Commission for concessions of the Republic of Srpska -

08.04.2008.

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WHAT YOU WANTED TO KNOW ABOUT CONCESSIONS

Concession is the right to engage in economic activities by using natural resources, goods in general use and by performing activities of general interest determined by the Law on concessions passed by the National Parliament of the Republic of Srpska on April 18th 2002. ("Official Gazette of the Republic of Srpska", number 25/02).

Aim of passing of this Law is to create public and widely available, non-discriminating and clear legal framework for identifying of conditions under which national and international legal bodies may be granted the concessions in the Republic of Srpska, as well as to stimulate investing of the foreign capital in the Republic of Srpska.

Terms used in the Law on concessions

"Concedent" - all competent ministries or authorities of the Republic of Srpska authorized by the Republic of Srpska to grant the concession.
"Concession" - right granted by concedent in aim of providing for construction of the infrastructure and/or services and exploitation of natural resources, within deadlines and under conditions agreed between concedent and concessionaire.
"Concessionaire" - legal entity established in accordance with Laws of the Republic of Srpska, owned by national and/or international legal body, to which the concession is granted and which performs the concession agreement in accordance with this Law.

What can be the subject of concession?

Based at this Law, the subject of concession can be:

1. Utilization or construction and utilization of:
- roads and belonging infrastructure facilities,
- railroads, sailing channels and ports, and
- airports;

2. Utilization of water streams and other water;

3. Construction of the energy facilities;

4. Construction and/or utilization of hydro-accumulations, except of transmission of the electric power;

5. Research and/or utilization of energy and other mineral raw materials;

6. Research and/or utilization of crude oil and natural abundance gas;

7. Utilization of the construction land;

8. Utilization of forests and forestry land;

9. Hunting and Fishery;

10. Construction, utilization and management of the pipeline transport of oil and gas and storage in pipelines and terminals;

11. Lottery;

12. Postage and telecommunication services, except joint and international communications from Article III, paragraph 1. (x) of the Constitution of Bosnia and Herzegovina;

13. Traveling and freight traffic;

14. Public line transportation of people;

15. Utilization of medical, thermal and mineral water;

16. Research and/or utilization of non-metal mineral raw material, including all secondary mineral raw material identified by the special Law;

17. Hydro-melioration systems and systems for extraction of materials from water streams and area under the water;

18. Arrangement and/or utilization of river-beds, river banks and lakes;

19. Utilization of the agriculture land;

20. Premises and facilities of natural and construction heritage;

21. Other goods within the Article 2. identified in the Document on policy of granting the concession from the Article 14. of this Law.

The role of the Republic of Srpska Commission for Concessions

Commission for concessions of the Republic of Srpska is standing, independent regulatory legal body constituted in purpose of granting of concessions, the competences and obligations of which are identified by this Law.

In performing its functions, the commission pleads for fulfilling of public needs and the economic development through engaging the private sector in financing, projecting, construction, reconstruction, maintaining and/or managing the operation of infrastructure and related facilities and instruments, services and exploitation of natural resources and facilities used in its exploitation, taking care on protection of economic and social interests, protection of the environment, as well as on fair relations with the private sector.

Members of the Republic of Srpska Commission for Concessions are:
1. Predrag Aškrabic, Chairman
2. Adnan Brackovic
3. Ðordje Vasiljevic
4. Aleksandar Licanin
5. Slobodan Sofic

 

Branislav Zugic, Secretary



Commission has the Office in Banja Luka, Save Mrkalja 16

Telephone: 051/490-890   Fax: 051/490-481

Who is competent to grant concession and to sign the contract on concession

Decision on granting of concessions is passed by the Government of the Republic of Srpska, based at which the Government, i.e. upon the Government's authorization, the line Ministry, and/or local administration body, and/or public enterprise that is managing with the subject of concession enters into the contract on concession.

Concession granting


Government, upon proposal of the Commission, grants the concession to the best bidder who meets all the criteria set forth in the public invitation and who is highly ranked compared with other bidders.
The Commission is informed on granting of concession, within the shortest possible period of time.
The Commission is provided with the copy of the contract on concession and all project documents in the executive form.

Duration of the Contract on concession

The contract on concession is entered into at the certain period of time, but that may not be longer than 30 years. In case that the extraordinary situation occurs, which would require investments of longer period of time, the duration of the contract may be extended, but it may not be longer than 50 years. Contract on concession may be renewed for the period of time that may not be longer than a half of time of the original deadline.

Ceding of the Contract on concession to another concessionaire

Contract on concession may not be ceded to another concessionaire without previous consent of the Commission. In case that concessionaire fails to fulfill assumed obligations towards the international financial institution the member of which is Bosnia and Herzegovina, the contract on concession may be ceded at the relevant institution without the consent of the Commission.

Approving of the concession project


Concedent develops the study of the economic justification for each project provided for the concession granting prior to the public invitation to the potential bidders (in text: public invitation).
Study of the economic viability is submitted to the Commission for its consideration and approval.
Within one month upon reception of the Study, the Commission informs the competent body if the project is approved or not.

At deciding, the Commission takes into account the following:
" Impact of the Project at providing of services to beneficiaries;
" Impact of the Project at fees the beneficiaries are charged for services;
" Does the Project fits into the goals set forth in the Document on Policy;
" Does the Project yields the clear profit to the Republic of Srpska.
If the Project is not approved, the Commission may give proposal or recommendation that would make the project acceptable.

Upon the Project approval, the concedent is launching the public invitation and invites pre-qualified parties. Invitations are sent at as many addresses as possible, and if the Commission request, it would be launched the international public invitation as well.
With the approval of the Commission, the request to meet the conditions may be issued by the concedent, prior to issuing of the public invitations. The request to meet conditions is published and submitted to persons recognized for their expertise, business reputation and financial situation. The request to meet conditions also contains the criteria to be applied in the process of selection.

Commission for concessions of the Republic of Srpska is standing, independent regulatory legal body constituted in purpose of granting of concessions, the competences and obligations of which are identified by this Law...


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