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Below is a cache of http://www.urban.org/PDF/rom_concession.pdf. It's a snapshot of the page taken as our search engine crawled the Web.
The web site itself may have changed. You can check the current page or check for previous versions at the Internet Archive. Yahoo! is not affiliated with the authors of this page or responsible for its content. LAWS AND DECREES THE PARLIAMENT OF ROMANIA LAWS AND DECREES THE PARLIAMENT OF ROMANIA The Chamber of Deputies The Senate THE LAW ON CONCESSION CHAPTER I General provisions Article 1 1) This laws establishes the regulations and operation of concession for: the assets that are public
or private property of the state, county, town or village; public activities and services of
national or local interest. 2) Concession is based on a contract under which a person, called concedant transfers to another
person called concessionaire, the right and obligation to use an asset, a public activity or
service, for a definite period of time, of 49 years at the most, in return for an amount of money
called rent. Article 2 (1) Publicly owned assets are inalienable. Under the law, they can be given to the administration of
the regie autonoms or public institutions or given for concession or rented.
(2) Subject to concession are the public assets, activities or services in the following domains:
public transportation; highways, bridges and road passages for which a toll is paid; the
infrastructure of roads, railway, harbor and civil airports; building of new hydro-power stations
and operating them and the old ones; mail services; the range of frequencies, transportation and
distribution networks for telecommunications; economic activities related to natural and artificial
water streams, water management, the hydrological, meteorological, water quality and piscatorial
rehabilitation measurement stations and equipment; public property lands, beaches, docks and free
zones; transportation and distribution networks for electric and thermal power; transportation by
pipes and distribution of oil and gas; transportation and distribution networks for drinking water;
exploitation of mineral oil, solid and fluid substances; exploitation of thermal sources; natural resources of the economic maritime zone and of the off-shore shelf; sports bases,
entertainment places, professional performing institutions; health-care-sanitary units, their
laboratories and related medical services; economic activities related to monuments and
historical sites; collection, storage and use of waste; any other assets, public activities or services that are not forbidden under special organic laws; (3) Public activities or services for which there are no
regulatory authorities to approve prices or tariffs used by the concessionaires; Article 3 The government, county or local councils can approve by decision the concession of assets,
activities or services belonging to the private property of the state, that are not included in art.2. Article 4 1) The rent obtained from the concession is revenue either to the state or the local budgets. 2) The calculation and payment of the rent is determined by the respective ministries or by the
local public administration authorities. Article 5 1) The following entities can be concedants on behalf of the state, county, town or village:
ministries or other special bodies of the central public administration, for the assets that are
public or state property of the state or for the public activities and services of a national
interest; county councils, local councils or public institutions of a local interest, for the assets
in the public or private property of the county, town or village or for the public activities and
services of a local interest. 2) A concessionaire is any physical or private legal person, Romanian or foreign. CHAPTER II Initiation of a concession Article 6 The initiative of a concession belongs either to the concedants or any investor that has an interest
in it. Article 7 The initiation of a concession is based on a opportunity study previously carried out by the
concedant, including the following elements: description of the asset, public activity or service that
is subject to concession; reasons of an economic, financial, social and environment nature
justifying the concession; necessary investments for modernization and extension; the minimum
level of the rent; type of concession envisaged; if it s a public bidding with pre-selection or direct
negotiation, either should be motivated; estimated period of concession; predictable terms for the
concession procedure; the approval of the Central State Office for Special Issues and of the
General Headquarters regarding the incorporation of the object of concession in the national
defense infrastructure, according to the case. Article 8 Concession of assets in the public or private property of the state, of some public activities and
services is approved on the basis of the specifications for the concession, under a decision of the
Government, county, town or village council . Article 9 (1) When the concession proposal, formulated by an investor, is received, the concedant shall draw
up the opportunity study in 30 days, in case the parties do not agree on another deadline regarding the concession.
