations or the procedures laid down in the State Administration Structure Law if it conforms to the delegation provisions.

(2) The public partner which wishes to establish a joint venture for the fulfilment of a public-private partnership contract shall specify it in the decision on initiation of the public-private procedure (Section 16, Paragraph six).

(3) If a joint venture is established, the private partner in co-operation with the public partner as the shareholder of the joint venture shall manage the joint venture so that the joint venture as a private partner would ensure the fulfilment of the public-private partnership contract.

Chapter II
Monitoring of the Public-Private Partnership Process

Section 8. Competent Authorities

(1) The Ministry of Finance, the Procurement Monitoring Bureau and the Monitoring Authority shall supervise the public-private partnership process.

(2) The Ministry of Finance shall evaluate the expected impact of the conditions referred to in the financial and economic calculations on the amount of the long-term liabilities of the State budget, the balance of the general government sector budget, and the debt, and give an opinion thereon.

(3) The Procurement Monitoring Bureau:

1) shall monitor the conformity of the partnership procurement procedure and concession procedure with the requirements of laws and regulations;

2) shall examine complaints on violations of the concession procedures referred to in Section 17, Paragraphs one and seven of this Law;

3) shall examine administrative violation cases in the field of public-private partnership, and impose administrative punishments;

4) shall publish the notices specified in this Law on the website of the Procurement Monitoring Bureau, send them for publication in the Official Journal of the European Union, as well as send information to the European Commission which has been requested thereby;

5) shall perform other functions as laid down in laws and regulations.

(31) The Procurement Monitoring Bureau is functionally the highest authority in relation to the fulfilment of the function referred to in Paragraph three, Clause 2 of this Section.

(4) The Monitoring Authority shall be determined by the Cabinet.

(5) The State Audit Office of the Republic of Latvia and other competent authorities shall monitor the public-private partnership process within the competence thereof.

[25 August 2010; 5 September 2013; 20 April 2017]

Section 9. Functions, Rights and Obligations of the Monitoring Authority

(1) The Monitoring Authority shall evaluate the assumptions included in the financial and economic calculations and risk allocation between the public partner and the private partner in the public-private partnership contract and shall give opinion thereon.

(2) The Monitoring Authority shall give its opinions on the conformity of risk allocation between the public partner and the private partner with the concession contract within the meaning of this Law in the following cases:

1) on the Regulations and draft concession contract attached thereto in the case referred to in Section 33 of this Law;

2) on amendments to the Regulations in the case referred to in Section 35, Paragraph four of this Law;

3) on draft amendments to the concession contract in the case referred to in Section 64, Paragraph one of this Law;

4) on the draft new concession contract in the case referred to in Section 82, Paragraph three of this Law.

(3) If the Monitoring Authority has given a negative opinion on the assumptions included in the financial and economic calculations and the risk allocation between the public partner and the private partner in the public-private partnership contract, then the representative of the public partner shall not take further activities provided for in this Law. If the Monitoring Authority has given an opinion that the risk allocation between the public partner and the private partner does not correspond to the concession contract within the meaning of this Law, the representative of the public partner shall not perform further activities provided for in this Law. In this case the representative of the public partner shall assign the Concession Procedure Commission to make changes in the risk allocation which would correspond to the concession contract within the meaning of this Law, or to take a decision to suspend the concession procedure.

(4) The Cabinet shall determine the procedures by which the Monitoring Authority shall give opinions referred to in Paragraph one of this Section, including the terms for giving the opinions, in conformity with the contract value and risk allocation between the public partner and the private partner provided for in the financial and economic calculations.

(5) In order for a public-private partnership contract not to make a negative impact on the amount of the long-term liabilities of the State budget, the balance of the general government sector budget, and the debt, the Monitoring Authority shall evaluate the conformity of the accounting rules of the public-private partnership assets with the conditions contained in the opinion of the Ministry of Finance (Section 15, Paragraph two) in the following documents:

1) in the concession procedural documents (Paragraph two, Clauses 1, 2, 3 and 4 of this Section);

2) in the partnership procurement procedural documents (in by-law, draft partnership procurement contract and its amendments, as well as in a new draft partnership procurement contract in case if the norms of Chapter XVII of this Law are applied), unless it has been laid down in the opinion of the Ministry of Finance (Section 15, Paragraph two) that the evaluation of the Monitoring Authority in relation to the referred-to documents is not necessary;

3) in the reports on the fulfilment of the public-private partnership contract.

(6) If the Monitoring Authority has given an opinion that the accounting rules of the public-private partnership assets in the concession procedure documents referred to in Paragraph two, Clauses 1, 2, 3 and 4 of this Section do not conform to the conditions included in the opinion of the Ministry of Finance, the representative of the public partner shall not take further activities provided for in this Law. In this case the representative of the public partner shall assign the Concession Procedure Commission to make changes in the accounting rules of the public-private partnership assets which would conform to the conditions contained in the opinion of the Ministry of Finance, or take a decision to suspend the concession procedure.

(61) If the Monitoring Authority has given an opinion that the accounting rules of the public-private partnership assets in the procurement procedure documents referred to in Paragraph five of this Section do not conform to the conditions included in the opinion of the Ministry of Finance, the representative of the public partner shall assign the Procurement Procedure Commission to make changes in the accounting rules of the public-private partnership assets in order for them to conform to the provisions included in the opinion of the Ministry of Finance or take the decision to discontinue the procurement procedure.

(7) If the Monitoring Authority has given an opinion that the accounting rules of the public-private partnership assets determined in the progress reports of the public-private partnership contract do not comply with the conditions included in the opinion of the Ministry of Finance, the representative of the public partner shall perform activities in order to eliminate this non-compliance.

(8) When evaluating the progress reports of the public-private partnership contract, the Monitoring Authority shall prepare opinions on compliance of the construction work performed or services provided with the relevant contract.

(9) The Monitoring Authority has the right:

1) to request and receive information related to the public-private partnership procedure from the Public-Private Partnership Procedure Commission or representative of the public partner;

2) to request and receive information necessary to give the opinions referred to in Paragraph one of this Section from the representative of the public partner;

3) to request and receive the entered into public-private partnership contract, amendments thereto and the new public-private partnership contract from the representative of the public partner (in the case referred to in Section 82 of this Law);

4) to request and receive the reports referred to in Section 12, Paragraph one of this Law on the course of the fulfilment of the entered into public-private partnership contract from the representative of the public partner;

5) to enter into contracts with experts to ensure that the functions laid down in this Law are fulfilled.

(10) The Monitoring Authority has the obligation:

1) to comply with the laws and regulations of the European Union and Latvia in the field of public-private partnership when fulfilling the function laid down in Paragraph one of this Section;

2) once a year to submit the report on the entered into public-private partnership contracts to the Cabinet;

3) in cases when it establishes facts not conforming to the laws and regulations or the entered into public-private partnership contracts, inform the representative of the public partner, the supreme institution of the representative of the public partner (if it exists), the institution having delegated the relevant public administration task to the representative of the public partner, the holder of capital shares of the state or local government capital company, another institution governed by private law determined in the Articles of Association of the legal person, as well as the competent State authorities thereof in the cases provided for in the laws and regulations.

(11) The Cabinet shall determine the procedures for the submission of the report referred to in Section 12, Paragraph one of this Law and the information to be included therein.

(12) The representative of the public partner, the Concession Procedure Commission, another person or institution may address the Monitoring Authority also in other cases not referred to in this Law in order for it to evaluate the conformity of the assumptions included in the financial and economic calculations and risk allocation between the public partner and the private partner to the concession contract and give an opinion thereon, or give an opinion whether the accounting rules of the public-private partnership assets determined in the progress reports of the contract comply with the conditions included in the opinion of the Ministry of Finance.

[25 August 2010; 5 September 2013; 20 April 2017]

Section 10. Monitoring Authority Acting as the Competence Centre

The Monitoring Authority acting as the competence centre of the public-private partnership shall:

1) prepare proposals in order to facilitate public-private partnership development;

2) inform and consult on public-private partnership matters;

3) identify and facilitate implementation of the most appropriate foreign experience for Latvia in the field of public-private partnership;

4) develop methodological materials in the field of public-private partnership;

5) co-operate with other State administration institutions and non-governmental organisations in the field of public-private partnership;

6) perform other tasks prescribed in the laws and regulations governing the operation of the Monitoring Authority.

Section 11. Laws and Regulations Governing Operation of the Monitoring Authority

The Cabinet shall determine the procedures for the operation and financing of the Monitoring Authority.

Section 12. Control of the Fulfilment of the Contract

(1) Once a year after entering into a public-private partnership contract the representative of the public partner shall submit a report on the progress in the fulfilment of the contract to the Monitoring Authority.

(2) Following the receipt of the progress report, the Monitoring Authority shall evaluate the conformity of the construction work or services referred to in the report with the public-private partnership contract and shall prepare an opinion thereon.

(3) The Cabinet shall determine the procedure for submitting the progress reports of the contract and the information to be included therein, as well as the procedures by which the Monitoring Authority shall prepare an opinion on the conformity of the construction work or services referred to in the reports to the public-private partnership contract and shall send the abovementioned opinion to the representative of the public partner; and cases when the opinion shall be also sent to the State Audit Office and other competent authorities.

(4) The opinion referred to in Paragraph two of this Section shall be preserved for 10 years following the expiry of the relevant public-private partnership contract.

(5) The public partner and the private partner shall have the obligation to ensure a separate accounting of the public-private partnership project.

Chapter III
Initiation of the Public-Private Partnership Procedure

Section 13. Determining the Expected Contract Value

(1) The estimated contract value of a partnership procurement contract shall be determined in accordance with the Public Procurement Law or the Law on the Procurement of Public Service Providers, unless this Law lays down otherwise.

(2) The estimated contract value of a concession contract shall be determined as the total amount of financial resources (except for the value added tax) which the private partner would obtain by exercising rights and obligations resulting from the concession contract. Upon calculating the estimated contract value, the public partner shall take into consideration any option and any amendments to the concession contract, including extensions of the time periods, payments of an end user not made on behalf of the public partner, any payments made by the public person, including remuneration of the public partner the amount of which depends on demand of an end user or any financial advantages provided by the public person, income from the sale of any assets included in the concession, value of all supplies and services which the public partner has intended to make available to the private partner and necessary for the fulfilment of the concession contract, any third party payments or provided financial advantages related to fulfilment of the concession contract, as well as the value of awards and payments if the public partner intends to grant awards or make payments to the candidates of the concession procedure.

(3) The estimated contract value of a public-private partnership contract shall be determined concurrently with conducting financial and economic calculations, and it shall apply when the concession notice is submitted for publication or, if submission of such notice for publication is not necessary, before the initiation of the concession procedure. The method for calculation of the estimated contract value shall be indicated in the public-private partnership procedure documents.

(4) If at the moment of taking the decision to award the concession contract the contract value of the concession contract exceeds the initially estimated value by at least 20 per cent, the contract value determined at the moment of taking the relevant decision shall be considered as the estimated contract value of the concession contract.

(5) For the purpose of determining the estimated contract value of the concession contract, it shall not be permitted to use a method which is aimed towards the non-application of the concession procedure laid down in the Law. It shall not be permitted to divide a concession project into parts in order to avoid application of the conditions of the relevant concession procedure.

(6) If several concessions regarding individual lots may be awarded with regard to the expected subject matter of the concession contract, the estimated contract value shall be determined as the total amount of all lots. The requirements of this Law for publication in the Official Journal of the European Union shall be applied to each part, if the total amount of parts is equal to or exceeds the thresholds of contract values specified by the Cabinet.

[20 April 2017]

Section 13.1 Threshold of the Contract Value

The threshold of the contract value referred to in Section 13, Paragraph six, Section 20, Paragraphs two and three, Section 31.1, Paragraph three, Clause 2, Sub-clause "a", Section 31.2, Paragraph one, Clause 2, Section 37.5, Paragraph three, Section 37.6, Paragraph three, Section 39, Paragraphs two, three, six, nine, and eleven, Section 63, Paragraph five, Clause 1 and Paragraph seven of this Law shall be determined by the Cabinet on the basis of the international commitments of the European Union in relation to the thresholds of contract values which must be followed by the public partner. The Cabinet shall specify the threshold of contract value at least once in every two years within one month after the European Commission has notified the relevant threshold of contract value in the Official Journal of the European Union.

[20 April 2017]

Section 14. Making Financial and Economic Calculations

(1) Financial and economic calculations are made to determine the applicability of the public-private partnership to the implementation of the particular project from the point of view of rational and efficient use of financial resources of the public person and what type of a public-private partnership contract is to be entered into in order to successfully implement the relevant project for performing construction work or providing services, taking into consideration the impact of the potential public-private partnership contract on the amount of the long-term liabilities of the State budget, the balance of the general government sector budget, and the debt.

(2) The Cabinet shall determine the procedures by which the type of a public-private partnership contract is determined and financial and economic calculations are made.

(3) The decision to make financial and economic calculations shall be taken:

1) if the public partner is the State - the member of the Cabinet who is responsible for the field where the public-private partnership project is intended to be implemented;

2) if the public partner is a local government - the council of this local government;

3) if the public partner is a derived public person (except for the local government) - the body of this public person;

4) if the public partner is a legal person - an institution of this legal person that is entitled to take such a decision.

(4) The decision to make financial and economic calculations shall be sent by the public partner to the Monitoring Authority which, upon receipt of the relevant decision, shall post it on the website of the Monitoring Authority in accordance with the procedures laid down by the Cabinet.

[20 April 2017]

Section 15. Opinions of the Competent Authorities

(1) After making the financial and economic calculations, the aforementioned calculations shall be sent:

1) to the Ministry of Finance - in order to receive an opinion on the expected impact of the conditions referred to in the financial and economic calculations on the amount of the long-term liabilities of the State budget, the balance of the general government sector budget, and the debt;

2) to the Monitoring Authority - in order to receive an opinion on the assumptions included in the financial and economic calculations and the risk allocation between the public partner and the private partner within the public-private partnership contract.

(2) In its opinion the Ministry of Finance shall indicate the accounting rules of the public-private partnership assets referred to in the financial and economic calculations that are the basis for the conclusion that the public-private partnership contract will not make a negative impact on the amount of the long-term liabilities of the State budget, the balance of the general government sector budget, and the debt.

(3) The Cabinet shall determine the procedures by which the Ministry of Finance gives the opinion referred to in Paragraph one, Clause 1 of this Section.

[20 April 2017]

Section 16. Taking the Decision On the Initiation of the Public-Private Partnership Procedure

(1) The opinion of the Ministry of Finance finds that the potential public-private partnership contract does not make negative impact on the amount of the long-term liabilities of the State budget, the balance of the general government sector budget, and the debt, the decision on the initiation of the public-private partnership procedure shall be taken by:

1) the Cabinet if the public-private partnership contract is entered into by the State or a derived public person acting as a public partner (except for the local government);

2) the council of the local government if the public-private partnership contract is entered into by a local government acting as the public partner;

3) the decision-making body determined in the Articles of Association of the legal person if the public-private partnership contract is entered into by a legal person acting as a public partner;

4) the relevant institution referred to in Clause 1, 2 or 3 of this Paragraph if the public-private partnership contract is entered into by a public authority or a company of a public authority within the meaning of the Law on the Procurement of Public Service Providers.

(2) If the Ministry of Finance indicates in its opinion that the potential public-private partnership contract makes negative impact on the amount of the long-term liabilities of the State budget, the balance of the general government sector budget, and the debt, the decision on the initiation of the public-private partnership procedure shall be taken by the Cabinet.

(3) If the State or a derived public person have a decisive influence over a capital company within the meaning of the Group of Companies Law, then the institutions referred to in Paragraph one, Clauses 3 and 4 of this Section shall take the decision on the initiation of the public-private partnership procedure when receiving a prior written agreement of the holder of capital shares of the relevant State or derived public person.

(4) The bodies referred to in Paragraph one and two of this Section shall take the decision on the initiation of the public-private partnership procedure based on the financial and economic calculations and opinions of the Ministry of Finance and the Monitoring Authority.

(5) If the Monitoring Authority has given an opinion that the risk allocation between the public partner and the private partner does not correspond to the concession contract, the decision on the initiation of the concession procedure shall not be taken.

(6) Each public partner institution referred to in Paragraph one and two of this Section involved in a public-private partnership project shall include the following information in the decision on the initiation of the public-private partnership procedure:

1) the public-private partnership procedure for determining a candidate with whom the public-private partnership contract will be entered into;

2) the representative of the public partner;

3) the duration of the public-private partnership contract ensuing from the financial and economic calculations and opinion of the Ministry of Finance;

4) public partner resources - to be transferred to a private partner, or in case of institutional partnership - to be invested in a joint venture;

5) provisions determined in the opinion of the Ministry of Finance for the accounting of the public-private partnership assets;

6) in case of institutional partnership - the fact that the representative of the public partner will be the holder of capital shares owned by the public partner in the joint venture in accordance with the Law on the State and Local Government Capital Shares and Capital Companies;

7) other conditions for the implementation of public-private partnership that are of significance for meeting the public interests.

(7) If the opinion of the Monitoring Authority indicates that an exact conclusion on whether the risk allocation referred to therein corresponds to the concession contract cannot be made based on the financial and economic calculations, the bodies of the public partner referred to in Paragraphs one and two of this Section shall take the decision to enter into the partnership procurement contract and to apply the partnership procurement procedure.

(8) The decision to enter into a public-private partnership contract for a period of time that exceeds 30 years shall be taken by considering the condition referred to in Section 60, Paragraph three of this Law.

(9) If it is determined in the decision on the initiation of the public-private partnership procedure that a partnership procurement contract is to be entered into, the period for the preservation of documents specified in Section 22 of this Law shall be applied to the preservation of the decision on the initiation of the public-private partnership procedure, the relevant financial and economic calculations and opinions of the competent authorities.

[25 August 2010; 20 April 2017]

Division B
Concession Procedures

Chapter IV
Types of Concession Procedures, Exchange of Information and Documentation

Section 17. Types of Concession Procedures and their Application

(1) In order to determine the candidate to whom the concession contract will be awarded, the following concession procedures shall be applied:

1) the tendering procedure without selection of candidates;

2) the tendering procedure with selection of candidates;

3) the competitive dialogue;

4) the negotiated procedure.

(2) The competitive dialogue procedure shall be applied if:

1) the needs of the public partner cannot be met without adjusting solutions already available on the market;

2) the concession contract includes innovative solutions;

3) the concession contract cannot be awarded without prior negotiations due to special circumstances which refer to the character, complexity or legal and financial structure of the concession or due to related risks;

4) the public partner is not able to prepare technical specifications precisely enough by referring to standards or technical specifications.

(3) [20 April 2017]

(4) [20 April 2017]

(5) [20 April 2017]

(6) The negotiated procedure shall be applied if:

1) the construction work or services provided for in the concession contract may only be ensured by a specific candidate in one of the following cases:

a) the objective of the concession contract is to create or purchase a unique piece of art or artistic performance;

b) lack of competition due to technical reasons;

c) exclusive right is present;

d) it is necessary to ensure protection of exclusive rights which are not referred to in Sub-clause "c" of this Paragraph, including intellectual property rights;

2) the exceptions referred to in Clause 1, Sub-clauses "b", "c", and "d" of this Section are only applicable, if no valid alternative or substitute is present or if the reason for the lack of competition is not the requirements specified in the concession procedure documents;

3) as a result of the procedure referred to in Paragraph one, Clause 1, 2, or 3, requests to participate or tenders have not been submitted or tenders which are not in conformity with the concession contract and fail to comply with the requirements specified in the concession procedure documents without significant amendments, have been submitted, or requests to participate have been submitted by the candidates who do not comply with the qualification requirements and are to be excluded from the concession procedure, and if the initial provisions for the fulfilment of the concession contract are not significantly changed. Upon a request of the European Commissioner, the public partner shall send it the final report of the concession procedure.

(7) If the public partner wishes to enter into a concession contract for the services referred to in Annex 2 to this Law, it may decide not to apply the concession procedures specified in this Law, except for the requirements laid down in Sections 18, 19, 21, 22, 23, Chapter V, Section 33, Paragraphs twelve, thirteen, and fourteen, Sections 34, 35, 36, 36.2, Section 38, Paragraphs two and three, Section 39, Paragraphs six, seven, and eight, Section 53, Paragraphs two and three, Sections 62 and 63 of this Law.

[20 April 2017]

Section 17.1 Privileged Concession Contracts

(1) If subject matter of the intended concession contract allows it, the public partner is entitled to reserve, within the scope of measures intended for specific groups of persons, a possibility to participate in concession procedure only for those candidates whose number of employees with disability account for more than 30 per cent of the average number of employees per year.

(2) Upon applying Paragraph one of this Section, the concession notice or the previous informative notice in the case of concessions of the services referred to in Section 17, Paragraph seven of this Law shall refer to this Section.

[20 April 2017]

Section 18. Exchange of Information

(1) Exchange of information between the Concession Procedure Commission and candidates shall take place by transferring information in person (which is confirmed by a certificate of receipt thereof), by mail, fax or electronically in accordance with the provisions of Paragraphs three and four of this Section and Section 19 depending on the choice of the Concession Procedure Commission.

(2) Verbal communication may also be used for the exchange of information which does not refer to concession procedure documents, requests to participate, and tenders. If verbal communication may affect the content of requests to participate or tenders and the evaluation of tenders, the content thereof shall be documented in writing or audio recordings.

(3) The Concession Procedure Commission shall select the means for exchange of information which are generally accessible in order not to hinder the access by candidates to the concession procedure, and the method of sending the documents referred to in this Law which ensures the receipt of information as quickly as possible. If electronic means are used for the exchange of information, such means of communication shall be chosen which are publicly accessible and compatible with generally used products of information and communication technologies, thereby avoiding the possibility of discriminating candidates on these grounds.

(4) The exchange and storage of information shall be carried out in such a way as to protect all the data included in requests to participate and tenders and that it would be possible to examine the content of requests to participate and tenders after the deadline for their submission.

(5) During the time period from the day of submission of the requests to participate or tenders until the moment of opening thereof, the Concession Procedure Commission shall not provide information on the existence of other requests to participate or tenders. The Concession Procedure Commission shall not provide information regarding the evaluation process during the evaluation of requests to participate and tenders until the publication of the results.

(6) The Concession Procedure Commission shall ensure confidentiality of the submitted information in accordance with the laws and regulations in the field of information publicity.

(7) The Concession Procedure Commission shall ensure free and direct electronic access to the concession procedure documents and all additional required documents in the profile of the purchaser, as well as a possibility for a candidate to become acquainted on site with the additional concession procedure documents to which free and direct electronic access cannot be ensured due to technical reasons or due to the information included therein, or for the purpose of protection of commercial interests, starting from the moment of the announcement of the relevant concession procedure. If a candidate requests to issue the concession procedure documents in printed form, the Concession Procedure Commission shall issue them within three working days after receipt of the request for these documents, provided that the request for documents has been submitted in due time prior to the deadline for the submission of requests to participate or tenders. The Concession Procedure Commission may request a payment for the issue of the concession procedure documents in printed form which does not exceed the costs of copying and sending of documents.

(8) If a candidate has requested additional information on the requirements contained in the concession procedure documents in due time, the Concession Procedure Commission shall provide it within five working days, but not later than six days before the end of the deadline for the submission of requests to participate or tenders. The Concession Procedure Commission shall send additional information to the candidate which has asked the question, and shall concurrently post this information in the profile of the purchaser where the concession procedure documents are available, also indicating the question asked.

[20 April 2017]

Section 19. Requirements for the Receipt and Sending of Electronic Documents

(1) The Concession Procedure Commission shall provide for electronic submission of requests to participate and tenders, except when this may not be ensured due to technical reasons, due to the information included in the requests to participate or tenders, or for the purpose of protection of commercial interests. For the receipt of requests to participate and tenders, the Concession Procedure Commission shall select electronic information systems which may be used free of charge and are intended for electronic receipt of requests to participate and tenders.

(2) When using electronic information systems for the receipt of requests to participate and tenders, the following conditions shall be met:

1) all interested candidates have access to the information on the specifications which relate to the electronic submission, coding and time registration of requests to participate and tenders;

2) a signature tool which is embedded in the system and ensures confirmation of identity of the signatory of an electronic document, or an electronic signature which conforms to the laws and regulations regarding the status of electronic documents and electronic signature is used;

3) the date and time when and where requests to participate and tenders are to be submitted may be determined precisely;

4) the Concession Procedure Commission ensures that nobody is able to access the submitted information before the end of the set deadline;

5) only authorised persons have the opportunity to determine or change the time for opening the received documents;

6) the documents or a part thereof submitted during several stages of the concession procedure may be accessible after activities performed concurrently by authorised persons;

7) the submitted documents may be accessed only on a specific date after activities performed simultaneously by authorised persons;

8) the submitted and opened documents remain accessible only to those authorised persons to whom such access has been granted;

9) it is possible to detect if someone has violated the prohibition referred to in Clauses 4, 5, 6, 7, and 8 of this Paragraph.

(3) The Cabinet shall determine the requirements and standards for the systems which are used for the submission of requests to participate and tenders.

(4) If necessary, the Concession Procedure Commission may request that special equipment and technologies which are not generally accessible are used for the submission of requests to participate and tenders, provided that it offers such alternative possibilities of access:

1) in an unlimited and full amount, free of charge, direct electronic access to special equipment and technologies from the day of publication of the concession notice. The concession notice shall indicate the website address where the relevant technologies and equipment may be accessed;

2) it ensures that the candidates which do not have access to the relevant technologies and equipment or are not able to acquire them within the relevant time periods (assuming that the relevant candidate is not at fault for the lack of access) might access the concession procedure by exercising a temporary right of access which is available online free of charge;

3) it supports an alternative data channel for electronic submission of tenders.

(5) When submitting a request to participate or tender electronically, a candidate is entitled to sign all documents as one set with one secure electronic signature. If a request to participate or tender may be submitted electronically, the Concession Procedure Commission is not entitled to request that a candidate also submits a written request to participate or tender in addition to the electronic request to participate or tender.

[20 April 2017 / See Paragraph 30 of Transitional Provisions]

Section 20. Notices, their Forms

(1) The Cabinet shall determine the content of and procedures for drawing up the notices referred to in Section 38, Section 53, Paragraphs one and two, Section 53.1, and Section 63, Paragraph seven of this Law. A sample notice form shall be determined by the Commission Implementing Regulation (EU) 2015/1986 of 11 November 2015 establishing standard forms for the publication of notices in the field of public procurement and repealing Implementing Regulation (EU) No 842/2011.

(2) The Concession Procedure Commission or the public partner shall prepare and submit the notice referred to in Paragraph one of this Section to the publication management system. The Procurement Monitoring Bureau shall, within three working days after receipt of the notice referred to in Paragraph one of this Section, examine the conformity of its content to the requirements of this Law and publish it on the website of the Procurement Monitoring Bureau, provided that the estimated contract value is less than the threshold of contract value specified by the Cabinet.

(3) If the estimated contract value is equal to or exceeds the threshold of contract value specified by the Cabinet, the Procurement Monitoring Bureau shall, within three working days after receipt of the notice referred to in Paragraph one of this Section, examine the conformity of its content with the requirements of this Law and send the notice to the Publication Office of the European Union for publication in the Official Journal of the European Union. The Procurement Monitoring Bureau shall publish the notice on its website after receipt of the confirmation that the notice has been published in the Official Journal of the European Union or 48 hours after receipt of the confirmation from the Publication Office of the European Union that the notice has been received.

[20 April 2017]

Section 21. Documentation of the Concession Procedure

(1) The Concession Procedure Commission shall ensure documentation of the concession procedure and each stage thereof.

(2) The decision on the initiation of the concession procedure, financial and economic calculations, opinions of the competent authorities, minutes of the Concession Procedure Commission, the Regulations, requests to participate following the official opening thereof, the final report of the Concession Procedure Commission, other concession procedure documents, except for the tenders submitted by candidates, shall be generally accessible information within the scope and in accordance with the procedures laid down in this Law.

(3) The public partner representative or the Concession Procedure Commission shall provide the information referred to in Paragraph two of this Section within three working days after receipt of a request.

Section 22. Preservation of Concession Procedure Documents

(1) The representative of the public partner shall preserve all the original copies of the documents referred to in Section 21, Paragraph two of this Law, as well as original copies of the tenders submitted by the candidates for 10 years after expiry of a concession contract.

