Book of Rules on Request Submitting Procedure and Concession Granting Procedure
Pursuant to Article 19 of the Law on Concessions of Bosnia and Herzegovina (Official Gazette of Bosnia and Herzegovina no. 32/02, 56/04), the Commission on Concessions of Bosnia and Herzegovina, with the consent of the Council of Ministers of Bosnia and Herzegovina hereby passes the following

BOOK OF RULES ON REQUEST SUBMITTING PROCEDURE AND CONCESSION GRANTING PROCEDURE

CHAPTER I BASIC PROVISIONS

Article 1
(Contents and Subject of the Book of Rules)

(1) This Book of Rules shall establish the procedure for submitting requests, the procedure for granting concessions either through a public invitation or in form of unsolicited proposal, the procedure for adopting a feasibility study, public tender, establishing and operation of a tender commission, selecting the most favorable bidder, making decision to grant a concession, concluding a contract as well as control and supervision of the work of the concessionaire in the procedure of the implementation of the procedures for granting concessions that are under the Constitution of Bosnia and Herzegovina and the laws in Bosnia and Herzegovina in the competence of Bosnia and Herzegovina, and in case when representing an international subjectivity of Bosnia and Herzegovina, as well as when the concession assets extend onto the Federation of Bosnia and Herzegovina and/or Republika Srpska and/or Brčko District of Bosnia and Herzegovina, as provided for under the Law on Concessions of Bosnia and Herzegovina.
Article 2
(Procedure for Granting Concessions)
(1) The procedure and the implementation of the procedure in granting concessions, in accordance with the Law on Concessions of Bosnia and Herzegovina (hereinafter: the Law) is hereby established under this Book of Rules through:
1.    Public invitation for prospective bidders,
2.    Unsolicited proposals.

CHAPTER II  - GRANTING CONCESSIONS THROUGH PUBLIC INVITATION FOR PROSPECTIVE BIDDERS

Article 3
(Determining of Type, Subject and Scope of Concession)
(1) The Council of Ministers of Bosnia and Herzegovina (hereinafter: the Council of Ministers) shall make a decision on the type, subject and scope of concession to be granted, which shall be confirmed by the Parliamentary Assembly of  Bosnia and Herzegovina.
(2) In case of joint competence of Bosnia and Herzegovina and/or the Federation of Bosnia and Herzegovina and/or Republika Srpska and/or Brčko District of Bosnia and Herzegovina in granting concessions, the competent ministry of Bosnia and Herzegovina shall harmonize the terms and the form of concession granting with the competent entity ministries or competent authorities in the Brčko District.

Article 4
(Selection of the Conceding Party)
(1) After the confirmation of the decision referred to in Article 3, paragraph 1 of this Book of Rules by the Parliamentary Assembly of Bosnia and Herzegovina, the Council of Ministers shall select the conceding party, which shall be competent for the implementation of the procedure for granting the concession.

CHAPTER A. FEASIBILITY STUDY

Article 5
(Feasibility Study)

(1) The Conceding Party shall draft a feasibility study and submit it to the Commission on Concessions of Bosnia and Herzegovina (hereinafter: the Commission) for consideration and approval.

Article 6
(Approval of Project)

(1) The Commission shall review the study within a month and notify the Conceding Party as to whether the project was approved or not.

Article 7
(Recommendations for Acceptability of Project)
(1) If it does not approve the project, the Commission may give a recommendation to the Conceding Party as to how to render the project acceptable.
(2) The Commission shall make its decision in writing, with the reasoning.

CHAPTER B PUBLIC INVITATION

Article 8
(Proposal of Public Invitation)
(1) Upon the receipt of the decision to accept the feasibility study, the Conceding Party shall submit to the Commission a proposal of public invitation with the accompanying documents, for consideration and approval.

Article 9
(Contents of Public Invitation)

(1) The proposal of the public invitation, beside the terms provided for by the law, shall include the following:

1.    Criteria for taking part in the public invitation and rules that apply to the implementation of the public invitation,
2.    Modality for submitting bids (to contain a code name or a full name of the bidder),
3.    Date, time and place for the opening of bids submitted upon the public invitation,
4.    Deadline for a bid to be withdrawn,
5.    Name of the person in charge of providing the information necessary pertaining to the public invitation procedure.

Article 10
(Approval of Public Invitation)
(1) Within 21 days upon the receipt of the proposal of the public invitation, the Commission shall render a decision on its approval.
(2) The decision of the Commission shall be made in writing, with reasoning, and submitted to the Conceding Party for further action.

Article 11
(Amendments to Public Invitation)
(1) If the proposal of the public invitation does not fulfill the prescribed conditions, the Commission shall return the proposal of the public invitation to the Conceding Party with a recommendation to make amendments.
(2) If the Conceding Party does not act upon the instructions of the Commission within 21 days, it shall be deemed that the proposal of the public invitation has been withdrawn.

