NATIONAL PROCUREMENT IN LATVIA Dins Merirands Member of

NATIONAL PROCUREMENT IN LATVIA Dins Merirands Member of the Board Eiropas dzelzceļa līnijas April 25, 2017

THE ROLE OF EDZL IN LATVIA Land Aquisition Design for Local Facilities Construction Communication and Administration

PUBLIC PROCUREMENT Public procurement is of crucial importance, because it is one of the market-based instruments to be used in order to achieve smart, sustainable and inclusive growth, while at the same time ensuring the most efficient use of public funds. / The Europe 2020 strategy / 3

PROCUREMENT PRINCIPLES Open, public Procurements conducted within a scope of national and EU procurement legislation. Documentation in Latvian and English. Uniform principles Based on common guidelines, templates and common requirements for supplier qualifications Interoperability Common technical parameters, interoperable with EU railway network. Supervision Owners and technical supervision, FIDIC engineers, on-spot visits, quality and compliance control. Procurement method Design & Build where efficient. Procurements in two phases – first prequalification, second technical and financial proposal. Cooperation Experience on 1435 mm and 1520 mm system demands cooperation between national and international companies, experts. 4

NEW PROCUREMENT LAW Announcement before March 1, 2017 Previous public procedure provisions New Public Procurement Law came into force on March 1, 2017 (transposing Directive 2014/24/EU; repealing Directive 2004/18/EC) Announcement after March 1, 2017

ASPECTS OF PROCUREMENT PROCEDURE Specially designed application forms Language for procurement rules and application Procurement Commission competent, accurate, independent and fair References Administrative issues Electronic signature, etc.

MAJOR CHANGES IN PROCUREMENT PROCEDURES Ø publication of the procurement plan – from June 1, 2017; Ø electronical application; Ø the minimal deadlines for application; Ø the complaints’ procedure. 7

ELECTRONICAL APPLICATIONS The submission of electronical applications: from October 1, 2017 from April 1, 2018 Øfor public supplies or services 135 000 EUR and more Øfor public works 5 225 000 EUR and more Øfor public supplies or services 135 000 EUR - Øfor public works 5 225 000 EUR -

OPEN / RESTRICTED PROCEDURE Open procedure • all interested suppliers are entitled to submit tenders; • selection of tenderers and assessment of submitted tenders proceed in one stage. Restricted procedure • all interested suppliers may request the right to participate (first stage); • however, tenders may only be submitted by those candidates, which are invited by the commissioning authority (second stage).

PUBLIC PROCUREMENT LAW – CONTRACT PRICE MARGINS The application of national procurement procedures (under relevant contract price margins announced by the EU) Switch to the regulation of EU procurement procedures public supplies or services public works 42 000 EUR - 134 999, 99 EUR 170 000 EUR - 5 224 999, 99 EUR 135 000 EUR + 5 225 000 EUR + 10

OPEN PROCEDURE – DEADLINES (DAYS) Type of procurement Under relevant contract price margins announced by the EC Over relevant contract price margins announced by the EC Simple 20 35 Simple + publication of a prior informational announcement 15 15 Urgency 15 15 Applications submitted electronically 15 30 If amendments are introduced At least one half of the initial deadline, but not less then 7 days 11

RESTRICTED PROCEDURE – DEADLINES (DAYS) Under relevant contract price margins announced by the EC Over relevant contract price margins announced by the EC Phase of procurement Applications (1 st stage) Tenders (2 nd stage) Simple 20 20 30 30 Simple + publication of a prior informational announcement 20 10 30 10 Urgency 15 10 Applications submitted electronically 20 15 30 25 Type of procurement If amendments are introduced At least a half of the initial deadline (but not less then 7 days) 12

COMPLAINTS’ PROCEDURE In order to submit a complaint in the Procurement Monitoring Bureau regarding the results of procedure candidates and tenderers have to deposit 0, 5% of estimated contract price, but not more than: Ø 15 000 EUR for public works; Ø 840 EUR for public supplies un services. If the estimate contract price can not be set or it is not indicated in public procurement documentation, deposit is: Ø 3 400 EUR for public works; Ø 840 EUR for public supplies un services. * Deposit can be submitted as a bank guarantee, insurance for a specific amount of money or a payment for a specific amount of money to the Procurement Monitoring Bureau. 13

INFORMATION SIA «Eiropas dzelzceļa līnijas» invites any interested supplier to follow announced public procurement procedures on: ü SIA «Eiropas dzelzceļa līnijas» home page - http: //edzl. lv/lv/iepirkumi ü The Procurement Monitoring https: //www. iub. gov. lv/lv/iubsearch/pt/_pr/ Bureau home page - ü Tenders Electronic Daily - „Official Journal of the European Communities” - http: //ted. europa. eu/ 14