WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIORESTRICTED 
GPA/O/ISL/1 
1 October 2007 
 (07-4148) 
Committee on Government Procurement Original:   English/ 
 anglais/  inglés 
 
 
 
NEGOTIATIONS ON EXTENSION OF COVERAGE AND ELIMINATION OF  
DISCRIMINATORY MEASURES AND PRACTICES PURSUANT TO  
ARTICLE XXIV:7(b) AND (c) OF THE AGREEMENT  
ON GOVERNMENT PROCUREMENT 
 
Communication from Iceland
1 
  
 The following communication, dated 28 September 2007, is being circulated at the request of the Delegation of Iceland. 
 
 
Comité des marchés publics  
  
NÉGOCIATIONS SUR L'EXTENSION DE LA PORTÉE DE L'ACCORD ET 
L'ÉLIMINATION DES MESURES ET PRATIQUES DISCRIMINATOIRES  
AU TITRE DE L'ARTICLE XXIV: 7 b) ET c) DE L'ACCORD  
SUR LES MARCHÉS PUBLICS 
 
Communication d'Islande
1 
 
 
 La communication ci-après, datée du 28 septembre 2007, est distribuée à la demande de la délégation d'Islande. 
 
 
Comité de Contratación Pública 
 
 
NEGOCIACIONES SOBRE LA AMPLIACIÓN DEL ÁMBITO DE APLICACIÓN  
Y LA ELIMINACIÓN DE LAS MEDIDAS Y PRÁCTICAS DISCRIMINATORIAS  
DE CONFORMIDAD CON LOS APARTADOS b) Y c) DEL PÁRRAFO 7 DEL  
ARTÍCULO XXIV DEL ACUERDO SOBRE CONTRATACIÓN PÚBLICA 
 
Comunicación de Islandia1 
   La siguiente comunicación, de fecha 28 septiembre de 2007, se distribuye a petición de la delegación de Islandia.  
                                                      
1 In English only./En anglais seulement./En inglés solamente. GPA/O/ISL/1 
Page 2  
 
 
INITIAL OFFER OF ICELAND 
 
  With reference to the Decision of the Co mmittee on Government Procurement on Modalities 
for the Negotiations on Extensi on of Coverage and Elimination of Discriminatory Measures and 
Practices (GPA/79, 19 July 2004  and GPA/79/add.1, 22 July 2005), please find enclosed Iceland's 
initial offer to other Parties to the Agreement on Government Procurement.   Iceland reserves the right to withdraw or modify  its initial offer in light of the development of 
the bilateral negotiations which are scheduled to  take place after the tabling of initial offers. 
 
 The format of this offer is based on Iceland's current annexes.  Added text is underlined and 
deletions are marked by strikethroughs.  GPA/O/ISL/1 
 Page 3 
 
 
ANNEX 1 
 
Central Government Entities Wh ich Procure in Accordance  
With the Provisions of the 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 : 
 All central government (State/federal) entities, including Ministries and sub-entities.* 
 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 Íslands (Icelandic Maritime Administration)  
 
Note to Annex 1 
 
* Central government entities is meant to cover also any subordinate entity of any central government 
entity provided it does not have separate legal personality. GPA/O/ISL/1 
Page 4  
 
ANNEX 2 
 
Sub-Central Government Entities Wh ich 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. All contracting authorities of the regiona l or local public authorities (including all 
municipalities).  
2. All public bodies at the local level not having an industrial or commercial character.All other 
entities whose procurement policies are substantially controlled by, dependent on, or influenced by 
central, regional or local government and which are engaged in non-commercial or non-industrial 
activities.  GPA/O/ISL/1 
 Page 5 
 
 
ANNEX 3 
 
All 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 : 
 A. All Annex 1 and Annex 2 entities which have as one  of their activities any of those referred to 
below or any combination thereof: 
 
 (a) the provisions or operation of fixed netw orks intended to provide a service to the 
public in connection with the production, tran sport or distribution of drinking water 
or the supply of drinking water to such networks; 
  (b) the provision or operation of fixed netw orks intended to provide a service to the 
public in connection with the production, transport or distribution of electricity or the 
supply of electricity to such networks; 
  (c) the provision of airport or other terminal facilities to carriers by air;   (d) the provision of maritime or inland port or other terminal facilities to carriers by sea 
or inland waterway; 
  (e) the operation of networks providing a service to the public in the field of urban 
transport by railway, automated systems,  tramway, trolley bus, bus or cable; 
 