Article 12
(Announcement of Public Invitation)
(1) The Conceding Party shall be bound to have the public invitation announced within 15 days from the day of the receipt of the decision to accept the proposal of the public invitation.
(2) The announcement of the public invitation shall be published in the Official Gazette of Bosnia and Herzegovina, the Official Gazettes of the Entities and the Brčko District and a minimum of three daily papers in Bosnia and Herzegovina.
 
Article 13
(International Public Invitation)

(1) The Commission may render a decision to open an international public invitation, depending on the value of the project, the need to engage specific and modern know-how and technology, project financing structure and in other cases when the Commission assesses that the project in question constitutes a project of particular importance for Bosnia and Herzegovina.
(2) The announcement of an international public invitation shall be published also in English in a paper with international circulation as well as on the web page of the Conceding Party or the Council of Ministers.  

Article 14
(Taking of Tender Documents)
(1) Interested bidders shall take over the tender documents in accordance with the conditions prescribed in the public invitation.

Article 15
(Submitting of Bids)

(1) The bidder shall submit a bid in accordance with the conditions prescribed in the public invitation to the address specified in the public invitation.

Article 16
(Tender Commission)

(1) The Conceding Party shall establish an expert tender commission of at least five members, of which at least three members must be experts in the field in which the concession is being granted.

Article 17
(Members of Tender Commission)
(1) A member of a tender commission may not be a person:
1.    who has been convicted for a criminal offense which involves an element of: corruption, money laundering, accepting and giving bribe, forging and abuse of office;
2.    who is currently or has been at any time in the last five years employed by any of the bidders;

Article 18
(Statement of Impartiality)

(1) A member of a tender commission may take part in the work of the commission only upon the signing of an impartiality statement with regard to the bidders and a confidentiality statement.

Article 19
(Public Opening of Bids)

(1) The Tender Commission shall, in accordance with the deadline specified in the public invitation, exercise a public opening of the bids.
(2) When opening the bids, the Tender Commission shall establish whether the bids are timely and complete.
(3) Untimely or incomplete bids shall be rejected.

Article 20
(Rating List of Bidders)

(1) Without the presence of the public, the Tender Commission shall, using the criteria specified in the public invitation, draft the rating list of bidders and establish a proposal of the most successful bidder.

Article 21
(Repeated Procedure of Announcing Public Invitation)

(1) If the bids submitted do not met the required conditions specified in the public invitation, the Conceding Party shall, with the consent of the Commission on Concessions, repeat the procedure of announcing a public invitation.
(2) The Conceding Party must within eight days upon the receipt of the consent referred to in previous paragraph of this Book of Rules, notify the bidders thereof.

Article 22
(Bid of One Bidder)

(1) If responding to the public invitation is only one bidder, whose bid in the assessment of the Tender Commission meets the conditions and criteria of the public invitation, the Commission on Concessions may give the Conceding Party consent to continue with the tender procedure.


Article 23
(Submitting of Rating List to Commission)

(1) Within 30 days from the day of opening the bids, the Conceding Party shall notify the Commission on the rating list and the most successful bidder.

 Article 24 (Rendering Decision to Grant Concession)

(1) The Commission for Granting Concession of Bosnia and Herzegovina shall render a decision to grant the concession and submit it to the Conceding Party.  


CHAPTER C CONTRACT OF CONCESSION

Article 25
(Proposal of Contract of Concession)

(1) The Conceding Party shall draft and submit to the Commission the proposal of the contract of concession and all documents necessary to be given consent.
(2) The Commission shall submit the consent to conclude contract to the Conceding Party within 21 days.  

Article 26
(Concluding Contract of Concession)

(1) The competent minister shall conclude the contract and the Conceding Party shall notify the Parliamentary Assembly of Bosnia and Herzegovina on the final decision pertaining to the concession granting.

Article 27
(Archiving Contract of Concession)

(1) The Conceding Party shall submit copies of the contract concluded, with the accompanying documents, to the Commission, which shall review the concession contract concluded and archive it together with the accompanying documents.

Article 28
(Contract of Service Rendering)

(1) Upon the concluding of the contract and activating the concession, the Concessionaire shall draft a standard contract of service rendering, defining business relations between the Concessionaire and the service beneficiaries and submit it to the Commission for approval.
(2) Within 7 days the Commission shall either approve the contract or return it to the Concessionaire for amendments.

Article 29
(Monitoring of Work of Concessionaire)

(1) The Commission shall control and supervise the work of the Concessionaire.