(2) If the concession procedure is terminated or suspended in accordance with the procedures laid down in this Law, the representative of the public partner shall preserve the relevant original copies of the documents referred to in Section 21, Paragraph two of this Law, as well as original copies of the tenders submitted by candidates for five years after the Concession Procedure Commission has taken the decision to terminate or suspend the relevant concession procedure.

(3) If the decision of the Concession Procedure Commission referred to in Paragraph two of this Section to terminate or suspend the relevant concession procedure is appealed in accordance with the procedures laid down in this Law, the representative of the public partner shall preserve original copies of the documents referred to in Section 21, Paragraph two of this Law, as well as original copies of the tenders submitted by the candidates for five years after entry into effect of the court ruling.

(4) The period for the preservation of the minutes of the Complaint Review Commission and the information obtained during the review of a complaint shall be 10 years.

Section 23. Confidentiality

(1) The Concession Procedure Commission may determine conditions for the protection of the information that is transmitted to candidates together with technical specifications, as well as determine such conditions during the subsequent concession procedure.

(2) When notifying regarding entering into of a concession contract and informing the candidates, the Concession Procedure Commission is not entitled to disclose information, which has been transferred thereto by other candidates as a commercial secret or confidential information.

(3) If a candidate, when providing the information requested in this Law, considers that it is confidential or a commercial secret, the candidate shall particularly specify it.

[20 April 2017]

Chapter V
Concession Procedure Commission

Section 24. Establishment of the Concession Procedure Commission

(1) The Concession Procedure Commission shall be established by the representative of the public partner. The composition of the Concession Procedure Commission shall include persons on whom administrative punishment - a prohibition to hold the office of a public official whose duties include taking of decisions in the field of public procurements and public-private partnership or entering into procurements contracts, framework agreements, partnership procurement contracts or concession contracts, as well as to take relevant decisions and enter into relevant contracts - has not been imposed for violations in the area of public procurement and public-private partnership, or the execution of such punishment has ended. In order to make certain of this, the representative of the public partner shall obtain information in the publication management system.

(2) When establishing the Concession Procedure Commission, the representative of the public partner shall ensure that it would be competent in the field for entering into the concession contract.

(3) When fulfilling its obligations, the Concession Procedure Commission is entitled to invite experts or competent persons in the field of public-private partnership that are not members of the Commission.

(4) The Concession Procedure Commission shall be composed of at least five members.

[20 April 2017]

Section 25. Basic Principles for the Activity of the Concession Procedure Commission

(1) An originator of the concession procedure documents (an official or employee of the public partner or of the representative of the public partner), members of the Concession Procedure Commission, and experts may not represent the interests of the candidate, as well as may not be related to the candidate. Within the meaning of this Paragraph an originator of the concession procedure documents (an official or employee of the public partner or of the representative of the public partner), a member of the Concession Procedure Commission, and an expert is related to the candidate if it is the following to the applicant or its sub-contractor:

1) a current or former employee, an official, a shareholder, a stockholder, a procuration holder or a member of the legal person of the candidate or its sub-contractor and if such a relationship with the legal person has ended during the last 24 months;

2) a father, a mother, a grandfather, a grandmother, a child, a grandchild, an adoptee, an adopter, a brother, a sister, a stepbrother, a stepsister or a spouse of a shareholder, a stockholder or a member owning at least 10 per cent of the capital shares, a procuration holder or an official of the legal person of the candidate or its sub-contractor;

3) a father, a mother, a grandfather, a grandmother, a child, a grandchild, an adoptee, an adopter, a brother, a sister, a stepbrother, a stepsister or a spouse of the natural person of the candidate or its sub-contractor.

(2) A relationship of an originator of the concession procedure documents (an official or employee of the public partner or of the representative of the public partner), members of the Concession Procedure Commission, and experts with the candidate also refers to the cases when the candidate is an association of persons whose members are natural or legal persons with whom the originator of the concession procedure documents (the official or employee of the public partner or of the representative of the public partner), the member of the Commission or the expert has the relationship referred to in Paragraph one, Clauses 1, 2, and 3 of this Section.

(3) Prior to examination of a tender an originator of the concession procedure documents (an official or employee of the public partner or of the representative of the public partner), members of the Concession Procedure Commission, and experts shall sign a declaration that there are no such circumstances which would suggest that they are concerned in selection or activity of any particular candidate, or that they are related thereto within the meaning of Paragraph one of this Section.

[20 April 2017]

Section 26. Activity of the Concession Procedure Commission

(1) The Concession Procedure Commission shall ensure development of the concession procedure documents, record the course of the concession procedure and shall be responsible for the process of the procedure thereof.

(2) The Concession Procedure Commission shall evaluate candidates, tenders and other documents submitted thereby in accordance with this Law, the concession procedure documents, as well as other laws and regulations. The decision of the Concession Procedure Commission shall be binding on the representative of the public partner when entering into a concession contract.

(3) The Chairperson of the Concession Procedure Commission shall organise and conduct its work, determine the place, time, and agenda of the Commission meetings, call and chair the Commission meetings, as well as ensure signing of the declaration referred to in Section 25, Paragraph three of this Law.

(4) The Chairperson of the Concession Procedure Commission shall be appointed by the representative of the public partner.

(5) The representative of the public partner may also appoint a Deputy Chairperson of the Concession Procedure Commission who shall perform duties of the Chairperson during a lasting absence of the Chairperson (e.g. illness, vacation and business trip) or upon assignment of the Chairperson.

[20 April 2017]

Section 27. Procedures for Decision Taking of the Concession Procedure Commission

(1) The Concession Procedure Commission shall take decisions at the meetings.

(2) Meetings of the Concession Procedure Commission shall be valid if at least two thirds, but not less than three members of the Commission members are present at the meetings. The number of the Commission members shall be determined by rounding up the acquired result.

(3) The Concession Procedure Commission shall take decisions by simple majority of votes. In the event of a tied vote of the Commission members, the Chairperson of the Commission shall have the deciding vote. The Commission member may not refrain from taking decisions.

[20 April 2017]

Chapter VI
Complaint Review Commission

Section 28. Complaint Review Commission

(1) The Complaint Review Commission established by the Procurement Monitoring Bureau and consisting of three members shall review complaints regarding violations of the concession procedure. Members of the Complaint Review Commission shall be officials of the Public Procurement Bureau. The Chairperson of the Complaint Review Commission shall comply with the criteria referred to in Paragraph two of this Section, and at least one more member of the Commission shall have an academic or a second level higher vocational education in law. In order to examine complaints, the Procurement Monitoring Bureau may invite a procurement specialist or expert.

(2) The Complaint Review Commission shall be chaired by the Chairperson who meets the following criteria:

1) he or she has an academic or a second level higher vocational education in law or management or economics;

2) he or she has at least one year work experience in the examination of complaints on violations of the procurement procedure and knowledge of public-private partnership.

(3) A person who has previously provided consultations regarding the concession procedure referred to in a complaint or is interested in being awarded a concession contract, or is related to the applicant or another candidate, may not be a member of the Complaint Review Commission, specialist or expert. Prior to examination of the complaint, all members of the commission, the specialist and expert shall sign a respective attestation. Within the meaning of this Section a member of the Complaint Review Commission, specialist or expert is related to the applicant or another candidate, if he or she is:

1) a father, a mother, a grandfather, a grandmother, a child, a grandchild, an adoptee, an adopter, a brother, a sister, a stepbrother, a stepsister or a spouse of an owner or official of the legal person - submitter of the complaint or another candidate;

2) a father, a mother, a grandfather, a grandmother, a child, a grandchild, an adoptee, an adopter, a brother, a sister, a stepbrother, a stepsister or a spouse of the natural person - submitter of the complaint or another candidate;

3) a current or former employee, official or owner of the legal person - submitter of the complaint or another candidate - who has terminated an employment relationship or an ownership relationship with the applicant or another candidate within the time period which is shorter than 24 months, or is a father, a mother, a grandfather, a grandmother, a child, a grandchild, an adoptee, an adopter, a brother, a sister, a stepbrother, a stepsister or a spouse of the abovementioned persons.

(4) The Complaint Review Commission shall take decisions by voting. When taking a decision the Commission members shall be independent and subjected only to the law. A specialist and an expert shall participate in meetings of the Complaint Review Commission without the right to vote and express an independent professional opinion to the Commission regarding the facts established during review of the complaint or provide a statement regarding questions asked by the Commission.

[20 April 2017]

Section 29. Submission of a Complaint

(1) A person who is or has been interested in the awarding of a concession contract or applies for the awarding of a concession contract and who in relation to the relevant concession procedure governed by this Law considers that his or her right is infringed or infringement of the right thereof is possible due to a probable violation of the European Union laws and regulations or other laws and regulations, is entitled to submit a complaint on the candidate selection provisions, technical specifications, and other requirements relating to the particular concession procedure or on the activity of the public partner, public partner representative or Concession Procedure Commission during the concession procedure. Within the meaning of this Chapter, the procedures for selecting candidates referred to in Section 17, Paragraph seven of this Law shall also be considered the concession procedure.

(2) A complaint regarding the violations referred to in Paragraph one of this Section (except for the cases referred to in Paragraph three of this Section) may be submitted to the Procurement Monitoring Bureau until entering into a concession contract within the following deadlines:

1) within 10 days after the day when the information referred to in Section 36, Paragraph four, Section 43, Paragraph one, Section 45, Paragraph one or Section 53, Paragraph three of this Law has been sent to the relevant person electronically by using a secure electronic signature or attaching a scanned document to the electronic mail, or by fax or delivered in person;

2) within 15 days after the day when the information referred to in Section 36, Paragraph four, Section 43, Paragraph one, Section 45, Paragraph one or Section 53, Paragraph three of this Law has been sent to the relevant person by post;

3) within 10 days after the day when the notice referred to in Section 53.1, Paragraph one of this Law has been published in the Official Journal of the European Union.

(3) A complaint regarding the requirements specified in the concession procedure documents may be submitted within the following deadlines:

1) not later than seven days prior to expiry of the deadline for the submission of tenders - in relation to the requirements laid down in the Regulations of a competition without selection of candidates and the concession notice;

2) not later than four working days prior to expiry of the deadline for the submission of requests to request - in relation to the selection provisions referred to in the Regulations of a competition with selection of candidates, the requirements specified in the concession notice in competitive dialogue documents, and the concession notice;

3) not later than four working days prior to expiry of the deadline for the submission of tenders - in relation to the requirements specified in an invitation to a competition with selection of candidates and to a competitive dialogue procedure;

4) not later than two working days prior to expiry of the deadline for the submission of tenders - in relation to the requirements specified in concession procedure documents in the case referred to in Section 17, Paragraph seven of this Law.

(4) A complaint may be submitted to the Procurement Monitoring Bureau by handing it over in person or sending by post, fax or electronically, using a secure electronic signature or attaching a scanned document to the electronic mail. A complaint shall be deemed submitted to the Procurement Monitoring Bureau within the deadline specified in Paragraphs two and three of this Section if it has been received at the Procurement Monitoring Bureau:

1) not later than on the last day of the deadline, if it has been sent by fax or electronically using a secure electronic signature or attaching a scanned document to the electronic mail;

2) not later than on the last day of the deadline during the working hours of the Procurement Monitoring Bureau, if it has been sent by post or handed over in person.

(5) A complaint shall be submitted in writing and shall include the following information:

1) the name and address of the submitter of the complaint;

2) the name and address of the public partner regarding which the complaint has been submitted;

3) the name of the concession procedure and identification number of the concession procedure;

4) the facts, regarding which the complaint is being submitted, indicating the violation;

5) the legal basis for the complaint;

6) the claim of the submitter of the complaint.

(6) Within one working day after receipt of the complaint the Procurement Monitoring Bureau shall post the information thereon on its website, specifying the submitter of the complaint, the public partner, the representative of the public partner or the Concession Procedure Commission, and the concession procedure the legal validity of which is appealed by the submitter of the complaint, as well as inform the representative of the public partner on the initiation of an administrative case by sending a notice on the received complaint and a copy of the complaint to the fax number or electronic mail address indicated by the representative of the public partner. The public partner shall not enter into a concession contract while awaiting a decision of the Commission on results of the review of the complaint or termination of an administrative case.

(7) If a complaint is submitted regarding the requirements specified in the Regulations of a competition without selection of candidates or the concession notice, or the invitation of the competition with selection of candidates to submit a tender, the Concession Procedure Commission shall publish information in the profile of the purchaser regarding cancellation of the date and time of the opening of tenders, and shall not open the submitted tenders in accordance with Section 49, Paragraph 1.1 of this Law.

(8) If a complaint is submitted on the activity of the public partner, the representative of the public partner or the Concession Procedure Commission in relation to the legal validity of the concession procedure, and a complaint on the same concession procedure has already been submitted by another submitter of the complaint but it has not yet been reviewed, these complaints may be joined and reviewed together.

(9) The submitter of the complaint is entitled to revoke the submitted complaint in writing at any moment, while the Complaint Review Commission has not taken a decision on the relevant complaint.

[20 April 2017]

Section 29.1 Leaving Complaint without Review

(1) The Procurement Monitoring Bureau is entitled to leave the complaint without examination in any of the following cases:

1) the complaint does not conform to the requirements of Section 29, Paragraph one, two, three or five of this Law;

2) a complaint on the same subject and on the same basis has already been submitted and examined regarding the concession procedure;

3) the information contained in the complaint is obviously insufficient to satisfy the claim of the submitter of the complaint or the complaint shall be clearly rejected on the merits;

4) in the case referred to in Section 29.2 , Paragraph four of this Law.

(2) A decision may be appealed before court in accordance with the procedures laid down in the Administrative Procedure Law. Appeal of the decision shall not suspend the operation thereof.

[20 April 2017]

Section 29.2 Deposit

(1) When submitting a complaint in accordance with the procedures laid down in Section 29 of this Law, a deposit shall be lodged or submitted.

(2) An applicant is entitled to lodge a deposit as an amount of money or submit as a bank guarantee or an insurance policy.

(3) The deposit shall amount to 0.5 per cent of the estimated contract value but not exceed EUR 15 000. If the estimated contract value cannot be determined or it is not indicated in the concession procedure documents, the deposit shall amount to EUR 3400.

(4) After receipt of a complaint the Procurement Monitoring Bureau shall verify the receipt or submission of a deposit payment within one working day. If the deposit payment has not been received or submitted, the Procurement Monitoring Bureau is entitled to leave the complaint without review.

(5) The Procurement Monitoring Bureau shall repay the deposit payment or return the deposit to the applicant within five working days after:

1) the day of revoking the complaint if the submitter of the complaint has revoked the complaint before review thereof by the Commission on the basis of the fact that the public partner, the representative of the public partner or the Concession Procedure Commission has eliminated the violations referred to in the complaint;

2) the receipt of a copy of the court judgment, if by the final judgment the court orders to repay the paid-in deposit payment to the applicant;

3) the day when a decision has been announced to leave the complaint without review;

4) the day when a decision has entered into effect to prohibit entering into a concession contract or to cancel a decision of the public partner, the representative of the public partner or the Concession Procedure Commission to terminate the concession procedure.

(6) This Section shall not be applicable if the legal validity of termination of the concession procedure or the requirements specified in the concession procedure have been appealed in the complaint.

(7) The Cabinet shall determine the procedures for lodging or submitting, or repaying or returning the deposit.

[20 April 2017]

Section 30. Examination of a Complaint

(1) The Complaint Review Commission shall review a complaint within one month after receipt thereof in the Procurement Monitoring Bureau. If due to objective reasons it is impossible to comply with this deadline, the Complaint Review Commission may extend it by notifying the submitter of the complaint, the candidate whose tender is selected according to the specific tender selection criterion, the representative of the public partner, and the Concession Procedure Commission (hereinafter in this Section - the participants).

(2) After examining the complaint on violations of the concession procedure, the Complaint Review Commission with a decision thereof may:

1) allow to enter into a concession contract and maintain valid the requirements laid down in the concession procedure documents or the decision of the public partner, the representative of the public partner or Concession Procedure Commission if the complaint is unreasonable or substantiated, but the violations found by the Complaint Review Commission cannot affect the award of the concession contract;

2) prohibit to enter into a concession contract, if the requirements of Section 43, Section 45, Paragraph one or Section 53, Paragraph three of this Law have not been conformed to;

3) prohibit to enter into a concession contract and fully or partially cancel the requirements laid down in the concession procedure documents or the decision of the public partner, the representative of the public partner or Concession Procedure Commission if the complaint is substantiated, and violations found by the Complaint Review Commission may affect the decision to award the concession contract;

4) maintain valid the decision of the public partner, the representative of the public partner or Concession Procedure Commission on termination or suspension of a concession procedure if the complaint is unreasonable; or

5) cancel the decision of the public partner, the representative of the public partner or Concession Procedure Commission on termination or suspension of a concession procedure if the complaint is substantiated.

(3) In the cases referred to in Paragraph two, Clauses 2, 3, and 5 of this Section the Complaint Review Commission may decide on measures for prevention of the established violations. The Complaint Review Commission may assign the public partner or the representative of the public partner to suspend the concession procedure only when the violations of the concession procedure committed by the public partner, the representative of the public partner or the Concessions Procedure Commission cannot be eliminated otherwise.

(4) If during the examination of a complaint the Complaint Review Commission finds that the complaint shall be left without examination, it may take the decision to terminate the administrative matter. If the submitter of the complaint withdraws the complaint, the relevant administrative procedure shall be considered terminated.

(5) The Procurement Monitoring Bureau shall invite the participants to the complaint review meeting by publishing an invitation on its website at least three working days in advance. The invitation shall be considered notified on the next working day of publication thereof on the website of the Procurement Monitoring Bureau. If the participants have notified the Procurement Monitoring Bureau regarding an electronic mail address where an invitation can be sent to, the Procurement Monitoring Bureau shall also send the information on the complaint review meeting to the participants by electronic mail not later than on the day when the invitation is published on the website of the Procurement Monitoring Bureau.

(6) The Complaint Review Commission shall listen to the views of all participants. Following the hearing of the participants it shall continue the work without participants being present.

(7) The Complaint Review Commission shall evaluate a complaint on the basis of the facts referred to by the relevant submitter of the complaint and the participants, explanations, and an opinion or a statement of an expert. If the participants have not arrived to the complaint examination meeting, the Complaint Review Commission shall examine the complaint on the basis of the facts available thereto. The Complaint Review Commission shall take a decision and, within three working days after taking of this decision, prepare and post it on the website of the Procurement Monitoring Bureau. The decision shall be considered notified on the next working day of publication thereof on the website of the Procurement Monitoring Bureau.

(8) The Complaint Review Commission shall include the following information in its decision:

1) substantiation for the establishment of the Commission;

2) the Commission members, the experts and the competent persons who have participated in the complaint examination meeting;

3) the submitter of the complaint, the representative of the public partner, the members of the Concession Procedure Commission and the representatives of other participants who have participated in the complaint review meeting;

31) the identification number of the concession procedure regarding which the complaint has been submitted;

4) facts on which the complaint is submitted and the claim of the submitter of the complaint;

5) the most important arguments of the submitter of the complaint and the representative of the public partner;

6) substantiation of the decision;

7) the legal norms applied;

8) obligation delegated to the representative of the public partner or the Concession Procedure Commission and the time period within which it should be fulfilled if the Complaint Review Commission decides on the measures for eliminating the violations;

9) prohibition or permission to enter into the concession contract;

10) where and in what term this decision may be appealed.

(9) If the Complaint Review Commission has taken a decision on the measures for the elimination of the found violations, the representative of the public partner or Concession Procedure Commission shall eliminate the violations and perform further activities prescribed by this Law.

(10) The Concession Procedure Commission shall send all information on the elimination of the violations found by the Complaint Review Commission to the Procurement Monitoring Bureau not later than on the day when the notice of the Concession Procedure Commission on the results of the concession procedure is published in accordance with the procedures laid down in Section 53 of this Law.

[25 August 2010; 20 April 2017]

Section 31. Appeal of the Decisions of the Complaint Review Commission

(1) The submitter of the complaint, the public partner or the candidate whose tender is selected in accordance with the specific tender selection criterion may appeal the decision of the Complaint Review Commission to the Administrative District Court in the procedures laid down by the Administrative Procedure Law. The matter shall be heard by the court composed of three judges.

(2) A decision of the Administrative District Court may be appealed in accordance with cassation procedures in the Department of Administrative Cases of the Senate of the Supreme Court. Other court rulings may be appealed in accordance with the Administrative Procedure Law.

(3) Appeal of the decision of the Complaint Review Commission shall not suspend the validity thereof.

[25 August 2010 / See Paragraph 15 of Transitional Provisions]

Chapter VI.1
Recognition of a Concession Contract as Invalid, Amendment, Cancellation of the Provisions of a Concession Contract or Reduction of the Term of a Contract, and Procedures for the Compensation of Losses

[25 August 2010]

Section 31.1 Submission of an Application on Recognising a Concession Contract as Invalid, on Amendment or Cancellation of the Provisions Thereof or on Reduction of the Term of a Concession Contract, and Examination of the Relevant Case

(1) An application on recognising a concession contract as invalid, on amendments to or cancellation of the provisions thereof or on reduction of the term of a concession contract may be submitted by the persons referred to in Section 29, Paragraph one of this Law.

(2) The application shall be submitted to the Administrative District Court where the matter is heard by three judges. The norms of the Administrative Procedure Law, including norms regarding the examination of a public law contract in a court, shall be applied to examination of the complaint and the case, insofar as it has not been specified otherwise in this Law.

(3) An application on the violations referred to in Section 31.2, Paragraph one of this Law may be submitted within the following time periods:

1) within six months following the day when the concession contract was entered into (except for the cases referred to in Clause 2, Sub-clauses "a" and "b" of this Paragraph);

2) within 30 days after the day when:

a) the concession award notice has been published on the website of the Procurement Monitoring Bureau or the Official Journal of the European Union which includes a justification for the decision to award the concession contract without publishing the concession notice, if the contract value is equal to or exceeds the threshold of contract value specified by the Cabinet;

b) the public partner or the representative of the public partner has informed the relevant candidate regarding entering into a concession contract, indicating the information referred to in Section 53, Paragraph three, Clause 1 or 2 of this Law or specifying the reasons for rejection of the submitted request to participate.

(4) Concurrently with submission of an application or examination of a case the applicant may ask to apply provisional regulation in the cases and in accordance with the procedures laid down in the Administrative Procedure Law.

(5) A decision of the Administrative District Court may be appealed in accordance with cassation procedures in the Department of Administrative Cases of the Senate of the Supreme Court.

(6) A claim on recognising a concession contract as invalid that is not substantiated by the conditions referred to in Section 31.2 of this Law shall be submitted to the court of general jurisdiction in conformity with the procedures laid down in the Civil Procedure Law.

[20 April 2017]

Section 31.2 Cases When a Concession Contract May Be Recognised As Invalid, the Provisions Thereof Amended or Cancelled or the Term of a Concession Contract Reduced

(1) The Court may recognise the concession contract as invalid, amend or cancel the provisions thereof or reduce the term of the concession contract in any of the following cases:

1) the concession contract has been entered into without applying the concession procedures specified in Section 17, Paragraph one of this Law or the procedures referred to in Section 17, Paragraph seven of this Law if the public partner had a duty to apply it;

2) the concession contract has been entered into by unjustifiably awarding the concession contract without publishing the concession notice on the website of the Procurement Monitoring Bureau or in the Official Journal of the European Union, if the contract value is equal to or exceeds the threshold of contract value specified by the Cabinet;

3) the concession contract has been entered into without conformity with the deadline laid down in Section 54 of this Law;

4) the concession contract has been entered into by violating the prohibition to enter into a concession contract specified in Section 29, Paragraph six of this Law.

(2) In the cases referred to in Paragraph one, Clause 1 or 2 of this Section a concession contract shall not be recognised as invalid, the provisions thereof shall not be amended or repealed, the duration of the concession contract shall not be reduced, although the law has been violated, if the following conditions are met concurrently:

1) the public partner or the representative of the public partner has published the notice referred to in Section 53.1, Paragraph one of this Law;

2) the concession contract was entered into not earlier than after 10 days and one additional working day following the day when the notice referred to in Section 53.1, Paragraph one of this Law was published on the website of the Procurement Monitoring Bureau;

3) the prohibition to enter into a concession contract specified in Section 29, Paragraph six of this Law has been conformed to.

[20 April 2017]

Section 31.3 Judgment of the Court on a Concession Contract

(1) If the court finds that the concession contract was entered into by violating the provisions of this Law and concludes that the complaint shall be satisfied, it may choose one of the following types of the judgments to its own discretion in accordance with conditions of this Law:

1) recognizes the concession contract as invalid from the moment of entering into it;

2) amends or cancels the provisions of the concession contract. By this judgment the court also reduces the term of the concession contract; or

3) reduces the term of the concession contract.

(2) When passing a judgment, the Court shall not be limited to the subject of the application and limits of the claim determined by the applicant.

(3) If choosing the type of judgment referred to in of Paragraph one, Clause 1 or 2 of this Section the court shall evaluate which one of them is sufficiently proportional, effective and preventive in the particular case in order to ensure that in future the public partner or the representative of the public partner will not tolerate violations of this Law. The court shall give the judgment referred to in Paragraph one, Clause 3 of this Section only in cases laid down in Paragraphs four and five of this Section.

(4) The Court shall not give the judgment referred to in Paragraph one, Clause 1 or 2 of this Section if it is important to maintain the consequences of the concession contract due to public interests. Financial consequences (for example, due to delay of making a payment, change of a contractor, sanctions or other legal obligations) alone shall not be considered a sufficient basis for not giving the judgment referred to in Paragraph one, Clause 1 or 2 of this Section.

(5) If a concession contract has been entered into without conformity with the deadline specified in Section 54 of this Law or violating the prohibition to enter into a concession contract specified in Section 29, Paragraph six of this Law, and it is found that the concession procedure, until the moment when the decision on determining the winner was taken, has been implemented in accordance with the requirements of this Law, and the specific decision has not affected the chances of the candidate who has submitted the request to participate, for awarding of a contract, the court shall give the judgment referred to in Paragraph one, Clause 2 or 3 of this Section.

(6) A copy of the court judgment shall be sent to the Procurement Monitoring Bureau, Monitoring Authority, and Ministry of Finance.

[20 April 2017]

Section 31.4 Compensation for Losses

(1) Losses caused within the framework of administrative proceedings shall be compensated in accordance with the administrative proceedings and the laws and regulations governing compensation of losses caused by State administration institutions. Matters about compensation of losses shall be examined by the Administrative District Court composed of three judges according to the procedure of judicial proceedings.

(2) If compensation is requested concurrently with the claim provided for in Section 31.1 of this Law, a court shall take a decision thereon, examining the relevant application and making any of the judgments referred to in Section 31.3 , Paragraph one of this Law. The burden of proof regarding existence of such losses and the amount of compensation shall lie with the applicant. Following the day when the judgment enters into effect the compensation of such losses may be claimed according to the civil law procedure.

(3) When submitting a complaint to the Procurement Monitoring Bureau according to Section 29 of this Law, the compensation of losses shall not be claimed. Compensation of losses caused by the public partner or the representative of the public partner may be requested concurrently with submitting of an application to the court or addressing the public partner in accordance with the procedures laid down in the laws and regulations governing compensation of losses caused by State administration institutions.

[20 April 2017]

Chapter VII
General Issues for the Conduct of the Concession Procedures

Section 32. Stages of the Concession Procedures

[20 April 2017]

Section 33. Development of the Regulations

(1) The Concession Procedure Commission shall develop the Regulations of the relevant concession procedure in conformity with the decision on the initiation of the public-private partnership procedure. The aforementioned Regulations shall be approved by each representative of the public partner.

