Romanian Govt May Reject “Unusually Low” Public-Private Auction Bids - Draft

The provision was included in a draft emergency ordinance obtained by MEDIAFAX, which amends the Law regulating public-private partnership, after the European Commission has warned Romanian authorities that the normative act breaches EU regulations.

The public partner may reject "unusually low" offers if data analysis shows investors are unable to meet technical, financial or logistic requirements, reads the document.

The draft act does not provide a definition of "unusually low" bid.

Public partners may start new auction procedures if discussions with investors end without results, according to the draft decree.

Investors will be selected through open procedures or competitive dialog.

According to the draft, these changes are needed because the European Commission's Internal Market and Services Directorate General has warned Romanian authorities that the current law on public-private partnership, which entered force in October 2010, violates EU norms. Romania has until April 15 to amend the law.

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