CHAPTER III GRANTING CONCESSION THROUGH UNSOLICITED PROPOSAL

Article 30
(Submitting of Proposal to be Granted Concession)

(1) In the procedure of granting concessions upon an unsolicited proposal, the bidder shall submit directly to the competent ministry of Bosnia and Herzegovina a proposal to be granted a concession for which there has been no public invitation announced.
(2) If the concession asset extends over the Federation of Bosnia and Herzegovina and/or Republika Srpska, and/or Brčko District of Bosnia and Herzegovina, the bidder may submit the proposal also through the competent entity ministry or District authorities.

Article 31
(Contents of Proposal to be Granted Concession)

(1) Submitted proposal to be granted a concession referred to in previous Article of this Book of Rules shall include:
1.    Full name of the company, seat, photocopy of court registration, basic information on the rating of the company,
2.    Full name and title of the authorized person and other identification if needed,
3.    Subject of concession for which the proposal is submitted,
4.    General design for the concession activity,
5.    Assessment of feasibility of the project,
6.    Assessment of the investment value,
7.    Timeframe of the concession,
8.    Basic conditions for the implementation of the concession.

Article 32
(Assessment of Public Interest)

(1) Within 30 days the competent ministry shall give an assessment as to whether there is a public interest for the concession in question.

Article 33
(Request to be Granted Authority to Negotiate)

(1) If the competent ministry assesses that there is public interest in the said concession, it shall define the request to be granted authority to engage in negotiations with the bidder and submit it to the Commission together with the proposal and the accompanying documents.

Article 34
(Granting of Authority to Negotiate)

(1) Within 21 days, the Commission shall review the submitted request to grant the authority to negotiate and if it assesses that the said request is in accordance with the Law and the Policy Paper on Concession Granting in Bosnia and Herzegovina, it shall extend the competent ministry the authority to engage in negotiations.

Article 35
(Negotiations with Bidder)

(1) Based on the authority to negotiate obtained, the competent ministry shall negotiate with the bidder and define the elements for drafting a feasibility study, including the assessment of the impact of the project on the living environment.
       
Article 36
(Drafting of Study)

(1) In accordance with the negotiations, the bidder shall draft the study and other documents pertaining to the project and submit it to the ministry.

Article 37
(Evaluation of Study)

(1) The competent ministry shall analyze the project, review the study submitted and if it meets the required criteria, it shall submit the study and the accompanying documents to the Commission, with a proposal to grant the concession within 21 days.

Article 38
(Rendering Decision to Grant Concession upon Unsolicited Proposal)

(1) The Commission for Granting Concessions of Bosnia and Herzegovina shall render a decision to grant concession within 30 days.

Article 39
(Proposal of Contract of Concession)

(1) Upon the receipt of the decision to grant concession, the ministry shall start drafting the proposal of the contract of concession and submit it to the Commission for consideration and approval.

Article 40
(Consent to Conclude Contract)

(1) The Commission shall submit the consent to conclude the contract to the competent ministry within 21 days.  
       
Article 41
(Concluding of Contract of Concession)

(1) The competent ministry shall conclude the contract and submit a copy of the contract concluded with the accompanying documents to the Commission.

Article 42
(Archiving of Contract)

(1) The Commission shall review the contract of concession concluded and archive it together with the accompanying documents.     
              
Article 43
(Contract of Service Rendering)

(1) Upon the concluding of the contract and activating the concession, the Concessionaire shall draft a standard contract of service rendering, defining business relations between the Concessionaire and the service beneficiaries and submit it to the Commission for approval.
(2) Within 7 days the Commission shall either approve the contract or return it to the Concessionaire for amendments.

Article 44
(Control and Supervision of Work of Concessionaire)

(1) The Commission shall render control and supervision of the work of the Concessionaire.

HAPTER IV INTERIM AND FINAL PROVISIONS

 

Article 45
(Other Issues)

(1) The Commission shall decide on procedural issues for the Commission that have not been established under this Book of Rules on case to case basis.
           

Article 46
(Amendments)

(1) Amendments to this Book of Rules shall be made in the same manner and procedure that applies to the passing a book of rules.      
            

Article 47
(Coming into Force)

(1) This Book of Rules shall come into force the day after being given consent by the Council of Ministers of Bosnia and Herzegovina and be published in the Official Gazette of Bosnia and Herzegovina.

Number 01-1-68/06                            
Banja Luka, 11 July 2006

Chair
Hamed Mešanović


NOTE: Pursuant to Article 19 of the Law on Concessions of Bosnia and Herzegovina (Official Gazette of Bosnia and Herzegovina number 32/02, 56/04), the Council of Ministers of Bosnia and Herzegovina, at the 124th session held on 21 July 2006 gave its consent to this Book of Rules number 05-07-560/15-06.