(2) If the tendering procedure without selection of candidates is applied to the concession procedure the following information shall be determined in the Regulations:

1) name (company) of a public partner and representative thereof, legal address and other required requisites;

2) date, time, place and procedure for submission and opening of candidates' tenders;

3) requirements as regards validity period of a candidate's tender, drawing up and submission, form of a financial tender, as well as information on the language or languages a tender is to be submitted;

4) conditions for the elimination of candidates in accordance with Section 37 of this Law, as well as the information to be submitted that is necessary in order to evaluate a candidate in accordance with the requirements of the referred to Section;

5) requirements for the possibilities of a candidate to perform professional activity, requirements for economic and financial standing of a candidate, technical and professional capabilities, as well as the information to be submitted that is necessary in order to evaluate a candidate in accordance with the aforementioned requirements;

6) substantiated and objective requirements for the subject matter of a concession contract, taking into account Paragraphs twelve, thirteen, and fourteen of this Section and ensuring that the abovementioned requirements provide equal possibilities for all candidates and do not cause unsubstantiated restrictions on competition;

7) conditions for environmental protection (if such are to be determined);

8) conditions for social protection (if such are to be determined);

9) time period within which the Concession Procedure Commission plans to review the tenders;

10) tender evaluation criteria in accordance with Section 51 of this Law, as well as a reference whether a candidate may submit variants of a tender;

11) date, time and manner by which the results of the tendering procedure without selection of candidates will be notified to the candidates;

12) conditions according to which tenders shall be considered non-conforming to the Regulations;

13) time period within which, following the determination of results, the final agreement with the winner of the tendering procedure without selection of candidates shall be reached on entering into a concession contract;

14) provisions of the draft concession contract that may not be amended during the harmonisation of the concession contract;

15) means of communication through which the information is to be exchanged between the Concession Procedure Commission and the candidates;

16) other information provided for in this Law or considered by the Concession Procedure Commission as necessary to be included in the Regulations.

(3) If tendering procedure with selection of candidates is applied to the concession procedure, the following information shall be provided in the Regulations in addition to the information referred to in Paragraph two of this Section:

1) time and place where a candidate may submit a request on readiness to participate in the tendering procedure with selection of candidates;

2) list of documents and information to be submitted;

3) common criteria a candidate shall meet in order to invite the candidate to submit a tender in accordance with Section 40, Paragraph two of this Law;

4) date, time, place and procedures by which the Concession Procedure Commission will open candidate tenders;

5) time period within which the Concession Procedure Commission plans to carry out selection of candidates;

6) date, time and manner in which the results of the candidate selection will be published;

7) planned time schedule for implementing other stages of the tendering procedure with selection of candidates;

8) other information related to the candidate selection.

(4) If the tendering procedure with selection of candidates is applied to the concession procedure, the Regulations may include the condition that the Concession Procedure Commission preserves the right to request that only a limited number of candidates who best meet the candidate selection criteria may submit tenders. In this case the number of candidates may not be less than three.

(5) If the competitive dialogue is applied to the concession procedure, the following information shall be determined in the Regulations in addition to the information referred to in Paragraph two of this Section:

1) time and place where a candidate may submit a request on readiness to participate in the competitive dialogue procedure;

2) list of documents and information to be submitted;

3) common criteria a candidate shall meet in order to invite the candidate to negotiations in accordance with Section 40, Paragraph two of this Law;

4) time period within which the Concession Procedure Commission plans to carry out evaluation of candidates in order to invite them to negotiations;

5) needs and requirements of a public partner regarding which the negotiations with candidates will be carried out;

6) information on the time and place of commencing the negotiations, as well as the language planned to be used in negotiations with candidates;

7) date, time and manner the candidates will be invited to negotiations;

8) stages of negotiations if it is planned that the negotiations with candidates will be held in stages;

9) date, time and manner the candidates will be informed of the results of the negotiations;

10) planned time schedule for implementing other stages of the competitive dialogue procedure;

11) amount and assigning of awards or making of payments to the participants of the negotiations, as well as manner and terms of presentation to the candidates who have participated in the negotiations referred to in Section 46 of this Law (if it is planned that there will be awards or payments for the participation in the negotiations);

12) other information on the course of the competitive dialogue procedure.

(6) If the information referred to in Paragraph two of this Section is not objectively compatible with the information referred to in Paragraph three or five of this Section, only the information referred to in Paragraph three or five of this Section shall be included in the Regulations.

(7) If the concession contract intends to provide aid for commercial activity, the Concession Procedure Commission shall indicate the abovementioned information in the Regulations concurrently specifying the procedures for providing such support and the applicable control arrangements of aid for commercial activity.

(8) If it is planned to attract financing of the European Union Funds for the fulfilment of a concession contract, the Concession Procedure Commission shall indicate the abovementioned information in the Regulations simultaneously laying down the procedure for using such financing.

(9) It shall be determined in the Regulations whether a candidate with whom it is planned to enter into a concession contract may establish a special purpose entity for the fulfilment of the contract or the candidate is obliged to establish it.

(10) [20 April 2017]

(11) The draft concession contract shall be attached to the Regulations. The draft concession contract may be not attached to the Regulations in case of the competitive dialogue procedure.

(12) Technical specifications shall be included in the concession procedure documents, and they shall determine the requirements for construction work and services. The requirements may refer to a specific production or provision process or a method of the requested construction work or services, or a specific process in another stage of handling cycle thereof even if such factors are not directly related to the nature of the construction work or services, provided that they are related to the subject matter of the concession contract and are proportionate to the value and objectives of the concession contract.

(13) Technical specifications shall include technical descriptions which may contain such requirements of the public partner regarding construction work and services as the quality level, environmental protection requirements, regulations for reduction of climate change (reduction in emissions of greenhouse gases), and adaptation to climate change, energy efficiency, construction requirements (also requirements regarding availability of a structure or service to people with disabilities), requirements for conformity assessment and implementation, safety rules or measurements, terminology, symbols, testing rules and methods, designations and marking or user instructions. If possible, the amount of construction work shall be determined according to a building design and included in the list of the amount of construction work. Construction costs shall be determined in accordance with the procedures stipulated by the Cabinet. If it is not decisive for existence of the subject matter of the concession contract, technical specifications shall not specify a specific origin, a special process which only characterises products or services of a specific candidate, a brand, patents or specific types of products that create advantages or a reason for rejection of certain candidates or products. In exceptional cases such reference may be included, if it is impossible to draw up a sufficiently precise and clear description of the subject matter of the concession contract. In such case the reference shall be used together with the words "vai ekvivalents" [or equivalent].

(14) The submitted tender shall not be rejected for the reason that the tendered construction work or services fail to conform to the standards or technical specifications indicated in the concession procedure documents, if a candidate can prove, using any appropriate means, that his or her tender is equivalent and meets the requirements specified in the technical specification.

[20 April 2017]

Section 33.1 Sub-contractors

(1) In order to ascertain that a candidate will be able to fulfil a concession contract, the Concession Procedure Commission is entitled to request that the candidate indicates in the tender those parts of the concession contract which it will transfer to sub-contractors for implementation, as well as all expected sub-contractors.

(2) The Concession Procedure Commission shall request that the candidate indicates in the tender all sub-contractors the value of the construction work to be performed or services to be provided by which is at least 10 per cent of the total value of the concession contract, and the part of the concession contract to be transferred for implementation to each such sub-contractor.

(3) The total value of the construction work to be performed or the services to be provided by a sub-contractor shall be determined by taking into account the value of the construction work to be performed or the services to be provided by the sub-contractor and all companies related thereto within the scope of the relevant concession contract. Within the meaning of this Section a related company shall be considered a capital company in which, in accordance with the laws and regulations governing the status of group of companies, a sub-contractor has a decisive influence or which has a decisive influence in the sub-contractor, or a capital company in which another capital company has a decisive influence that concurrently has a decisive influence in the relevant sub-contractor.

(4) In the case of a services concession contract, if the services are provided in the object of the public partner, and in the case of a works concession contract the Concession Procedure Commission shall request that after awarding of the concession contract and not later than at the moment of commencing fulfilment of the concession contract the private partner submits a list of the sub-contractors (if such are planned to be involved) involved in the execution of construction work or provision of services by specifying the name, contact information of the sub-contractor, and the person having the right of representation thereof, insofar as such information is known. Sub-contractors of sub-contractors of the private partner shall also be indicated in the list. During fulfilment of the concession contract, the private partner shall notify of any changes in the abovementioned information, as well as supplement the list with the information on a sub-contractor which is later involved in the execution of construction work or the provision of services.

(5) The Concession Procedure Commission may envisage in the concession procedure documents that in case of a works concession contract, upon request of a sub-contractor, payments for the services provided or construction work performed by this sub-contractor for the private partner who has accepted them, and the payment deadline of which is delayed, if the public partner has failed to pay all the contract value due to the private partner, shall, on the basis of an invoice submitted by the sub-contractor, be transferred by the private partner directly to the sub-contractor, and the next payment to the private partner shall be reduced by the relevant amount. Prior to payment of the invoice of the sub-contractor the public partner shall inform the private partner regarding such request and allow him or her to express an opinion on the validity of the request. The procedures for making payments and exchanging information with the private partner and sub-contractors thereof shall be provided for by the Concession Procedure Commission in the concession contract.

(6) The procedures laid down in Paragraphs one and five of this Section shall not affect the issues regarding responsibility of the private partner for the fulfilment of the concession contract.

[20 April 2017]

Section 34. Opinion of the Monitoring Authority on the Regulations and the Draft Concession Contract

(1) The Concession Procedure Commission shall send the Regulations and the draft concession contract attached thereto to the Monitoring Authority in order to receive an opinion on the conformity of risk allocation between the public partner and the private partner to the concession contract.

(2) If the opinion of the Monitoring Authority indicates that the information included in the Regulations and the draft concession contract shows that the risk allocation between the public partner and the private partner conforms to the concession contract, the Concession Procedure Commission shall send the concession notice referred to in Section 38 of this Law or an advance informative notice on social and other special services to the Procurement Monitoring Bureau.

(3) If the opinion of the Monitoring Authority indicates that the information included the Regulations and the draft concession contract shows that the risk allocation between the public partner and the private partner fails to conform to the concession contract, the Concession Procedure Commission shall inform the representative of the public partner thereof and develop new Regulations and draft concession contract by taking into account the written instructions of the representative of the public partner, or take the decision to suspend the concession procedure.

(4) If the Concession Procedure Commission prepares new Regulations and draft concession contract based on the instructions provided by the representative of the public partner, the Commission shall send them to the Monitoring Authority in accordance with Paragraph one of this Section.

[20 April 2017]

Section 35. Making Amendments to the Regulations

(1) The Concession Procedure Commission may make amendments to the Regulations if they do not change significantly the requirements included in the Regulations. Significant changes in the requirements included in the Regulations shall be, in particular, considered the changes which allow submission of different tenders or participation or selection of other candidates in the concession procedure, or as a result of which the determined risk allocation between the public partner and the private partner is changed, or the content of the tender, the proposed contract value and conditions are changed, or it becomes impossible to prepare the tender within the specified deadline, or other significant requirements included in the Regulations.

(2) Amendments to the Regulations shall be approved by the representative of the public partner.

(3) Amendments to the Regulations may be made only if the time period for submitting the relevant request to participate or tender referred to in Section 39 of this Law has not expired.

(4) The Concession Procedure Commission shall send the amendments to the Regulations to the Monitoring Authority in order to receive an opinion in accordance with the procedures laid down in Section 34 of this Law.

(5) If the Concession Procedure Commission has made amendments to the Regulations or other concession procedure documents, it shall post the information on amendments to the profile of the purchaser where such documents are available not later than a day after the notice on changes or additional information has been submitted to the Procurement Monitoring Bureau for publication.

[20 April 2017]

Section 36. Termination or Suspension of the Concession Procedure

(1) The Concession Procedure Commission shall take the decision to terminate the relevant concession procedure if:

1) as a result of this concession procedure requests to participate or tenders have not been submitted;

2) tenders which are not in conformity with the concession contract and fail to conform to the requirements specified in the concession procedure documents without significant amendments, have been submitted;

3) requests to participate have been submitted by candidates who do not comply with the qualification requirements and are to be excluded from the concession procedure;

4) an agreement on the concession contract has not been reached with any of the candidates in the negotiations on the draft concession contract in accordance with the procedures laid down in Section 52 of this Law.

(2) If the Concession Procedure Commission has taken a decision to terminate the concession procedure in accordance with Paragraph one, Clause 1, 2, or 3 of this Law, the public partner may apply the negotiated procedure in accordance with Section 17, Paragraph six of this Law.

(3) The Concession Procedure Commission is entitled to suspend the concession procedure and not to enter into a concession contract, if there is an objective substantiation and consent of each public partner has been received. If the concession procedure is suspended, it may not be resumed.

(4) If the concession procedure is terminated or suspended, the Concession Procedure Commission shall, within three working days following taking of the decision, concurrently inform all candidates regarding all reasons due to which the concession procedure is terminated or suspended. The Concession Procedure Commission shall inform all candidates of the deadline by which the person, taking into consideration Section 29, Paragraph two, Clause 1 or 2 of this Law, may submit a complaint on violations of the concession procedure to the Procurement Monitoring Bureau. Within the meaning of this Section it shall be considered that the information is delivered to all candidates concurrently if the relevant information is sent or delivered to them on the same day.

(5) The Concession Procedure Commission shall send information on termination or suspension of the concession procedure by post, fax or electronically by using a secure electronic signature or attaching a scanned document to the electronic mail, or deliver in person. The Concession Procedure Commission shall retain proof of the date and manner of sending or delivery of the information.

[20 April 2017]

Section 36.1 European Single Procurement Document

(1) The Concession Procedure Commission shall accept a European Single Procurement Document as prima facie evidence of the conformity with the requirements for the selection of candidates specified in the concession notice or concession procedure documents. If a candidate has chosen to submit a European Single Procurement Document, the candidate shall, in order to ascertain his or her compliance with the requirements for selection of candidates specified in the concession notice or concession procedure documents, also submit this document for each person on the possibilities of which the candidate relies to certify that the qualification thereof complies with the requirements specified in the concession notice or concession procedure documents, and for the sub-contractor specified by the candidate the value of the construction work to be performed or services to be provided by which is at least 10 per cent of the total value of the concession contract. An association of persons shall submit an individual European Single Procurement Document for each participant thereof.

(2) A candidate may submit a European Single Procurement Document which has been submitted in another concession or procurement procedure, if it certifies that the information included therein is correct.

(3) The Concession Procedure Commission is entitled to, at any stage of the concession procedure, request that a candidate submits all documents or a part of the documents which confirms compliance thereof with the requirements for selection of candidates specified in the concession notice or concession procedure documents. The Concession Procedure Commission shall not request any documents and information which is at its disposal or available in public databases.

(4) Sample forms of the European Single Procurement Document shall be determined by the Commission Implementing Regulation (EU) 2016/7 of 5 January 2016 establishing the standard form for the European Single Procurement Document.

[20 April 2017]

Section 36.2 General Provisions in Relation to a Candidate

(1) The Concession Procedure Commission shall not reject a candidate, if it does not have a specific legal status in accordance with the laws and regulations of Latvia, but this candidate is entitled to perform construction work or provide services in accordance with the laws and regulations of the European Union Member State where it has been founded.

(2) The Concession Procedure Commission may request that the given name, surname, and professional qualification of the employee responsible for the fulfilment of a concession contract is indicated in the request to participate or tender of a legal person.

(3) The Concession Procedure Commission is not entitled to put forward a claim for associations of persons to get organised in a specific legal status, so that they would submit a request for participation in the concession procedure, or a tender. It may be requested in the concession procedure documents that the association of persons in relation to which a decision has been taken to enter into a concession contract, gets organised according to a specific legal status, if it is necessary for successful fulfilment of the provisions of the concession contract.

(4) It may be specified in the concession procedure documents how associations of persons conform to the requirements regarding economic and financial position or technical and professional capabilities. The requirements must be commensurate, and they shall be determined on the basis of objective reasons. The Concession Procedure Commission may determine different, commensurate, and objectively substantiated conditions for associations of persons regarding fulfilment of a concession contract.

[20 April 2017]

Section 37. Provisions for the Elimination of a Candidate

(1) The Concession Procedure Commission shall eliminate a candidate from participation in the concession procedure in any of the following cases:

1) a candidate or a person who is a member of the board or council of the candidate, has the right to represent it or is a procuration holder thereof, or a person who is authorised to represent the candidate in activities related to a subsidiary has been found guilty of any of the following criminal offences by such punishment prescription of prosecutor or a court judgment that has entered into effect and has become incontestable and unappealable, or a coercive measure has been applied thereto:

a) establishment or management of a criminal organisation, involvement in such organisation or in an organised group included therein, or in another criminal group, or participation in criminal offences committed by such organisation;

b) bribetaking, bribery, bribe misappropriation, intermediation in bribery, unauthorised participation in property transactions, unauthorised acceptance of benefits, commercial bribery, requesting, acceptance and giving of unlawful benefit, trading with influence;

c) fraud, misappropriation or money laundering;

d) terrorism, financing of terrorism, invitation to terrorism, terrorism threats or recruiting and training of a person for the perpetration of terrorist acts;

e) trafficking in human beings;

f) evading payment of taxes and payments equivalent thereto;

2) it has been established that on the last day of the deadline for the submission of a request to participate and tender or on the day when the decision is taken to possibly award the concession contract, a candidate has tax debts in Latvia or in the country where it is registered or permanently residing, including debts of mandatory State social insurance payments which exceed EUR 150 in total in any country. As to the candidates registered and permanently residing in Latvia, the Concession Procedure Commission shall take into account the information which has been published in the information system specified by the Cabinet on the date of the last data update of the public database of tax debtors of the State Revenue Service and Administration System of Real Estate Tax;

3) insolvency proceedings have been declared for the candidate, the economic activity of the candidate has been suspended, or the candidate is being liquidated;

4) the originator of the concession procedure documents (an official or employee of the public partner or of the representative of the public partner), a member of the Concession Procedure Commission or an expert is related to the candidate within the meaning of Section 25, Paragraphs one and two of this Law or is interested in selection of any particular candidate, and such situation cannot be prevented with measures that are less restrictive on the candidate;

5) a candidate, by such a decision of the competent authority or a court judgment which has entered into effect and become incontestable and unappealable, has been found guilty of violating the competition law which manifests itself in a horizontal cartel agreement, except when the relevant authority, upon establishing violation of the competition law, has released the candidate from a fine or reduced the fine for cooperation within the framework of the leniency programme;

6) a candidate, by such a decision of the competent authority or a court judgment which has entered into effect and become incontestable and unappealable, has been found guilty of a violation which manifests itself into the following:

a) employment of one or several persons if they do not have the necessary work permits or they are not entitled to reside in a European Union Member State;

b) employment of a person without entering into a written employment contract, failing to submit an informative declaration regarding employees in respect of such person within the deadline specified in the laws and regulations which is to be submitted regarding persons who commence work;

7) an opinion has been receive from a State security institution stating that entering into a concession contract with a candidate may cause threats to national security;

8) a candidate has provided false information to certify the conformity with the provisions of this Section or qualification requirements for candidates laid down in accordance with this Law, or has failed to provide the requested information;

9) the conditions referred to in Clause 1, 2, 3, 4, 5, 6, or 7 of this Paragraph are applicable to a member of a partnership, if the candidate is a partnership;

10) the conditions referred to in Clause 2, 3, 4, 5, or 6 of this Paragraph are applicable to the sub-contractor indicated by the candidate the value of the construction work to be performed or the services to be provided by which is at least 10 per cent of the total value of the concession contract;

11) the conditions referred to in Clause 1, 2, 3, 4, 5, 6, or 7 of this Paragraph are applicable to the person indicated by the candidate on the possibilities of which the candidate relies in order to certify that the qualification thereof complies with the requirements laid down in the concession notice or in the concession procedure documents.

(2) If it has been indicated in the concession notice or in the concession procedure documents, the Concession Procedure Commission is entitled to exclude a candidate from further participation in the concession procedure in the following cases:

1) the candidate (as a contracting party or a participant or member of the contracting party, if the contracting party has been an association of persons or partnership), a participant or member thereof (if the candidate is an association of persons or partnership) has failed to fulfil the procurement contract, framework agreement or concession contract entered into with this public partner, and therefore the public partner has exercised the right provided for in the procurement contract, provisions of the framework agreement or the concession contract to unilaterally withdraw from the procurement contract, framework agreement or concession contract;

2) the candidate has committed a serious violation of professional activity which casts doubt upon its honesty, or has failed to fulfil the procurement contract, framework agreement or concession contract entered into with the public partner, and this fact has been recognised by a decision of the competent authority or a court judgment which has entered into effect and has become incontestable and unappealable;

3) the conditions referred to in Clause 2 of this Paragraph are applicable to the member of a partnership, if the candidate is a partnership;

4) the conditions referred to in Clause 1 or 2 of this Paragraph are applicable to the sub-contractor indicated by the candidate the value of the construction work to be performed or the services to be provided by which is at least 10 per cent of the total value of the concession contract;

5) the conditions referred to in Clause 1 or 2 of this Paragraph are applicable to the person indicated by the candidate on the possibilities of which the candidate relies in order to certify that the qualification thereof complies with the requirements laid down in the concession notice or in the concession procedure documents.

(3) The Concession Procedure Commission shall not exclude a candidate from participation in the concession procedure, if:

1) three years have passed from the day when the court judgment, the punishment prescription of a prosecutor or a decision taken by another competent authority on the violations referred to in Paragraph one, Clause 1 and Clause 6, Sub-clause "a" of this Section became incontestable and unappealable until the day of the submission of the request to participate or tender;

2) 12 months have passed from the day when the court judgment or a decision taken by another competent authority on the violations referred to in Paragraph one, Clause 5, Clause 6, Sub-clause "b" and Paragraph two, Clause 2 of this Section became incontestable and unappealable until the day of the submission of the request to participate or tender.

(4) The Concession Procedure Commission shall not exclude a candidate from participation in the concession procedure if 12 months have passed from the day when the public partner has unilaterally withdrawn from the procurement contract, framework agreement on supply, services or construction work or concession contract referred to in Paragraph two, Clause 1 of this Section until the day of submitting the request to participate or tender. If it has been indicated in the concession notice or in the concession procedure documents, the Concession Procedure Commission is entitled, contrary to Paragraph two, Clause 1 of this Section, not to exclude the candidate from further participation in the concession procedure, providing for additional commitment performance security or such provisions for the fulfilment of the concession contract which make the non-compliance with essential provisions of the concession contract economically unprofitable for a candidate. When taking the decision to exclude the candidate from further participation in the concession procedure in accordance with Paragraph two, Clause 1 of this Section, the Concession Procedure Commission shall take into account how essential is the violation committed in fulfilment of the procurement contract, framework agreement or concession contract from which the public partner has withdrawn unilaterally, as well as the risk of non-fulfilment of the concession contract to be entered into.

(5) If the Concession Procedure Commission establishes that a candidate or the person referred to in Paragraph one, Clauses 9, 10, and 11 of this Section has tax debts, including debts of State social insurance mandatory payments which exceed EUR 150 in total, in the information system determined by the Cabinet according to the information posted on the date of the last data update of the public database of tax debtors of the State Revenue Service and Administration System of Real Estate Tax on the last day of the deadline for the submission of requests to participate or tenders or on the day when a decision is taken to possibly award the concession contract, the Concession Procedure Commission shall specify a time period - 10 days following the day of issuing or sending the information - for the submission of confirmation that on the last day of the deadline for the submission of requests to participate and tenders or on the day when the decision is taken to possibly award the concession contract the candidate did not have tax debts, including debts of State social insurance mandatory payments which exceed EUR 150 in total. If the confirmation has not been submitted within the specified deadline, the Concession Procedure Commission shall exclude the candidate from the participation in the concession procedure. If the Concession Procedure Commission establishes that a candidate or the person referred to in Paragraph one, Clauses 9, 10, and 11 of this Section does not have tax debts, including debts of State social insurance mandatory payments which exceed EUR 150 in total, in the information system determined by the Cabinet according to the information posted on the date of the last data update of the public database of tax debtors of the State Revenue Service and Administration System of Real Estate Tax on the last day of the deadline for the submission of requests to participate or tenders or on the day when a decision is taken to possibly award the concession contract, the Concession Procedure Commission shall not require a confirmation.

(6) In order for a candidate to confirm that it, as well as the person referred to in Paragraph one, Clauses 9, 10, and 11 of this Section did not have tax debts, including debts of the mandatory State social insurance payments which exceed EUR 150 in total in Latvia, it shall submit the following within the deadline referred to in Paragraph five of this Section:

1) a printout certified by the relevant person or a representative thereof from the electronic declaration system of the State Revenue Service or a statement of the State Revenue Service that this person did not have the relevant tax debts, including debts of State social insurance mandatory payments;

2) a statement issued by a local government that the relevant person did not have debts of real estate tax;

3) a copy of the decision issued by the State Revenue Service or the competent authority of a local government to extend or defer the deadline for payment of the tax or copies of agreements with the State Revenue Service on the payment of tax debt or any other objective evidence of non-existence of tax debts.

(7) The Concession Procedure Commission shall request that a candidate changes a sub-contractor the value of the construction work to be executed or the services to be provided by which is at least 10 per cent of the total value of the concession contract, if it conforms to the case of exclusion referred to in Paragraph one, Clause 2, 3, 4, 5, or 6 or Paragraph two, Clauses 1 and 2 of this Section, and a person on the possibilities of which the candidate relies in order to certify that the qualification thereof complies with the requirements specified in the concession notice or in the concession procedure documents, provided that it complies with the case of exclusion referred to in Paragraph one, Clause 1, 2, 3, 4, 5, 6, or 7 or Paragraph two, Clauses 1 and 2 of this Section. If a candidate fails, within 10 working days following the day of issue or sending of a request, to submit documents regarding a new sub-contractor or a person on the possibilities of which the candidate relies in order to certify that the qualification thereof conforms to the requirements specified in the concession notice or in the concession procedure documents, which complies with the requirements specified in the concession notice or concession procedure documents, the Concession Procedure Commission shall exclude a candidate from participation in the concession procedure.

(8) The Cabinet shall specify a list of the violations of professional activity for which exclusion from the concession procedure is provided for.

(9) In order to verify whether a candidate is to be excluded from participation in the concession procedure due to the criminal offences and infringements referred to in Paragraph one, Clauses 1, 5, and 6 and Paragraph two, Clause 2 of this Section regarding which the relevant person referred to in Paragraph one of this Section has been punished in Latvia, or a coercive measure has been applied thereto, as well as due to the facts referred to in Paragraph one, Clauses 2 and 3 of this Section, the Concession Procedure Commission, as well as the candidate shall, in accordance with the procedures specified by the Cabinet, acquire the following information on itself, using the information system in relation to a person registered or permanently residing in Latvia specified by the Cabinet:

1) regarding the infringements and criminal offences referred to in Paragraph one, Clauses 1, 5, and 6 and Paragraph two, Clause 2 of this Section - from the Information Centre (Punishment Register) of the Ministry of the Interior. The Concession Procedure Commission is entitled to receive the abovementioned information from the Information Centre (Punishment Register) of the Ministry of the Interior, without requesting a consent from the candidate and other persons referred to in Paragraphs one and two of this Section;

2) regarding the facts referred to in Paragraph one, Clause 2 of this Section - from the State Revenue Services and local governments of Latvia. The Concession Procedure Commission is entitled to receive the abovementioned information from the State Revenue Service and local governments of Latvia, without requesting a consent from the candidate and other persons referred to in Paragraph one of this Section;

3) regarding the person referred to in Paragraph one, Clause 1 of this Section (a person who is a member of the board or council of a candidate, a person having the right of representation or a procuration holder, or a person who is authorised to represent the candidate in activities related to a subsidiary), and the facts referred to in Paragraph one, Clause 3 of this Section - from the Register of Enterprises.

(10) In order to verify whether the provisions of exclusion referred to in Paragraph one and Paragraph two, Clause 2 of this Section are applicable to a member of the board or council of a candidate registered in Latvia, a person having the right of representation or a procuration holder, or a person who is authorised to represent the candidate in activities related to a subsidiary and who is registered or permanently residing abroad, or a candidate registered or permanently residing abroad, or the person referred to in Paragraph one, Clauses 9, 10, and 11 of this Section who is registered or permanently living abroad, the Concession Procedure Commission (except for the case referred to Paragraph eleven of this Section) shall request that the candidate submits a statement of the relevant competent authority which certifies that the cases referred to in Paragraph one and Paragraph two, Clause 2 of this Section do not apply to the member of the board or council of a candidate registered in Latvia, the person having the right of representation or the procuration holder, or the person who is authorised to represent the candidate in activities related to a subsidiary and who is registered or permanently residing abroad, or the candidate or the person referred to in Paragraph one, Clauses 9, 10, and 11 of this Section. If a person to which the cases referred to in Paragraph one of this Section are applicable, may not be a member of the board or council, a person having the right of representation or a procuration holder, or a person who is authorised to represent the candidate in activities related to a subsidiary in accordance with the national laws and regulations regarding registration of the candidate or the person referred to in Paragraph one, Clauses 9 and 11 of this Section, the candidate is entitled to provide a relevant explanation instead of the statement. The Concession Procedure Commission shall determine a deadline of not less than 10 working days for the submission of the explanation or statement following the day of issue or sending of the request. If the relevant candidate fails to submit the abovementioned explanation or statement within the specified deadline, the Concession Procedure Commission shall exclude this candidate from participation in the concession procedure. If the Concession Procedure Commission fails to ascertain from the explanation that the provisions of exclusion referred to in Paragraph one of this Section are not applicable to the relevant persons, it is entitled to request that statements of competent authorities are issued regarding the relevant persons.