2) In case the concedant and the concessionaire agree that the opportunity study should be drawn
up by an independent consulting company, the cost of this study is to be paid by the
concessionaire. CHAPTER III Concession procedures Article 10 Concession of an asset, a public activity or service is made by public bidding or direct negotiation,
according to the provisions of the current law. Section 1 Concession by public bidding Article 11 1) Public bidding can be open or open with pre-selection. 2) Open public bidding is where any physical or private legal person, Romanian or foreign, can
bid. 3) Open public bidding with pre-selection is where physical or private legal persons, Romanian
or foreign, have a right to bid and the concedant select the bidders according to previously
established criteria. Article 12 1) In case of a public bid the concedant has the obligation to draw up the specifications for the
concession and the regulations for the holding and organization of the concession. 2) The specifications will include the terms of the concession, the investments due to be made by
the concessionaire, the financial and insurance terms, the condition of the assets to be used by
the concessionaire and the obligations incumbent on the latter regarding environment
protection. 3) The substance of the frame-document described at paragraph (1) will be subject to some
methodological norms to be approved by Government. The concession procedure by public bid Article 13 In case of an open public bid procedure, the concedant shall publish the announcement for the open
public bid in the Official Gazette of Romania, part IV, in a daily of national circulation and in one of
local circulation . This announcement shall include:
the name and head office of the concedant;the object and duration of the concession; the place where
the documents described at art.12, paragraph (1) can be examined; the papers confirming the quality
and capabilities of the bidders; the date and place where bids are received; the period of time during which the bidders remain committed to the conditions of their bid; the date, time and place for the
opening of the bids; Article 14 The deadline for the reception of bids shall not be less than 20 calendar days and more than 60
calendar days, starting with the date when the announcement of the open public bid is published. Article 15 1) The bidders convey their bids in two sealed envelops that will be registered, as they are
received, in a special registry, kept by the concedant at the head office. 2) The first envelop shall indicate the open public auction for which the bid is made. This
exterior envelop shall include: clear information, without any modifications, on the bidder and
a declaration of participation, signed by the bidder. Documents attesting the quality and
capabilities of the bidder, according to the requirements of the concedant, as well as the
guarantee of participation in the open public bid. 3) The inside envelop shall include the name of the bidder and the address or head office,
according to the case. This envelop shall include the bid proper. 4) The sealed envelops shall be submitted to the assessment commission on the 5) date established for opening. Article 16 1) The assessment commission shall include: in case the concedant is one of the ministries
described at art.5, paragraph(1), letter a), the representatives of these ministries and of the
Ministry of Finance, appointed for this purpose; in case the concedant is a special body
described art.5, paragraph (1), letter a), the representatives of this body and of the Ministry of
Finance, appointed for this purpose. In case the concedant is one of the county councils or
local councils described at art.5, paragraph(1), letter(b), the representatives of the county or
local councils and of the general directorates of public finance and state financial control in
counties or the Bucharest Municipality, appointed for this purpose. In case the concedant is
one of the institutions described art.5, paragraph (1), letter b), the representatives of the
respective public institutions and of the general directorates of public finance and state
financial control in counties or in the Bucharest Municipality, appointed for this purpose. 2) In case the asset, public activity or service subject to concession triggers off the 3) environment procedures, according to the legislation in force, the assessment commission shall
include also a representative of the competent authority for environment protection. 4) The membership of the assessment commission is established by decision of the 5) concedant. However, the concedant designates the chairman of the commission that, in his
turn, designates the commission secretary, mandated to draw up the minutes. 6) The chairman of the assessment commission can invite personalities known for 7) their expertise and competence in the matter that is subject to the open public bid to attend the
assessment sessions. These personalities benefit from consultative voting. Article 17 1) The session for opening the bids is public. 2) After the exterior envelops are open, the assessment commission eliminates the bids that do
not include all the required documents and data, according to art.15 or the regulations
regarding the organization and development of the concession procedure and draws up the
minutes. 3) The opening of the inner envelops of the retained bids is made only after the minutes are signed by the members of the assessment commission and by the bidders. Article 18 1) The assessment commission examines the bids in the inside envelops and can, when it
considers it necessary, ask the bidder for more clarifications on the substance of their bid. 2) The assessment commission picks up the bid they consider the best according to the selection
criteria included in the regulations on the organization and development of the concession
procedure. These criteria have in view economic efficiency, the amount of projected
investments, the price of services, the cost for using them, their technical value, ways of
resolving the obligations regarding environment protection and of social issues, professional
and financial guarantees proposed by every bidder and the deadlines for the investment
projects. Article 19 1) On the basis of the bids, the assessment commission draws up a report including the
description of the concession procedure and assessment operations, the basic elements of the
submitted bids and the reasons why the winner of the bid was chosen or, in case no bidder
won, the justification of the rejection. 2) In case the open public bid failed to establish a winner, this situation shall be described in the
minutes and in 45 days another bidding shall be organized. 3) If not even the second bidding is won, this situation shall be described in a minutes underlying
the decision to resort to direct negotiation. 4) The terms of the concession by direct negotiation should not be inferior to the best bid rejected
at the open public bid. Article 20 1) The report drawn up by the assessment commission and the bids presented are immediately
conveyed to the concedant. 2) After the assessment commission report is received, the concedant shall inform, within 5 days,
the winner of the bid on the choice the commission has made and the other bidders about the
rejection of their bids. If the rejected bidders demand clarifications, within 10 calendar days of
the notification of the rejection of their bid, the concedant shall convey a copy of the minutes
regarding the assessment of the bids. Article 21 1) The bidders can lodge a complaint on how the concession procedure by open public bidding
was made. 2) The deadline for the notification and lodging of complaints, the competent authorities able to
