### concessions should not be awarded to economic operators that have participated in a criminal organisation or have been found guilty of corruption , fraud to the detriment of the union ' s financial interests or money laundering . non - payment of taxes or social security contributions should also be sanctioned by mandatory exclusion at the level of the union . furthermore , contracting authorities and contracting entities should be given the possibility to exclude candidates or tenderers for serious violations of union or national law aimed at the protection of public interests compatible with the treaty or where the economic operator has shown significant or persistent deficiencies in the performance of a prior concession or concessions of a similar nature with the same contracting authority or contracting entity . ### concessions should not be awarded to economic operators that have participated in a criminal organisation or have been found guilty of corruption , fraud to the detriment of the union ' s financial interests or money laundering . non - payment of taxes or social security contributions should also be sanctioned by mandatory exclusion at the level of the union . furthermore , contracting authorities and contracting entities should be given the possibility to exclude candidates or tenderers for serious violations of union or national law aimed at the protection of public interests compatible with the treaty if such a violation has been established by a court , or where the economic operator has shown significant or persistent deficiencies in the performance of a prior concession or concessions of a similar nature .


### contracting authorities or contracting entities should have the possibility to provide for modifications to a concession in the concession contract itself , by way of review clauses which should not give them unlimited discretion . this directive should therefore set out to what extent modifications may be provided for in the initial concession . ### grantors should have the possibility to provide for modifications to a concession in the concession contract itself , by way of review clauses which should not give them unlimited discretion . this directive should therefore set out to what extent modifications may be provided for in the initial concession .


### in order to adapt to rapid technical and economic developments , the power to adopt acts in accordance with article 290 of the treaty should be delegated to the commission in respect of a number of non - essential elements of this directive . in fact , the technical details and characteristics of the devices for electronic receipt should be kept up to date with technological developments and administrative needs ; it is also necessary to empower the commission to make mandatory technical standards for electronic communication to ensure the interoperability of technical formats , processes and messaging in concession award procedures conducted using electronic means of communication taking into account technological developments and administrative needs . furthermore , the list of legislative acts of the union establishing common methodologies for the calculation of life - cycle costs should be quickly adapted to incorporate the measures adopted on a sectoral basis . in order to satisfy these needs , the commission should be empowered to keep the list of legislative acts including lcc methodologies up - to date . ### in order to adapt to rapid technical and economic developments , the power to adopt acts in accordance with article 290 tfeu should be delegated to the commission so that cpv reference numbers , including those in annexes i and x , can be updated if this is necessitated by the changes in the cpv nomenclature . it is of particular importance that the commission carry out appropriate consultations during its preparatory work , including at expert level . the commission should , when preparing and drawing up delegated acts , ensure the simultaneous , timely and appropriate transmission of all relevant documents to the european parliament and to the council .


### in order to ensure uniform conditions for the implementation of this directive ; the procedure for drawing up and transmission of notices and for sending and publishing data referred to in annexes iv to vi , the amendment of the thresholds implementing powers should be conferred on the commission . those powers should be exercised in accordance with regulation 182 / 2011 of the european parliament and of the council of 16 february 2011 laying down the rules and general principles concerning mechanisms for control by the member states of the commission ' s exercise of implementing powers . the advisory procedure should be used for the adoption of implementing acts , which do not have any impact either from the financial point of views or on the nature and scope of obligations stemming from this directive . on the contrary , these acts characterised by a mere administrative purpose and serve to facilitate the application of the rules set by this directive . ### in order to ensure uniform conditions for the implementation of this directive ; the procedure for drawing up and transmission of notices and for sending and publishing data referred to in annexes iv to vi , the amendment of the thresholds implementing powers should be conferred on the commission . those powers should be exercised in accordance with regulation 182 / 2011 of the european parliament and of the council of 16 february 2011 laying down the rules and general principles concerning mechanisms for control by the member states of the commission ' s exercise of implementing powers . the advisory procedure should be used for the adoption of these implementing acts , which do not have any impact either from the financial point of view or on the nature and scope of obligations stemming from this directive . on the contrary , these acts are characterised by a mere administrative purpose and serve to facilitate the application of the rules set by this directive .


