What lex specialis for construction of subways and highways envisages – Contractors to be selected without public procurement procedures in case of urgency

The proposed special law which aims to accelerate the procedure of the construction of important infrastructural projects is undergoing the parliamentary procedure. Among other things, the law envisages for regulations pertaining to public procurement procedures not to apply for certain works in case of urgency, but to have a special procedure for the selection of a strategic partner apply.

The Draft Law on Special Procedures for Realization of Projects of Construction and Reconstruction of Line Infrastructure Facilities of Special Importance for the Republic of Serbia says that projects of special importance for the Republic of Serbia are “projects of construction and reconstruction of line infrastructure facilities which influence the overall development of the Republic of Serbia, an even regional and local economic development, and international, regional and internal territorial connecting, prevention of the devastation of parts of the territory of the Republic of Serbia, the securing and the improving of the basic needs of the populace, social development and environmental protection, thereby improving the overall living standard in the Republic of Serbia”.

Expropriation

The law also defines the public interest for expropriation, administrative transfer and partial expropriation of immovable property in line with the planning documents envisaging the construction of such structures, shortening the time needed for resolving property-legal relations.

Financing

The financial means for the realization of projects of construction of line infrastructure facilities, as said in Article 15, are secured from the state, provincial or local budget, as well as from loans by foreign banks and finance organizations, international sources of finance and other funds in line with the law.

Subway systems

Article 27 specifies the technical conditions for establishing subway transport. As said, the Rail Directorate proscribes the technical conditions for subsystems of infrastructure, energy, control, management and signalization, regulation and control of traffic and vehicles that subway systems need to meet and the conditions that persons who control and directly take part in the transport need to meet in professional terms.

The Rail Directorate also issues a permit for using vehicles within subway systems.

Public procurement procedures

The part of the draft law which pertains to public procurement procedures says that an open procedure defined by the Law on Public Procurement Procedures applies, unless otherwise stated in the international contract.

The clauses of the Law on Public Procurement Procedures pertaining to the procurement plan, prior notice, the manner of proving the required and the additional conditions for taking part in the public procurement procedure, bid submission deadlines and the deadlines for decisions by the Commission for Protection of Rights in Public Procurement Procedures will not apply in public procurement procedures.

In case projects of construction and reconstruction are realized based on international contracts and bilateral agreements, the rules defined by those contracts and agreements apply to the procedure of the selection of the contractor, the provider of the service of preparation and control of planning and technical documentation or the provider of the service of the management of the project or a part of the project, as well as professional supervision of the works and technical examination of projects of construction and reconstruction.

Strategic partner

Article 35 says that, in case of urgency or jeopardization of the realization of the project for which a preliminary feasibility study with a general project has been prepared, the government may reach the decision to have the clauses regulating public procurement procedure not apply to certain phases and activities within the projects, but to have a special procedure for the selection of a strategic partner apply.

As proposed, in that case, the government will form a task force which is to select a strategic partner, and “the decision on forming the task force can also define other responsibilities of the Task Force, depending on the needs of the procedure for the selection of a strategic partner”. The procedure of the selection of a strategic partner is carried out by the government's task force through a procedure of the public collection of bids.

For each line infrastructure project, the government will adopt a bylaw proscribing the criteria for the selection of a strategic partner.

Upon the selection of the strategic partner and the completion of the negotiation process, the financier and the investor sign an agreement with the strategic partner, which should define: the value of the services and works, mutual rights and obligations of the parties, the manner of payment, the dynamic of the works and the payment, the consequences of non-compliance with the set dynamics, the manner and the phases of the possession of the site, the change of working hours during the construction in line with the set dynamics, as well as other questions.

A consortium, as well as any related party or parties of the strategic partner and/or any company or companies the strategic partner and/or a related party or parties found for the purpose of the realization of the project, is considered a strategic partner.

I. Milovanovic

Vlada Republike Srbije

Draft Law on Special Procedures for Realization of Projects of Construction and Reconstruction of Line Infrastructure Facilities of Special Importance for the Republic of Serbia

expropriation

public procurement procedures

public procurement

strategic partner

selection of a strategic partner

resolving property legal relations

subway

construction of a subway system

construction of highways