solve them and the working procedure are established by methodological norms on the
organization and development of the concession procedure. The concession procedure by open public bidding with pre-selection Article 22 1) In the case of an open public bidding with pre-selection, the concedant has the duty to draw up
an announcement for receiving the candidacies and shall mention: the object of the concession;
the objectives proposed by the concedant; the documents certifying the quality and capabilities
required from the candidates; the deadline for receiving the candidacies; the selection criteria for
the candidates; 2) The announcement for the reception of candidacies is published in the same 3) conditions as described at art.13 and the deadline for the reception is the same as mentioned at
art.14. Article 23 1) Candidacies are conveyed in sealed envelops to the assessment commission , set up according
to article 16. 2) The assessment commission analyzes the presented documents and draws up a list of
candidates admitted to the presentation of an offer/bid, taking into account the selection
criteria mentioned in the announcement for the candidacies. Article 24 The concedant shall notify, within 5 days, the rejected candidates about not being accepted. If the
rejected candidates demand it the concedant shall send a copy of the minutes, within 10 days of the
reception of the notification of rejection. Article 25 1) The concedant informs the candidates whose offers have been selected about the time and
place where they can look into the file with the presentation of the concession. 2) Starting with the date established according to the criteria provided under paragraph (1), the
candidates have to meet a deadline which cannot be shorter than 20 calender days and cannot
be longer than 60 calender days, in order to submit their offers. 3) After the offers are submitted the open public tendering, with a pre-selection process, shall
pursue according to the provisions under art.15 and of art.17-21. Section 2 Concessions through direct negotiation Article 26 1) The procedure of direct negotiation applies exclusively in cases in which the public tendering
has not led to the selection of a winning tenderer. 2) As a result of direct negotiations the concessioner makes the concession to the natural or
corporate body of a Romanian or foreign origin that he or she will choose. Article 27 1) The concessioner must make public his or her intention of resorting to the procedure of direct
negotiation in the Official Gazette of Romania, Part IV, in a daily national newspaper, and in a
local newspaper. 2) The announcement, published according to the provisions under paragraph (1), must include
the following information:
a) the name and the headquarters of the concessioner b) the object of concession c) the way in which the concessioner organizes the development of negotiations. CHAPTER IV Provisions regarding the concession contract Article 28 1) The concession contract ends within 30 days since the date on which the concessioner informs
the tenderer on the acceptance of the offer, if the tendering documents do not otherwise
provide. 2) The non-observance of the deadline provided under paragraph (1) may bring about the
payment of indemnification by the culprit. 3) The refusal of the winning tenderer to conclude the concession contract leads to the loss of the
guarantee fund deposited for participation and, when appropriate, the payment of
indemnification. 4) The concession contract will include the clauses provided in the tendering documents and the
clauses agreed by the contracting parties, in addition to the clauses in the tendering documents,
without comint in conflict with the objectives of the concession provided in the tendering
documents. 5) Upon the conclusion of the concession contract the parts will agree on the cases when the
contract terminates. The parts will be able to include in the contract specific clauses referring
to the unilateral termination or to the compensation. 6) In all the cases the concession contract will mention that the beneficiary of the concession is
forbidden to under-concession to a third party the object of concession, totally or partly. 7) The concession contract will also include clauses referring to the distribution of environment
responsibilities among the concessioner and the beneficiary of the concession. Article 29 1) At the end of the concession term the beneficiary of the concession is obliged to return, under
full ownership, free from any condition, the concessioned good, including the investments
made. 2) The concession contract must specify distinctly the categories of goods which will be used by
the beneficiary of the concession during the concession period, as follows:
a) the return goods which by full right, free of charge and of any condition come under the
ownership of the concessioner upon the expiration of the concession contract: The return
goods are the goods that were the object of concession, as well as the goods that resulted
from the investments enforced through the tendering documents. b) the take over goods which, upon the expiration of the concession contract may come under the property of the concessioner, to the extent to which the latter expresses its intention to
take over the respective goods in exchange of a compensation equal to the accounting
updated value, according to the provisions in the tendering documents. The take over
goods are the goods that belonged to the beneficiary of the contract and that were used by
the latter during the concession period. c) the own goods which, upon the expiration of the concession contract remain under the
ownership of the beneficiary of the concession. The own goods are the goods which
belonged to the beneficiary of the concession and which were used by the latter during the
concession, with the exception of the ones provided under letter b). 3) The concession contract will specify the distribution of these goods upon the termination of
the concession, irrespective of the cause. Article 30 1) The concession contract will be concluded according to the Romanian law, irrespective of the
nationality or the citizenship of the beneficiary of the concession, for a duration which cannot
be longer than 49 years, starting with the date on which the contract was signed. The duration
of the concession is established in relation with the period for the amortization of the
investments which are to be made by the beneficiary of the contract. 2) For the settlement of potential conflicts, the parts may stipulate in the contract the compromise
clause 3) The concession contract may be extended for a period which is equivalent to at most one half
of its initial duration, by simple willing agreement among the parts. Article 31 1) The concessioner may modify unilaterally the regulating part in the concession contract for
exceptional reasons connected to the national or local interest. 2) In case the unilateral modification of the contract brings about any damage, the beneficiary of
the concession has the right to receive an adequate, efficient, and prompt compensation. In
case there is disagreement among the concessioner and the beneficiary of the concession
regarding the compensated amount, the latter shall be established in Court. Such a
disagreement shall not, under any circumstances, exempt the beneficiary of the contract from
the fulfilment of its contracting obligations. Article 32 The contracting relations among the beneficiary of the concession and the concessioner are based
on the principle of the financial balance of the concession, and on the idea of securing a balance
between the advantages granted to the beneficiary of the concession and its responsibilities.