### definitions and scope ### definitions , scope , thresholds and ways of calculating the value of a concession


### this directive establishes rules on the procedures for procurement by contracting authorities and by contracting entities with respect to concessions whose value is estimated to be not less than the thresholds laid down in article 5 . ### this directive establishes rules relating to public procurement which are applicable to the procedures for the award of works or services concession contracts whose value is estimated to be not less than the thresholds laid down in article 6 and which are awarded to economic operators by one of the following actors :


### contracting entities provided that the works or services including the related supplies , are intended for the pursuit of one of the activities referred to in annex iii . ### contracting entities , pusuant to article 4 of this directive , provided that the works or services including the related supplies , are intended for the pursuit of one of the activities referred to in annex iii .


### ' concessions ' means public works concessions , works concessions or services concessions . ### ' concessions ' means works or services concessions .


### for the purposes of this directive ‘ contracting authorities’ are state , regional or local authorities , bodies governed by public law , associations formed by one or more such authorities or one or more such bodies governed by public law , other than those awarding a concession for the purpose of pursuing an activity as referred to in annex iii . . ### for the purposes of this directive ' contracting authorities ' are state , regional or local authorities , bodies governed by public law , associations formed by one or more such authorities or one or more such bodies governed by public law , other than those awarding a concession for the purpose of pursuing an activity as referred to in annex iii . .


### for the purposes of this directive , ' contracting entities ' are one of the following : state , regional or local authorities , bodies governed by public law , associations formed by one or more such authorities or one or more such bodies governed by public law as defined in paragraphs 2 - 4 of article 3 . public undertakings as defined in paragraph 2 of this article ; entities which are not contracting authorities or public undertakings , operating on the basis of special or exclusive rights granted by a competent authority of a member state when they award a concession for the purpose of pursuing one of the activities as referred to in annex iii . ### for the purposes of this directive , ' contracting entities ' are entities which award a concession for the pursuit of one of the activities referred to in annex iii and which are one of the following : state , regional or local authorities , bodies governed by public law , associations formed by one or more such authorities or one or more such bodies governed by public law as defined in paragraphs 2 - 4 of article 3 . public undertakings as defined in paragraph 2 of this article ; entities which are not contracting authorities or public undertakings but which operate on the basis of special or exclusive rights granted by a competent authority of a member state .


### this directive shall apply to the following concessions the value of which is equal to or greater than eur 5 000 000 : ### this directive shall apply to the following concessions the value of which is equal to or greater than eur 10 000 000 :


### concessions concluded by contracting entities for the pursuit of one of the activities referred to in annex iii ; ### concessions concluded by contracting entities for the pursuit of one of the activities referred to in annex iii and relating to a network or geographically restricted area with at least 100 000 connected customers , or with at least 100&#160 ; 000 inhabitants ;


### this directive shall apply to the following concessions the value of which is equal to or greater than eur 5 000 000 : ### this directive shall apply to the following concessions the value of which is equal to or greater than eur 5 000 000 for concessions lasting up to five years :


### services concessions the value of which is equal to or greater than eur 2 500 000 but lower than eur 5 000 000 other than social services and other specific services shall be subject to the obligation to publish a concession award notice in accordance with articles 27 and 28 . ### services concessions lasting for up to five years the value of which is equal to or greater than eur 2 500 000 but lower than eur 5 000 000 other than social services and other specific services shall be subject to the obligation to publish a concession award notice in accordance with articles 27 and 28 . services concessions lasting more than five years , the value of which is equal to or greater than eur 5 000 000 but lower than eur 10 000 000 , other than social services and other specific services , shall be subject to the obligation to publish a concession award notice in accordance with articles 27 and 28 .