(11) Paragraph ten of this Section shall not be applicable to the persons referred to in Paragraph one, Clauses 9, 10, and 11 of this Section which are registered or permanently residing in Latvia, and indicated in the request to participate or tender submitted by a candidate. In such case verification shall be carried out in accordance with Paragraph nine of this Section.

(12) If such documents by which a candidate registered or permanently residing abroad may certify that the cases specified in Paragraph one of this Section do not apply to it, are not issued or they are not sufficient to certify that the cases specified in Paragraph one of this Section do not apply to the candidate, the abovementioned documents may be replaced with an oath or, if the laws and regulations of the relevant country do not provide for giving of an oath, with a certification of the candidate, or another person referred to in Paragraph one of this Section to the competent executive authority or judicial authority, a sworn notary or a competent organisation in the relevant sector in the country of registration (permanent residence) thereof.

(13) The Cabinet shall determine:

1) the information system where the verification referred to in Paragraph eight of this Section is to be performed, as well as the procedures for maintaining and using such system;

2) the purpose and scope of processing the information to be verified and referred to in Paragraph nine, Clause 1 of this Section, as well as the laws and regulations and sections thereof which conform to the cases of exclusion of candidates specified in Paragraphs one and two of this Section and for the infringements and criminal offences provided wherein the verification referred to in Paragraph nine, Clause 1 of this Section is to be conducted;

3) the procedures by which the information system referred to in Clause 1 of this Paragraph receives and processes information from the information systems maintained by the institutions referred to in Paragraph ten of this Section.

(14) The Concession Procedure Commission shall carry out an examination of the cases of exclusion of the candidates referred to in Paragraphs one and two of this Section:

1) in a competition without selection of candidates - in relation to each candidate which should be awarded a concession contract in conformity with other requirements specified in the concession notice and in the concession procedure documents and the criteria chosen for tender evaluation;

2) in a competition with selection of candidates and a competitive dialogue - in relation to each candidate which complies with the requirements specified in the concession notice and in the concession procedure documents and should be invited to submit a tender. If reduction of the number of candidates is applied, examination shall be carried out prior to reduction of the number of candidates. The Concession Procedure Commission shall carry out examination regarding existence of the case of exclusion of candidates referred to in Paragraph one, Clause 2 or 10 of this Section in respect of each candidate which should be awarded a concession contract in conformity with the requirements specified in the concession notice and in the concession procedure documents and the criteria chosen for tender evaluation;

3) in a negotiated procedure and the case referred to in Section 17, Paragraph seven of this Law (if the concession documents provide for application of the conditions for the exclusion referred to in Paragraphs one and two of this Section) - in respect of each candidate which should be awarded a concession contract;

4) in a negotiated procedure in the case referred to in Section 17, Paragraph six, Clause 3 of this Law, if only all those candidates are invited to participate in negotiations which have not been excluded in the relevant concession procedure announced previously in accordance with the provisions of this Section and which comply with the specified qualification requirements, provided it is applied after termination of the competition without selection of candidates - in respect of each candidate which has submitted a tender and has been invited to the negotiated procedure. This examination shall be carried out before commencement of negotiations.

[20 April 2017]

Section 37.1 Assessment of Evidence Submitted for Ensuring of Reliability

(1) If a candidate or a member of a partnership (if the candidate is a partnership) complies with the case of exclusion referred to in Section 37, Paragraph one, Clause 1, 3, 4, 5, or 6 or Paragraph two, Clause 1or 2 of this Law, the candidate shall, together with a request to participate, submit an explanation and evidence of the compensation for the damage caused or an agreement entered into on compensation for the damage caused, cooperation with the investigating institutions and the technical or organisational measures or measures of the management of human resources taken in order to prove its reliability and prevent recurrence of the same or similar cases in the future.

(2) If a candidate or a member of a partnership (if the candidate is a partnership) complies with the case of exclusion referred to in Section 37, Paragraph one, Clause 1, 3, 4, 5, or 6 or Paragraph two, Clause 1or 2 of this Law, the candidate shall indicate it in a tender and, if it is recognised as such which should be awarded a concession contract, shall submit an explanation and evidence of the compensation for the damage caused or an agreement entered into on the compensation for the damage caused, cooperation with the investigating institutions and the technical or organisational measures or measures of the management of human resources taken in order to prove its reliability and prevent recurrence of the same or similar cases in the future.

(3) If a candidate fails to provide an explanation and evidence, the Concession Procedure Commission shall exclude the candidate from participation in the concession procedure as corresponding to the case of exclusion referred to in Section 37, Paragraph one, Clause 1, 3, 4, 5, or 6 or Paragraph two, Clause 1or 2 of this Law.

(4) The Concession Procedure Commission shall evaluate the measures taken by a candidate or a member of a partnership (if the candidate is a partnership) and evidence thereof, taking into account the severity of a criminal offence or violation and the specific circumstances. The Concession Procedure Commission may request opinions of institutions competent at the field of the relevant criminal offence or violation on the fact whether the measures taken by the applicant are sufficient to restore reliability and prevent the same and similar cases in the future. Opinions shall not be requested, if an opinion is available to the Concession Procedure Commission or the candidate has submitted an opinion of the institution competent at the field of the relevant criminal offence or violation on sufficiency of the measures taken by the specific applicant to restore reliability and prevent the same and similar cases in the future.

(5) If the Concession Procedure Commission considers the measures taken as sufficient to restore reliability and prevent the same and similar cases in the future, it shall take a decision not to exclude the relevant candidate from participation in the concession procedure. If the measures taken are insufficient, the Concession Procedure Commission shall take a decision to exclude the applicant from further participation in the concession procedure.

[20 April 2017]

Section 37.2 Conformity for the Performance of Professional Activities

(1) The Concession Procedure Commission may request evidence that the relevant candidate is registered, licensed or certified in accordance with the requirements of the laws and regulations of the country of registration or permanent residence.

(2) In the case of a service concession contract, insofar as the private partner must be authorised or a member of an organisation so that it could provide the specific service in the country of registration or permanent residence, the Concession Procedure Commission may request evidence of such authorisation or participation.

(3) In the case of a works concession contract, the Concession Procedure Commission shall request that an applicant would have obtained or obtains until entering into a concession contract the qualification class of a construction merchant corresponding to the execution of the relevant construction work and specified in laws and regulations. The Cabinet shall determine the requirements for the construction merchant regarding experience and class for the execution of public construction work in building groups.

(4) The Concession Procedure Commission shall determine the requirements regarding the minimum period since registration, licensing, authorisation of the private partner or his or her becoming of a member of a specific organisation.

[20 April 2017]

Section 37.3 Economic and Financial Situation

(1) The Concession Procedure Commission may specify the requirements for economic and financial abilities of a candidate necessary for the fulfilment of a concession contract. Such requirements may refer to the following:

1) the annual minimum financial turnover of the candidate, including in the subject matter of a specific concession contract;

2) the financial indicators of the candidate;

3) the professional risk insurance.

(2) If the subject matter of a concession contract is divided into lots, the annual minimum financial turnover of a candidate may be determined regarding groups of lots, if the concession contract is to be awarded in several lots to be implemented concurrently.

(3) A candidate may mainly certify the conformity of its economic and financial situation with the specified requirements by submitting the following documents:

1) certifications of a credit institution or, if necessary, evidence of the relevant professional risk insurance company;

2) a financial report or an extract from a financial report, if the financial report constitutes publicly available information in accordance with the laws and regulations of the country of registration of the applicant;

3) a certification regarding the total net turnover thereof or, if necessary, the turnover which relates to the field of a specific concession contract, but not more than regarding three previous reporting years, insofar as the information on such turnover is available, taking into account the time of establishment or commencement of activities of the candidate.

(4) When laying down the requirements regarding financial indicators of a candidate, the Concession Procedure Commission shall clearly indicate objective and non-discriminatory methods and criteria in the concession procedure documents which will be used for determination of financial indicators. In the case of a works concession contract, the Concession Procedure Commission shall determine that conformity with the economic and financial position is certified by the qualification classes of construction merchants specified in laws and regulations. The Concession Procedure Commission is entitled to impose only such additional requirements on a candidate which are not evaluated within the framework of classification of construction merchants.

(5) A candidate may rely on economic and financial possibilities of other persons, if it is necessary for the fulfilment of the relevant concession contract, regardless of the legal nature of mutual relations thereof. In such case the candidate shall prove that it will have the necessary resources at its disposal by submitting, for example, a certification of such persons or an agreement on cooperation for the fulfilment of the relevant concession contract. The Concession Procedure Commission may request that the candidate and the person on whose economic and financial possibilities the candidate relies shall be jointly liable for the fulfilment of the concession contract.

(6) The concession notice (if the relevant notice form provides for such information) or an invitation to submit a tender and concession procedure documents shall determine the documents which the candidate submits to certify its compliance with the specified requirements. A candidate which is not able to submit the required documents due to substantiated reasons, is entitled to certify its economic or financial situation by any other documents if the Concession Procedure Commission considers them as appropriate.

(7) The Concession Procedure Commission may specify the minimum level of conformity with the requirements referred to in this Section.

[20 April 2017]

Section 37.4 Technical and Professional Abilities

(1) The Concession Procedure Commission may specify the requirements for technical and professional abilities of a candidate necessary for the fulfilment of a concession contract. Such requirements may refer to the personnel involved in the fulfilment of the concession contract, and experience and technical resources of the candidate. In the case of a works concession contract, the Concession Procedure Commission shall determine that technical and professional abilities of the candidate are certified by the qualification classes of construction merchants specified in laws and regulations. The Concession Procedure Commission is entitled to impose only such additional requirements on the candidate which are not evaluated within the framework of classification of construction merchants.

(2) Technical and professional abilities of a candidate according to the nature, quantity, level of significance and use of construction work or service may be certified by the following:

1) the information on the executed construction work by attaching statements and references on the execution of the most important work in the course of not more than five preceding years, except when the Concession Procedure Commission has specified a longer deadline for the certification of experience for the purpose of promotion of competition;

2) the information on the most significant services provided in the course of not more than three preceding years, indicating amounts, time, and recipients (public or private persons). If it is necessary for the promotion of competition, the Concession Procedure Commission may specify a longer deadline for certification of experience;

3) the information on technical personnel or institutions which are responsible for the quality control, but if construction work are to be executed, on technical personnel or institutions which will be involved in the execution of construction work;

4) the description of technical equipment and resources which the candidate uses to ensure quality, as well as the description of training and research equipment of the candidate;

5) the information on the management and route control systems of the supply chain which the candidate will use for the fulfilment of the concession contract;

6) the inspection which is carried out by the public partner or a competent public institution of a service provider on behalf thereof, if the services to be provided are of complicated nature or services are intended for a specific purpose. The abovementioned inspection shall relate to the technical possibilities of the service provider and, if necessary, to the measures for ensuring the quality control which it will perform;

7) the documents certifying education or professional qualification of personnel of the performer of construction work or the service provider, if education or professional qualification of the personnel is not provided for as one of the criteria for tender evaluation;

8) the description of the measures which the candidate intends to take for conformity with the environmental protection requirements during fulfilment of the concession contract;

9) information on the average number of employees of the performer of work and the provider of services and the number of the managerial staff during the last three years;

10) the information on tools, installations, and technical equipment which are available to the performer of construction work and the service provider for the fulfilment of the concession contract;

11) the reference to the part of the concession contract which the candidate has intended to transfer to sub-contractors.

(3) A candidate may rely on technical and professional possibilities of other persons, if it is necessary for the fulfilment of the relevant concession contract regardless of the legal nature of mutual relations thereof. In such case the candidate shall prove that it will have the necessary resources at its disposal by submitting, for example, a certification of such persons or an agreement on transfer of the necessary resources to the candidate. In order for the candidate to certify its professional experience or availability of personnel corresponding to the requirements of the Concession Procedure Commission, it may only rely on possibilities of other persons, provided that such persons will execute construction work or provide services the execution of which requires the relevant abilities.

(4) The Concession Procedure Commission may request that especially important tasks are performed by the candidate itself or a member of an association of persons.

(5) The concession notice (if the relevant notice form provides for such information) or an invitation to submit a tender and concession procedure documents shall determine the documents which the candidate submits to certify its compliance with the specified requirements.

(6) The Concession Procedure Commission may specify the minimum level of conformity with the requirements referred to in this Section.

[20 April 2017]

Section 37.5 Quality Assurance Standards

(1) If the Concession Procedure Commission requires a certificate of an independent institution regarding compliance of a candidate with the specific quality assurance standards, including provision of access for persons with disability, it shall refer to the quality assurance systems which have been approved by institutions accredited in accordance with the procedures laid down in laws and regulations according to the European standards. The Concession Procedure Commission shall recognise a certificate issued by an institution accredited in accordance with the procedures laid down in laws and regulations of another European Union Member State. If it has been impossible for the candidate to obtain such certificates by the day submitting a request to participate or tender for reasons beyond control of the candidate, it shall submit other evidence that equal quality assurance measures have been taken, and prove that the offered quality assurance measures conform to the specified requirements.

(2) In the case of a works concession contract, the Concession Procedure Commission shall not specify any requirements regarding compliance of a candidate with specific quality assurance standards which have already been assessed when assigning a qualification class of a construction merchant.

(3) Paragraph one of this Section shall only be applicable if the estimated contract value of a concession contract is equal to or exceeds the threshold of contract value specified by the Cabinet.

[20 April 2017]

Section 37.6 Environmental Management Standards

(1) If the Concession Procedure Commission requests a certificate of an independent institution regarding compliance of a candidate with the environmental management standards or environmental management systems, it shall refer to the Eco-Management and Audit Scheme (EMAS) or other systems which have been recognised in accordance with Section 45 of Regulation (EC) No 1221/2009 of the European Parliament and of the Council of 25 November 2009 on the voluntary participation by organisations in a Community eco-management and audit scheme (EMAS), repealing Regulation (EC) No 761/2001 and Commission Decisions 2001/681/EC and 2006/193/EC, or other environmental management standards that conform to the European or international environmental management system standards and have been approved by institutions accredited in accordance with the procedures laid down in laws and regulations. The Concession Procedure Commission shall recognise a certificate issued by an institution accredited in accordance with the procedures laid down in laws and regulations of another European Union Member State. If it has been impossible for the candidate to obtain such certificates by the day of submitting a request to participate or tender for reasons beyond control of the candidate, it shall submit other evidence of equal measures which should be ensured according to the environmental management system or standard required by the Concession Procedure Commission.

(2) In the case of a works concession contract, the Concession Procedure Commission shall not specify any requirements for the compliance of a candidate with the specific environmental management standards or environmental management systems which have already been assessed when assigning a qualification class of a construction merchant.

(3) Paragraph one of this Section shall only be applicable if the estimated contract value of a concession contract is equal to or exceeds the threshold of contract value specified by the Cabinet.

[20 April 2017]

Section 38. Concession Notice, Notice on Changes or Additional Information

(1) If the public partner wishes to enter into a concession contract and the Concession Procedure Commission applies a competition without selection of candidates, a competition with selection of candidates, or a competitive dialogue, it shall publish the concession notice.

(2) If the public partner wishes to enter into a concession contract for the services referred to in Annex 2 to this Law, the Concession Procedure Commission shall publish an advance informative notice on social and other special services. The Concession Procedure Commission is entitled not to publish the abovementioned notice, if a negotiated procedure is applied in accordance with the cases referred to in Section 17, Paragraph six of this Law.

(3) If the Concession Procedure Commission makes the amendments referred to in Section 35 of this Law to the concession procedure documents, or extends the deadlines specified for the submission of requests to participate or tenders by candidates, it shall publish a notice on changes or additional information.

[20 April 2017]

Section 39. Time Periods for the Submission of the Candidates' Requests to Participate and Tenders

(1) When determining the deadlines for the submission of requests to participate or tenders, the Concession Procedure Commission shall take into account the level of complexity of the potential concession contract and the period necessary for the preparation of requests to participate or tenders, as well as the minimum deadlines for the submission of requests to participate and tenders specified in this Section.

(2) If a competition without selection of candidates or a negotiated procedure is applied to the concession procedure, the deadline for the submission of tenders shall be at least 30 days starting from the day when the concession notice is published on the website of the Procurement Monitoring Bureau or when an invitation to negotiations is sent to the selected candidates. If the estimated contract value is equal to or exceeds the threshold of contract value specified by the Cabinet, the deadline for the submission of tenders shall be at least 30 days starting from the day when the Procurement Monitoring Bureau has sent the concession notice to the Publication Office of the European Union for publication in the Official Journal of the European Union.

(3) If a competition with selection of candidates or a competitive dialogue is applied to the concession procedure, the deadline for the submission of requests to participate shall be at least 30 days starting from the day when the concession notice is published on the website of the Procurement Monitoring Bureau. If the estimated contract value is equal to or exceeds the threshold of contract value specified by the Cabinet, the deadline for the submission of requests to participate shall be at least 30 days starting from the day when the Procurement Monitoring Bureau has sent the concession notice to the Publication Office of the European Union for publication in the Official Journal of the European Union.

(4) If a competition with selection of candidates is applied to the concession procedure, the deadline for the submission of tenders by candidates shall be at least 22 days from the day when an invitation to submit tenders is sent to the candidates.

(5) If a competitive dialogue is applied to the concession procedure, the deadline for the submission of tenders by candidates shall be at least 22 days from the day when an invitation to submit tenders is sent to the candidates. The Concession Procedure Commission shall agree on the deadline for the submission of tenders with all the selected candidates which have participated in the negotiations but, if it is not possible to agree, the deadline shall be 22 days from the day when an invitation to submit tenders is sent to the candidates.

(6) If the public partner wishes to enter into a concession contract for the services referred to in Annex 2 to this Law, the deadline for the submission of requests to participate by candidates shall be at least 30 days starting from the day when an advance informative notice on social and other special services is published on the website of the Procurement Monitoring Bureau. If the estimated contract value is equal to or exceeds the threshold of contract value specified by the Cabinet, the deadline for the submission of tenders of candidates shall be at least 30 days starting from the day when the Procurement Monitoring Bureau has sent an advance informative notice on social and other special services to the Publication Office of the European Union for publication in the Official Journal of the European Union.

(7) The Concession Procedure Commission may reduce the deadline for the submission of tenders by candidates by five days, if it is provided for to submit tenders electronically in accordance with Section 19, Paragraph one of this Law.

(8) The Concession Procedure Commission shall specify a longer deadline for the submission of tenders than the minimum deadlines for the submission of requests to participate and tenders specified in this Section, if a request to participate or a tender may only be prepared after visiting the place of the fulfilment of the concession contract indicated by the Concession Procedure Commission, or after becoming acquainted with the additional documents which have been specified in the concession procedure documents, at the place indicated by the Concession Procedure Commission. The deadline for the submission of requests to participate and tenders shall be such that the candidates concerned would be able to become acquainted with all the information necessary for the preparation of a request to participate and a tender.

(9) The Concession Procedure Commission may make amendments to the concession procedure documents, provided that the amended provisions do not allow submission of different tenders or participation or selection of other candidates in the concession procedure. If amendments are made to the concession procedure documents, the deadline for the submission of requests to participate or tenders shall be extended according to the significance of information or changes, so that the candidates could become acquainted with all the information necessary for the preparation of a request to participate or a tender. The minimum deadline for the submission of requests to participate or tenders shall, after the day when the notice on changes or additional information is published on the website of the Procurement Monitoring Bureau, or when the Procurement Monitoring Bureau has sent the notice on changes or additional information to the Publication Office of the European Union for publication in the Official Journal of the European Union, if the estimated contract value is equal to or exceeds the threshold of contract value specified by the Cabinet, be at least half of the deadline specified initially for the submission of requests to participate or tenders.

(10) If the Concession Procedure Commission makes amendments to the invitation to submit tenders, the minimum deadline for the submission of tenders shall, after the day when the Concession Procedure Commission has informed all the candidates which have been invited to submit tenders, be at least half of the deadline specified initially for the submission of tenders.

(11) The Concession Procedure Commission is entitled to extend the specified deadlines for the submission of requests to participate and tenders by publishing a notice on changes or additional information. If the estimated contract value of a concession contract is equal to or exceeds the threshold of contract value specified by the Cabinet, the minimum time period by which the Concession Procedure Commission is entitled to extend the deadline for the submission of requests to participate or tenders shall be seven days. An extension of such deadline shall not be considered amendments to the procurement procedure documents within the meaning of Paragraph eight of this Section.

(12) If the Concession Procedure Commission uses an electronic information system for the submission of requests to participate or tenders, and a notice has been received from the system operator on disruptions in the operation of the electronic information system due to which it is impossible to submit requests to participate or tenders, the Concession Procedure Commission shall take a decision to extend the deadline for the submission of requests to participate or tenders and publish information in the profile of the purchaser regarding extension of the deadline for the submission of requests to participate or tenders, concurrently informing all the candidates which have registered as recipients of the concession procedure documentation, of the decision taken, prepare a notice on changes or additional information, and submit it to the publication management system or concurrently inform all invited candidates which have registered as recipients of the concession procedure documentation of the taken decision. If a notice has been received from the system operator on disruptions in the operation of the electronic information system due to which it is impossible to ensure security of requests to participate or tenders, the Concession Procedure Commission shall take a decision to terminate the concession procedure.

[20 April 2017]

Chapter VIII
Selection of Candidates

Section 40. Submission of Candidates' Requests to Participate

(1) If in accordance with the Regulations the tendering procedure with selection of candidates is organised, a candidate shall submit a written request on the readiness to participate in the candidate selection procedure to the Concession Procedure Commission within the time period specified in the notice on invitation to participate in this concession procedure, where it shall certify the conformity thereof with the candidate selection criteria specified in the Regulations.

(2) In the case referred to in Paragraph one of this Section a candidate shall meet the following requirements:

1) appropriate and sufficient professional qualification;

2) equipment and other devices requested for the performance of all activities planned within the scope of a concession contract are available or the candidate shall provide evidence that he or she will obtain the requested equipment and other devices following the entering into the concession contract;

3) appropriate financial resources are available for the performance of all activities planned within the scope of a concession contract (own resources or a written certification of a lender);

4) appropriate management and organisational experience;

5) other requirements that are laid down in the Regulations and important for the fulfilment of a particular concession contract.

Section 41. Opening of the Candidates' Requests to Participate

(1) The Concession Procedure Commission shall arrange opening of the requests to participate on the date and at the time and place specified in the Regulations. Opening of requests to participate shall be public.

(2) Requests of the candidates to participate shall be opened based on the order in which they were submitted. After opening of a request to participate, the Concession Procedure Commission shall name the candidate, the date and the time of submission of the tender and enter this information in the minutes of the Commission meeting.

Section 42. Selection of Candidates

(1) The Concession Procedure Commission shall select candidates in conformity with the qualification requirements specified in the concession procedure documents.

(2) The amount of requirements, as well as the requested minimum level of abilities for the fulfilment of the relevant concession contract shall be determined by the Concession Procedure Commission in proportion to the subject matter of the concession contract. Such requirements for the minimum level of conformity shall be included in the concession notice, as well as in the concession procedure documents.

(3) The Concession Procedure Commission shall accept and recognise statements and other documents which are issued by the competent authorities of Latvia in the cases referred to in this Law, if they are issued not earlier than a month prior to the day of issue, and the Concession Procedure Commission shall accept and recognise statements and other documents which are issued by foreign competent authorities if they are issued not earlier than six months prior to the day of submission thereof, provided that an issuer of a statement or a document has not specified a shorter period of validity thereof.

(4) If the Concession Procedure Commission obtains the necessary information on a candidate directly from the competent authority, databases or other sources, the relevant candidate is entitled to submit a statement or another document regarding the relevant fact, if the information obtained by the Concession Procedure Commission does not conform to the actual situation.

(5) If the Concession Procedure Commission has doubts regarding the authenticity of the submitted copy of the document, it shall request that a candidate presents the original document or submits a certified copy of the document.

(6) If the Concession Procedure Commission establishes that the information contained in a request to participate or document submitted by a candidate is unclear or incomplete, it shall request that the candidate or the competent authority explains or supplements the abovementioned information or document or submits the missing document by ensuring equal treatment of all candidates. The Concession Procedure Commission shall determine the deadline for the submission of the necessary information or document in proportion to the time which is necessary for preparation or submission of such information or document.

(7) If the Concession Procedure Commission has, in accordance with Paragraph six of this Section, requested to explain or supplement the information included in the request to participate or submitted by a candidate, but the candidate has failed to do it in conformity with the requirements specified by the Concession Procedure Commission, the Concession Procedure Commission shall evaluate the request to participate according to the information at the disposal thereof.

(8) If the concession procedure documents include a condition that the Concession Procedure Commission preserves the right to request tenders only from a limited number of candidates, the Commission shall prepare a list of the candidates who will be invited to submit tenders.

[20 April 2017]

Section 43. Informing Candidates of Selection Results

(1) Within three working days after the decision has been taken, the Concession Procedure Commission shall inform simultaneously all candidates of the decision taken on the results of the candidate selection (the rejected candidate shall be also informed of the reasons for the rejection of the request to participate submitted thereby) and invite the selected candidates to submit tenders. The Concession Procedure Commission shall inform all candidates of the deadline by which the person, taking into consideration Section 29, Paragraph two, Clause 1 or 2 of this Law, may submit a complaint on violations of the concession procedure to the Procurement Monitoring Bureau. Within the meaning of this Section it shall be considered that the information has been delivered to all candidates concurrently if the relevant information has been provided to them on the same day.

(2) The Concession Procedure Commission shall send the information on results of the selection of candidates by post, fax or electronically using a secure electronic signature, or attaching a scanned document to the electronic mail, or deliver in person. The Concession Procedure Commission shall keep a proof of the date and manner of sending or delivery of the information.

(3) When informing of the results of candidate selection, the Concession Procedure Commission is entitled to omit the information, the publication of which might delay the application of laws and regulations or would be contrary to the public interests, or would restrict competition among candidates, or damage substantial commercial interests of candidates (public or private).

[20 April 2017]

Chapter IX
Process of the Competitive Dialogue

Section 44. Submission of Requests to Participate and Selection of the Candidates to be Invited to the Negotiations

(1) In order to participate in the competitive dialogue procedure, a candidate shall submit a written request on the readiness to participate in the competitive dialogue procedure to the Concession Procedure Commission within the time period specified in the notice on invitation to participate in this concession procedure.

(2) The Concession Procedure Commission shall select candidates to be invited to negotiations within the time periods provided for in the Regulations.

(3) In order to invite a candidate to negotiations, the candidate shall meet the requirements laid down in Section 40, Paragraph two of this Law.

Section 45. Invitation of Candidates to the Negotiations

(1) The Concession Procedure Commission shall inform, according to the procedures laid down in Section 43 of this Law, all candidates who have submitted the requests to participate referred to in Section 44, Paragraph one of this Law of the results of the candidate selection specifying the candidates who are invited to the negotiations and other information referred to in Section 43, Paragraph one of this Law.

(2) The Regulations may specify that, if the number of candidates exceeds the number of candidates provided for in the Regulations, the Concession Procedure Commission shall invite only a certain number of candidates to the negotiations. In this case the number of candidates may not be less than three.

(3) In the case referred to in Paragraph two of this Section, the Concession Procedure Commission shall invite the number of candidates provided for in the Regulations to the negotiations.

(4) The invitation to negotiations shall indicate at least the date for the initiation of negotiations, and also time and place for their organisation, as well as the language to be used in the competitive dialogue.

[25 August 2010]

Section 46. Negotiations with the Candidates

(1) On the date, at the time and place determined in the invitation to negotiations the invited candidate shall submit the solution thereof to the needs and requirements of the public partner determined in the Regulations to the Concession Procedure Commission.