Consequently, the beneficiary of the contract is not obliged to accept an increase in the
responsibilities connected to the fulfilment of its obligations in case such an increase results from
one of the following: a) an activity or a measure ordered by some public authority b) a case of force majeure. Article 33 1) The beneficiary of the concession fulfils its obligations according to the deadlines and the
conditions provided in the concession contract and in agreement with the legal norms specific
to the respective activity, drawn up by the mandated institutions. 2) The concessioner has the right to check, during the period covered by the concession contract,
the way in which the conditions and the clauses in the contract are met by the beneficiary of the contract. Article 34 1) Within 90 days since the date on which the concession contract was signed, the beneficiary of
the contract shall deposit, as a guarantee fund, a fixed amount representing a share of the
amount due to the concessioner, and established by the latter for the first year of activity. If
necessary, this amount will be used for penalties and for paying the amounts due by the
beneficiary of the concession to the concessioner, according to the concession contract. 2) The beneficiary of the concession may also set up credit bills as a guarantee, for which a
deposit will be made, with the agreement of the concessioner. A similar guarantee fund will be
set up for the fulfilment of the obligations regarding environment protection which might
come up during the concession period. Article 35 The concession contract may be terminated under the following circumstances: a) at the end of the duration established in the concession contract b) in case the national or local interest requires it, with the unilateral denunciation by the
concessioner, upon the payment of a right and previous indemnification to the
concessioner c) in case the obligations specified in the contract are not fulfilled by the beneficiary of the
concession d) in case the obligations specified in the contract are not fulfilled by the concessioner,
through the unilateral cancellation by the beneficiary of the concession, with the payment
of indemnities to the concessioner. e) upon the disappearance, in case of force majeure, of the concessioned good or, in case the
beneficiary on the concession is under an objective impossibility of exploiting it, by giving
it up, without any payment of indemnities. CHAPTER V Provisions on exercising control rights Article 36 The specialized Ministries and the Ministry of Finance have control obligations on concessions
bearing a national interest, and the Tax Administration Offices have control rights on local interest
concessions, with a view to observing the provisions on: a) the concession decision b) publicity c) the substance of the documentation mentioned under art.12 paragraph (1); d) the membership and the work style of the tendering evaluation Commission e) the deadlines provided in the current law f) the information of the bodies interested in the award or termination of the concession g) the fulfillment of the contract obligations by the concessioner or by the beneficiary of the
concession CHAPTER VI Sanctions Article 37 The non observance by the contract parties of the obligation included in the concession contract
brings about a contract responsibility of the culprit. Article 38 1) The following deeds, unless they were made under such circumstances as to be considered
offences, according to the Penal Law, are considered to be infringements:
a) the non-observance of the provisions on publicity, as provided under art.13, art.22,
paragraph (2) and art.27 paragraph (1) b) the non observance of the deadlines specified under art.9, art. 14, art.20, paragraph (2),
art.24, art.25, paragraph (2), art.34 paragraph (1), and art.39; c) the substitution by the members of the evaluation commission, as well as by the employees
of the concessioner of the documents in the initial offers, with different documents; d) the disclosure of any information which is not for publicity, by the employees of the
concessioner, and by any person involved in starting a concession 2) The offences provided under paragraph (1) shall be sanctioned as follows:
a) those under letter a), with a fine between 5,000000 lei to 25,000000 lei b) those under letter b) with a fine between 2,000000 lei to 10,000000 lei c) those under letter c) and d), with a fine between 10,000000 to 50,000000 lei. 3) the total amount of fines can be increased depending on the inflation rate, by a Government
Decision. 4) The fines provided as sanctions for the commitment of the infringements mentioned under
paragraph (1) can be applied both to natural persons and to corporate bodies 5) The acknowledgment of the infringements specified in the provisions of this law shall be the
job of certain persons specifically assigned this task by the specialized Ministries. 6) The provisions of Law no.32/1968 on the establishment and sanctioning of infringements shall
also apply to the infringements provided in this law. CHAPTER VII Final Provisions Article 39 The concession contracts on land of any nature shall be registered by the beneficiary of the
concession in the fixed assets register, within 30 calender days since the day of their conclusion. Article 40 1) The goods under public or private property of the state, county, the city, the town or the
commune, as well as the public activities and services of a local or national interest shall be
directly assigned, through a concession contract, to commercial companies, or to national
companies, set up as a result of the reorganization of regies autonomes which used to
administer these goods, activities, or services. The concession contract is concluded with the competent concessioner for a duration which is established by the Government, or county, or
local decision on the setting up of the respective commercial company. 2) The concession contracts concluded by the date when this law comes into force shall continue
to be valid. 3) In case national companies or commercial companies set up as a result of the reorganization of
regies autonomes which had to conclude a concession contract under the provisions of
paragraph (1) are privatized, the concessioner may ask for a renegotiation of the latter. Article 41 Within 60 days since the publication of this law in the Official Gazette of Romania, the Reform
Council shall draw and submit for approval to the Government framework methodological norms
for the application of this law. Article 42 1) This law comes into force within 60 days since its publication in the Official Gazette of
Romania 2) On the same date the following shall be abrogated:
a) art.25-29 in Law no.15/ 1990 on the reorganization of state owned economic units as
regies autonomes and as commercial companies, published in the Official Gazette of
Romania, Part I, no.98, dated August, 8, with the subsequent amendments and
completions : b) art.1-17, art 25 and annexes no.1-5 in the Government Decision no.1228/1990 on the
abrogation of the methodology of concessions, rents and leases, published in the Official
Gazette of Romania, Part I, no.140, dated December 12, 1990. with subsequent
amendments and completions. This law was adopted by the Chamber of Deputies and by the Senate in the joint meeting on
October, 28, 1998, by observing the provisions of art.74, paragraph (1), and of art.76,
paragraph (2) in the Romanian Constitution.
