RESTRICTEDWORLD TRADE
ORGANIZATIONGPA/W/73
15 July 1998
(98-2794)
Committee on Government Procurement Original:  English
APPLICATION FOR ACCESSION TO THE AGREEMENT ON GOVERNMENT
PROCUREMENT OF ICELAND
The following communication, dated 22 June 1998, has been received from the Permanent
Mission of Iceland with the request that it be circulated to the Parties to the Agreement on
Government Procurement.
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The Permanent Mission of Iceland has the honour to inform that the Government of Iceland
has decided to apply for accession to the Agreement on Government Procurement.
Iceland is prepared to enter into negotiations with the Signatories to the GPA on the basis of
the enclosed draft offer, containing a list of all the relevant procurement entities in the areas of
construction, goods and services (five Annexes plus General Notes and Derogations from Article III
of the GPA).  Annex 1 contains public entities at the state level, Annex 2 municipalities and public
bodies at the local level not having commercial or  industrial character and Annex 3 entities in the
fields of electricity, urban transport, airports, ports and water supply.  Annexes 4 and 5 stipulate
services coverage.
As a member of the EEA Agreement, Iceland maintains a government procurement regime
with which Signatories to the GPA should be familiar.  Iceland has amended its legislation in
accordance with the Public Procurement Directives of the EEA.
The Government of Iceland reserves the right to make technical changes to its draft offer and
to correct any errors, omissions or inaccuracies.GPA/W/73
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DRAFT OFFER
ICELAND
APPENDIX I
ANNEX 1
Entities which Procure in Accordance
With the Provisions of this Agreement
Supplies
Threshold : SDR 130,000
Services (specified in Annex 4)
Threshold : SDR 130,000
Works (specified in Annex 5)
Threshold : SDR 5,000,000
List of Entities :
The following central government entities including:Central purchasing entities not having an industrial or commercial character governed by
(Act no. 63/1970 on the arrangement of public works contracts, and Act no. 52/1987, on government
procurement, as amended.)
The entities in charge of government procurement are the following bodies:
Ríkiskaup (State Trading Center)
Framkvæmdasýslan (Government Construction Contracts)
Vegagerð ríkisins (Public Road Administration)
Siglingastofnun (Icelandic Maritime Administration)GPA/W/73
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ANNEX 2
Entities which Procure in Accordance
With the Provisions of this Agreement
Supplies
Threshold : SDR 200,000
Services (specified in Annex 4)
Threshold : SDR 200,000
Works (specified in Annex 5)
Threshold : SDR 5,000,000
List of Entities :
1. Contracting local public authorities, including all municipalities.2. Public bodies at the local level not having an industrial or commercial character.GPA/W/73
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ANNEX 3
Other Entities which Procure in Accordance
With the Provisions of this Agreement
Supplies
Threshold : SDR 400,000
Services (specified in Annex 4)*
Threshold : SDR 400,000
Works (specified in Annex 5)
Threshold : SDR 5,000,000
List of Sectors :
1. The electricity sector :
The National Power Company, lög nr. 42/1983.
The State Electric Power Works, orkulög nr. 58/1967
Rafmagnsveita Reykjavíkur (Reykjavík Municipal Electric Works).
Hitaveita Reykjavíkur(Reykjavík Municipal District Heating), lög nr. 100/1974.
Orkubú Vestfjarða (Vestfjord Power Company), lög nr. 66/1976.
Other entities producing, transporting or distributing electricity pursuant toorkulög nr. 58/1967.
2. Urban transport :
Strætisvagnar Reykjavíkur (The Reykjavík Municipal Bus Service).
Almenningsvagnar bs.Other Municipal bus services.
3. Airports :
Flugmálastjórn (Directorate of Civil Aviation)
4. Ports :
Siglingastofnun, (Icelandic Maritime Administration).
Other entities operating pursuant to Hafnalög nr. 23/1994.
5. Water supply :**
Public entities producing or distributing drinking water pursuant to lög nr 81/1991, um
vatnsveitur sveitarfélaga.GPA/W/73
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Notes to Annex 3
* This Agreement shall not apply to service contracts which:
(a) a contracting entity awards to an affiliated undertaking;
(b) are awarded by a joint venture formed by a number of contracting entities for the
purpose of carrying out a relevant activity within the meaning of paragraphs 1-5 of
this Annex to one of those contracting entities or to an undertaking which is affiliated
with one of these contracting entities;
Provided that at least 80 per cent of the average turnover of that undertaking with respect to
services arising within the EEA for the three preceding years derives from the provision of
such services to undertakings with which it is affiliated.  When more than one undertaking
affiliated with the contracting entity provides the same service or similar services, the total
turnover deriving from the provision of services by those undertakings shall be taken intoaccount.