### methods for calculating the estimated value of concessions the calculation of the estimated value of a concession shall be based on the total amount payable , net of vat , as estimated by the contracting authority or the contracting entity , including any form of option and any extension of the duration of the concession . 2 . the estimated value of a concession shall be calculated as the value of an entirety of works or services , even if purchased through different contracts , where the contracts are part of one single project . indications for the existence of one single project consist in overall prior planning and conception by the contracting authority or contracting entity , the fact that the different elements purchased fulfil a single economic and technical function or that they are otherwise logically interlinked . where the contracting authority or the contracting entity provides for prizes or payments to candidates or tenderers it shall take them into account when calculating the estimated value of the concession . 3 . the choice of the method used to calculate the estimated value of a concession shall not be made with the intention of excluding it from the scope of this directive . a works project or an entirety of services shall not be subdivided with the effect of preventing it from falling within the scope of this directive , unless justified by objective reasons . 4 . this estimate shall be valid at the moment at which the concession notice is sent , or , in cases where such notice is not foreseen , at the moment at which the contracting authority or the contracting entity commences the concession award procedure , in particular by defining the essential characteristics of the intended concession . 5 . with regard to public works concessions and works concessions , calculation of the estimated value shall take account of both the cost of the works and the total estimated value of the supplies and services that are made available to the contractor by the contracting authorities or entities provided that they are necessary for executing the works . 6 . where a proposed work or purchase of services may result in concessions being awarded at the same time in the form of separate lots , account shall be taken of the total estimated value of all such lots . 7 . where the aggregate value of the lots is equal to or exceeds the threshold laid down in article 5 , this directive shall apply to the awarding of each lot . 8 . contracting authorities or contracting entities may award concessions for individual lots without applying the provisions on the award provided for under this directive , provided that the estimated value net of vat of the lot concerned is less than eur 1 million . however , the aggregate value of the lots thus awarded without applying this directive shall not exceed 20% of the aggregate value of all the lots into which the proposed work or the proposed purchase of services has been divided . 9 . the value of services concessions shall be the estimated total value of services to be provided by the concessionaire during the whole duration of the concession , calculated in accordance with an objective methodology which shall be specified in the concession notice or in the concession documents . the basis for calculating the estimated concession value shall , where appropriate , be the following : for insurance services : the premium payable and other forms of remuneration ; b ) for banking and other financial services : fees , commissions , interest and other forms of remuneration ; c ) for design services : fees , commission payable and other forms of remuneration ; 10 . the value of concessions shall include both the estimated revenue to be received from third parties and the amounts to be paid by the contracting authority or the contracting entity . ### thresholds and methods for calculating the estimated value of concessions - 1 . this directive shall apply to the concessions the value of which is equal to or greater than eur 5 000 000 . the calculation of the estimated value of a concession shall be based on its turnover , net of taxes , accumulated over the duration of the contract , as estimated by the grantor . this estimate shall be valid at the moment at which the concession notice is sent , or , in cases where such notice is not foreseen , at the moment at which the grantor commences the concession award procedure . if the value is changed as a result of negotiations during the award procedure , the valid estimate shall be the estimate indicated at the time of signature of the contract . 2 . the estimated value of a concession shall be calculated as the value of an entirety of works and / or services which are part of one single concession project , including studies . the unique nature of the project can for instance be demonstrated by the existence of planning and conception by the grantor , the fact that the different elements purchased fulfil a single economic and technical function or that they are otherwise logically interlinked . 3 . the estimate of the value of a concession shall not be made with the intention of excluding it from the scope of this directive . 3a . the estimated value of the concession shall be calculated according to an objective method specified in the concession notice .


### this directive shall not apply to services concessions awarded by a contracting authority or by a contracting entity to an economic operator which is a contracting entity or an association of thereof , on the basis of an exclusive right that economic operator enjoys pursuant to applicable and published national law , regulation or administrative provision , and which has been granted in accordance with the treaty and union sectoral legislation concerning the management of networks infrastructure related to the activities set out in annex iii . ### this directive shall not apply to services concessions concerning networks infrastructure related to the activities set out in annex iii , if the services concession is awarded to an economic operator on the basis of an exclusive right that economic operator enjoys pursuant to applicable and published law , regulation or administrative provision , or the services concession relates to an activity which , when this directive enters into force , is the subject of a nationally regulated tariff laid down in law or regulation , or the services concession is awarded to an economic operator on the basis of an exclusive right that economic operator enjoys pursuant to applicable and published law , regulation or administrative provision , or in respect of services to which regulated , non - discriminatory access is available when this directive enters into force .


### this directive shall not apply to services concessions awarded by a contracting authority or by a contracting entity to an economic operator which is a contracting entity or an association of thereof , on the basis of an exclusive right that economic operator enjoys pursuant to applicable and published national law , regulation or administrative provision , and which has been granted in accordance with the treaty and union sectoral legislation concerning the management of networks infrastructure related to the activities set out in annex iii . ### this directive shall not apply to services concessions awarded by a contracting authority or by a contracting entity to an economic operator which is a contracting entity or an association thereof , on the basis of a special or exclusive right that economic operator enjoys pursuant to applicable and published national law , regulations or administrative provisions , and which has been granted in accordance with the treaty and union sectoral legislation concerning the management of network infrastructure related to the activities set out in annex iii . this directive shall not apply where the service under concession has already been made subject to sector - specific legislation .