The web site itself may have changed. You can check the current page or check for previous versions at the Internet Archive. Yahoo! is not affiliated with the authors of this page or responsible for its content. LAWS AND DECREES THE PARLIAMENT OF ROMANIA LAWS AND DECREES THE PARLIAMENT OF ROMANIA The Chamber of Deputies The Senate THE LAW ON CONCESSION CHAPTER I General provisions Article 1 1) This laws establishes the regulations and operation of concession for: the assets that are public
or private property of the state, county, town or village; public activities and services of
national or local interest. 2) Concession is based on a contract under which a person, called concedant transfers to another
person called concessionaire, the right and obligation to use an asset, a public activity or
service, for a definite period of time, of 49 years at the most, in return for an amount of money
called rent. Article 2 (1) Publicly owned assets are inalienable. Under the law, they can be given to the administration of
the regie autonoms or public institutions or given for concession or rented.
(2) Subject to concession are the public assets, activities or services in the following domains:
public transportation; highways, bridges and road passages for which a toll is paid; the
infrastructure of roads, railway, harbor and civil airports; building of new hydro-power stations
and operating them and the old ones; mail services; the range of frequencies, transportation and
distribution networks for telecommunications; economic activities related to natural and artificial
water streams, water management, the hydrological, meteorological, water quality and piscatorial
rehabilitation measurement stations and equipment; public property lands, beaches, docks and free
zones; transportation and distribution networks for electric and thermal power; transportation by
pipes and distribution of oil and gas; transportation and distribution networks for drinking water;
exploitation of mineral oil, solid and fluid substances; exploitation of thermal sources; natural resources of the economic maritime zone and of the off-shore shelf; sports bases,
entertainment places, professional performing institutions; health-care-sanitary units, their
laboratories and related medical services; economic activities related to monuments and
historical sites; collection, storage and use of waste; any other assets, public activities or services that are not forbidden under special organic laws; (3) Public activities or services for which there are no
regulatory authorities to approve prices or tariffs used by the concessionaires; Article 3 The government, county or local councils can approve by decision the concession of assets,
activities or services belonging to the private property of the state, that are not included in art.2. Article 4 1) The rent obtained from the concession is revenue either to the state or the local budgets. 2) The calculation and payment of the rent is determined by the respective ministries or by the
local public administration authorities. Article 5 1) The following entities can be concedants on behalf of the state, county, town or village:
ministries or other special bodies of the central public administration, for the assets that are
public or state property of the state or for the public activities and services of a national
interest; county councils, local councils or public institutions of a local interest, for the assets
in the public or private property of the county, town or village or for the public activities and
services of a local interest. 2) A concessionaire is any physical or private legal person, Romanian or foreign. CHAPTER II Initiation of a concession Article 6 The initiative of a concession belongs either to the concedants or any investor that has an interest
in it. Article 7 The initiation of a concession is based on a opportunity study previously carried out by the
concedant, including the following elements: description of the asset, public activity or service that
is subject to concession; reasons of an economic, financial, social and environment nature
justifying the concession; necessary investments for modernization and extension; the minimum
level of the rent; type of concession envisaged; if it s a public bidding with pre-selection or direct
negotiation, either should be motivated; estimated period of concession; predictable terms for the
concession procedure; the approval of the Central State Office for Special Issues and of the
General Headquarters regarding the incorporation of the object of concession in the national
defense infrastructure, according to the case. Article 8 Concession of assets in the public or private property of the state, of some public activities and
services is approved on the basis of the specifications for the concession, under a decision of the
Government, county, town or village council . Article 9 (1) When the concession proposal, formulated by an investor, is received, the concedant shall draw
up the opportunity study in 30 days, in case the parties do not agree on another deadline regarding the concession.
