site.btaParliament Passes Concessions Act on First Reading

125 POLITICS - CONCESSIONS ACT - FIRST READING

Parliament Passes
Concessions Act
on First Reading


Sofia, June 8 (BTA) - Bulgaria's Parliament Thursday passed on first reading a Concessions Bill moved by GERB MPs. The vote was 124 in favour (GERB, United Patriots, Movement for Rights and Freedoms (MRF) and 1 Volya MP) and 68 against (BSP for Bulgaria and the rest of Volya).

The Left demanded the longest possible time of three weeks before the draft legislation comes up for a second reading, and GERB seconded the motion. Reacting to apprehensions voiced by the opposition that the law may be vetoed, GERB invited the President's legal experts to share in all forms of discussions of the provisions between the two readings.

The bill, which transposes the requirements of Directive 2014/23/EU on the award of concession contracts, lays down two principal forms of concession: public-private partnership and use concession. Three types of award procedures are proposed: open procedure, competitive procedure with negotiation, and competitive dialogue. The Concessions Directive sets a threshold of 5,225,000 euro, above which the concessions are defined as concessions with a cross-border interest.

Under the draft Act, concessions are to be awarded by government ministers and municipality mayors. As before, the Council of Ministers and the municipal councils will be empowered to approve in advance definite awards.

In order to safeguard the public interest, the National Assembly will have a say on a concession awarded for a maximum period of 35 years or more. Municipal concessions of 20 years or more will have to be approved by a two-thirds majority of the total number of municipal councillors, and concessions of 35 years or more will require a resolution of the municipal council and of the National Assembly.

Atanas Kostadinov MP of BSP for Bulgaria accused the powerholders of making possible "perpetual concessions". "The proposed law does not target transparency and publicity but lobbyism and corporate interests," he argued.

Kroum Zarkov of the same parliamentary group said that the bill is being rushed because Bulgaria is more than a year late in transposing the Directive and risks a case at the Luxembourg Court. He noted that the maximum period of concessions so far has been 35 years, whereas the bill does not set any limit and the safeguards are inadequate. "The practice of doing something bad because Brussels wants it fuels Euro-scepticism," the Left MP insisted.

Danail Kirilov MP of GERB (who is among the sponsors of the bill) responded that the threshold so far has been 35 years, extendable by one-third, i.e. 50 years in aggregate. He noted that the bill provides for a limited period at the start of the procedure.

Plamen Hristov MP of Volya commented that the President will probably veto the law, which will necessitate an extension of the June 15 deadline for adoption of the law, which the Legal Affairs committee has envisaged.

Hristian Mitev MP of the United Patriots said that his parliamentary group will back the bill moved by GERB MPs.

Dora Yankova MP of BSP for Bulgaria commented that the two partners in the public-private partnership are not placed on an equal footing in the bill and that the private interest preponderates. "Part of the surrender of State sovereignty is giving away the national asset to be managed for peanuts," she argued.

Alexander Nenkov MP of GERB pointed out that no private operator in any infrastructure construction concession awarded so far has assumed the risk, which means that the existing legislation is not flexible enough.

"We agree that a new approach to concession awards is needed in order to protect the public interest," Ahmed Ahmedov MP of the MRF said. Among the weaknesses of the bill, he noted an infringement of the rights of municipalities because of the reduced percentage of the concession payment that municipalities can get from the State for a concession for State-owned water in their territory.

During the debate, GERB mentioned as a bad example the failed concession for the Trakia Motorway and the concession for Varna and Bourgas airports. In response, BSP for Bulgaria asked whether the majority would agree to a parliamentary review of all concessions. LI/LG//