site.btaParliament Adopts Concessions Bill on First Reading

Parliament Adopts Concessions Bill on First Reading

Sofia, July 8 (BTA) - Parliament adopted on first reading Friday a Concessions Bill with 75 votes in favour, 38 against and 27 abstentions.

BSP - Left Bulgaria, the Patriotic Front, ABV and Ataka voiced reservations about the new Bill, stating that they would not support it. The opposition argued against the Bill's adoption by claiming that it was written by a law firm, likely on someone's orders, and that it poses a significant risk of having "eternal concessions".

The Bill proposes two main forms of concessions, the first being a public-private partnership, in which the public partner (the public body) awards construction or services to an economic operator; and the second being concessions for the use of sites owned by the State and municipalities.

The scope of concessions is broadened in a way that construction concessions include the so called non-self-funded concessions and non-self-funded contracts, which are currently regulated by the Public-private Partnership Act. These concessions do not require consumers to make direct payments to the concessionaire, which is why the public partner makes payments to the concessionaire.

The Bill introduces the concept of a European threshold. This sum is defined by the EC and currently stands at 5,220,000 euro. The construction and services concessions which exceed this threshold are defined as concessions of cross-border interest. Those under the threshold are defined as concessions of no cross-border interest.

The Bill provides for ministers and municipal mayors to award concessions, while the Council of Ministers and municipal councils retain their powers to approve predefined decisions.

The National Concession Register's publicity is broadened by including in it data about each procedure in addition to the data about the concluded concession agreements.

Parliament's approval will be required when the maximum deadline defined by the concession grantor exceeds 50 years. Regarding municipal concessions, approval will be needed by 2/3 of the municipal councilors when the maximum deadline exceeds 25 years and by Parliament and the municipal council when it goes beyond 50 years.

Yanaki Stoilov of BSP-Left Bulgaria said that the Bill allows for indefinite concessions.

"Ask the lawyer firm to give you back your money, which you gave them to write this Bill," Ataka leader Volen Siderov said. According to him, the Bill is not only imperfect, but also harmful to Bulgaria. "They are offering us to have what is left of Bulgaria distributed in the form of concessions," he commented.

"In which European country does the Government award a concession on the drafting of legislation?" BSP-Left Bulgaria MP Roumen Gechev asked. "You have awarded on concession the Concessions Bill," he said, adding that there is a huge conflict of interest and the conditions for corruption have been set. Gechev noted that the Union of Economists and Parliament's economic policy and energy committees have issued statements against the Bill. The American Chamber in Sofia is also against it, he added.

Deputy Prime Minister in charge of EU funds and economic policy Tomislav Donchev said that there are other examples of legislation which is not drafted by experts in the State administration. Adding outside experts to those in the State administration is a good practice. A bad practice is when Bulgarian laws are written by other countries, he told the opposition in Parliament, refusing to clarify what exactly he meant.

The Bill does not provide new possibilities for awarding concessions, compared to the old legislation, Donchev said. Regarding the deadlines, he noted that there are backup mechanisms and the deadlines will not be abused. Donchev explained that the concession's deadline is a criterion for awarding. He claims that those offering the shortest deadlines will win it. The Deputy PM said that the Bill opens new opportunities for public-private partnership and could lead to new investments, especially in public infrastructure, which the State can not provide.

Danail Kirilov of GERB explained that the public partner will be able to block all decisions. The Bill is drafted in compliance with EU directives, he said.

The proposed Bill would repeal the Concessions Act and the Public-private Partnership Act.