2) In case the concedant and the concessionaire agree that the opportunity study should be drawn
up by an independent consulting company, the cost of this study is to be paid by the
concessionaire. CHAPTER III Concession procedures Article 10 Concession of an asset, a public activity or service is made by public bidding or direct negotiation,
according to the provisions of the current law. Section 1 Concession by public bidding Article 11 1) Public bidding can be open or open with pre-selection. 2) Open public bidding is where any physical or private legal person, Romanian or foreign, can
bid. 3) Open public bidding with pre-selection is where physical or private legal persons, Romanian
or foreign, have a right to bid and the concedant select the bidders according to previously
established criteria. Article 12 1) In case of a public bid the concedant has the obligation to draw up the specifications for the
concession and the regulations for the holding and organization of the concession. 2) The specifications will include the terms of the concession, the investments due to be made by
the concessionaire, the financial and insurance terms, the condition of the assets to be used by
the concessionaire and the obligations incumbent on the latter regarding environment
protection. 3) The substance of the frame-document described at paragraph (1) will be subject to some
methodological norms to be approved by Government. The concession procedure by public bid Article 13 In case of an open public bid procedure, the concedant shall publish the announcement for the open
public bid in the Official Gazette of Romania, part IV, in a daily of national circulation and in one of
local circulation . This announcement shall include:
the name and head office of the concedant;the object and duration of the concession; the place where
the documents described at art.12, paragraph (1) can be examined; the papers confirming the quality
and capabilities of the bidders; the date and place where bids are received; the period of time during which the bidders remain committed to the conditions of their bid; the date, time and place for the
opening of the bids; Article 14 The deadline for the reception of bids shall not be less than 20 calendar days and more than 60
calendar days, starting with the date when the announcement of the open public bid is published. Article 15 1) The bidders convey their bids in two sealed envelops that will be registered, as they are
received, in a special registry, kept by the concedant at the head office. 2) The first envelop shall indicate the open public auction for which the bid is made. This
exterior envelop shall include: clear information, without any modifications, on the bidder and
a declaration of participation, signed by the bidder. Documents attesting the quality and
capabilities of the bidder, according to the requirements of the concedant, as well as the
guarantee of participation in the open public bid. 3) The inside envelop shall include the name of the bidder and the address or head office,
according to the case. This envelop shall include the bid proper. 4) The sealed envelops shall be submitted to the assessment commission on the 5) date established for opening. Article 16 1) The assessment commission shall include: in case the concedant is one of the ministries
described at art.5, paragraph(1), letter a), the representatives of these ministries and of the
Ministry of Finance, appointed for this purpose; in case the concedant is a special body
described art.5, paragraph (1), letter a), the representatives of this body and of the Ministry of
Finance, appointed for this purpose. In case the concedant is one of the county councils or
local councils described at art.5, paragraph(1), letter(b), the representatives of the county or
local councils and of the general directorates of public finance and state financial control in
counties or the Bucharest Municipality, appointed for this purpose. In case the concedant is
one of the institutions described art.5, paragraph (1), letter b), the representatives of the
respective public institutions and of the general directorates of public finance and state
financial control in counties or in the Bucharest Municipality, appointed for this purpose. 2) In case the asset, public activity or service subject to concession triggers off the 3) environment procedures, according to the legislation in force, the assessment commission shall
include also a representative of the competent authority for environment protection. 4) The membership of the assessment commission is established by decision of the 5) concedant. However, the concedant designates the chairman of the commission that, in his
turn, designates the commission secretary, mandated to draw up the minutes. 6) The chairman of the assessment commission can invite personalities known for 7) their expertise and competence in the matter that is subject to the open public bid to attend the
assessment sessions. These personalities benefit from consultative voting. Article 17 1) The session for opening the bids is public. 2) After the exterior envelops are open, the assessment commission eliminates the bids that do
not include all the required documents and data, according to art.15 or the regulations
regarding the organization and development of the concession procedure and draws up the
minutes. 3) The opening of the inner envelops of the retained bids is made only after the minutes are signed by the members of the assessment commission and by the bidders. Article 18 1) The assessment commission examines the bids in the inside envelops and can, when it
considers it necessary, ask the bidder for more clarifications on the substance of their bid. 2) The assessment commission picks up the bid they consider the best according to the selection
criteria included in the regulations on the organization and development of the concession
procedure. These criteria have in view economic efficiency, the amount of projected
investments, the price of services, the cost for using them, their technical value, ways of
resolving the obligations regarding environment protection and of social issues, professional
and financial guarantees proposed by every bidder and the deadlines for the investment
projects. Article 19 1) On the basis of the bids, the assessment commission draws up a report including the
description of the concession procedure and assessment operations, the basic elements of the
submitted bids and the reasons why the winner of the bid was chosen or, in case no bidder
won, the justification of the rejection. 2) In case the open public bid failed to establish a winner, this situation shall be described in the
minutes and in 45 days another bidding shall be organized. 3) If not even the second bidding is won, this situation shall be described in a minutes underlying
the decision to resort to direct negotiation. 4) The terms of the concession by direct negotiation should not be inferior to the best bid rejected
at the open public bid. Article 20 1) The report drawn up by the assessment commission and the bids presented are immediately
conveyed to the concedant. 2) After the assessment commission report is received, the concedant shall inform, within 5 days,
the winner of the bid on the choice the commission has made and the other bidders about the
rejection of their bids. If the rejected bidders demand clarifications, within 10 calendar days of
the notification of the rejection of their bid, the concedant shall convey a copy of the minutes
regarding the assessment of the bids. Article 21 1) The bidders can lodge a complaint on how the concession procedure by open public bidding
was made. 2) The deadline for the notification and lodging of complaints, the competent authorities able to