### this directive shall not apply to services concessions awarded by a contracting authority or by a contracting entity to an economic operator which is a contracting entity or an association of thereof , on the basis of an exclusive right that economic operator enjoys pursuant to applicable and published national law , regulation or administrative provision , and which has been granted in accordance with the treaty and union sectoral legislation concerning the management of networks infrastructure related to the activities set out in annex iii . ### this directive shall not apply to services concessions concerning the management of network infrastructure related to the activities set out in annex iii or to services concessions for an activity set out in annex iii which , when this directive is adopted , are the subject of a nationally regulated tariff laid down in law or regulation where such concessions are awarded to an economic operator , on the basis of an exclusive right that the latter enjoys pursuant to applicable and published national law , regulation or administrative provision , and which has been granted in accordance with the treaty and in application of union sectoral legislation . by way of derogation from the first subparagraph , where sectoral legislation referred to in the first subparagraph does not provide for sector - specific transparency obligations , the requirements of article 27 and shall apply .


### this directive shall not apply to services concessions awarded by a contracting authority or by a contracting entity to an economic operator which is a contracting entity or an association of thereof , on the basis of an exclusive right that economic operator enjoys pursuant to applicable and published national law , regulation or administrative provision , and which has been granted in accordance with the treaty and union sectoral legislation concerning the management of networks infrastructure related to the activities set out in annex iii . ### this directive shall not apply to services concessions awarded by a contracting authority or by a contracting entity to an economic operator , on the basis of an exclusive right that economic operator enjoys pursuant to applicable and published national law , regulation or administrative provision , and which has been granted in accordance with the treaty and union sectoral legislation concerning the management of networks infrastructure related to the activities set out in annex iii .


### this directive shall not apply to services concessions awarded by a contracting authority or by a contracting entity to an economic operator which is a contracting entity or an association of thereof , on the basis of an exclusive right that economic operator enjoys pursuant to applicable and published national law , regulation or administrative provision , and which has been granted in accordance with the treaty and union sectoral legislation concerning the management of networks infrastructure related to the activities set out in annex iii . ### this directive shall not apply to services concessions concerning the management of networks infrastructure related to the activities set out in annex iii or to services concessions for an activity set out in annex iii which , when this directive enters into force , are the subject of a nationally regulated tariff laid down in law or regulation where such concessions are awarded to an economic operator on the basis of an exclusive right that the latter enjoys pursuant to applicable and published national law , regulation or administrative provision , and which has been granted in accordance with the treaty and union sectoral legislation . by way of derogation from the first subparagraph , where sectoral legislation referred to in the first subparagraph does not provide for sector specific transparency obligations , the requirements of article 27 and shall apply


### this directive shall not apply to services concessions awarded by a contracting authority or by a contracting entity to an economic operator which is a contracting entity or an association of thereof , on the basis of an exclusive right that economic operator enjoys pursuant to applicable and published national law , regulation or administrative provision , and which has been granted in accordance with the treaty and union sectoral legislation concerning the management of networks infrastructure related to the activities set out in annex iii . ### this directive shall not apply to services concessions awarded by a contracting authority or by a contracting entity to an economic operator on the basis of an exclusive right that economic operator enjoys pursuant to applicable and published national law or regulation , and which has been granted in accordance with the treaty and union sectoral legislation concerning the management of networks infrastructure related to the activities set out in annex iii .


### an international agreement concluded in conformity with the treaty between a member state and one or more third countries and covering works , supplies or services intended for the joint implementation or exploitation of a project by the signatory states ; ### an international agreement concluded in conformity with the treaty between a member state and one or more third countries and covering works , supplies or services intended for the joint implementation or exploitation of a project by the signatory states , unless european union funding is granted for this purpose ;


### this directive shall not apply to concessions for the principal purpose of permitting the contracting authorities to provide or exploit public communications networks or to provide to the public one or more electronic communications services . ### this directive shall not apply to concessions for the principal purpose of permitting the contracting authorities to provide or exploit public communications networks as defined in article 2 of directive 2002 / 21 / ec of the european parliament and of the council of 7 march 2002 on a common regulatory framework for electronic communications networks and services1 , or to provide to the public one or more electronic communications services as defined in article 2 of that directive . _________________________ 1 oj l 108 , 24 . 4 . 2002 , p . 33 .