** The supply of drinking water and electricity to networks which provide a service to the public
by a contracting entity other than a public authority shall not be considered as a relevant
activity within the meaning of paragraphs 1 and 5 of Annex 3 where:
- the production of drinking water or electricity by the entity concerned takes place
because  its consumption is necessary for carrying out an activity other than that
referred to in paragraphs 1 and 5 of this Annex;  and
- supply to the public network depends only on the entity's own consumption and has
not exceeded 30 per cent of the entity's total production of drinking water or energy,
having regard to the average for the preceding three years, including the current year.GPA/W/73
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ANNEX 4
Services
Of the Universal List of Services, as contained in document MTN.GNS/W/120, the following
services are included:*
Subject CPC Reference N
Maintenance and repair services 6112,  6122, 633, 886Land transport services, including armoured car 712 (except 71235), 7512, 87304
services, and courier services, except transport
of mail
Air transport services of passengers and freight, 73 (except 7321)
except transport of mail
Transport of mail by land, except rail, and by air 71235, 7321
Telecommunications services 752**  (except 7524, 7525, 7526)
Financial services ex 81(a) Insurance services 812, 814
(b) Banking and investment services***
Computer and related services 84Accounting, auditing and bookkeeping services 862Market research and public opinion polling services 864Management consulting services and related 865, 866****
services
Architectural services;  engineering services 867
and integrated engineering services, urban planning
and landscape architectural services;  related
scientific and technical consulting services;
technical consulting services; technical testing and
analysis services
Advertising services 871Building-cleaning services and property 874,  82201-82206
management servicesGPA/W/73
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Subject CPC Reference N
Publishing and printing services 88442
on a fee or contract basis
Sewage and refuse disposal; 94
sanitation and similar services
Notes to Annex 4
* except for services which entities have to procure from another entity pursuant to an exclusive
right established by a published law, regulation or administrative provision
** except voice telephony, telex, radiotelephony, paging and satellite services*** except contracts for financial services in connection with the issue, sale, purchase, or transfer
of securities or other financial instruments, and central bank services
**** except arbitrations and conciliation servicesGPA/W/73
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ANNEX 5
Construction Services
Definition :
A construction service contract is a contract which has as its objective the realization by
whatever means of civil or building works, in the sense of Division 51 of the Central Product
Classification (CPC).
List of Division 51, CPC :
All public works/construction services of Division 51.GPA/W/73
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GENERAL NOTES AND DEROGATIONS FROM THE PROVISIONS OF ARTICLE III
1. Iceland will not extend the benefits of this Agreement:
- as regards the award of contracts by entities listed in Annex 2 to the suppliers and
service providers of Canada;
- as regards the award of contracts, other than for supplies, listed in Annex 2 to the
suppliers and service providers of the USA;
- as regards the award of contracts by entities listed in Annex 3 paragraph
(1) (electricity), to the suppliers and service providers of Canada,
Singapore and Japan;
(2) (urban transport), to the suppliers and service providers of Canada,
Israel, Japan, Korea and the USA;
(3) (airports), to the suppliers and service providers of Canada, Korea
and the USA;
(4) (ports), to the suppliers and service providers of Canada;(5) (water), to the suppliers and service providers of Canada and the
USA;
until such time as Iceland has accepted that the Parties concerned give comparable and
effective access for Icelandic undertakings to the relevant markets;
- to service providers of Parties which do not include the relevant service contracts for
the relevant entities in Annexes 1 to 3 and the relevant service category under
Annexes 4 and 5 in their own coverage.
2. The provisions of Article XX shall not apply to suppliers and service providers of:
- Israel, Japan, Korea and Switzerland in contesting the award of con-tracts by entities
listed under Annex 2, paragraph 2, until such time as Iceland accepts that they havecompleted coverage of sub-central entities;
- Japan, Korea and the USA in contesting the award of contracts to a supplier or
service provider of Parties other than those mentioned, which are small or medium-
sized enterprises under the relevant provisions in Iceland, until such time as Icelandaccepts that they no longer operate discriminatory measures in favour of certain
domestic small and minority businesses;
- Israel, Japan and Korea in contesting the award of contracts by Icelandic entities,
whose value is less than the threshold applied for the same category of contractsawarded by these Parties.
