However nice the new rules for the conduct of public procurement procedures may be, they would still not apply to a large part of the business relationship between the state and private sector. The legislative framework describes 16 cases in which the conduct of public tenders is not mandatory and therefore all information about these transactions, will remain hidden.
These include contracts that all public enterprises and their affiliates conclude for the supply of energy or of fuels for its production, for water supply, as well as those for resale or lease to third parties. Preferences apply to agreements for services, supplies or construction works between state and municipal companies and related businesses, provided that at least 80 percent of the average annual turnover of the latter is achieved by the provision of such activities.
No public procurement will be needed for services that a contracting authority places with an entity in the case of exclusivity to do so – that is: electricity, heating, sewerage and plumbing services and some more. The same goes for utility services provided entirely by local businesses, which form at least 90% of their revenue from this activity.
Outside the scope of the Law on Public Procurement remain also medicinal products, medical devices and dietary foods for special medical purposes, signed by the National Health Insurance Fund under Article 45, paragraph 8 of the Health Insurance Act. The situation is similar also for the provision of a public construction works concession within the meaning of the Law on Concessions, with activities aimed at establishment of forests, felling, timber extraction and use of non-timber forest products under the Forestry Act.
Public procedures will not be conducted during the implementation of an international agreement between Bulgaria and a third country, as concluded in compliance with the provisions of the Treaty on the Functioning of the European Union.
The BANKER