(2) The task of the negotiations is to develop one or more alternative solutions that meet the requirements of the Regulations, based on which the candidates invited to the negotiations will be invited to submit tenders.

(3) The Concession Procedure Commission shall conduct negotiations with each invited candidate individually.

(4) During the negotiations the Concession Procedure Commission is entitled to discuss all aspects related to a concession contract with the invited candidates.

(5) During the negotiations the Concession Procedure Commission shall ensure equal treatment to all candidates without creating more advantageous conditions to any of the candidates than to others.

(6) When conducting negotiations with candidates, the Concession Procedure Commission shall not disclose solutions tendered by other candidates, as well as any confidential information provided by a candidate participating in the negotiations, unless the relevant candidate has definitely agreed with that.

(7) If it is provided for in the Regulations, the Concession Procedure Commission is entitled to organise negotiations in several consecutive stages in order to reduce the number of solutions to be discussed during the negotiations.

(8) The Concession Procedure Commission shall continue negotiations with candidates until the moment when a solution or solutions are developed that meet the needs and requirements of the public partner specified in the Regulations.

Section 47. Closure of the Negotiations and Invitation to Submit Tenders

(1) If during the negotiations a solution that meets the public partner needs and requirements determined in the Regulations is developed, the Concession Procedure Commission shall inform each public partner representative thereof in writing by sending the developed solution thereto.

(2) If each representative of the public partner accepts in written form the solution elaborated during the negotiations, the Concession Procedure Commission shall send the solution and the draft concession contract to the Monitoring Authority in order to receive an opinion on the risk allocation between the public partner and the private partner.

(3) If the opinion of the Monitoring Authority indicates that the solution developed during the negotiations and the draft concession contract show that the risk allocation between the public partner and the private partner corresponds to the concession contract, the Concession Procedure Commission shall close the negotiations.

(4) If the opinion of the Monitoring Authority indicates that the solution elaborated during negotiations and the draft concession contract show that the risk allocation between the public partner and the private partner fails to conform to the concession contract, the Concession Procedure Commission shall inform the representative of the public partner thereof and continue negotiations with candidates, taking into account written instructions of the representative of the public partner, or take the decision to terminate the concession procedure.

(5) If the opinion of the Monitoring Authority indicates that the draft concession contract shows that the risk allocation between the public partner and the private partner does not correspond to the concession contract, the Concession Procedure Commission shall elaborate a new draft concession contract.

(6) In the cases referred to in Paragraphs four and five of this Section, the Concession Procedure Commission shall act in accordance with Paragraph one and two of this Section.

(7) The Concession Procedure Commission shall inform all candidates who participated in the negotiations of the closure of negotiations and invite these candidates to submit tenders within the time period laid down in accordance with Section 39, Paragraph five of this Law.

(8) At least the following information shall be included in the invitation to submit tenders:

1) the solution developed during the negotiations with candidates;

2) deadline for the submission of tenders, address to which the tenders are to be sent and the language the tender is to be submitted in;

3) tender validity period.

(9) The Concession Procedure Commission shall specify in the invitation that a tender shall include all the required elements that are included in the solution developed during the negotiations.

(10) The draft concession contract shall be attached to the invitation. The provisions of the draft concession contract that are immutable shall be specified in the invitation.

(11) If the Regulations provide that awards are assigned or payments made to the candidates for participation in the negotiations, the awards shall be assigned and the payments shall be made in accordance with the procedures provided for in the Regulations.

[20 April 2017]

Chapter X
Determination of the Winner of a Concession Procedure

Section 48. Submission of Candidates' Tenders

(1) If the tendering procedure without selection of candidates is organised, the candidate shall submit a tender within the deadline specified in the notice referred to in Section 38, Paragraph one of this Law which has been published on the website of the Procurement Monitoring Bureau.

(2) If the tendering procedure with selection of candidates is organised, the candidate who has received the invitation to submit a tender referred to in Section 43 of this Law shall submit a tender within the time period specified in the invitation.

(3) If the competitive dialogue is organised, the candidate who has received the invitation to submit a tender referred to in Section 47, Paragraph seven of this Law shall submit a tender within the time period specified in the invitation.

(4) The candidate shall specify the following in the tender:

1) the tendered technical solution in accordance with the safety, environmental protection and other conditions specified in the Regulations;

2) the tendered financial and commercial solution of the concession;

3) other information specified in the Regulations or invitation to submit a tender.

(5) If a tender is submitted by a candidate who has participated in the competitive dialogue, the tender shall also include all the required elements that are included in the solution developed during the negotiations.

(6) The Regulations may provide that candidates may submit variants of a tender.

(7) Candidates are entitled to request from the Concession Procedure Commission explanations of the Regulations and other information on the concession procedure if such a request is submitted no later than nine days before the expiry of the time period for the submission of tenders.

(8) The Concession Procedure Commission shall reply to the requests for information referred to in Paragraph seven of this Section within five working days.

[20 April 2017]

Section 48.1 Tender Security and Commitment Performance Security

(1) The Concession Procedure Commission is entitled to request that a candidate submits or lodges a tender security and commitment performance security. The Concession Procedure Commission shall specify in the concession procedure documents the types and amount of and the deadline for the tender security and commitment performance security, as well as the provisions for the submission and issue, payment and disbursement thereof.

(2) The amount of the tender security shall be specified commensurately, taking into account the estimated contract value of the relevant concession contract and the subject matter of the concession contract, but not more than two per cent of the estimated contract value.

(3) Deadline for the tender security shall be specified commensurately, taking into account the complexity of the relevant concession contract and the expected deadline for the evaluation of tenders, but it shall not exceed six months counting from the day of opening of tenders.

(4) A candidate is entitled to submit the tender security and commitment performance security as a bank guarantee, insurance policy or, if the Concession Procedure Commission has provided for such a possibility in the concession procedure documents, as a payment of an amount of money in the account specified by the representative of the public partner.

(5) The tender security shall be in effect for the shortest of the following time periods (except in the case referred to in Paragraph six of this Section):

1) the minimum period of validity of the tender security specified in the concession procedure documents;

2) if the concession procedure documents specify that a candidate to whom the concession contract has been awarded submits the commitment performance security after entering into the concession contract - until the day when the selected candidate submits such commitment performance security;

3) until entering into the concession contract.

(6) The provider of security shall disburse, or the representative of the public partner shall deduct the amount of the tender security paid in by the candidate, if:

1) the candidate withdraws his or her tender during the period of validity of the tender security;

2) the candidate which has been granted the concession contract, has failed to submit the commitment performance security which has been provided for in the concession procedure documents and concession contract, within the deadline specified by the Concession Procedure Commission;

3) the candidate to whom the concession contract has been awarded fails to sign the concession contract within the time period specified by the Concession Procedure Commission.

[20 April 2017]

Section 49. Opening of Candidates' Tenders

(1) After the expiry of the time period for the submission of tenders, the Concession Procedure Commission shall open the submitted tenders on the date, at the time and place specified in the Regulations (except in the case referred to in Section 29, Paragraph seven of this Law). Opening of tenders shall be public.

(11) If in the case referred to in Section 29, Paragraph seven of this Law the Complaint Review Commission takes the decision referred to in Section 30, Paragraph two, Clause 1 of this Law, or the administrative case is terminated, the Concession Procedure Commission shall publish information in the profile of the purchaser regarding the place and time of the tender opening meeting, as well as inform the candidates at least three working days in advance. If the Complaint Review Commission takes the decision referred to in Section 30, Paragraph two, Clause 3 or Paragraph three of this Law, the Concession Procedure Commission shall not open the submitted tenders and shall issue or send them back to the candidates.

(2) Tenders shall be opened according to the submission sequence thereof by naming the candidate, the tender submission time, the offered contract value and other information that describes the tender, and this information shall be entered in the minutes of the Commission meeting.

(3) Upon a request of a candidate, the Concession Procedure Commission shall present the financial tender where the offered contract value is determined in accordance with the requested form of a financial tender.

[20 April 2017]

Section 50. Evaluation of Tenders of Candidates

(1) If a tendering procedure without selection of candidates is applied to the concession procedure, the Concession Procedure Commission shall select candidates in conformity with the qualification requirements specified in the concession procedure documents, verify the conformity of tenders with the requirements specified in the concession procedure documents, and select a tender according to the criteria specified for tender evaluation.

(2) If a tendering procedure with selection of candidates is applied to the concession procedure, the Concession Procedure Commission shall verify the conformity of tenders with the requirements specified in the concession procedure documents, and select a tender according to the criteria specified for tender evaluation.

(3) If a competitive dialogue is applied to the concession procedure, the Concession Procedure Commission shall verify the conformity of a tender with the requirements specified in the solution elaborated during negotiations, and select a tender according to the criteria specified for tender evaluation.

(4) If the Concession Procedure Commission establishes that the information contained in a tender or document submitted by a candidate is unclear or incomplete, it shall request that the candidate explains or supplements the abovementioned information or document or submits the missing document by ensuring equal treatment of all candidates. However, such explanation, updating, harmonisation and provision of additional information may not change the main elements of the tender. The Concession Procedure Commission shall determine the deadline for the submission of the necessary information or document commensurately to the time which is necessary for the preparation or submission of such information or document.

(5) If the Concession Procedure Commission has, in accordance with Paragraph four of this Section, requested to explain or supplement the information contained in a tender or submitted by a candidate, but the candidate has failed to do it in conformity with the specified requirements, the Concession Procedure Commission shall evaluate the tender according to the information at the disposal thereof.

(6) During evaluation of tenders the Concession Procedure Commission shall verify whether a tender does not contain arithmetical errors. If the Concession Procedure Commission finds such errors, it shall correct these errors. The Concession Procedure Commission shall inform the candidate whose errors have been corrected of the correction of errors and the adjusted tender value. When evaluating a financial tender the Concession Procedure Commission shall take into account corrections.

(7) During evaluation of tenders, the Concession Procedure Commission is entitled to request that a candidate submits a certification that it has developed the tender independently.

(8) Each member of the Concession Procedure Commission shall evaluate a tender individually according to all the evaluation criteria specified in the concession procedure documents. The tender which upon aggregation of individual evaluations has achieved the highest score shall be recognised as the most economically advantageous tender.

(9) After the evaluation of the candidate tenders, the Concession Procedure Commission shall prepare a list of all candidates who have submitted tenders listing them according to the scores and enter it in the minutes of the Concession Procedure Commission meeting.

[20 April 2017]

Section 51. Criteria for the Evaluation of the Candidates' Tenders

(1) The Concession Procedure Commission shall award the concession contract to the most economically advantageous tender which is determined as follows:

1) based on the price or costs by applying the efficiency approach, for example, evaluating the costs of the handling cycle;

2) taking into account the price or costs and the quality criteria related to the subject matter of the concession contract, for example:

a) the quality, including technical advantages, aesthetic and functional characteristics, availability, conformity with universal design, social and environmental protection requirements, innovative characteristics and sale conditions;

b) the qualification and experience of the management structure of fulfilment of the concession contract and of the personnel involved, if the quality of fulfilment of the procurement contract may be significantly affected by the qualification and experience of the personnel involved;

c) the after-sale services and technical assistance, delivery conditions, such as delivery date, delivery process and delivery period or period of completion of delivery.

(2) The quality criteria are related to the subject matter of the concession contract, if they relate to any stage of the handling cycle of construction work or service, as well as the factors related to the process of performance of construction work or provision of services or any other process at the stage of the handling cycle, even if such factors are not directly related to the subject matter of the concession contract (for example, conformity with the environmental protection requirements or social criteria during provision of the service or execution of the construction work).

(3) The following conditions may be used for the criteria for evaluation of the non-financial and non-commercial aspects of a tender:

1) technical evaluation provided in the tender (the minimum tender for the implementation of the standard of technical design or delivery of service, or the improvement thereof specified in the concession procedure documents);

2) exploitation and management evaluation provided in the tender (the procedures, the method and conformity with the determined standards of exploitation and management of the planned structure);

3) quality of services and the manners for ensuring the continuity thereof;

4) other conditions important for the fulfilment of the particular concession contract.

(4) The following conditions may be used for the criteria for the evaluation of financial and commercial aspects of a tender:

1) any payments to be made by the public partner within the scope of a concession contract;

2) any payments to be made by the private partner within the scope of a concession contract;

3) the offered design and construction costs, annual exploitation and maintenance costs, as well as the offered financing procedures;

4) the amount of any financial support (if such is planned) that is expected from the public partner or any other State or local government institution;

5) justification of the financing offered in accordance with the submitted documentation and the conditions determined therefor;

6) other conditions that are important for the fulfilment of the particular concession contract.

(5) The Concession Procedure Commission shall determine such criteria for tender evaluation which do not restrict competition and are objectively comparable or assessable, and supplement them with the requirements which allow to efficiently verify the information submitted by candidates.

(6) The Concession Procedure Commission shall indicate in the concession procedure documents all the criteria for tender evaluation in order of importance thereof, criteria values, and, if applicable, range of values, as well as the selection algorithm of a tender according to such criteria, and describe application of each of the specified evaluation criteria.

(7) The Concession Procedure Commission shall indicate in the concession procedure documents the decisive criterion for tender evaluation according to which a tender will be selected, provided that prior to taking a decision to award the concession contract it establishes that score of at least two tenders is identical.

(8) If a tender is received that suggests an innovative solution with a special functional operational level which the Concession Procedure Commission could not foresee, the Concession Procedure Commission may, in exceptional cases, change the order of the criteria for tender evaluation in order to take account of the specific innovative solution. Amendments to the order of the importance of the criteria for tender evaluation may be made by ensuring equal treatment of all candidates.

(9) Subject matter of the concession, criteria and the minimum requirements for tender evaluation may not be changed during negotiations with candidates or negotiations on a draft concession contract.

(10) If the Concession Procedure Commission changes the order of the criteria for tender evaluation in the case referred to in Paragraph eight of this Section, the Concession Procedure Commission shall concurrently inform all candidates of the change in the order of the criteria for tender evaluation and send an invitation to submit a tender in conformity with the deadline for the submission of tenders specified in Section 39, Paragraphs four and five of this Law. If the criteria for tender evaluation are published at the moment when the concession notice is published, the Concession Procedure Commission shall publish a new concession notice.

[20 April 2017]

Section 51.1 Costs of the Handling Cycle

(1) Costs of the handling cycle shall fully or partly include the following costs of the handling cycle of construction work or service:

1) the costs incurred by the public partner or other users, such as:

a) the costs related to acquisition;

b) the costs of use (for example, consumption of electricity and other resources);

c) the maintenance costs;

d) the final costs of the handling cycle (for example, collection and regeneration costs);

2) the costs incurred in the handling cycle of construction work or service and related to the environmental impact (for example, costs of greenhouse gas and other pollutant emissions, costs of measures oriented towards mitigation and adaptation to climate change), if they may be expressed in monetary terms and verified.

(2) The Concession Procedure Commission shall indicate in the concession procedure the methodology for the calculation of the costs of handling cycle and the data necessary for making calculation which are to be submitted by candidates.

(3) The methodology for the calculation of the costs related to environmental impact shall conform to the following conditions:

1) it is based on objectively verifiable and non-discriminatory criteria;

2) it is available to all interested persons;

3) the data necessary for calculations are at the disposal of candidates, including at the disposal of the candidates registered in a country which is not a European Union Member State but is a contracting party to the Agreement on Government Procurement of the World Trade Organisation or other international agreements binding on the European Union, or they are easily available.

[20 April 2017]

Section 51.2 Abnormally Low Tender

(1) If a tender for a specific concession contract seems to be abnormally low, the Concession Procedure Commission shall request an explanation of the tendered price or costs.

(2) The explanation may relate in particular to:

1) the costs of the methods of construction work or of the services to be provided;

2) the technical solutions selected and especially favourable conditions for the execution of construction work or provision of services which are available to the candidate;

3) the characteristics and originality of the tendered construction work or services;

4) the conformity with the obligations specified in the laws and regulations governing the fields of environment, social and labour law and labour protection, and collective agreements;

5) the commitments to sub-contractors;

6) the aid for commercial activity received by the candidate.

(3) The Concession Procedure Commission shall, upon consultation with a candidate, evaluate the explanations provided by the candidate. The Concession Procedure Commission is entitled to request that the candidate submits printouts from the electronic declaration system of the State Revenue Service regarding average hourly rates in profession groups of the candidate and employees of sub-contractors specified in the tender thereof, if the State Revenue Service collects such data.

(4) The Concession Procedure Commission shall reject a tender as being abnormally low, if the explanations provided fail to justify the low level of price or costs tendered by the candidate, or the price or costs fail to include the costs related to the conformity with the obligations specified in laws and regulations governing the fields of environment, social and labour law and labour protection, and collective agreements.

(5) If the Concession Procedure Commission establishes that a tender is abnormally low because the candidate has received aid for commercial activity, the tender may be rejected after consultations with the candidate only on the basis of the fact that the candidate is not able to prove, within a reasonable time period specified by the Concession Procedure Commission, that the received aid for commercial activity is compatible with the internal market in accordance with Section 107 of the Treaty on the Functioning of the European Union. If the Concession Procedure Commission rejects the tender for this reason, it shall inform the European Commission and the Procurement Monitoring Bureau of the rejection of the tender and the reason for rejection thereof.

[20 April 2017]

Section 52. Negotiations on the Draft Concession Contract

(1) The Concession Procedure Commission shall invite the candidate who according to Section 50, Paragraph one, two or three of this Law has obtained the highest score from the Concession Procedure Commission (hereinafter - the winner of the tendering procedure) to the negotiations on the draft concession contract.

(2) Negotiation may be held only on those provisions of the draft concession contract which are not determined as immutable in the Regulations. The provisions of the draft concession contract according to which the evaluation of candidate tenders has been carried out and the winner of the tendering procedure has been determined may not be changed.

(3) If the Concession Procedure Commission reaches an agreement with the winner of the tendering procedure on the concession contract, it shall take the decision to enter into a concession contract with the winner of the tendering procedure.

(4) If the Concession Procedure Commission fails to reach an agreement with the winner of the tendering procedure on the concession contract and this candidate refuses to enter into a concession contract with the public partner, the Commission is entitled to invite the candidate who stands next in the list referred to in Section 50, Paragraph nine of this Law to the negotiations, if it is agreed with the representative of the public partner, or terminate the concession procedure without selecting any tender.

(5) If the Concession Procedure Commission agrees upon the concession contract with the candidate with the next highest score in accordance with the procedure referred to in Paragraph four of this Section, it shall take the decision to enter into the concession contract with this candidate.

[20 April 2017]

Chapter XI
Termination of the Concession Procedure

Section 53. Notice on the Results of the Concession Procedures and Procedures by which Candidates Shall Be Informed of the Results

(1) The Concession Procedure Commission shall submit the concession award notice for publication within 10 working days after entering into the concession contract or taking of the decision to terminate or suspend the concession procedure.

(2) If a concession contract is entered into for the services referred to in Annex 2 to this Law, the Concession Procedure Commission shall submit the concession award notice for social and other special services for publication within 10 working days after entering into the concession contract or taking of the decision to terminate or suspend the concession procedure. The public partner may combine notices on awarding of concession for social and other special services within one quarter, and submit them for publication not later than within 10 working days after the end of each quarter.

(3) The Concession Procedure Commission shall, within three working days after taking of the decision on results of the concession procedure, concurrently inform all candidates of the decision taken. The Concession Procedure Commission shall announce the name of the selected candidate by specifying:

1) the reasons for the rejection of the submitted tender to the rejected candidate;

2) the characterisation and relative advantages of the selected tender to the candidate which has submitted an appropriate tender;

3) the time period within which a candidate, taking into consideration Section 29, Paragraph two, Clause 1 or 2 of this Law, may submit a complaint on violations of the concession procedure to the Procurement Monitoring Bureau.

(4) When informing of the results of the concession procedure, the Concession Procedure Commission is entitled to omit such information the publication of which might delay the application of laws and regulations or would be contrary to the public interests, or would restrict competition among candidates, or damage substantial commercial interests of candidates (public or private).

(5) The Concession Procedure Commission shall send the information on results of the concession procedure by post, fax or electronically using a secure electronic signature, or attaching a scanned document to the electronic mail, or deliver in person. The Concession Procedure Commission shall keep proof of the date and manner of sending or delivery of the information.

(6) Within the meaning of this Section it shall be considered that the information is delivered to all candidates concurrently if the information is sent or delivered to them on the same day.

[20 April 2017]

Section 53.1 Notice on the Results of the Concession Procedure

(1) In the cases referred to in Section 3 of this Law or in the case of a negotiated procedure, the public partner or the representative of the public partner may submit a voluntary notice on the results of the concession procedure for publication.

(2) A voluntary notice on the results of the concession procedure shall be published in order for the interested persons to be able to appeal justification of the concession procedure which, due to an error, has been carried out without applying an appropriate procurement procedure or without publishing the concession notice, and in order to concurrently eliminate the consequences referred to in Section 31.3, Paragraph one of this Law.

[20 April 2017]

Section 54. Entering into the Concession Contract

(1) The public partner or the representative of the public partner shall enter into a concession contract with a private partner no sooner than on the next working day after the end of the waiting period if a complaint on violations of the concession procedure has not been submitted to the Procurement Monitoring Bureau according to the procedures laid down in Section 29 of this Law.

(2) The waiting period referred to in Paragraph one of this Section is:

1) 10 days after the day when the information referred to in Section 53, Paragraph three of this Law has been sent to all candidates electronically by using a secure electronic signature or attaching a scanned document to the electronic mail, or by fax or delivered in person, and one additional working day;

2) 15 days after the day when the information referred to in Section 53, Paragraph three of this Law has been sent to at least one candidate by post, and one additional working day.

(3) A concession contract may be entered into without conforming to Paragraph one of this Section if:

1) the only candidate has been awarded with the concession contract, and there are no other candidates which would be entitled to submit a complaint in accordance with the procedures laid down in Section 29 of this Law;

2) the negotiated procedure is applied.

[20 April 2017]

Section 55. Final Report of the Concession Procedure Commission

(1) The Concession Procedure Commission shall prepare the final report not later than on the day when a notice on the results of the concession procedure is sent to candidates.

(2) The final report of the Concession Procedure Commission is a report of the Commission reflecting the course of the concession procedure and including all the most significant events and stages of the concession procedure.

(3) The final report of the Concession Procedure Commission shall include the following information:

1) the name and address of the public partner, the identification number of the concession procedure, the type of the concession procedure, as well as the subject matter of the concession contract, short description thereof, and contract value;

2) the date when the concession notice is published on the website of the Procurement Monitoring Bureau and, if applicable, in the Official Journal of the European Union;

3) the composition of the Concession Procedure Commission and justification for the establishment thereof, originators of the concession procedure documents, and invited experts;

4) the deadline for the submission of tenders and validity period of tenders;

5) the place, date, and time of the opening of tenders, the given name, surname, and position of the persons present at the opening of tenders;

6) the names of the candidates which have submitted tenders by specifying name of each candidate, time of the submission of tender, tendered contract value, and other information characterising the tender;

7) the name of the candidate with whom it has been decided to enter into a concession contract, contract value, as well as a summary of the evaluation of tenders, and justification for the selected tender;

8) the information (if it is known) regarding the part of the concession contract which the selected candidate has intended to transfer to sub-contractors, as well as the names of sub-contractors;

9) the justification for the decision on the rejected candidates, as well as on the tenders not conforming to the concession procedure documents;

10) the justification for rejection of a tender, if the Concession Procedure Commission has recognised a tender as being of unjustifiably low cost;

11) the justification for a decision, if the Concession Procedure Commission has taken a decision to terminate the concession procedure without selecting any tender, or suspend the concession procedure;

12) the justification for a decision, if the Concession Procedure Commission has taken a decision to enter into a concession contract with another candidate who has the next highest evaluated tender;

13) the information on notification of results to candidates;

14) the requests received to explain the concession procedure or the Regulations, answers provided, as well as indications on whether all candidates have been informed of questions and answers in the same scope;

15) the identified conflicts of interest and measures taken with regard to them;

16) the reasons (if applicable) for which means of communication other than electronic ones have been used for the submission of tenders.

(4) In the case of a tendering procedure with selection of candidates, the following information shall be included in the final report of the Concession Procedure Commission in addition to the information referred to in Paragraph three of this Section:

1) the deadline for the submission of requests to participate;

2) the place, date, and time of the opening of requests to participate, the given name, surname, and position of the persons present at the opening of requests to participate;

3) the names of the candidates which have submitted requests to participate by specifying name of each candidate, time of the submission of request to participate, and other information characterising the request to participate;

4) in the case of the reduction of the number of candidates, the names of the selected candidates and the reasons for selection thereof, the names of the rejected candidates and the reasons for rejection thereof.

(5) In the case of a competitive dialogue, the following information shall be included in the final report of the Concession Procedure Commission in addition to the information referred to in Paragraphs three and four of this Section:

1) needs and requirements of a public partner determined in the Regulations on which negotiations have been carried out with candidates;

2) when and where the negotiations have been commenced, as well as the language that has been used in the negotiations;

3) information on how the candidates were invited to the negotiations;

4) stages of negotiations if the negotiations with candidates were held in stages, and results thereof;

5) in the case of reducing the number of solutions, the names of the selected candidates and the reasons for their selection, names of the rejected candidates and the reasons for their rejection;

6) amount of the awards or payments to the participants of the negotiations for the participation in the negotiations, manner and terms for assigning the awards or manner and terms for making the payments (if it was planned that there would be awards or payments for participation in the negotiations).

(6) The Concession Procedure Commission shall prepare the final report of the Concession Procedure Commission and publish it in the profile of the purchaser within five working days after taking of a decision on the results of the concession procedure.

[20 April 2017]

Chapter XII
Special Conditions for the Work Concession Procedure

[20 April 2017]

Section 56. General Conditions for the Award of a Works Concession Contract

[20 April 2017]

Section 57. Publication of the Notice

[20 April 2017]

Section 58. Time Periods for the Submission of Tenders

[20 April 2017]

Section 59. Specific Conditions for Entering into a Contract on the Execution of Construction Work with Third Parties

[20 April 2017]

Division C
Public-Private Partnership Contracts, Special Purpose Entities, Information Exchange Agreement, Activities with Public Partner Resources and Lender's Intervention Right

Chapter XIII
|Entering into, Amendment, Early Termination and Registration of a Public-Private Partnership Contract

Section 60. Time periods of a Public-Private Partnership Contract

(1) A partnership procurement contract is a civil contract that may be entered into for a period of time that exceeds 5 years but does not exceed 30 years, except for the case determined in Paragraph three of this Section.

(2) A concession contract is a civil contract that may be entered into for a period of time up to 30 years, except for the case determined in Paragraph three of this Section.

(21) When specifying the duration of a concession contract for a time period longer than five years, the construction work or services provided for in the concession contract and the time which would be necessary for the private partner to recover the investments made within the scope of a concession contract shall be taken into account.

(3) A public-private partnership contract may be entered into for a time period that exceeds 30 years if it is necessary for the purpose of the contract and the results to be achieved that are justified by financial and economic calculations.

(4) The duration of a concession contract shall be included in the concession procedure documents, except when it is used as one of the criteria for tender evaluation.

(5) The public partner may specify shorter duration of a concession contract than that provided for in Paragraph 2.1 of this Section, if the compensation related thereto for the private partner does not exclude operational risks of a structure or service.

[20 April 2017]

Section 61. Contracting Parties of the Public-Private Partnership Contract

(1) A public-private partnership contract shall be entered into by each public partner and the candidate to whom the relevant contract is awarded as a result of the public-private partnership procedure.

(2) Each representative of the public partner shall sign the contract on behalf of the public partner.

(3) The representative of the public partner shall send the entered into public-private partnership contract to the Monitoring Authority.

Section 62. Information to be Included in the Public-Private Partnership Contract

The following information shall be included in a public-private partnership contract:

1) subject of the contract including the amount, content, quality and type of construction work or services;

2) financial conditions of the contract;

3) set of the rights which each public partner transfers to the private partner;

4) the public partner resources which each public partner transfers to the private partner and the procedures for transferring such resources;

5) property rights of the contracting parties to the tangible property newly created during the validity period of the contract, as well as intangible assets related thereto - licences, permits and other documentation.