solve them and the working procedure are established by methodological norms on the
organization and development of the concession procedure. The concession procedure by open public bidding with pre-selection Article 22 1) In the case of an open public bidding with pre-selection, the concedant has the duty to draw up
an announcement for receiving the candidacies and shall mention: the object of the concession;
the objectives proposed by the concedant; the documents certifying the quality and capabilities
required from the candidates; the deadline for receiving the candidacies; the selection criteria for
the candidates; 2) The announcement for the reception of candidacies is published in the same 3) conditions as described at art.13 and the deadline for the reception is the same as mentioned at
art.14. Article 23 1) Candidacies are conveyed in sealed envelops to the assessment commission , set up according
to article 16. 2) The assessment commission analyzes the presented documents and draws up a list of
candidates admitted to the presentation of an offer/bid, taking into account the selection
criteria mentioned in the announcement for the candidacies. Article 24 The concedant shall notify, within 5 days, the rejected candidates about not being accepted. If the
rejected candidates demand it the concedant shall send a copy of the minutes, within 10 days of the
reception of the notification of rejection. Article 25 1) The concedant informs the candidates whose offers have been selected about the time and
place where they can look into the file with the presentation of the concession. 2) Starting with the date established according to the criteria provided under paragraph (1), the
candidates have to meet a deadline which cannot be shorter than 20 calender days and cannot
be longer than 60 calender days, in order to submit their offers. 3) After the offers are submitted the open public tendering, with a pre-selection process, shall
pursue according to the provisions under art.15 and of art.17-21. Section 2 Concessions through direct negotiation Article 26 1) The procedure of direct negotiation applies exclusively in cases in which the public tendering
has not led to the selection of a winning tenderer. 2) As a result of direct negotiations the concessioner makes the concession to the natural or
corporate body of a Romanian or foreign origin that he or she will choose. Article 27 1) The concessioner must make public his or her intention of resorting to the procedure of direct
negotiation in the Official Gazette of Romania, Part IV, in a daily national newspaper, and in a
local newspaper. 2) The announcement, published according to the provisions under paragraph (1), must include
the following information:
a) the name and the headquarters of the concessioner b) the object of concession c) the way in which the concessioner organizes the development of negotiations. CHAPTER IV Provisions regarding the concession contract Article 28 1) The concession contract ends within 30 days since the date on which the concessioner informs
the tenderer on the acceptance of the offer, if the tendering documents do not otherwise
provide. 2) The non-observance of the deadline provided under paragraph (1) may bring about the
payment of indemnification by the culprit. 3) The refusal of the winning tenderer to conclude the concession contract leads to the loss of the
guarantee fund deposited for participation and, when appropriate, the payment of
indemnification. 4) The concession contract will include the clauses provided in the tendering documents and the
clauses agreed by the contracting parties, in addition to the clauses in the tendering documents,
without comint in conflict with the objectives of the concession provided in the tendering
documents. 5) Upon the conclusion of the concession contract the parts will agree on the cases when the
contract terminates. The parts will be able to include in the contract specific clauses referring
to the unilateral termination or to the compensation. 6) In all the cases the concession contract will mention that the beneficiary of the concession is
forbidden to under-concession to a third party the object of concession, totally or partly. 7) The concession contract will also include clauses referring to the distribution of environment
responsibilities among the concessioner and the beneficiary of the concession. Article 29 1) At the end of the concession term the beneficiary of the concession is obliged to return, under
full ownership, free from any condition, the concessioned good, including the investments
made. 2) The concession contract must specify distinctly the categories of goods which will be used by
the beneficiary of the concession during the concession period, as follows:
a) the return goods which by full right, free of charge and of any condition come under the
ownership of the concessioner upon the expiration of the concession contract: The return
goods are the goods that were the object of concession, as well as the goods that resulted
from the investments enforced through the tendering documents. b) the take over goods which, upon the expiration of the concession contract may come under the property of the concessioner, to the extent to which the latter expresses its intention to
take over the respective goods in exchange of a compensation equal to the accounting
updated value, according to the provisions in the tendering documents. The take over
goods are the goods that belonged to the beneficiary of the contract and that were used by
the latter during the concession period. c) the own goods which, upon the expiration of the concession contract remain under the
ownership of the beneficiary of the concession. The own goods are the goods which
belonged to the beneficiary of the concession and which were used by the latter during the
concession, with the exception of the ones provided under letter b). 3) The concession contract will specify the distribution of these goods upon the termination of
the concession, irrespective of the cause. Article 30 1) The concession contract will be concluded according to the Romanian law, irrespective of the
nationality or the citizenship of the beneficiary of the concession, for a duration which cannot
be longer than 49 years, starting with the date on which the contract was signed. The duration
of the concession is established in relation with the period for the amortization of the
investments which are to be made by the beneficiary of the contract. 2) For the settlement of potential conflicts, the parts may stipulate in the contract the compromise
clause 3) The concession contract may be extended for a period which is equivalent to at most one half
of its initial duration, by simple willing agreement among the parts. Article 31 1) The concessioner may modify unilaterally the regulating part in the concession contract for
exceptional reasons connected to the national or local interest. 2) In case the unilateral modification of the contract brings about any damage, the beneficiary of
the concession has the right to receive an adequate, efficient, and prompt compensation. In
case there is disagreement among the concessioner and the beneficiary of the concession
regarding the compensated amount, the latter shall be established in Court. Such a
disagreement shall not, under any circumstances, exempt the beneficiary of the contract from
the fulfilment of its contracting obligations. Article 32 The contracting relations among the beneficiary of the concession and the concessioner are based
on the principle of the financial balance of the concession, and on the idea of securing a balance
between the advantages granted to the beneficiary of the concession and its responsibilities.