### concessions awarded by a contracting entity to an affiliated undertaking ; ### concessions awarded by a contracting entity , as defined in paragraph 1 and of article 4 , to an affiliated undertaking ;


### concessions awarded by a joint venture , formed exclusively by a number of contracting entities for the purpose of carrying out activities described in annex iii , to an undertaking which is affiliated with one of those contracting entities . ### concessions awarded by a joint venture , formed exclusively by a number of contracting entities , as defined in paragraph 1 and of article 4 , for the purpose of carrying out activities described in annex iii , to an undertaking which is affiliated with one of those contracting entities .


### for the purposes of this article , ' affiliated undertaking ' means any undertaking the annual account of which are consolidated with those of the contracting entity in accordance with the requirements of the seventh council directive 83 / 349 / eec . 2 . in the case of entities not subject to that directive , ' affiliated undertaking ' shall mean any undertaking that : may be , directly or indirectly , subject to a dominant influence by the contracting entity within the meaning of the second paragraph of article 4 of this directive ; b ) may exercise a dominant influence over the contracting entity ; c ) in common with the contracting entity , is subject to the dominant influence of another undertaking by virtue of ownership , financial participation , or the rules which govern it . ### for the purposes of this article , ' affiliated undertaking ' means : any undertaking the annual accounts of which are consolidated with those of the contracting entity in accordance with the requirements of the seventh council directive 83 / 349 / eec ; or b ) any undertaking finding itself to be in any of the following situations : that may be , directly or indirectly , subject to a dominant influence by the contracting entity ii ) that may exercise a dominant influence over the contracting entity ; iii ) that , in common with the contracting entity , is subject to the dominant influence of another undertaking by virtue of ownership , financial participation , or the rules which govern it . the notion of dominant influence is defined in the second subparagraph of article 4 .


### paragraph 3 shall apply : to service concessions provided that at least 80 % of the average total turnover of the affiliated undertaking with respect to services in general for the preceding three years derives from the provision of services to undertakings with which it is affiliated ; b ) works concessions provided that at least 80 % of the average total turnover of the affiliated undertaking with respect to works in general for the preceding three years derives from the provision of works to undertakings with which it is affiliated . ### paragraph - 1 shall apply : to service concessions provided that at least 80 % of the average total turnover of the affiliated undertaking , taking into account all services provided by that undertaking over the preceding three years , derives from the provision of services to the contracting entity to which the undertaking is affiliated , or to the contracting entity which is itself subject to the dominant influence of another undertaking to which the undertaking granted the concession is affiliated ; b ) to works concessions provided that at least 80 % of the average total turnover of the affiliated undertaking , taking into account all works carried out by that undertaking over the preceding three years , derives from the provision of works to the contracting entity to which the undertaking is affiliated , or to the contracting entity which is itself subject to the dominant influence of another undertaking to which the undertaking granted the concession is affiliated .


### this directive shall not apply to concessions awarded by contracting entities where , in the member state in which such concessions are performed the activity is directly exposed to competition in accordance with article 27 and 28 of directive [ replacing directive 2004 / 17 / ec ] . ### concessions awarded by contracting entities and performed in a member state in which the activity is directly exposed to competition in accordance with article 27 and 28 of directive [ replacing directive 2004 / 17 / ec ] shall not be considered to be concessions within the meaning of this directive .


### there is no private participation in the controlled legal person . ### there is no private participation in the controlled legal person , except where this is a mandatory statutory requirement in the relevant member states .


### there is no private participation in the controlled legal person ### there are no private participations in the controlled legal person in excess of 10 % .


### a contracting authority or a contracting entity as referred to in paragraph 1 subparagraph 1 of article 4 shall be deemed to exercise over a legal person a control similar to that which it exercises over its own departments within the meaning of point of the first subparagraph where it exercises a decisive influence over both strategic objectives and significant decisions of the controlled legal person . ### .


