Romanian President Calls For Quick Amendment Of Public Procurement Law

Basescu said, after talks with International Monetary Fund officials, that he encourages the use of public auction services. He added that he did not discuss the amendment of the country's public procurement law with representatives of the IMF, although he did talk to them about the need to make public auctions more transparent.

"EU norms require the existence of an administrative appeals structure for bidders", said Basescu. Under current Romanian legislation, however, challenging an auction interrupts contract awarding procedures. The new law will allow the contract to be signed once the auction has been officially proven fair, said Basescu. Bidders will then be able to take their challenges to court, but without hindering public works contracted through the auction.

He mentioned the case of a 2006 auction which awarded a highway construction contract, which was contested in court until very recently. The contract will have to be auctioned off again, as the initial bidders have since left the country.

Late April, Romania notified the European Commission that challenges to public procurement auctions will no longer suspend contract awarding procedures under the country's amended public procurement law.

Romania's public procurement watchdog issued a draft ordinance last week which allows public institutions to amend procurement contracts with additional agreements obtained through direct negotiation if the due sum does not exceed 20% of the contract's initial value. Also, bidders contesting public auctions will have to notify the contracting authority that they plan to address the National Auction Settlement Council but the move will no longer halt contract awarding procedures.

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