6) validity period of the contract;

7) time periods for the execution of construction work or provision of services and the conditions for the revision thereof;

8) the procedures by which the public partner resources and the property newly created during the fulfilment of the contract that is necessary for further provision of services or management of property will be transferred to the public partner in case of early termination of the contract or upon expiry of the contract;

9) restrictions or conditions for changes in the equity capital of the private partner or to the decisive influence of the private partner in the commercial company, or to any changes in the commercial companies over which the private partner has a decisive influence;

10) risks which each public partner transfers to the private partner;

11) payments the contracting parties make to each other during the validity period of the contract and the conditions for the revision thereof (if such are provided for);

12) the right (if necessary) for the private partner to collect payments from end-users for any services, the amount of the payment of the service recipient for the relevant service during the validity period of the contract and the conditions for the revision thereof;

13) obligations of the private partner (if necessary) to provide third parties with an uninterrupted access to the object used or service provided during the validity period of the contract;

14) the right of the contracting parties to transfer their rights and obligations within the scope of the contract to third parties and conditions that restrict such a right;

15) a condition regarding the fact whether the private partner is obliged to acquire an insurance for the risks related to the fulfilment of the contract and if such is required - the risks and the amount thereof to be insured;

16) obligations of the private partner as regards environmental protection and cultural heritage protection (if necessary);

17) obligations of the contracting parties as regards ensuring, transfer or purchase of immovable property, equipment and other property requested for the fulfilment of the contract and other conditions referring to these obligations (if such are provided for);

18) the procedures by which each public partner will verify the fulfilment of the contract;

19) force majeure circumstances and actions of the contracting parties if such have occurred;

20) cases of early termination of the contract in accordance with Section 65 of this Law, procedures for early termination of the contract in accordance with Section 66 of this Law, procedure for the determination of the amount of compensations for the contracting parties and the payment thereof in these cases in accordance with Section 67 of this Law;

21) cases when a contracting party may unilaterally demand early termination of the contract in accordance with Section 65, Paragraph one, Clause 1 and Paragraph two, Clause 1 of this Law;

22) intervals for amending the provisions of the contract, the permissible limits and the procedures;

23) linking the contract with other previously entered into contracts (or obligations towards third parties if such exist), the obligations to be taken over from such contracts;

24) conditions, upon occurrence of which the public partner or the lender may take over fulfilment of any obligations of the private partner in order to ensure efficient and uninterrupted execution of construction work or provision of services provided for in the contract;

25) a certification on the right of the representative of the public partner to receive information from the lender on private partner financing conditions and on the fact that the private partner conforms to the financing conditions;

26) procedures by which the contract shall be continued if the legal person as a public partner terminates the activity (if the legal person is a public partner) in accordance with Section 65, Paragraphs five and six of this Law;

27) dispute settlement procedures;

28) other provisions ensuing from the Public Procurement Law or this Law or that are considered by the contracting parties as necessary and that are not in contradiction to laws and regulations.

Section 63. Amending the Public-Private Partnership Contract

(1) Amendments to a concession contract shall be admissible, provided that they do not change the general nature of the concession contract (the type and the objective specified in the concession procedure documents) and conform to one of the following cases:

1) amendments are non-substantial;

2) amendments are substantial, and they are only made in the cases referred to in Paragraph three of this Section;

3) amendments are made in the case referred to in Paragraph five of this Section, irrespective of whether they are substantial or non-substantial.

(2) Amendments to a concession contract shall be substantial in any of the following cases:

1) if the amended provisions of the concession contract had been provided for in the concession procedure documents, they would have allowed submission of different tenders, or participation or selection of other candidates in the concession procedure;

2) economic balance (for example, risk allocation and related compensatory means) provided for in a concession contract is changed in the interests of the candidate selected in the concession procedure;

3) amendments significantly expand the scope of concession;

4) the candidate selected in the concession procedure (a contracting party) is replaced by another candidate in the cases not referred to in Paragraph three, Clause 4 of this Section.

(3) Substantial amendments to a concession contract shall be admissible in the following cases:

1) the concession procedure documents and the concession contract clearly and unequivocally provide for a possibility of amendments, conditions when amendments are admissible, the scope and nature of amendments. Such provisions shall not provide for changes or possibilities which would change the general nature of the concession contract;

2) the public partner requires additional construction work or services which were not included in the initial concession contract, and change of the private partner would cause a significant increase in costs, and such change may not be made for economic and technical reasons, such as requirements for substitutability or compatibility with the equipment, services or installations purchased under the initial concession contract, or the change of the private partner would cause significant difficulties;

3) changes in the concession contract are necessary for reasons which the public partner could not foresee before, and they do not change the general nature of the concession contract;

4) the candidate selected in the concession procedure (a party to the concession contract) is replaced by another candidate in accordance with the provisions of the laws and regulations in the field of commercial law regarding reorganisation of merchants and transition of a company, this candidate complies with the qualification requirements specified in the concession notice or in the concession procedure documents, and the provisions of exclusion laid down in Section 37, Paragraph one of this Law, as well as the provisions of exclusion referred to in Section 37, Paragraph two of this Law which the public partner has initially specified in the concession notice or in the concession procedure documents are not applicable thereto.

(4) Each increase in the contract value of the concession contract which has not been entered into to ensure the activities referred to in Section 3, 4, 5, 6, or 7 of the Law on the Procurement of Public Service Providers, in the case of the amendments referred to in Paragraph three, Clauses 1, 2, and 3 of this Section may not exceed 50 per cent of the initial contract value of the concession contract.

(5) Amendments to a concession contract shall be admissible, if the value of such amendments which is determined as the total monetary value of all amendments made consecutively (without taking into account of value the amendments which are made in accordance with Paragraph three, Clauses 1, 2, and 3 of this Section) concurrently fails to reach the following:

1) the threshold of contract value specified by the Cabinet starting from which the concession notice should be published in the Official Journal of the European Union;

2) 10 per cent of the initial contract value of the concession contract.

(6) If a concession contract provides for indexation of a contract value, the initial contract value of the concession contract referred to in Paragraphs four and five of this Section shall be a contract value subject to indexation. If the concession contract does not provide for indexation of a contract value, the contract value shall, upon making of amendments, be specified, taking into account the average inflation level in a Member State of the public partner.

(7) If the public partner has made the amendments referred to in Paragraph three, Clauses 2 and 3 of this Section in the concession contract, the contract value of which is equal to or exceeds the threshold of contract value specified by the Cabinet, the representative of the public partner shall, within 10 working days after entering into effect of the amendments, publish a notice on changes in the concession contract during the period of validity thereof.

(8) The concession procedures specified in this Law shall be applicable to the amendments to a concession contract which fail to conform to Paragraph one of this Section.

(9) In order to sign the amendments to a public-private partnership contract, the public partner shall receive an opinion of the Monitoring Authority and, if the amendments to the contract change the accounting rules of the public-private partnership assets specified in the contract, also an opinion of the Ministry of Finance on the impact of the amendments on the amount of the long-term liabilities of the State budget, the balance of the general government sector, and the debt. If it is determined in the opinion of the Ministry of Finance that the amendments to the public-private partnership contract will have a negative impact on the amount of the long-term liabilities of the State budget, the balance of the general government sector, and the debt, the Cabinet shall take a decision on amendments to the contract.

(10) The representative of the public partner shall send the amendments to the public-private partnership contract signed by the contracting parties to the Monitoring Authority.

[20 April 2017]

Section 63.1 Change of the Personnel and Sub-contractors Involved in the Fulfilment of a Concession Contract and Involvement of New Personnel and Sub-contractors

(1) A candidate selected in the concession procedure (a party to the concession contract) is not entitled to change the personnel and sub-contractors specified in a tender and involve additional sub-contractors in fulfilment of the concession contract without coordination with the public partner. The public partner may request the opinion of the personnel and sub-contractors on the reasons for this change. The public partner may provide in the concession contract that the candidate selected in the concession procedure (a party to the concession contract) shall coordinate involvement of additional personnel in the fulfilment of the concession contract with the public partner.

(2) The change of the personnel specified in a tender shall only be admissible according to the procedures and in the cases specified in the concession contract. The public partner shall not agree with the change of the personnel specified in the tender in the cases provided for in the concession contract and in the cases when the tendered personnel fails to comply with the requirements specified for the personnel in the concession procedure documents, or they do not have at least the same qualification and experience as the personnel which was evaluated when determining the economically most advantageous tender.

(3) The public partner shall not agree with the change of the sub-contractors specified in a tender, if any of the following conditions applies:

1) the tendered sub-contractor does not meet the requirements specified for sub-contractors in the concession procedure documents;

2) the sub-contractor on the possibilities of which the candidate selected in the concession procedure has relied on in order to certify the conformity of its qualification to the requirements specified in the concession notice and in the concession procedure documents is replaced, and the tendered sub-contractor does not have at least the same qualification on which the candidate selected in the concession procedure has referred to by certifying its compliance with the requirements specified in the concession procedure, or it complies with the cases of exclusion of candidates referred to in Section 37, Paragraph one or two of this Law (as indicated by the public partner in the concession notice or in the concession procedure documents);

3) the tendered sub-contractor, the value of the construction work to be performed or the services to be provided by which is at least 10 per cent of the total value of the concession contract, conforms to the cases of exclusion of candidates referred to in Section 37, Paragraph one or two of this Law (as indicated by the public partner in the concession notice or in the concession procedure documents);

4) as a result of the change of a sub-contractor, such amendments would be made to the tender of a candidate which, if they had been initially included therein, would have affected the selection of tender according to the criteria for tender evaluation specified in the concession procedure documents.

(4) The public partner shall not agree with the involvement of a new sub-contractor, provided that such changes, if made in the initial tender, would affect selection of tender according to the criteria for tender evaluation specified in the concession procedure documents.

(5) When examining conformity of the new sub-contractor, the public partner shall apply the provisions of Section 37 of this Law. The time periods referred to in Section 37, Paragraph three of this Law shall be counted from the day when a request for the change of a sub-contractor is submitted to the public partner.

(6) The public partner shall, within as short period of time as possible, but not later than within five working days after it has received all the information and documents necessary for taking the decision in accordance with the provisions of this Section, take the decision to permit or refuse change of the personnel or sub-contractors of the candidate selected in the concession procedure (a party to the concession contract) or involvement of new sub-contractors in the fulfilment of the concession contract.

[20 April 2017]

Section 64. Opinion of the Monitoring Authority on Amendments to a Public-private Partnership Contract

(1) After the parties to a public-private partnership contract have coordinated amendments to the public-private partnership contract, the coordinated draft amendments to the public-private partnership contract shall be sent to the Monitoring Authority in order to receive an opinion on whether the risk allocation between the public partner and the private partner conforms to the initial contract and is not changed in the interests of the private partner.

(2) If the opinion of the Monitoring Authority indicates that the information included in the coordinated draft amendments to the public-private partnership contract shows that the risk allocation between the public partner and the private partner is not changed, each representative of the public partner shall sign an agreement on the relevant amendments to the concession contract.

(3) If the opinion of the Monitoring Authority indicates that the information included in the coordinated draft amendments to the public-private partnership contract shows that the risk allocation between the public partner and the private partner is changed in the interests of the private partner, the representative of the public partner shall inform the private partner thereof, and the contracting parties shall re-coordinate amendments to the public-private partnership contract.

(4) The representative of the public partner shall send the new coordinated draft amendments to the public-private partnership contract to the Monitoring Authority in order to receive the opinion referred to in Paragraph one of this Section.

(5) If the contracting parties fail to agree on amendments to the public-private partnership contract where the risk allocation between the public partner and the private partner would correspond to the initial contract and the interests of the private partner would not be changed, the public-private partnership contract shall not be amended or shall be terminated prior to expiry thereof in accordance with Section 65, Paragraph three of this Law.

[20 April 2017]

Section 65. Early Termination of the Public-Private Partnership Contract

(1) The public partner has the right to unilaterally terminate a public-private partnership contract before its expiry by sending a written notice to the private partner in the following cases:

1) in the cases provided for in the contract;

2) when it is necessary for the purpose of the State security, environmental protection or public health and security;

3) if the public partner has submitted the application to a Commercial Register Office for the termination of its activity;

4) if a decision has been taken on the initiation of insolvency proceedings of a private partner in accordance with the procedures laid down in the Insolvency Law;

5) if substantial amendments are made to the public-private partnership contract which are not admissible in accordance with Section 63, Paragraph one of this Law;

6) if the public-private partnership contract is not entered into in accordance with the provisions provided for in the public-private partnership procedure documents or substantial provisions of the draft public-private partnership contract included in the public-private partnership procedure documents are changed;

7) if at the moment of awarding the public-private partnership contract the private partner had met any of the cases of exclusion referred to in Section 37, Paragraph one of this Law and was to be excluded from the procurement procedure;

8) if the private partner was not supposed to be awarded with the public-private partnership contract due to a serious violation of the obligations provided for in the Treaty on European Union, Treaty on the Functioning of the European Union, and this Law which has been established by the Court of Justice of the European Union in accordance with the procedure laid down in Article 258 of the Treaty on the Functioning of the European Union.

(2) The private partner has the right to unilaterally terminate a public-private partnership contract before its expiry by sending a written notice to the public partner in the following cases:

1) in cases of violations of the contract provided for in the contract;

2) if all legal persons as public partners have submitted applications to a Commercial Register Office for the termination of their activity;

3) if the decision on the initiation of insolvency proceedings against all legal persons as a public partner has been taken in accordance with the procedures laid down in the Insolvency Law.

(3) The contracting parties may also terminate a public-private partnership contract before its expiry upon an agreement of the contracting parties.

(4) A public-private partnership contract may be also terminated in cases of force majeure circumstances in accordance with the Civil Law. Within the meaning of this Law, the force majeure shall not be considered laws and regulations adopted during the validity of the public-private partnership contract, actions of the public administration institutions and the documents adopted thereby.

(5) A legal person as a public partner may take a decision to terminate its activity (Section 65, Paragraph two, Clause 2) during the validity of the public-private partnership contract only when the founder or shareholder of this legal person:

1) has created a new legal person or transferred the obligation to fulfil the public partner commitments ensuing from the entered into public-private partnership contract to another legal person where he or she is the only founder or shareholder;

2) continues himself or herself to fulfil the public partner obligations ensuing from the entered into public-private partnership contract.

(6) If in accordance with the procedures laid down in the Insolvency Law, the decision on the invitation of insolvency proceedings regarding the legal person as a public partner (Section 65, Paragraph two, Clause 3) has been taken, the founder or shareholder of this legal person shall:

1) create a new legal person or transfer the obligation to fulfil the public partner commitments ensuing from the entered into public-private partnership contract to another legal person where he or she is the only founder or shareholder;

2) continues himself or herself to fulfil the public partner obligations ensuing from the entered into public-private partnership contract.

[20 April 2017]

Section 66. Procedures for the Early Termination of the Contract

(1) If in the case referred to in Section 65, Paragraph one, Clause 1 or Paragraph two, Clause 1 of this Law any of the cases specified in the public-private partnership contract has occurred due to which the public partner or the private partner may unilaterally terminate the contract and other contracting party may prevent it, the relevant public partner or private partner shall warn in written form the other contracting party that, if it does not prevent the violation of the contract within the time period laid down in the warning, respectively the public partner or the private partner will exercise the right to terminate the contract early provided for in Section 65, Paragraph one, Clause 1 or Paragraph two, Clause 1 of this Law. The time period for the prevention of the violation determined in the warning shall be such that the particular violation could be prevented within this time period.

(2) If in the case referred to in Paragraph one of this Section the relevant contracting party is not able to prevent the cause for the termination of the contract specified in the public-private partnership contract at all or does not prevent the violation of the contract within the time period indicated in the warning, the other contracting party shall inform it in writing of the early termination of the public-private partnership contract.

(3) The decision on the early termination of the contract, if it is necessary for the purpose of the State security, environmental protection or public health and security, shall be taken by each public partner institution that has taken the decision on the initiation of the procedure for the receipt of the contracting right to a public-private partnership contract in the cases referred to in Section 16, Paragraphs one and two of this Law.

(4) If the institution referred to in Paragraph three of this Section has taken the decision on unilateral early termination of a public-private partnership contract, the representative of the public partner shall inform the private partner in writing that the public partner exercises the right provided for in Section 65, Paragraph one, Clause 2 of this Law to unilaterally terminate the contract before its expiry.

(5) Before the private partner or the public partner has taken the decision to terminate its activity, it shall inform the other contracting party of this decision in a timely manner, and also immediately after the submission of the application to a Commercial Register Office on the termination of its activity and the Commercial Register Office has taken the decision to terminate its activity.

(6) The contracting party that has received the decision referred to in Paragraph five of this Section shall send to the other contracting party a notice on unilateral early termination of the public-private partnership contract in accordance with the rights provided for in Section 65, Paragraph one, Clause 3 and Paragraph two, Clause 2 of this Law.

(7) Before the private partner or the public partner takes the decision to submit the application for insolvency proceedings, it shall inform the other contracting party thereof in a timely manner, and also immediately after the submission of the application to the court and after the court has taken the decision to declare its insolvency proceedings.

(8) The contracting party that received the court decision on insolvency of the other contracting party referred to in Paragraph seven of this Section shall send a notice on unilateral early termination of the public-private partnership contract to the other party in accordance with the rights provided for in Section 65, Paragraph one, Clause 4 or Paragraph two, Clause 3 of this Law.

(9) A public-private partnership contract may be terminated early upon agreement of the contracting parties only if the decision on it is taken by each public partner institution that in the cases referred to in Section 16, Paragraphs one and two of this Law has taken the decision on the initiation of the procedure for the receipt of the contracting rights for a public-private partnership contract.

(10) In the public-private partnership contract, the contracting parties shall foresee the time period within which the contract expires after receipt of a written notice of the representative of the public partner in the cases referred to in Paragraphs two, four, six and seven of this Section.

(11) In cases of force majeure circumstances a public-private partnership contract shall be terminated early in the cases and in accordance with the procedure provided for in the Civil Law and the public-private partnership contract.

(12) The representative of the public partner shall send the notices referred to in this Section on unilateral early termination of the public-private partnership contract or agreement on early termination of the contract to the Monitoring Authority.

Section 67. Compensation in the Case of Early Termination of the Contract

(1) In a public-private partnership contract the contracting parties shall agree upon the procedures for the determination and payment of a compensation when terminating the contract prior to the expiry thereof which is not in contradiction to the provisions of this Law and the Civil Law, complying with the conditions of this Section.

(2) If a public-private partnership contract is terminated early in the cases referred to in Section 65, Paragraph one, Clauses 1 (if early termination of the contract is not related to a violation of the contract committed by the private partner), 2, 5, 6, 7, and 8 of this Law, the private partner shall receive a compensation consisting of the following:

1) payments for investments made by the private partner according to the conditions of the contract;

2) payment for the early termination of the contract according to the conditions of the contract.

(3) If a public-private partnership contract is terminated early in the cases referred to in Section 65, Paragraph one, Clauses 1 (if early termination of the contract is related to a violation of the contract committed by the private partner), 3 and 4 and Paragraph two of this Law, the contracting party unilaterally terminating the contract before the specified deadline shall receive a compensation calculated according to the conditions of the contract and that may also include payments for investments made by the private partner.

(4) In the public-private partnership contract the public partner may not undertake accidental risk regarding early termination of the contract in the case referred to in Section 65, Paragraph four of this Law.

[20 April 2017]

Section 68. Availability of the Contracts

(1) Generally accessible information of a public-private partnership contract shall be the information that is not a commercial secret according to the Commercial Law.

(2) The complete public-private partnership contract shall be available to the Monitoring Authority, State Audit Office, Ministry of Finance, Ministry of Economics, as well as the competent State institutions in the cases and in accordance with the procedures laid down in laws and regulations.

(3) Not later than within 10 working days from the day when the public-private partnership contract or amendments thereto have entered into effect, the public partner shall post in the profile of the purchaser the text of the public-private partnership contract, the text of amendments to the public-private partnership contract, and the justification for the substantial amendments to the public-private partnership contract in accordance with the procedures specified in laws and regulations, following the requirements for the protection of commercial secret. The public-private partnership contract and the text of amendments thereto shall be available in the profile of the purchaser during the entire duration of the public-private partnership contract, but not less than 36 months after the day when the public-private partnership contract has entered into effect.

[20 April 2017]

Section 69. Registration of the Contracts

(1) Information on the entered into public-private partnership contract, the amendments thereto and the termination shall be recorded in the public-private partnership contract register (hereinafter - the Contract Register).

(2) The Cabinet shall determine the information on the partnership procurement contract or the concession contract to be recorded in the Contract Register, as well as the procedures for the registration and accounting of contracts.

(3) The Contract Register shall be public.

(4) The Enterprise Register shall manage the Contract Register.

Chapter XIV
Establishment of a Special Purpose Entity, Entering into Contracts with the Special Purpose Entity and Lender's Intervention Right

Section 70. Application of Legal Provisions in Case of a Special Purpose Entity

If a special purpose entity is established in accordance with the procedures laid down in this Law, provisions of Chapter XIII of this Law shall be applied for entering into, amendment or termination of the public-private partnership contract, complying with the provisions of this Chapter.

Section 71. Establishment of a Special Purpose Entity

(1) A special purpose entity shall be established if the public-private partnership procedure documents provide that the candidate determined as a result of this procedure should establish a special purpose entity or that the candidate may establish a special purpose entity.

(2) In the case referred to in Paragraph one of this Section, each candidate shall specify the following in its tender:

1) type of a commercial company and the shareholders or members thereof if the public-private partnership procedure documents provide that the candidate should establish a special purpose entity;

2) whether he or she will establish a special purpose entity and if will establish - type of a commercial company and the shareholders or members thereof if the public-private partnership procedure documents provide that the candidate may establish a special purpose entity.

(3) A special purpose entity shall be established in accordance with the Commercial Law. If the special purpose entity is a joint stock company, all stocks of the company shall be registered stocks.

(4) If the candidate is one person, only this candidate may be the founder of the special purpose entity. If the candidate is an association of persons, only the persons that are members of such an association of persons may be the founders of the special purpose entity.

(5) The founders shall prepare documents of incorporation of the special purpose entity in such a way that the replacement of the shareholder or member of the special purpose entity with a new shareholder or member of the special purpose entity proposed by the lender and approved by the public partner is ensured in the cases referred to in Section 73, Paragraph one of this Law.

(6) The founders of the company may submit the application for the registration of a special purpose entity in the Commercial Register provided for in the Commercial Law not earlier than 15 days from the day when the notice on the results of the public-private partnership procedure has been published on the website of the Procurement Monitoring Bureau.

[20 April 2017]

Section 72. Entering into the Public-Private Partnership Contract with a Special Purpose Entity

(1) The representative of the public partner shall enter into a public-private partnership contract with a special purpose entity after the Register of Enterprises as a Commercial Register Office has announced the entry on registration of a special purpose entity in the Commercial Register in accordance with the procedures laid down in the Commercial Law, complying with the provisions of Paragraph two of this Section.

(2) The representative of the public partner shall sign the public-private partnership contract with a special purpose entity after the founders of the special purpose entity have fulfilled the requirements of Section 71, Paragraph five of this Law.

(3) If a special purpose entity is established, each public partner and the special purpose entity shall enter into a public-private partnership contract.

(4) The public-private partnership contract on behalf of the special purpose entity shall be entered into by the officials of the special purpose entity in accordance with the Commercial Law.

Section 73. Procedures for the Early Termination of the Public-private Partnership Contract Entered into with a Special Purpose Entity and Calculation of a Compensation

(1) In addition to the provisions of Section 65, Paragraph one of this Law, the public partner may also terminate the public-private partnership contract entered into with a special purpose entity before its expiry in the following cases:

1) if the only shareholder of the special purpose entity has submitted an application on the termination of its activity to the Commercial Register Office;

2) a court has declared insolvency of the only shareholder of the special purpose entity.

(2) Before taking the decision to terminate its activity, any shareholder or member of the special purpose entity shall inform the public partner and the special purpose entity thereof in a timely manner, and also immediately after the submission of the application on the termination of its activity to a Commercial Register Office and the Commercial Register Office has taken the decision to terminate its activity.

(3) Having received the decision from the only shareholder of the special purpose entity on the termination of its activity referred to in Paragraph two of this Section, the public partner shall inform the lender of the private partner thereof to provide him or her with the possibility to exercise the intervention right referred to in Section 79, Paragraph one of this Law. If in accordance with the procedures laid down in Section 80, Paragraph one of this Law the lender informs that it does not wish to exercise the intervention right, the public partner shall send a notice on unilateral early termination of the public-private partnership contract to the private partner in accordance with Paragraph one, Clause 1 of this Section.

(4) Before taking the decision to submit a complaint to a court so that the court would declare his or her insolvency, any shareholder or member of the special purpose entity shall inform the public partner and the special purpose entity of this decision in a timely manner, and also immediately after the submission of the complaint to the court and the court has taken the decision on insolvency of this shareholder.

(5) Having received the court decision on insolvency of the only shareholder referred to in Paragraph four of this Section, the public partner shall inform the lender of the private partner thereof to provide it with the possibility to exercise the intervention right referred to in Section 79, Paragraph one of this Law. If in accordance with the procedures laid down in Section 80, Paragraph one of this Law the lender informs that it does not wish to exercise the intervention right, the public partner shall send a notice on unilateral early termination of the public-private partnership contract to the private partner in accordance with Paragraph one, Clause 2 of this Section.

(6) If in the cases referred to in Paragraph one of this Section the special purpose entity does not ensure the replacement of the shareholder or member of the special purpose entity with the new shareholder or member of the special purpose entity proposed by the lender and approved by the public partner in the cases referred to in Section 74 of this Law, each representative of the public partner shall take the decision on the termination of the public-private partnership contract in accordance with Paragraph one, Clause 1 or 2 of this Section and inform the private partner, the lender and the Monitoring Authority thereof.

(7) If the public-private partnership contract is terminated early in the case referred to in Paragraphs three and four of this Section, the provisions of Section 67, Paragraph three of this Law shall be applied for the calculation of compensation.

Section 74. Replacement of Shareholders of the Special Purpose Entity

(1) Cases when a shareholder or a member of the special purpose entity discontinues to be a shareholder or a member of this entity or another person becomes a shareholder or a member of the special purpose entity and procedures for making thereof shall be determined in the public-private partnership contract in conformity with the Commercial Law, complying with the provisions of this Section.

(2) If the public-private partnership contract provides that the private partner shall execute construction work, the replacement of the shareholders or members of the special purpose entity until the moment when the structure provided for in the contract is put into operation by the acceptance-delivery deed may be made only after receipt in advance of a written consent of each representative of the public partner.

(3) If the public-private partnership contract provides that the private partner shall continue management of the constructed structure, the consent of the representative of the public partner is not required for the replacement of the shareholders or members of the special purpose entity following the putting into operation of the structure provided for in the contract unless the public-private partnership contract prescribes otherwise.

(4) If the public-private partnership contract is a public service contract or a services concession contract not providing for construction work, the replacement of the shareholders or members of the special purpose entity may be made only after receipt in advance of a written consent of each representative of the public partner unless the public-private partnership contract prescribes otherwise.

Chapter XV
Information Exchange Agreement

Section 75. Entering into an Information Exchange Agreement

(1) If the private partner has submitted a complaint of his or her lender including a draft information exchange agreement to the public partner, the public partner shall enter into an information exchange agreement simultaneously with the public-private partnership contract.

(2) The information exchange agreement shall remain valid until the private partner fulfils all the obligations ensuing from the financing agreement towards the lender unless the contracting parties agree otherwise.

Section 76. Information to be Included in the Information Exchange Agreement

The following information shall be indicated in the information exchange agreement:

1) procedures by which the contracting parties shall inform each other of violations of the obligations of the public-private partnership contract;

2) procedures by which the lender informs the public partner of violations of the obligations of the credit agreement of the private partner;

3) procedure for exercising the intervention right of the lender of the public-private partnership contract in accordance with Sections 79, 80, 81, 82 and 83 of this Law;

4) procedures determined in the public-private partnership contract by which the fulfilment of the contract is continued until entering into the new public-private partnership contract referred to in Section 82 of this Law if the lender exercises the intervention right;

5) actions if the lender waives the intervention right or fails to find such a private partner with whom the public partner could enter into a new public-private partnership contract;

6) actions upon early termination of the public-private partnership contract in the cases laid down in Section 65, Paragraph one, Clause 2 and Paragraphs two, three and four of this Law;

7) procedures by which the contracting parties shall exchange other information;

8) other provisions that are considered as necessary by the contracting parties.