Consequently, the beneficiary of the contract is not obliged to accept an increase in the
responsibilities connected to the fulfilment of its obligations in case such an increase results from
one of the following: a) an activity or a measure ordered by some public authority b) a case of force majeure. Article 33 1) The beneficiary of the concession fulfils its obligations according to the deadlines and the
conditions provided in the concession contract and in agreement with the legal norms specific
to the respective activity, drawn up by the mandated institutions. 2) The concessioner has the right to check, during the period covered by the concession contract,
the way in which the conditions and the clauses in the contract are met by the beneficiary of the contract. Article 34 1) Within 90 days since the date on which the concession contract was signed, the beneficiary of
the contract shall deposit, as a guarantee fund, a fixed amount representing a share of the
amount due to the concessioner, and established by the latter for the first year of activity. If
necessary, this amount will be used for penalties and for paying the amounts due by the
beneficiary of the concession to the concessioner, according to the concession contract. 2) The beneficiary of the concession may also set up credit bills as a guarantee, for which a
deposit will be made, with the agreement of the concessioner. A similar guarantee fund will be
set up for the fulfilment of the obligations regarding environment protection which might
come up during the concession period. Article 35 The concession contract may be terminated under the following circumstances: a) at the end of the duration established in the concession contract b) in case the national or local interest requires it, with the unilateral denunciation by the
concessioner, upon the payment of a right and previous indemnification to the
concessioner c) in case the obligations specified in the contract are not fulfilled by the beneficiary of the
concession d) in case the obligations specified in the contract are not fulfilled by the concessioner,
through the unilateral cancellation by the beneficiary of the concession, with the payment
of indemnities to the concessioner. e) upon the disappearance, in case of force majeure, of the concessioned good or, in case the
beneficiary on the concession is under an objective impossibility of exploiting it, by giving
it up, without any payment of indemnities. CHAPTER V Provisions on exercising control rights Article 36 The specialized Ministries and the Ministry of Finance have control obligations on concessions
bearing a national interest, and the Tax Administration Offices have control rights on local interest
concessions, with a view to observing the provisions on: a) the concession decision b) publicity c) the substance of the documentation mentioned under art.12 paragraph (1); d) the membership and the work style of the tendering evaluation Commission e) the deadlines provided in the current law f) the information of the bodies interested in the award or termination of the concession g) the fulfillment of the contract obligations by the concessioner or by the beneficiary of the
concession CHAPTER VI Sanctions Article 37 The non observance by the contract parties of the obligation included in the concession contract
brings about a contract responsibility of the culprit. Article 38 1) The following deeds, unless they were made under such circumstances as to be considered
offences, according to the Penal Law, are considered to be infringements:
a) the non-observance of the provisions on publicity, as provided under art.13, art.22,
paragraph (2) and art.27 paragraph (1) b) the non observance of the deadlines specified under art.9, art. 14, art.20, paragraph (2),
art.24, art.25, paragraph (2), art.34 paragraph (1), and art.39; c) the substitution by the members of the evaluation commission, as well as by the employees
of the concessioner of the documents in the initial offers, with different documents; d) the disclosure of any information which is not for publicity, by the employees of the
concessioner, and by any person involved in starting a concession 2) The offences provided under paragraph (1) shall be sanctioned as follows:
a) those under letter a), with a fine between 5,000000 lei to 25,000000 lei b) those under letter b) with a fine between 2,000000 lei to 10,000000 lei c) those under letter c) and d), with a fine between 10,000000 to 50,000000 lei. 3) the total amount of fines can be increased depending on the inflation rate, by a Government
Decision. 4) The fines provided as sanctions for the commitment of the infringements mentioned under
paragraph (1) can be applied both to natural persons and to corporate bodies 5) The acknowledgment of the infringements specified in the provisions of this law shall be the
job of certain persons specifically assigned this task by the specialized Ministries. 6) The provisions of Law no.32/1968 on the establishment and sanctioning of infringements shall
also apply to the infringements provided in this law. CHAPTER VII Final Provisions Article 39 The concession contracts on land of any nature shall be registered by the beneficiary of the
concession in the fixed assets register, within 30 calender days since the day of their conclusion. Article 40 1) The goods under public or private property of the state, county, the city, the town or the
commune, as well as the public activities and services of a local or national interest shall be
directly assigned, through a concession contract, to commercial companies, or to national
companies, set up as a result of the reorganization of regies autonomes which used to
administer these goods, activities, or services. The concession contract is concluded with the competent concessioner for a duration which is established by the Government, or county, or
local decision on the setting up of the respective commercial company. 2) The concession contracts concluded by the date when this law comes into force shall continue
to be valid. 3) In case national companies or commercial companies set up as a result of the reorganization of
regies autonomes which had to conclude a concession contract under the provisions of
paragraph (1) are privatized, the concessioner may ask for a renegotiation of the latter. Article 41 Within 60 days since the publication of this law in the Official Gazette of Romania, the Reform
Council shall draw and submit for approval to the Government framework methodological norms
for the application of this law. Article 42 1) This law comes into force within 60 days since its publication in the Official Gazette of
Romania 2) On the same date the following shall be abrogated:
a) art.25-29 in Law no.15/ 1990 on the reorganization of state owned economic units as
regies autonomes and as commercial companies, published in the Official Gazette of
Romania, Part I, no.98, dated August, 8, with the subsequent amendments and
completions : b) art.1-17, art 25 and annexes no.1-5 in the Government Decision no.1228/1990 on the
abrogation of the methodology of concessions, rents and leases, published in the Official
Gazette of Romania, Part I, no.140, dated December 12, 1990. with subsequent
amendments and completions. This law was adopted by the Chamber of Deputies and by the Senate in the joint meeting on
October, 28, 1998, by observing the provisions of art.74, paragraph (1), and of art.76,
paragraph (2) in the Romanian Constitution.
