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The Warsaw Voice » Law » January 16, 2008
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Euro 2012 Law: Good News for Private Companies?
January 16, 2008   
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Regulations related to preparations for the Euro 2012 soccer championships came into force in September and are designed to accelerate work on projects to be carried out in Poland, as the host of this important event.

A list of the most important projects related to Euro 2012 has been published. It includes the construction of four main stadiums, in Warsaw, Poznań, Gdańsk and Wrocław, two reserve stadiums, in Cracow and Chorzów, a bridge over the Vistula in Warsaw for pedestrian and bicycle traffic, and a shopping center in Warsaw.

The list may be enlarged by the government on request of interested cities. The new regulations do not apply to projects related to national roads and railway lines of national importance.

The general rule is that Euro 2012 projects are to be funded from the state budget, local government budgets, EU and other non-refundable foreign sources as well as through public-private partnership (PPP). Unfortunately, regulations on PPP have not been adjusted to the needs of Euro 2012 as yet. This is especially true for the complicated and costly procedures municipalities have to follow to sign contracts with partners. Special-purpose companies, to be set up by the Treasury and cities which are to host Euro 2012 matches, will be preparing and carrying out projects related to the tournament. The Treasury and local government authorities will sign agreements with companies entrusting them with the task of carrying out the projects. The agreements will regulate the scope of tasks and the manner in which they are to be performed.

Involvement of private companies in Euro 2012 projects

Private firms will be able to take part in works on Euro 2012 projects as suppliers and providers of construction services and works ordered by special purpose companies. An important element which makes this participation easier is the simplified procedure applied in selecting suppliers and service providers under article 5 of the law on public procurement of Jan. 29, 2004. Under this, special purpose companies will not be required to comply with the provisions of the law on public procurement related to deadlines for submitting applications for tender processes, deadlines for submitting tenders, the obligation to pay tender security and so on. Additionally, regulations regarding selection of a procedure for awarding the order and criteria applied to evaluate the contractor have been relaxed. There is also hope that more suppliers and contractors will now be selected directly rather than through tender, which will shorten selection processes. Additionally, special purpose companies will be able to entrust part of their tasks to entrepreneurs, but only if the agreement with the special purpose company on Euro 2012 projects allows it to do so and specifies conditions under which this can be done.

Unfortunately, under the new regulations private entrepreneurs cannot act as investors in the process of carrying out Euro 2012 projects. The only opportunity is involvement in projects carried out in line with principles defined by the law on PPP. However, under existing regulations these opportunities are limited.

Agnieszka Berezowska
Attorney-at-Law, Partner
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