OREANDA-NEWS. July 24, 2013. The Office of the Federal Antimonopoly Service in the Saratov region (Saratov OFAS Russia) found that the authority of Balakovsky Municipal District, Saratov region and a tender commission violated Article 17 of the Federal Law “On Protection of Competition” in organizing a tender for the right to conclude a concession agreement to design, reconstruct and operate a solid household waste landfill in Balakovsky Municipal District, Saratov region.

Saratov OFAS Russia received a complaint from “Volgamet” Ltd. that authority of Balakovsky Municipal District, Saratov region and the tender commission restricted company’s participation in a tender.

On 19th June 2013 the tender commission did not allow Volgamet” Ltd. to take part in the tender because the company did not comply with the requirements specified in the tender documentation: experience of such concession agreements. Although Volgamet” Ltd. has a considerable experience in constructing solid household waste landfills and other facilities for solid household waste processing, the company did not enter into concession agreements.

The Commission of Saratov OFAS Russia established that the tender documentation had not had the list of the documents that must corroborate experience of such concession agreements and a definition of the concept of “similar”, which would make it impossible to decide whether a bidder met this requirement.

On 8th July 2013, the Commission of Saratov OFAS Russia России found that the authority of Balakovsky Municipal District, Saratov region and a tender commission violated Article 17 of the Federal Law “On Protection of Competition”, and issued a determination to abolish the results of the tender and by 16th July 2013 consider companies’ bids without taking into account the requirement for experience in concession agreements.

Vadim Solovyov, the Head of FAS Department for Control over Housing & Utilities, Construction and Natural Resources commented the decision of Saratov OFAS Russia: “Concession is one of the priority instruments for attracting investments in the regions. Such actions of executive authorities not only restrict competition but also discredit the fundamental principles of concession agreements, which is absolutely unacceptable”.

Reference:

Concession, concession agreement - a form of state-private partnership, involving private sector in efficient state property management or rendering services, typically provided by the state, at mutually beneficial conditions.