3. Until such time as Iceland has accepted that the Parties concerned provide access for
Icelandic suppliers and service providers to their own markets, Iceland will not extend the
benefits of this Agreement to suppliers and service providers of:GPA/W/73
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- Canada as regards procurement of FSC 36, 70 and 74 (special industry machinery;
general purpose automatic data processing equipment, software, supplies and support
equipment (except 7010 ADPE configurations); office machines, visible record
equipment and ADP equipment);
- Canada as regards procurement of FSC 58 (communications, protection and  coherent
radiation equipment) and the USA as regards air traffic control equipment.
- Israel and Korea as regards procurement by entities listed in Annex 3, paragraph 1, as
regards procurement of HS Nos 8504, 8535, 8537 and 8544 (electrical transformers,
plugs, switches and insulated cables); and for Israel, HS Nos 8501, 8536 and 902830;
- Canada and the USA as regards contracts for good or service components of contracts
which, although awarded by an entity covered by this Agreement, are not themselves
subject to this Agreement.
4. Contracts awarded by entities in Annexes 1 and 2 in connection with activities in the fields of
drinking water, energy, transport or telecommunications, are not included.
5. With regard to Annex 3, this Agreement shall not apply to the following contracts:
- contracts which the contracting entities under paragraph 5 award for the purchase of
water;
- contracts which the contracting entities under paragraph 1 award for the supply of
energy or of fuels for the production of energy;
- contracts which the contracting entities award for purposes other than  the pursuit of
their activities as described in this Annex or for the pursuit of such activities in a non-
EEA country;
- contracts awarded for purposes of re-sale or hire to third parties provided that the
contracting entity enjoys no special or exclusive right to sell or hire the subject ofsuch contracts and that other entities are free to sell or hire it under the same
conditions as the contracting entity;
- contracting entities exercising activities in the bus transportation sector where other
entities are free to offer the same services in the same geographical area and undersubstantially the same conditions.
6. With regard to Annex 4, this Agreement shall not apply to the following:
- contracts for the acquisition or rental, by whatever financial means, of land, existing
buildings, or other immovable property or concerning rights thereon;
- contracts for the acquisition, development, production or co-production of
programme material by broadcasters and contracts for broadcasting time;GPA/W/73
Page 11
- contracts awarded to an entity which is itself a contracting authority within the
meaning of the Public Procurement Act: "Lög um opinber innkaup (52/1997) and
Regulation ( 302/1996) on the basis of an exclusive right which it enjoys pursuant to
a published law, regulation or administrative provision;
- contracts of employment.
7. The Agreement shall not apply to contracts awarded under:
- an international agreement and intended fo r the joint implementation or exploitation
of a project by the signatory States;
- an international agreement relating to the stationing of troops;
- the particular procedure of an international organization.
8. The Agreement shall not apply to procurement of agricultural products made in furtherance of
agricultural support programmes and human feeding programmes.
9. The thresholds in the Annexes will be applied so as to conform with the public procurement
thresholds of the EEA agreement.
10. This Agreement does not apply to procurement subject to secrecy or other particular
restrictions with regard to the safety of the country.
11. When a specific procurement may impair important national policy objectives, the Icelandic
Government may consider it necessary in singular procurement cases to deviate from theprinciple of national treatment in the Agreement.  A decision to this effect will be taken at the
Icelandic Cabinet level.GPA/W/73
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APPENDIX II
Publications utilised by Parties for the publication of notices of intended procurements,
paragraph 1 of Article IX and of post-award notices (paragraph 1 of Article XVIII).
Icelandic newspapers:
Morgunbladid
Dagbladid
Dagur
Other:
Official Journal of the European Communities.GPA/W/73
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APPENDIX III
Publications utilised by Parties for the publication annually of information on permanent lists
of qualified suppliers in the case of selective tendering procedures (paragraph 9 of Article IX).
Official Journal of the European Communities:
(Currently no such list exists)GPA/W/73
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APPENDIX IV
Publications utilised by Parties for the publication of laws, regulations, judicial decisions,
administrative rulings of general application and any procedure regarding government procurementgoverned by this Agreement (paragraph 1 of Article XIX).
Laws, regulations and rules:
Stjórnartíðindi (The Government Gazette)
Judicial decisions and administrative rulings:
Hæstaréttardómar (Supreme Court Report)
(District courts do not issue a Court Report, but any interested party can obtain a transcript of
a particular case.  Administrative rulings are not reported but can be obtained from the relevant
authority)
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