Chapter XVI
Activities with the Public Partner Resources

Section 77. Actions with the Public Partner Resources

(1) The private partner may not alienate the public partner resources specified in the public-private partnership contract that have been transferred to the private partner for use, including invest in equity capital of other capital companies, pledge or encumber in another way or perform any other activities as a result of which these resources could become property of another person.

(2) If the court has declared insolvency proceedings of the private partner in accordance with the Insolvency Law, the public partner resources referred to in Paragraph one of this Section shall be the property of third parties and shall not be included in the property of the private partner as debtor to which the creditors' claims are to be made in the insolvency proceedings.

(3) In case of failure to fulfil the obligations of the private partner, the recovery according to executive documents shall not be enforced to the public partner resources referred to in Paragraph one of this Section unless the international documents prescribe otherwise.

(4) If activity of the private partner is terminated, the liquidator may prepare the liquidation closing financial account and the property division plan only after the public partner resources referred to in Paragraph one of this Section have been transferred back to the public partner or the new private partner in accordance with the procedures laid down in the public-private partnership contract.

(5) If a public-private partnership contract is terminated early or the validity of the contract expires, the public partner resources referred to in Paragraph one of this Section shall be transferred back to the public partner in accordance with the procedures laid down in the public-private partnership contract.

(6) If a public-private partnership contract is terminated early or the validity of the contract expires, the property newly created during the fulfilment of the public-private partnership contract shall be transferred to the public partner in the cases and in accordance with the procedures laid down in the public-private partnership contract.

Section 78. Corroboration of Property Rights to the Public Partner Resources

(1) For the validity period of a public-private partnership contract, the private partner may corroborate the public-private partnership contract or individual encumbrances ensuing from the contract to the immovable property that is the public partner resources referred to in Section 77, Paragraph one of this Law in the Land Register.

(2) If a public-private partnership contract expires in the time period provided for therein, the corroboration in the Land Register referred to in Paragraph one of this Section shall be extinguished based on the complaint of the representative of the relevant public partner.

(3) If a public-private partnership contract is terminated early in the cases referred to in Section 65 or Section 73, Paragraph one of this Law, the corroboration in the Land Register referred to in Paragraph one of this Section shall be extinguished based on the complaint of the representative of the relevant public partner to which the document referred to in Section 66 or Section 73, Paragraph six of this Law shall be attached that has been the basis for the early termination of the agreement.

Chapter XVII
Lender's Intervention Right and Procedures for Entering into a New Agreement

Section 79. Intervention Right

(1) In order to ensure continuation of a public-private partnership contract in the cases referred to in Section 65, Paragraph one, Clauses 1, 3 and 4 and Section 73, Paragraph one of this Law and to allow the lender to continue financing of the fulfilment of the public-private partnership contract and to recover the funds lent to the private partner for this purpose, the lender shall have the intervention right by proposing the following to the public partner:

1) a new private partner in the cases referred to in Section 65, Paragraph one, Clauses 1, 3 and 4 of this Law;

2) a new private partner in the cases referred to in Section 73, Paragraph one of this Law.

(2) Exercising of the intervention right referred to in Paragraph one of this Section may be initiated after the representative of the public partner has taken the decision to terminate the relevant public-private partnership contract early in the cases referred to in Section 65, Paragraph one, Clauses 1, 3 and 4 and has informed the private partner and the lender thereof. If the relevant public-private partnership contract is entered into by several public partners, the agreement may be terminated upon a joint decision of the representatives of all public partners.

(3) A public-private partnership contract and information exchange agreement may provide that the lender shall also have the intervention right when any shareholder or member of a special purpose entity is replaced. In this case the procedures by which the lender uses the intervention right and each representative of a public partner gives the consent to the replacement of a shareholder or member of the special purpose entity shall be also provided for in the contract.

Section 80. Procedures for Exercising the Intervention Right

(1) If the representative of the public partner has informed the private partner and its lender of the decision referred to in Section 79, Paragraph two of this Law or the notice referred to in Section 73, Paragraph three or five of this Law, the lender shall inform the representative of the public partner representative of whether he or she wishes to use the intervention right within one month.

(2) The lender shall exercise the intervention right in accordance with the procedures and within the time periods specified in the information exchange agreement. The time period laid down in the information exchange agreement for exercising the lender's intervention right complying with the provisions of Section 81, Paragraph five of this Law may not exceed six months from the day when the notice of the public partner referred to in Section 79, Paragraph two of this Law is received.

Section 81. Candidate Selected by the Lender and its Evaluation

(1) The candidate selected by the lender shall meet the requirements and criteria determined for the candidates in the partnership procurement procedure or concession procedure taking into consideration the stage of the fulfilment of the particular public-private partnership contract.

(2) The requirements and criteria to be met by the lender's proposed candidate taking into consideration the stage of the fulfilment of the particular public-private partnership contract, as well as the documents to certify conformity of the candidate with these requirements and criteria shall be determined by the public partner in the notice referred to in Section 79, Paragraph two or Section 73, Paragraph three or five of this Law.

(3) The representative of the public partner shall evaluate the documents submitted by the lender's proposed candidate in accordance with the same procedures as such documents were evaluated when the candidate with whom the public partner entered into a public-private contract was determined, considering legal norms that were in force on the day when the documents of the lender's proposed candidate are evaluated.

(4) The representative of the public partner may refuse to enter into a new public-private partnership contract with the lender's proposed candidate only if the candidate does not meet the requirements and criteria referred to in Paragraph two of this Section.

(5) If in the case referred to in Paragraph four of this Section the representative of the public partner refuses to enter into a new public-private partnership contract with the lender's proposed candidate, the lender may propose another candidate one more time within one month after receipt of the refusal referred to in Paragraph four of this Section.

Section 82. Entering into a New Public-Private Partnership Contract

(1) The new public-private partnership contract shall be entered into on the same subject of the contract and in accordance with the same provisions as the initial public-private partnership contract, taking into consideration the stage of the fulfilment of the particular contract.

(2) The representative of the public partner shall attach the new draft public-private partnership contract to the notice referred to in Section 79, Paragraph two of this Law by specifying the immutable provisions of the contract so that the lender's proposed candidate could get acquainted with the draft contract, taking into consideration the provisions of Paragraph one of this Section.

(3) Prior to sending the new draft concession contract to the lender, the representative of the public partner shall send the draft contract to the Monitoring Authority to receive an opinion on the conformity of risk allocation between the public partner and the private partner with the concession contract. The Monitoring Authority shall give its opinion on the new draft concession contract in accordance with the procedures laid down in Section 34 of this Law.

(4) Negotiations with the lender's proposed candidate on the draft public-private partnership contract shall be conducted in accordance with the procedures laid down in Section 52 of this Law.

(5) The representative of the public partner shall send the new public-private partnership agreement signed by the contracting parties to the Monitoring Authority.

Section 83. Ensuring the Fulfilment of a Public-Private Partnership Contract

(1) In the public-private partnership contract the contracting parties shall agree upon the procedures by which the fulfilment of the contract shall be continued until:

1) the new public-private partnership contract referred to in Section 82 of this Law is concluded, if the lender uses the intervention right;

2) the termination of the contract in the cases referred to in Section 65 and Section 73, Paragraph one of this Law.

(2) In the case referred to in Paragraph one, Clause 1 of this Section the contracting parties shall agree that the private partner or the public partner shall continue fulfilling the obligations of the private partner determined in the public-private partnership contract until entering into a new agreement.

(3) In the case referred to in Paragraph one, Clause 1 of this Section the contracting parties may agree that the lender shall continue fulfilling the obligations of the private partner determined in the public-private partnership contract until entering into a new agreement if it is also provided for in the information exchange agreement.

Division D
Institutional Partnership

Chapter XVIII
General Provisions of the Institutional Partnership

Section 84. Creation of a Joint Venture

A joint venture shall be created:

1) by the public partner and the private shareholder establishing a new capital company in accordance with the Commercial Law and complying with the State Administration Structure Law;

2) by the private shareholder acquiring the capital shares in a capital company of a public person in accordance with the provisions on attraction of private capital of the Law on Governance of Capital Shares of a Public Person and Capital Companies, paying for capital shares in cash (hereinafter - the reorganisation of a capital company of a public person).

[20 April 2017]

Section 85. Application of Legal Provisions in Case of a Joint Venture

(1) If the public partner enters into a partnership procurement contract together with a joint venture as a private partner, the following shall be applied to the determination of a private shareholder of the joint venture:

1) the provisions of the Public Procurement Law regarding an open tendering procedure, a closed tendering procedure, a competitive procedure with negotiations, a competitive dialogue, an innovation partnership procedure, and procurements of the services referred to in Annex 2 to the Public Procurement Law, as provided for in this Division;

2) the provisions of the Law on the Procurement of Public Service Providers regarding an open tendering procedure, a closed tendering procedure, a negotiated procedure by publishing an invitation to participate, a competitive dialogue, an innovation partnership procedure, and procurements of the services referred to in Annex 2 to the Public Procurement Law, as provided for in this Division.

(2) If the public partner enters into a concession contract with a joint venture as a private partner, the concession procedures referred to in Section 17, Paragraphs one and seven of this Law shall be applied to the determination of a private shareholder of the joint venture, as provided for in this Division.

(3) In case of institutional partnership, the provisions of Division C of this Law shall be applied by complying with the provisions of this Division.

(4) Following the establishment of a joint venture the public-private partnership procedures shall not be applied again for entering into a public-private partnership contract.

[20 April 2017]

Chapter XIX
Determination of the Private Shareholder of a Joint Venture

Section 86. Application of Partnership Procurement Procedures in Case of Institutional Partnership

(1) If a public partner applies the provisions of the Public Procurement Law for the determination of a private shareholder of a joint venture, the following shall be indicated in the relevant documents in addition to the information determined in the Public Procurement Law:

1) that for the fulfilment of a partnership procurement contract the public partner (one or several) and the private shareholder will establish a capital company or reorganise a State or local government capital company into a joint venture with which each public partner as a private partner enters into a partnership procurement contract;

2) provisions as regards the allocation of capital shares in the joint venture;

3) conditions as regards the activity of the joint venture and the potential thereof to undertake additional tasks during the fulfilment of the partnership procurement contract;

4) actions with the assets of the joint venture following the expiry of the partnership procurement contract;

5) provisions for the termination of the activity of the joint venture;

6) provisions of the draft documents referred to in Paragraph two or three of this Section that may not be amended during the harmonization thereof.

(2) If for the fulfilment of a partnership procurement contract the public partner and the private partner establish a capital company, the following shall be attached in addition to the relevant document specified in the Public Procurement Law:

1) draft Memorandum of Association of the joint venture;

2) draft Articles of Association of the joint venture;

3) draft agreement of the shareholders;

(3) If for the fulfilment of a partnership procurement contract the public partner and the private partner reorganise a State or local government capital company, the following shall be attached in addition to the relevant document determined in the Public Procurement Law:

1) provisions for increasing the equity capital of the State or local government capital company;

2) draft Articles of Association of the joint venture;

3) draft agreement of the shareholders.

Section 87. Regulations of the Concession Procedures in Case of Institutional Partnership

(1) If the public partner applies any of the concession procedures referred to in Section 17, Paragraphs one and seven of this Law to the determination of a private shareholder of a joint venture, the following shall be specified in the Regulations in addition to the information referred to in Section 33 of this Law:

1) that for the fulfilment of a concession contract the public partner (one or several) and the private shareholder will establish a joint venture or reorganise a State or local government capital company into a joint venture with which each public partner as a private partner enters into a concession contract;

2) provisions as regards the allocation of capital shares in the joint venture;

3) conditions as regards the activity of the joint venture and the potential thereof to undertake additional tasks during the fulfilment of the concession contract;

4) actions with the assets of the joint venture after the expiry of the concession contract;

5) provisions for the termination of the activity of the joint venture;

6) provisions of the draft documents referred to in Paragraph two or three of this Section that may not be amended during the harmonization thereof.

(2) If for the fulfilment of a concession contract the public partner and the private partner establish a joint venture, the following shall be attached to the Regulations in addition to the referred to in Section 33, Paragraph eleven of this Law:

1) draft Memorandum of Association of the joint venture;

2) draft Articles of Association of the joint venture;

3) draft agreement of the shareholders.

(3) If for the fulfilment of a concession contract the public partner and the private partner reorganise a State or local government capital company, the following shall be attached to the Regulations in addition to the referred to in Section 33, Paragraph eleven of this Law:

1) provisions for increasing the equity capital of the State or local government capital company;

2) draft Articles of Association of the joint venture;

3) draft agreement of the shareholders.

(4) If a public partner applies a competitive dialogue for the determination of a private shareholder of a joint venture, the documents referred to in Paragraph two and three of this Section may be not attached to the Regulations. In this case the referred to documents shall be attached to the invitation referred to in Section 47, Paragraph eight of this Law specifying the provisions of the referred to draft documents that may not be amended during the harmonization thereof.

[20 April 2017]

Section 88. Termination or Suspension of a Concession Procedure in Case of Institutional Partnership

If a public partner wishes to enter into a public-private partnership contract with a joint venture, the Concession Procedure Commission shall take the decision to terminate the relevant concession procedure (Section 36, Paragraph one) also in the following cases:

1) if during the negotiations on the draft concession contract and the documents attached to the Regulations referred to in Section 87, Paragraph two or three of this Law the Concession Procedure Commission does not reach an agreement on any of these documents with any of the candidates in accordance with the procedures laid down in Section 55 of this Law;

2) if a joint venture is not established after the agreement on the documents referred to in Section 87, Paragraph two and three of this Law has been reached in accordance with the procedures laid down in Section 89 of this Law.

Section 89. Negotiations on the Draft Concession Contract and Other Documents

(1) When negotiating on a draft concession contract in accordance with the procedures laid down in Section 52 of this Law, negotiations on the documents referred to in Section 87, Paragraph two or three of this Law shall be conducted simultaneously.

(2) The negotiations may be held only on those provisions of the draft documents referred to in Paragraph one of this Section which are not determined as immutable in the Regulations.

Section 90. Entering into a Memorandum of Association of a Joint Venture and a Public-Private Partnership Contract

(1) Each representative of the public partner shall enter into a Memorandum of Association of a joint venture with the private partner not earlier than 15 days following the day when the concession ward notice has been published on the website of the Procurement Monitoring Bureau.

(2) Each representative of the public partner shall enter into a public-private partnership contract with a joint venture after the Register of Enterprises as a Commercial Register Office has published the entry on registration of the joint venture in the Commercial Register in accordance with the procedures laid down in the Commercial Law.

[20 April 2017]

Section 91. Final Report of the Commission in Case of Institutional Partnership

In addition to the documents referred to in Section 55, Paragraph six of this Law, the Concession Procedure Commission shall also attach the documents referred to in Section 87, Paragraph two or three of this Law to the final report.

Chapter XX
Public-Private Partnership Contract in Case of Institutional Partnership

Section 92. Public-Private Partnership Contract in Case of Institutional Partnership

(1) In case of institutional partnership, a public-private partnership contract shall, in addition to the information laid down in Section 62 of this Law, specify the following:

1) that upon expiry of the public-private partnership contract (also when it is terminated early in accordance with the procedures laid down in this Law) the activity of the joint venture shall be terminated in accordance with the procedures laid down in the Articles of Association thereof;

2) allocation of capital shares in the joint venture and the manner according to which and the date until which such a capital share allocation will be achieved;

3) conditions as regards the activity of the joint venture and the potential thereof to undertake additional tasks during the fulfilment of the public-private partnership contract;

4) action with the assets of the joint venture following the public-private partnership contract is executed or upon early termination thereof;

5) procedures for determining the liquidation quota of the joint venture in compliance with Section 96, Paragraph two of this Law;

6) procedures for the payment of compensations if, upon termination of the activity of the joint venture, the liquidation quota does not cover the amount of compensation ensuing from this agreement;

7) procedures by which the private shareholder of the joint venture shall be reimbursed for decrease in the liquidation quota in the case referred to in Section 117, Paragraph two of this Law.

(2) The public-private partnership contract shall be signed on behalf of the joint venture by its board of directors.

(3) In accordance with Section 61, Paragraph two of this Law, each representative of the public partner shall sign the public-private partnership contract on behalf of the public partner.

Section 93. Amending the Contract in Case of Institutional Partnership

Amendments to a public-private partnership contract in case of institutional partnership shall be made in accordance with Sections 63 and 64 of this Law.

Section 94. Early Termination of the Contract in Case of Institutional Partnership

In case of institutional partnership, the public partner has the right to unilaterally terminate the public-private partnership contract before its expiry also in the following cases in addition to the cases referred to in Section 65, Paragraph one of this Law:

1) if the only private shareholder of the joint venture has submitted an application to a Commercial Register Office on the termination of its activity;

2) if the court has declared the insolvency proceedings of the only private shareholder of the joint venture.

Section 95. Procedures for the Early Termination of the Contract in Case of Institutional Partnership

(1) Before the private partner of the joint venture has taken the decision to terminate its activity, it shall inform the public partner of this decision in a timely manner, and also immediately after the submission of the application for the termination of its activity to a Commercial Register Office and when the Commercial Register Office has taken the decision to terminate the activity of this shareholder.

(2) Having received the decision from the private shareholder of the joint venture on termination of the activity thereof referred to in Paragraph one of this Section, the public partner shall inform the lender of the private partner thereof to provide it with the possibility to exercise the intervention right. If in accordance with the procedures laid down in Section 100, Paragraph one of this Law the lender informs that it does not wish to exercise the intervention right, the public partner shall send a notice on unilateral early termination of the public-private partnership contract to the private partner in accordance with Section 94, Clause 1 of this Law.

(3) Before taking the decision to submit a complaint to a court so that the court would declare its insolvency, the private shareholder of the joint venture shall inform the public partner of this decision in a timely manner, and also immediately after the submission of the complaint to the court and after the court has taken the decision on the declaration of insolvency of this shareholder.

(4) Having received the court decision on the declaration of insolvency of the private shareholder of the joint venture referred to in Paragraph three of this Section, the public partner shall inform the lender of the private partner thereof to provide it with the possibility to exercise the intervention right. If in accordance with the procedures laid down in Section 100, Paragraph one of this Law the lender informs that it does not wish to exercise the intervention right, the public partner shall send a notice on unilateral early termination of the public-private partnership contract to the private partner in accordance with to Section 94, Clause 2 of this Law.

Section 96. Compensation for the Early Termination of the Contract in Case of Institutional Partnership

(1) If a public-private partnership contract is terminated early in the cases referred to in Sections 65 and 94 of this Law, compensations shall be determined and paid by the shareholders receiving the joint venture liquidation quota in accordance with the Commercial Law.

(2) When determining the liquidation quota of a joint venture in the case referred to in Paragraph one of this Section, justification for the early termination of the public-private partnership contract, investments of the shareholders in the equity capital of the joint venture and the provisions of Section 67 of this Law shall be taken into consideration.

Section 97. Availability of the Agreements and other Documents

(1) Memorandum of Association of a joint venture and provisions for increasing the equity capital of a State or local government capital company shall be generally accessible in accordance with the procedures laid down in the Commercial Law.

(2) Agreement of shareholders shall be accessible to the institutions laid down in Section 68, Paragraph two of this Law.

Chapter XXI
Information Exchange Agreement and Lender's Intervention Right in Case of Institutional Partnership

Section 98. Information Exchange Agreement in Case of Institutional Partnership

(1) In case of institutional partnership an information exchange agreement shall be entered into by a public partner and a lender in accordance with the procedures laid down in Sections 75 and 76 of this Law.

(2) In case of institutional partnership the following shall be indicated in an information exchange agreement:

1) the information referred to in Section 76, Clauses 1, 2, 5, 6, 7 and 8 of this Law;

2) the procedures for exercising the intervention right of the public-private partnership contract in accordance with Section 100 of this Law;

3) actions if the lender waives the intervention right or fails to find a new private shareholder of a joint venture.

Section 99. Intervention Right in Case of Institutional Partnership

(1) In addition to the cases referred to in Section 79, Paragraph one of this Law, the lender shall also have the intervention right by proposing a new private shareholder of a joint venture to the public partner also in the cases referred to in Section 94 of this Law.

(2) In order to ensure exercising of the lender's intervention right, the representative of the public partner shall send a notice and offer the lender to exercise the intervention right in the cases referred to in Section 94 of this Law in accordance with the procedures laid down in Section 95, Paragraph two or four of this Law.

Section 100. Procedures for Exercising the Intervention Right in Case of Institutional Partnership

(1) The lender shall exercise the intervention right in the cases referred to in Section 79 Paragraph one of this Law in accordance with the procedures laid down in Section 80 of this Law.

(2) In the cases referred to in Section 94 of this Law, the lender shall inform the representative of the public partner of whether he or she wishes to exercise the intervention right within one month after receipt of the notice referred to in Section 95, Paragraph two or four of this Law.

(3) In case of institutional partnership the lender shall exercise the intervention right in accordance with the procedure and within the time periods specified in the information exchange agreement by complying with Section 80, Paragraph two of this Law.

Section 101. Lender's Proposed Private Shareholder and the Evaluation thereof

(1) The lender's proposed private shareholder shall meet the requirements and criteria determined for the candidates of a private shareholder of the joint venture who have been determined in a partnership procurement procedure or concession procedure taking into consideration the stage of fulfilment of the particular public-private partnership contract.

(2) The public partner shall specify the requirements and criteria the lender's proposed private shareholder shall meet taking into consideration the stage of fulfilment of the public-private partnership contract, as well as the documents that shall certify the conformity of a candidate to these requirements and criteria in the notice referred to in Section 99, Paragraph two of this Law.

(3) The representative of the public partner shall evaluate the documents submitted by the lender's proposed private shareholder in accordance with the same procedure by the documents were evaluated when the private shareholder with whom the public partner established a joint venture was determined taking into consideration legal provisions in force on the day when the documents of the lender's proposed private shareholder were evaluated.

(4) The representative of the public partner may refuse the lender's proposed private shareholder becoming a shareholder of the joint venture only if he or she does not meet the requirements and criteria referred to in Paragraph two of this Section.

(5) If in the case referred to in Paragraph four of this Section the representative of the public partner does not agree that the lender's proposed private shareholder becomes a shareholder of the joint venture, the lender may propose another private shareholder one more time within one month after receipt of the refusal referred to in Paragraph four of this Section.

Section 102. Replacement of a Private Shareholder of a Joint Venture

(1) If the representative of the public partner has no objections against the lender's proposed private shareholder, the representative of the public partner shall take the decision that the lender's proposed private shareholder becomes the private shareholder of the joint venture and shall inform thereof:

1) the lender;

2) the lender's proposed private shareholder;

3) the private shareholder of the joint venture;

4) the board of directors of the joint venture;

5) the Monitoring Authority.

(2) The lender's proposed private shareholder shall become a shareholder of the joint venture by fulfilling the requirements specified in Section 112 of this Law.

(3) The lender's proposed private shareholder shall become a shareholder of the joint venture in accordance with the procedures laid down in the Commercial Law by signing an agreement of shareholders of the joint venture and an agreement on joining the documents of incorporation of the joint venture.

(4) The public partner shall attach the draft agreement on amendments to the Memorandum of Association and the draft agreement of shareholders to the notice referred to in Section 99, Paragraph two of this Law in order the lender's proposed private shareholder could get acquainted with the amendments to the Memorandum of Association and agreement of shareholders.

Chapter XXII
Establishment of a Joint Venture

Section 103. Provisions for the Establishment of a Joint Venture

(1) When establishing a joint venture, the entire equity capital of the joint venture determined in the Memorandum of Association of the joint venture shall be signed and paid up until submitting the application for registration.

(2) Until submitting the application for registration to the Commercial Register the equity capital of the joint venture shall be paid only in cash.

(3) Each public partner and the private shareholder shall invest the resources with which they participate in the fulfilment of a public-private partnership contract in the equity capital of the joint venture after the joint venture is registered in the Commercial Register if it is provided for in the relevant contract.

(4) Each public partner and the private shareholder as shareholders of the joint venture shall also sign the agreement of shareholders simultaneously with documents of incorporation of the joint venture (Memorandum of Association and Articles of Association).

Section 104. Attraction of the Private Capital to a State or Local Government Capital Company

(1) The private capital shall be attracted to a capital company of the public person in accordance with the provisions of the Law on Governance of Capital Shares of a Public Person and Capital Companies by complying with the conditions of this Section.

(2) If, when taking a decision on the initiation of a public-private partnership procedure, the institution referred to in Section 16, Paragraph one, Clauses 1 and 2 of this Law wishes to establish a joint venture by attracting the private capital to a capital company of the public person, it shall specify in the decision referred to in Section 16, Paragraph six of this Law the capital company of the public person to which the private capital will be attracted.

(3) The decision referred to in Paragraph two of this Section shall replace the Cabinet order or the decision of the highest decision-making institution of the derived public person to attract the private capital to a capital company of the public person provided for in the Law on Governance of Capital Shares of a Public Person and Capital Companies.

(4) After the joint venture has been registered in the Commercial Register, the private shareholder of the joint venture together with each public partner as a shareholder of the joint venture shall sign the agreement of shareholders.

[20 April 2017]

Section 105. Memorandum of Association of a Joint Venture

The following shall be specified in the Memorandum of Association of a joint venture in addition to that provided in the Commercial Law:

1) purpose for the establishment of a joint venture - the joint venture is established for the fulfilment of the public-private partnership contract that will be entered into by the public partner and the joint venture;

2) harmonized provisions of the draft public-private partnership contract the fulfilment of which depends on the activities of the private partner of the joint venture;

3) that the activity of the joint venture shall be terminated if the public-private partnership contract entered into by it expires, (also if it is terminated prior to the expiry thereof in accordance with the procedures laid down in this Law), as well as the procedures by which the joint venture shall take the decision on termination of its activity;

4) that in case of termination of the activity of the joint venture, the liquidation quota of each shareholder shall be determined in accordance with the procedure determined in the public-private partnership contract in case of fulfilment or early termination of this contract;

5) procedures laid down in Section 102 of this Law in accordance to which the private shareholder of the joint venture shall be replaced if the lender exercises the intervention right in accordance with the procedures laid down in Section 100 of this Law and proposes another private shareholder instead of the existing private shareholder of the joint venture.

Section 106. Articles of Association of a Joint Venture

(1) The following shall be specified in the Articles of Association of a joint venture in addition to that provided in the Commercial Law:

1) purpose of the activity of the joint venture prescribed in Section 105, Paragraph one of this Law;

2) types of commercial activities of the joint venture that meet the provisions of the public-private partnership contract;

3) information referred to in Section 105, Clauses 2, 3, 4 and 5 of this Law;

4) that in case of the death of the private shareholder the capital shares shall be transferred to the joint venture.

(2) If a joint venture is established by reorganising a State or local government capital company, the information referred to in Paragraph one of this Section shall be also specified in the amendments to the Articles of Association of the State or local government capital company.

Section 107. Agreement of Shareholders of a Joint Venture

(1) The agreement of shareholders of a joint venture shall specify the following:

1) the information referred to in Section 105, Clauses 2, 3, 4 and 5 of this Law;

2) the action of the shareholders of the joint venture in order to ensure compliance with Sections 108, 109, 110, 111, 112, 113, 114, 115, 116, 117 and 118 of this Law in the activity of the joint venture;

3) the exercising of the right of the shareholders of the joint venture to facilitate the fulfilment of the public-private partnership contract;

4) other provisions considered by the shareholders as necessary to be included in the agreement that are not in contradiction with this Law, Memorandum of Association of the joint venture and Articles of Association.

(2) The agreement of shareholders of a joint venture shall become invalid if any of the contracting parties is no longer a shareholder of the joint venture.

Chapter XXIII
Particularities of the Activity of a Joint Venture

Section 108. Activity of a Joint Venture

(1) During the fulfilment of a public-private partnership contract, the joint venture is entitled to be engaged in other types of commercial activity not provided for in the agreement if it does not impede successful fulfilment of the public-private partnership contract and taking into consideration the provisions of the State Administration Structure Law.

(2) If during the fulfilment of a public-private partnership contract the joint venture wishes to perform other type of commercial activity and it meets the provisions of Paragraph one of this Section, it shall be decided by the meeting of shareholders of the joint venture. The decision shall be considered taken if all shareholders of the joint venture pass their votes for it.

Section 109. Capital Shares and Shareholders of a Joint Venture as a Limited Liability Company

If the joint venture is a limited liability company:

1) the private shareholder of a joint venture may encumber his or her capital shares only in favour of the lender, if encumbering of shares is not prohibited in the Articles of Association;

2) in case of the death of a private shareholder of the joint venture, his or her capital shares shall be transferred to the joint venture and the heirs of this shareholder shall receive compensation for the capital shares in accordance with the procedures laid down in the Commercial Law;

3) a shareholder of the joint venture may not be excluded from the company.

