BULGARIA'S COMPETITION WATCHDOG WANTS SUPERVISION OF PUBLIC-PRIVATE PARTNERSHIPS
Bulgaria's Commission for the Protection of Competition (CPC) said on May 24 that it should be allowed to rule on propossed public-private partnerships as the need arises, Dnevnik daily reported.
A public-private partnership can harm competition and break state aid rules, which is why it would be "appropriate" for the watchdog to rule on every proposed partnership before it is allowed to go ahead, the daily quoted the CPC as saying.
"A public-private partnership presumes the joining of efforts by the private and state sectors, each represented by one or more companies. The consolidation of activity of different companies can lead to an increased efficiency and lower production costs. But at the same time, it must be taken into account that such a consolidation can have a limiting effect on competition and represent concentration of activity, as defined in the Protection of Competition Act," the regulator said in a statement.
Bulgaria has no dedicated law on public-private partnerships, which are now regulated by provisions in the Concessions Act and Public Procurement Act, but a bill has been drafted to address that shortcoming.
The draft has been criticised by Bulgarian Industrial Association, one of the country's biggest employer groups, for limiting the bill's provisions exclusively to the construction sector, suggesting that it should cover the services sector as well.
A public-private partnership can harm competition and break state aid rules, which is why it would be "appropriate" for the watchdog to rule on every proposed partnership before it is allowed to go ahead, the daily quoted the CPC as saying.
"A public-private partnership presumes the joining of efforts by the private and state sectors, each represented by one or more companies. The consolidation of activity of different companies can lead to an increased efficiency and lower production costs. But at the same time, it must be taken into account that such a consolidation can have a limiting effect on competition and represent concentration of activity, as defined in the Protection of Competition Act," the regulator said in a statement.
Bulgaria has no dedicated law on public-private partnerships, which are now regulated by provisions in the Concessions Act and Public Procurement Act, but a bill has been drafted to address that shortcoming.
The draft has been criticised by Bulgarian Industrial Association, one of the country's biggest employer groups, for limiting the bill's provisions exclusively to the construction sector, suggesting that it should cover the services sector as well.
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