OREANDA-NEWS. June 21, 2012. The Federal Antimonopoly Service (FAS Russia) found that the State Committee of the Republic of Karelia on Property Management and State Procurement violated Part 1 Article 17 of the Federal Law “On Protection of Competition”, reported the press-centre of FAS Russia.

In October 2011, the Committee organized an open tender for leasing state-owned heating energy facilities of the Republic of Karelia in Olonets, Pitkyarant, Sortavala and Lakhdenpokh municipal districts for the purposes of their operating and reconstructing and constructing new heating energy facilities.

Tender conditions specified that potential lease takers would have to invest in heating energy facilities.

Investigating the case, the FAS Commission found that later on investments in design and construction of heating energy facilities must be compensated out of the of the budget of the Republic of Karelia. However, the Committee did not include this information in the Tender conditions.

The FAS Commission concluded that failure to include information about compensating the investments in the Tender conditions could have resulted in restricting the number of potential Tender bidders.

Reference:

Part 1 Article 17 of the Federal Law “On Protection of Competition” prohibits actions in course of tenders that lead or can lead to preventing, restricting or eliminating competition.