Section 110. Securities of a Joint Venture as a Joint Stock Company

If the joint venture is a joint stock company:

1) all shares of the company shall be registered shares;

2) the company may not issue preference shares;

3) it may not issue convertible bonds or other securities that may be exchanged to the shares of this company.

Section 111. Transfer of the Capital Shares of the Private Shareholder to the Joint Venture

(1) If the lender exercises the intervention right referred to Section 99, Paragraph one of this Law and proposes another private shareholder instead of the existing private shareholder of the joint venture in accordance with the procedures laid down in Section 100, Paragraph two of this Law so that the private partner would continue to fulfil the public-private partnership contract, the capital shares of such a private shareholder of the joint venture shall be transferred to the joint venture.

(2) After receipt of the decision referred to in Section 102, Paragraph one of this Law, the board of directors of the joint venture shall make an entry in the shareholder register or stockholder register of the joint venture (hereinafter - the shareholder register) on the transfer of the capital shares to the joint venture in accordance with the procedures laid down in the Commercial Law.

(3) In the case referred to in Paragraph one of this Section, the joint venture has the obligation to pay compensation to the former shareholder of the joint venture in accordance with the liquidation quota he or she would receive if the activity of the joint venture were terminated at the moment of transferring the capital shares.

(4) The liquidation quota referred to in Paragraph three of this Section shall be calculated in accordance with the procedures laid down in Section 96 of this Law.

Section 112. Alienation of Capital Shares of a Joint Venture to the New Private Shareholder

(1) A joint venture shall alienate the capital shares referred to in Section 111, Paragraph one of this Law to the lender's proposed private shareholder determined in the decision referred to in Section 102, Paragraph one of this Law by entering into an agreement with him or her where the following information shall be indicated:

1) amount to be paid for the capital shares;

2) terms of payment;

3) other provisions of the agreement.

(2) After the agreement referred to in Paragraph one of this Section has been entered into, the board of directors of the joint venture shall register the new private shareholder in the shareholders register of the joint venture in accordance with the procedures laid down in the Commercial Law.

(3) The new private shareholder shall pay the amount corresponding to the liquidation quota referred to in Section 111, Paragraph three of this Law for the capital shares referred to in Paragraph one of this Section.

(4) Prior to registration of the joint venture in the shareholder register each public partner of the joint venture and the new private shareholder shall sign the agreement on joining the documents of incorporation and the new agreement of shareholders.

Section 113. Meeting of Shareholders of a Joint Venture

(1) A meeting of shareholders of a joint venture shall have legal power when all shareholders of the joint venture participate in it.

(2) Each capital share of a joint venture shall grant one vote to the shareholder.

(3) A meeting of shareholders of a joint venture may take a decision on making amendments to the Articles of Association of a joint venture, changes in the equity capital, reorganisation of a joint venture, entering into, amendment or termination of a group of companies agreement, merging of a company, agreement upon merging and termination or continuation of the activity by the votes determined in the Articles of Association if each public partner as a shareholder of the joint venture pass his or her vote for it.

Section 114. Representation of the Public Partner in the Management Bodies of a Joint Venture

(1) Irrespective of the amount of the owned capital shares in a joint venture each public partner shall have at least one seat as a member of the board of directors and, if the joint venture has a council, at least one seat as a member of the council.

(2) The procedures by which the joint venture ensures the provisions referred to in Paragraph one of this Section shall be determined in the Articles of Association of the joint venture.

Chapter XXIV
Termination of the Activity of a Joint Venture

Section 115. Basis for the Termination of the Activity of a Joint Venture

Activity of a joint venture shall be terminated:

1) by a court ruling;

2) upon initiating bankruptcy proceedings;

3) if the public-private partnership contract entered into by the public partner and the joint venture expires.

Section 116. Closing Financial Account and Property Division Plan

The liquidation closing financial account of a joint venture and the plan for the division of the remainder of the property of the company shall be verified by a certified auditor.

Section 117. Division of the Remainder of the Property of a Joint Venture

(1) Upon termination of the activity of a joint venture, the property of the company shall be divided within the framework of the liquidation quota so that the public partner resources which the public partner has invested in the equity capital of the joint venture would be returned to the public partner together with the permanent investments.

(2) If the value of the liquidation quota pertaining to the public partner is smaller than the value of the public partner resources and the permanent investments referred to in Paragraph one of this Section, the procedures for compensating the decrease of the liquidation quota to the private shareholder of the joint venture shall be provided for in the public-private partnership contract.

Section 118. Continuation of the Activity of a Joint Venture

Shareholders of a joint venture may take the decision to continue the activity of the joint venture only if the institution referred to in Section 16, Paragraph one or two of this Law has previously taken a decision thereon and all shareholders of the joint venture agree thereto.

Chapter XXIV
Other Provisions

[20 April 2017]

Section 119. Application of the Nomenclature of Construction Work

If the CPV data of the nomenclature of constructions work referred to in Annex 1 to this Law differ from the data referred to in the NACE nomenclature which is specified in Commission Regulation (EC) No 29/2002 of 19 December 2001 amending Council Regulation (EEC) No 3037/90 on the statistical classification of economic activities in the European Community, the relevant CVP nomenclature shall be applied.

[20 April 2017]

Section 120. Procedures for Executing the Decision on the Prohibition to Hold the Office of a Public Official

(1) The Procurement Monitoring Bureau shall, within one working day after the decision in an administrative violation case has been communicated to the person on which the prohibition to hold the office of a public official has been imposed, inform all the institutions of the decision taken in which the relevant person holds the office of a public official, as well as the higher institutions of such institutions (except for the case when there is no higher institution or if the Cabinet is the higher institution) or owners or holders of capital shares, if the relevant institution is a capital company.

(2) After the decision in an administrative violation case in which a prohibition has been imposed to hold the office of a public official, has entered into effect, it is prohibited for the person who has been held administratively liable to hold the office of such public official until the time period specified in the decision whose duties include taking of decisions in the field of public procurements and public-private partnership or entering into procurements contracts, framework agreements, partnership procurement contracts or concession contracts, as well as to take the relevant decision and to enter into the relevant contracts. The institution in which the abovementioned person holds the office of a public official, has an obligation to ensure that the person does not hold the abovementioned offices, does not take decisions, and does not enter into contracts.

(3) The Public Monitoring Bureau shall, within three working days after information has been received that the decision in an administrative violation case in which the prohibition has been imposed to hold the office of a public official, has entered into effect, publish in the publication management system the given name, surname of the person held administratively liable, the offices held at the moment of committing the violation, and the institution in which this office was held, as well as the time period until which such punishment is executed. The abovementioned information shall be available in the publication management system until the day the execution of the punishment ends.

[20 April 2017]

Section 121. Statistical Surveys

The public partner or the representative of the public partner shall, each year by 1 April, submit statistical surveys to the Procurement Monitoring Bureau in accordance with the procedures specified by the Cabinet. The Cabinet shall determine the content of the statistical surveys.

[20 April 2017 / See Paragraph 31 of Transitional Provisions]

Transitional Provisions

1. With the coming into force of this Law, the Concession Law (Latvijas Republikas Saeimas un Ministru Kabineta Ziņotājs, 2000, No 4; 2003, No 2) is repealed.

2. Provisions of the Public Procurement Law shall be applied in the public-private partnership procedures that according to the provisions of the Public Procurement Law have been initiated prior to coming into force of this Law.

3. If in accordance with the procedures laid down in the Concessions Law the Cabinet or the council of the relevant local government has taken a decision on transfer of the concession resources for concession and has approved the concession granting conditions, the provisions of the Concessions Law shall be applied for further activities.

4. The Cabinet shall take the decision referred to in Section 16, Paragraph six of this Law if in case of institutional partnership it is foreseen that the joint stock companies referred to in Section 17, Paragraph one of the Law On the Completion of the Privatisation of the State and Local Government Property and the Use of Privatisation Certificates will no longer own 100% of the capital shares in the capital companies referred to in Section 17, Paragraph two of the same Law or will no longer have the decisive influence over the capital companies referred to in Paragraph three (within the meaning of the Group of Companies Law).

5. The Cabinet shall determine the Monitoring Authority in accordance with Section 8, Paragraph four of this Law by 1 October 2009.

6. In accordance with Section 11 of this Law, the Cabinet shall approve the regulatory enactment regulating the activity of the Monitoring Authority and the procedure for financing the activity of the Monitoring Authority by 1 October 2009.

7. The Cabinet shall submit amendments to other laws that are required as regards the adoption of this Law to the Saeima by 1 September 2009.

8. The Cabinet shall issue the regulations referred to in Section 9, Paragraph four; Section 12, Paragraph three; Section 14, Paragraph two; Section 15, Paragraph three; Section 20, Paragraph one and Section 69, Paragraph two of this Law by 1 October 2009.

9. The effective entries of the Concession Contract Register shall be included in the new register for contracts without changing the scope of the information and not requesting re-registration.

10. The Register of Enterprises shall make an entry on the termination of the concession in the Concession Contract Register if the validity period of the contract for the concession has expired on the day of coming into force of this Law.

11. The provisions for eliminating a candidate referred to in Section 37, Paragraph one, Clauses 2 and 3 of this Law that came into force on 7 September 2010 shall be applied to a candidate or the person to the capacity of which the candidate refers in order to certify that its qualification conforms to the requirements laid down in the invitation to participate in the concession procedure or the concession procedure documents, if the relevant violation has been committed or continues after 6 September 2010.

[25 August 2010]

12. The condition of Section 37, Paragraph one, Clause 5 of this Law that came into force on 7 September 2010 shall be applied also to the concession procedures which were announced until 6 September 2010 unless the candidate has been eliminated from participation in a concession procedure until 6 September 2010.

[25 August 2010]

13. The amendment to Section 20, Paragraph one, Section 53.1 and Section 29, Paragraph two, Clause 3 regulating a voluntary notice on the results of the concession procedure, as well as Section 31.2 , Paragraph two shall come into force on 1 October 2010.

[25 August 2010]

14. The Cabinet shall issue new regulations referred to in Section 20, Paragraph one by 1 October 2010.

[25 August 2010]

15. The new wording of Section 31 of this Law that came into force on 7 September 2010 shall not be applied if the complaint on the appeal of the decision taken by the Complaint Review Commission of the Procurement Monitoring Bureau has been submitted to the court until 6 September 2010.

[25 August 2010]

16. The application referred to in Section 31.1,Paragraph one of this Law may be submitted if the right to enter into a concession contract has arisen following 6 September 2010.

[25 August 2010]

17. The examination of cases regarding the recovery of losses under the court proceedings, the examination of which has been commenced, but has not been finished by 6 September 2010, shall be completed in accordance with those laws and regulations which were in force prior to 6 September 2010.

[25 August 2010]

18. [20 April 2017]

19. Amendments to Section 37, Paragraph one, Clause 5 and Paragraph four, Clause 2 of this Law, by which the number and word "LVL 100" is replaced with the number and word "EUR 150", shall come into force on 1 January 2014.

[19 September 2013]

20. If the financial and economic calculations have been submitted until 31 December 2013, the competent authorities shall indicate in the opinions referred to in Section 15, Paragraph one of this Law information from the financial and economic calculations, which include sums in lats, in sums in euros by making recalculations in accordance with the principles of rounding laid down in Section 6 of the Law on the Procedure for Introduction of Euro.

[19 September 2013]

21. The concession procedures referred to in Section 17, Paragraph one of this Law that have been announced until 31 December 2013 shall be completed, including contested or appealed, in accordance with the provisions of this Law which were in force on the day when the relevant concession procedure was announced by complying with the conditions referred to in Paragraphs 22, 23 and 24 of these Transitional Provisions.

[19 September 2013]

22. Amendment to Section 37, Paragraph one, Clause 5 of this Law, which comes into force on 1 January 2014 and replaces the number and word "LVL 100" with the number and word "EUR 150", shall be applied to an applicant and other persons referred to in Section 37, Paragraph one, Clause 8 of this Law, if the existence of tax debts is verified in relation to a day after 31 December 2013, regardless of the provisions included in the notification of an invitation to participate in a concession procedure or in the documents of the concession procedure.

[19 September 2013]

23. If the sums of money in a tender, on the basis of which a contract is entered into after 31 December 2013, are indicated in lats, the public partner shall express the relevant information to be included in the contract in euros in accordance with the principles of rounding laid down in Section 6 of the Law on the Procedure for Introduction of Euro.

[19 September 2013]

24. When publishing a notice after 31 December 2013, the public partner shall recalculate the sum indicated in lats in euros in accordance with the principles of rounding laid down in Section 6 of the Law on the Procedure for Introduction of Euro, and indicate the relevant information in the notice in euros.

[19 September 2013]

25. A public-private partner is entitled to amend a public-private partnership agreement in order to convert the sums specified therein in lats to euros in accordance with Section 4, Paragraph two of the Law on the Procedure for Introduction of Euro.

[19 September 2013]

26. The concession procedures commenced before 1 May 2017 shall be completed, including contested or appealed, in accordance with the provisions of the Law which were in force on the day when the relevant concession procedure was announced, except for the provisions included in Section 38, Paragraph three and Section 53, Paragraphs one and two of this Law.

[20 April 2017]

27. The Cabinet shall issue the regulations referred to in Section 13.1, Section 19, Paragraph three, Section 29.2, Paragraph seven, Section 37, Paragraphs eight and thirteen, and Section 121 of this Law by 10 May 2017.

[20 April 2017]

28. The Cabinet shall issue the regulations corresponding to Section 20, Paragraph one (the new wording) of this Law by 10 May 2017.

[20 April 2017]

29. The Cabinet shall issue the regulations referred to in Section 37.2, Paragraph three of this Law by 30 April 2019.

[20 April 2017]

30. Section 19, Paragraph one of this Law shall be applicable:

1) with regard to the concession procedures implemented by central procurement authorities the estimated contract value of which is equal to or exceeds the threshold of contract value specified by the Cabinet - from 1 May 2017;

2) with regard to the concession procedures the estimated contract value of which is equal to or exceeds the threshold of contract value specified by the Cabinet - from 1 October 2017;

3) with regard to the concession procedures the estimated contract value of which is less than the threshold of contract value specified by the Cabinet - from 1 April 2018.

[20 April 2017]

31. The statistical surveys regarding concession contracts referred to in Section 121 of this Law shall be submitted starting from 2018, and 2017 shall be the first reporting year.

[20 April 2017]

Informative Reference to Directives of the European Union

[20 April 2017]

This Law contains norms arising from:

1) Council Directive 89/665/EEC of 21 December 1989 on the coordination of the laws, regulations and administrative provisions relating to the application of review procedures to the award of public supply and public works contracts;

2) Directive 2007/66/EC of the European Parliament and of the Council of 11 December 2007 amending Council Directives 89/665/EEC and 92/13/EEC with regard to improving the effectiveness of review procedures concerning the award of public contracts;

3) Directive 2009/52/EC of the European Parliament and of the Council of 18 June 2009 providing for minimum standards on sanctions and measures against employers of illegally staying third-country nationals;

4) Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on the award of concession contracts.

This Law shall come into force on 1 October 2009.

This Law has been adopted by the Saeima on 18 June 2009.

President V. Zatlers

Rīga, 9 July 2009.

 

Law on Public-Private Partnership
Annex 1

[20 April 2017]

Nomenclature of Construction Work
Classification of Economic Activities in the European Union (NACE) CPV code
SECTION F CONSTRUCTION  
Division Group Class Subject Notes  
45     Construction This division includes:

construction of new buildings and construction work, restoration and common repairs

45000000
  45.1   Site preparation   45100000
    45.11 Demolition and wrecking of buildings; earth moving This class includes:

1) demolition of buildings and other structures;

2) clearing of building sites;

3) earth moving: excavation, landfill, levelling and grading of construction sites, trench digging, rock removal, blasting, etc.;

4) site preparation for mining: overburden removal and other development and preparation of mineral properties and sites.

This class also includes:

1) building site drainage;

2) drainage of agricultural or forestry land.

45110000
    45.12 Test drilling and boring This class includes: test drilling, test boring and core sampling for construction, geophysical, geological or similar purposes.

This class excludes:

1) drilling of production oil or gas wells,

see 11.20;

2) water well drilling,

see 45.25;

3) shaft sinking,

see 45.25;

4) oil and gas field exploration, geophysical, geological and seismic surveying,

see 74.20.

45120000
  45.2   Building of complete constructions or parts thereof; civil engineering   45200000
    45.21 General construction of buildings and civil engineering works This class includes:

1) construction of all types of buildings construction and civil engineering constructions;

2) bridges, including those for elevated highways, viaducts, tunnels and subways;

3) long-distance pipelines, communication and power lines;

4) urban pipelines, urban communication and power lines;

5) ancillary urban work;

6) assembly and erection of prefabricated constructions on the site.

This class excludes:

1) service activities incidental to oil and gas extraction,

see 11.20;

2) erection of complete prefabricated constructions from self-manufactured parts not of concrete,

see divisions 20, 26 and 28;

3) construction work, other than buildings, for stadiums, swimming pools, gymnasiums, tennis courts, golf courses and other sports installations,

see 45.23;

4) building installation, see 45.3;

5) building completion, see 45.4;

6) architectural and engineering activities, see 74.20;

7) project management for construction, see 74.20.

45210000

Excluding:

45213316

45220000

45231000

45232000

    45.22 Erection of roof covering and frames This class includes:

1) erection of roofs;

2) roof covering;

3) waterproofing.

45261000
    45.23 Construction of highways, roads, airfields and sport facilities This class includes:

1) construction of highways, streets, roads and other vehicular and pedestrian ways;

2) construction of railways;

3) construction of airfield runways;

4) construction work, other than buildings, for stadiums, swimming pools, gymnasiums, tennis courts, golf courses and other sports installations;

5) painting of markings on road surfaces and car parks.

This class excludes preliminary earth moving, see 45.11

45212212 and DA03

45230000

Excluding:

45231000

45232000

45234115

    45.24 Construction of water projects This class includes:

1) construction of waterways, harbour and river works, pleasure ports (marinas), locks, etc.;

2) dams and dykes;

3) dredging;

4) subsurface work.

45240000
    45.25 Other construction work involving special trades This class includes:

1) construction activities specialising in one aspect common to different kinds of structures, requiring specialised skill or equipment;

2) construction of foundations, including pile driving;

3) water well drilling and construction, shaft sinking;

4) assembly of non-self-manufactured steel elements;

5) steel bending;

6) bricklaying and stone setting;

7) scaffolds and work platform erecting and dismantling, including renting of scaffolds and work platforms;

8) erection of chimneys and industrial ovens.

This class excludes renting of scaffolds without erection and dismantling, see 71.32

45250000

45262000

  45.3   Building installation   45300000
    45.31 Installation of electrical wiring and fittings This class includes installation in buildings or other construction projects of:

1) electrical wiring and fittings;

2) telecommunications systems;

3) electrical heating systems;

4) residential antennae;

5) fire alarms;

6) burglar alarm systems;

7) lifts and escalators;

8) lightning conductors, etc.

45213316

45310000

Excluding:

45316000

    45.32 Insulation work activities This class includes installation in buildings or other construction projects of thermal, sound or vibration insulation.

This class excludes waterproofing, see 45.22

45320000
    45.33 Plumbing This class includes installation in buildings or other construction projects of:

1) plumbing and sanitary equipment;

2) gas fittings;

3) heating, ventilation, refrigeration or air-conditioning equipment and ducts;

4) sprinkler systems.

This class excludes installation of electrical heating systems, see 45.31

45330000
    45.34 Other building installation This class includes:

1) installation of illumination and signalling systems for roads, railways, airports and harbours;

2) installation in buildings or other construction projects of fittings and fixtures not elsewhere classified

45234115

45316000

45340000

  45.4   Building completion   45400000
    45.41 Plastering This class includes application in buildings or other construction projects of interior and exterior plaster or stucco, including related lathing materials. 45410000
    45.42 Joinery installation This class includes:

1) installation of not self-manufactured doors, windows, door and window frames, fitted kitchens, staircases, shop fittings and the like, of wood or other materials;

2) interior completion (ceilings, wooden wall coverings, movable partitions, etc.).

This class excludes laying of parquet and other wood floor coverings, see 45.43

45420000
    45.43 Floor and wall coverings This class includes laying, tiling, hanging or fitting in buildings or other construction projects of:

1) ceramic, concrete or cut stone floor or wall tiles;

2) parquet and other wood floor coverings carpets and linoleum floor coverings (including of rubber or plastic);

3) terrazzo, marble, granite or slate floor or wall coverings;

4) wallpaper.

45430000
    45.44 Painting and glazing This class includes:

1) interior and exterior painting of buildings;

2) painting of civil engineering structures;

3) installation (glass, mirrors, etc.).

This class excludes installation of windows, see 45.42

45440000
    45.45 Other building completion This class includes:

1) installation of private swimming pools;

2) steam cleaning, sand blasting and similar activities for building exteriors;

3) other building completion and finishing work not elsewhere classified.

This class excludes interior cleaning of buildings and other structures, see 74.70

45212212 and DA04

45450000

  45.5   Renting of construction or demolition equipment with operator   45500000
    45.50 Renting of construction or demolition equipment with operator This class excludes renting of construction or demolition machinery and equipment without operators, see 71.32 45500000

 

Law On Public-Private Partnership
Annex 2

[20 April 2017]

Social and Other Special Services Referred to in Section 17, Paragraph Seven of this Law
No. Description CPV code
1. Health, social and related services 75200000-8, 75231200-6, 75231240-8, 79611000-0, 79622000-0 (supply services of domestic help personnel), 79624000-4 (supply services of nursing personnel), 79625000-1 (supply services of medical personnel), from 85000000-9 to 85323000-9, 85143000-3, 98133100-5, 98133000-4, 98200000-5, 98500000-8 (private households with employed persons), from 98513000-2 to 98514000-9 (manpower services for households, agency staff services for households, clerical staff services for households, temporary staff for households, home-help services and domestic services)
2. Administrative, social, educational, health care and cultural services 85321000-5, 85322000-2, 75000000-6 (administration, defence and social security services), 75121000-0, 75122000-7, 75124000-1, from 79995000-5 to 79995200-7, from 80000000-4 (education and training services) to 80660000-8, from 92000000-1 to 92342200-2, from 92360000-2 to 92700000-8, 79950000-8 (exhibition, fair and congress organisation services), 79951000-5 (seminar organisation services), 79952000-2 (event organisation services), 79952100-3 (cultural event organisation services), 79953000-9 (festival organisation services), 79954000-6 (party organisation services), 79955000-3 (fashion shows organisation services), 79956000-0 (fair and exhibition organisation services)
3. Compulsory social security services 75300000-9
4. Benefit services 75310000-2, 75311000-9, 75312000-6, 75313000-3, 75313100-4, 75314000-0, 75320000-5, 75330000-8, 75340000-1
5. Other community, social and personal services including services furnished by trade unions, political organisations, youth associations and other membership organisation services 98000000-3, 98120000-0, 98132000-7, 98133110-8 and 98130000-3
6. Religious services 98131000-0
7. Hotel and restaurant services From 55100000-1 to 55410000-7, from 55521000-8 to 55521200-0 (55521000-8 catering services for private households, 55521100-9 meals-on-wheels services, 55521200-0 meal delivery service), 55520000-1 (catering services), 55522000-5 (catering services for transport enterprises), 55523000-2 (catering services for other enterprises or other institutions), 55524000-9 (school catering services), 55510000-8 (canteen services), 55511000-5 (canteen and other restricted-clientele cafeteria services), 55512000-2 (canteen management services), 55523100-3 (school-meal services)
8. Legal services From 79100000-5 to 79140000-7, 75231100-5
9. Other administrative services and government services From 75100000-7 to 75120000-3, 75123000-4, from 75125000-8 to 75131000-3
10. Provision of services to the community From 75200000-8 to 75231000-4
11. Prison related services, public security and rescue services, provided that they are not excluded in accordance with Section 3, Paragraph one, Clause 9 of this Law From 75231210-9 to 75231230-5, from 75240000-0 to 75252000-7, 794300000-7, 98113100-9
12. Investigation and security services From 79700000-1 to 79721000-4 (investigation and security services, security services, alarm-monitoring services, guard services, surveillance services, tracing system services, absconder-tracing services, patrol services, identification badge release services, investigation services and detective agency services) 79722000-1 (graphology services), 79723000-8 (waste analysis services)
13. International services 98900000-2 (services provided by extra-territorial organisations and bodies) and 98910000-5 (services specific to international organisations and bodies)
14. Postal services 64000000-6 (postal and telecommunications services), 64100000-7 (post and courier services), 64110000-0 (postal services), 64111000-7 (postal services related to newspapers and periodicals), 64112000-4 (postal services related to letters), 64113000-1 (postal services related to parcels), 64114000-8 (post office counter services), 64115000-5 (mailbox rental), 64116000-2 (post-restante services), 64122000-7 (internal office mail and messenger services)
15. Miscellaneous services 50116510-9 (tyre-remoulding services), 71550000-8 (blacksmith services)

1 The Parliament of the Republic of Latvia

Translation © 2018 Valsts valodas centrs (State Language Centre)

 
Document information
Status:
In force
in force
Issuer: Saeima Type: law Adoption: 18.06.2009.Entry into force: 01.10.2009.Theme:  State institutions, public servicePublication: Latvijas Vēstnesis, 107 (4093), 09.07.2009.; Latvijas Republikas Saeimas un Ministru Kabineta Ziņotājs, 16, 27.08.2009.
Language:
Related documents
  • Amendments
  • Changes legal status of
  • Legal basis of
  • Annotation / draft legal act
  • Policy planning document
  • Explanations
  • Other related documents
194597
{"selected":{"value":"18.04.2019","content":"<font class='s-1'>18.04.2019.-...<\/font> <font class='s-3'>Sp\u0113k\u0101 eso\u0161\u0101<\/font>"},"data":[{"value":"18.04.2019","iso_value":"2019\/04\/18","content":"<font class='s-1'>18.04.2019.-...<\/font> <font class='s-3'>Sp\u0113k\u0101 eso\u0161\u0101<\/font>"},{"value":"01.05.2017","iso_value":"2017\/05\/01","content":"<font class='s-1'>01.05.2017.-17.04.2019.<\/font> <font class='s-2'>V\u0113sturisk\u0101<\/font>"},{"value":"01.01.2014","iso_value":"2014\/01\/01","content":"<font class='s-1'>01.01.2014.-30.04.2017.<\/font> <font class='s-2'>V\u0113sturisk\u0101<\/font>"},{"value":"18.10.2013","iso_value":"2013\/10\/18","content":"<font class='s-1'>18.10.2013.-31.12.2013.<\/font> <font class='s-2'>V\u0113sturisk\u0101<\/font>"},{"value":"20.09.2013","iso_value":"2013\/09\/20","content":"<font class='s-1'>20.09.2013.-17.10.2013.<\/font> <font class='s-2'>V\u0113sturisk\u0101<\/font>"},{"value":"01.10.2010","iso_value":"2010\/10\/01","content":"<font class='s-1'>01.10.2010.-19.09.2013.<\/font> <font class='s-2'>V\u0113sturisk\u0101<\/font>"},{"value":"07.09.2010","iso_value":"2010\/09\/07","content":"<font class='s-1'>07.09.2010.-30.09.2010.<\/font> <font class='s-2'>V\u0113sturisk\u0101<\/font>"},{"value":"01.10.2009","iso_value":"2009\/10\/01","content":"<font class='s-1'>01.10.2009.-06.09.2010.<\/font> <font class='s-2'>Pamata<\/font>"}]}
18.04.2019
84
0
  • Twitter
  • Facebook
  • Draugiem.lv
 
0
Latvijas Vestnesis, the official publisher
ensures legislative acts systematization
function on this site.
All Likumi.lv content is intended for information purposes.
About Likumi.lv
News archive
Useful links
Contacts
For feedback
Terms of service
Privacy policy
Cookies
RSS logo
Latvijas Vēstnesis "Everyone has the right to know about his or her rights."
Article 90 of the Constitution of the Republic of Latvia
© Official publisher "Latvijas Vēstnesis"
ISO 9001:2008 (quality management system)
ISO 27001:2013 (information security) Kvalitātes balva