After 14 years, Law on Public-Private Partnerships and Concessions to be amended: Stronger state control, expert teams and register of civil servants to be introduced

The Ministry of Economy has launched a public debate on the Draft Law on Public-Private Partnerships and Concessions. The new law was proposed after 14 years of application of the current regulation, with the stated aim of harmonizing it with the legislation of the European Union and improving the system of implementation of public-private partnerships and concessions in Serbia.

The proposed solutions regulate the conditions for the preparation, approval and implementation of public-private partnership projects, the rights and obligations of public and private partners, the content of public contracts, concession award procedures, as well as the competences of the Public-Private Partnership Commission.

The most significant innovation relates to the introduction of a public-private partnership and concessions officer. While the current law does not recognize this position, the draft stipulates that civil servants must meet the prescribed conditions, pass a professional exam and be registered in a special register, which introduces a professional certification system for the preparation and implementation of public-private partnership projects for the first time.

The draft law also introduces mandatory expert teams for all public-private partnership projects. Unlike the current law, in which expert teams are primarily formed in the concession preparation procedures, the new text stipulates that each public-private partnership project must have an expert team of at least three members, among whom there will be a mandatory officer for public-private partnership and concessions. The team will be responsible for the preparation, assessment of justification, contracting and monitoring of the implementation of projects.

The proposed solutions also regulate the procedures for selecting a private partner more precisely. The current law distinguishes between public procurement procedures and concession award procedures, but the new text more clearly separates projects with and without concession elements and regulates the application of public procurement regulations in these procedures in more detail.

The rules for financial control of the largest projects are also changing. The current law stipulates that the Ministry of Finance of the Republic of Serbia provides a prior opinion for projects with an estimated value of more than EUR 50 million, while the draft introduces a threshold of six billion dinars for the estimated value of the project or concession.

Another new feature is the introduction of an analysis of the social value of the project (“value for people”). While the current law prescribes an analysis of economic justification and the ratio of invested funds (“value for money”), the draft provides that when evaluating projects, their broader social impact will also be analyzed.

At the same time, some of the key solutions remain unchanged. Thus, the draft also provides that public contracts, including concessions, may last from five to a maximum of 50 years, and that their term may not be extended except in exceptional cases prescribed by law.

The public discussion lasts until August 19, and interested parties can submit comments, proposals and suggestions to the Ministry of Economy by e-mail or mail, while the dates of public presentations of the draft will be subsequently published on the Ministry’s website and the e-Consultations portal.

I. Z.

Ministarstvo privrede Republike Srbije

Ministry of Economy

Draft Law on Public Private Partnerships and Concessions

Law on Public Private Partnerships and Concessions