 (f) the provision of postal services. 
 B. All other entities whose procurement policies ar e substantially controlle d by, dependent on, or 
influenced by central, regional or local government , which are engaged in commercial or industrial 
activities in one or more of the sectors referred to above, and in respect of contracts awarded for the 
pursuit of any of those activities, including: 
 
1. The electricity sector : 
  Landvirkjun (The National Power Company), Act No 42/1983.  Landsnet (Iceland Power Grid), Act No 75/2004. 
 Rafmagnsveitur ríkisins (The State Electric Power Works), Act No 58/1967.  Orkuveita Reykjavíkur (Reykjavík Energy), Act No 139/2001.  Orkubú Vestfjarða (Vestfjord Power Company), Act No 40/2001. 
Norðurorka, Act No 159/2002. Hitaveita Suðurnesja, Act No 10/2001. GPA/O/ISL/1 
Page 6  
 
Other entities producing, transporting or di stributing electricity pursuant to Act 
No 58/196765/2003. 
 2. Urban transport : 
 
 Strætisvagnar Reykjavíkur Strætó (The  Reykjavík Municipal Bus Service). 
 Almenningsvagnar bs. 
 Other entities operating in accordance with  Act No 73/2001 on urban transport. 
 3. Airports : 
 
 Flugmálastjórn Íslands (Directorate of Civil Aviation). 
 4. Ports : 
 
 Siglingastofnun Íslands (Icelandic Maritime Administration). 
 Other entities operating pursuant to the Harbour Act No 61/2003.  5. Water supply :** 
 
Public entities producing or distributing dri nking water pursuant to Act No 32/2004 on 
Municipal Water Supply . 
  
Notes to Annex 3  
 * Contracts awarded for the pursuit of an activity listed above when exposed to competitive 
forces in the market concerned are not covered by this Agreement. 
 
** 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 w ithin the meaning of paragraphs 1-5 of 
this Annex to one of those contracting entiti es or to an undertaking which is affiliated 
with one of these contracting entities; 
 
Provided that at least 80 per cent of the averag e 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 into 
account. 
 *** The supply of drinking water and electricity to  networks which provide a service to the public 
by a contracting entity other than a public au thority 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 ca rrying out an activity other than that 
referred to in paragraphs 1 and 5 of this Annex;  and 
  GPA/O/ISL/1 
 Page 7 
 
 
 - supply to the public network depends onl y on the entity's own consumption and has 
not exceeded 30 per cent of the entity's tota l production of drinking water or energy, 
having regard to the average for the precedi ng three years, including the current year. 
 GPA/O/ISL/1 
Page 8  
 
 
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, 886  Land 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     84  
Accounting, auditing and bookkeeping services   862 
 Market research and public opinion polling services  864  Management 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      871  
Building-cleaning services and property     874,  82201-82206 
management services  GPA/O/ISL/1 
 Page 9 
 
 
 
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 pr ocure from another entity pursuant to an 
exclusive right established by a published law, regulation or administrative provision. 
 
** Except voice telephony, telex, radiotel ephony, paging and satellite services. 
 
*** Except contracts for financial services in connec tion with the issue, sale, purchase, or transfer 
of securities or other financial instruments, and central bank services. 
 **** Except arbitrations and conciliation services. 
 GPA/O/ISL/1 
Page 10  
 
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/O/ISL/1 
 Page 11 
 
 
GENERAL NOTES 
  1. With regard to Annex 3, this Agreemen t 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 exclus ive right to sell or hire the subject of 
such 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 under 
substantially the same conditions. 
 2. With regard to Annex 4, this Agre ement 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, deve lopment, production or co-production of 
programme material by broadcasters and contracts for broadcasting time; 
 
 - contracts awarded to an entity which is  itself a contracting authority within the 
meaning of the Public Procurement Act: "Lög um opinber innkaup (94/2001) on the 
basis of an exclusive right which it enjoys pursuant to a published law, regulation or administrative provision;. 
 
 - contracts of employment. 
 
3. The Agreement shall not apply to contracts awarded under: 
  - an international agreement and intended for the joint implementation or exploitation 
of a project by the signatory States; 
 
 - an international agreement re lating to the stationing of troops; 
 
 - the particular procedure of an international organization. 
 
43. The Agreement shall not apply to procurement of  agricultural products made in furtherance of 
agricultural support programmes and human feeding programmes. 
 
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