M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 5 – Public Procurement Bilateral screening: Chapter 5 PRESENTATION OF MONTENEGRO Brussels, 19 November 2012

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 5 – Public Procurement Poglavlje 25 Nauka i istraživanje Bilateral screening: Chapter 5 Presentation of Montenegro Brussels, 19 November 2012 Chapter 5: Public Procurement

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 5: Public Procurement Chapter 5: Public Procurement CONCESSIONS AND PPP Goran Jovetic, M.Sc. Advisor to Deputy Prime Minister Cabinet of Deputy Prime Minister For Economic Policy and Financial System

Relevant Acquis (partially harmonized) Directive 2004/18/EC of the European Parliament and of the Council of 31 March 2004 on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts Declaration by the Representatives of the Governments of the Member States, meeting in the Council, concerning procedures to be followed in the field of public works concessions (OJ C 082, p ) Commission interpretative communication on concessions under Community law (OJ C 121, p. 2-13) Green Paper on Public-Private Partnerships and Community Law on Public Contracts and Concessions ( ) Commission staff working paper - Report on the public consultation on the green paper on Public- Private Partnerships and Community Law on Public Contracts and Concessions (SEC (2005) 629, ) Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on Public-Private Partnerships and Community Law on Public Procurement and Concessions (COM(2005) 569 final, ) European Parliament resolution on public-private partnerships and Community law on public procurement and concessions (2006/2043(INI)) Commission interpretative communication on the application of Community law on Public Procurement and Concessions to Institutionalised Public-Private Partnerships (IPPP) C(2007)6661 Commission staff working paper concerning the application of EU public procurement law to relations between contracting authorities ('public-public cooperation') SEC(2011) 1169 final,

GENERAL OVERVIEW Concessions are being granted since contracts have been concluded. Companies have equal treatment provided for participation in projects. Projects are realized through public tender. PPP is still a novelty, although there are several projects that are implemented using this model. Government of Montenegro strategically has been focused on steadily expanding the application of concession and other PPP models.

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 5: Public Procurement Chapter 5: Public Procurement The Legal framework and compliance Law on Concessions ( “Official Gazette of Montenegro” no 08/09 of 4 February 2009) Concession shall mean the right: - to use the state owned natural wealth, goods in general use and other goods of the general interest; or to perform activities of the public interest, subject to the payment of a concession fee by a concessionaire, or the delivery of a financial compensation or other support to a concessionaire for achieving relevant public interest, - to fund, explore, design, construct or reconstruct, use, maintain, recover or sell structures, facilities or plants owned by a grantor within a contracted period, including also other similar forms thereof. There in no special law for PPP. Definition and procedure for awarding concessions as well as other issues currently are not identical to the Acquis. Are applied to: transport, maritime, tourism, education, mining, forestry and watersupply.

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 5: Public Procurement Chapter 5: Public Procurement Institutional Structure Providers of concessions are competent authorities (governing authority or a local government authority). They implement procedures under the concession through public announcement. The Concession Commission has been established by the Law The institutional framework is subject to revision and changes that will occur in the legal framework. The goal is to provide leadership body for concession and PPP as well as close coordination with other stakeholders in public- private system.

M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Poglavlje 25 Nauka i istraživanje Chapter 5: Public Procurement Chapter 5: Public Procurement Legal protection The bidder has the right to appeal to bid evaluation and ranking of bidders to the Commission for the concession. The Commission is independent in performance of its duties. There have been 12 objections so far. Bidder can initiate administrative dispute against the decisions on granting concessions.

Steps to be taken New law on concessions and PPP is in procedure with a view to adopting the EU acquis. The experiences of EU member states and the acquis are being analyzed and systematized options for legislative structure and the exact contents are being developed. The goal is to achieve one piece of legislation for concessions and PPP. The status of the proposed new directive on concessions is being considered. Communication about manner of dealing with the fact that the directive is in the procedure, is welcome.

Thank you for your attention! QUESTIONS