### a contracting authority or a contracting entity as referred to in paragraph 1 subparagraph 1 of article 4 , which does not exercise over a legal person control within the meaning of paragraph 1 , may nevertheless award a concession without applying the provisions of the current directive to a legal person which it controls jointly with other such contracting authorities or entities , where the following conditions are fulfilled : ### a contracting authority or a contracting entity as referred to in paragraph 1 subparagraph 1 of article 4 , which does not exercise over a legal person control within the meaning of paragraph 1 of this article , may nevertheless award a concession without applying the provisions of the current directive to a legal person which it controls jointly with other such contracting authorities or entities within the meaning of article 4 , where the following conditions are fulfilled :


### the agreement establishes a genuine co - operation between the participating contracting authorities or entities aimed at carrying out jointly their public service tasks and involving mutual rights and obligations of the parties ; ### the agreement establishes a genuine co - operation between the participating contracting authorities or entities acting as a competent authority in order to jointly ensure the organisation of the same public service mission ;


### the agreement establishes a genuine co - operation between the participating contracting authorities or entities aimed at carrying out jointly their public service tasks and involving mutual rights and obligations of the parties ; ### the agreement establishes a genuine co - operation between the participating contracting authorities or entities aimed at carrying out jointly their public service tasks ;


### the agreement establishes a genuine co - operation between the participating contracting authorities or entities aimed at carrying out jointly their public service tasks and involving mutual rights and obligations of the parties ; ### the agreement is governed by considerations relating to the public interest ; this principle shall also apply to ancillary services essential to the provision of services in the public interest ;


### the agreement establishes a genuine co - operation between the participating contracting authorities or entities aimed at carrying out jointly their public service tasks and involving mutual rights and obligations of the parties ; ### the purpose of the partnership is the provision of a public service task in the public interest conferred on public authorities , or the carrying - out of ancillary purchasing activities within the meaning of article 2 , which is necessary in order to perform the public service task in the public interest . a pooling of tasks shall also be considered to exist where a municipality is merely obliged to make payment , provided that cooperation enables the municipality to carry out its own obligations more economically or more effectively ;


### the agreement establishes a genuine co - operation between the participating contracting authorities or entities aimed at carrying out jointly their public service tasks and involving mutual rights and obligations of the parties ; ### does not apply to english text .


### mixed concessions ### mixed contracts


### contracts which have as their object both services and supplies shall be awarded in accordance with this directive where the main object of the contract in question are services and where they are concessions within the meaning of point of the first paragraph of article 2 ### where contracts have as their object concessions covered by this directive as well as procurement or other elements not covered by it , the part of the contract which constitutes a concession covered by this directive shall be awarded in accordance with the provisions thereof . where the different parts of the contract in question are not separable , the application of this directive shall be determined by the main subject of that contract , established on the basis of the respective values of the concession , the items to be procured or other elements not covered by the directive .


### however , legal persons may be required to indicate in the tender or the application , the names and relevant professional qualifications of the staff to be responsible for the performance of the concession in question . ### however , legal persons may be required to indicate in the application or the tender , the names and relevant professional qualifications of the staff to be responsible for the performance of the concession in question .


### groups of economic operators may submit tenders or put themselves forward as candidates . ### groups of economic operators may put themselves forward as candidates or submit tenders . their participation in a concession award procedure may not be subject to additional conditions that are not imposed on individual candidates .


### except where use of electronic means is mandatory pursuant to articles 28 and 30 of this directive contracting authorities and contracting entities may choose between the following means of communication for all communication and information exchange : ### except where use of electronic means is mandatory pursuant to articles 28 and 30 of this directive the grantor may choose between the following means of communication for all communication and information exchange :


### electronic means in accordance with paragraphs 3 , 4 and 5 ; ### electronic means ;


### telephone in the cases and circumstances referred to in paragraph 6 , or ### telephone , subject to transmission of written confirmation ;


### the means of communication chosen must be generally available and not restrict economic operators ' access to the concession award procedure . in all communication , exchange and storage of information , contracting authorities and contracting entities shall ensure that the integrity of data and the confidentiality of tenders and applications are preserved . they shall examine the content of tenders and applications only after the time limit set for submitting them has expired . ### the means of communication chosen must be generally available and non - discriminatory , and not restrict economic operators ' access to the concession award procedure . in the case of electronic means , they must also be interoperable with the information and communication technology products in general use . in all communication , exchange and storage of information , the grantor shall ensure that the integrity of data and the confidentiality of applications and tenders are preserved . they shall examine the content of applications and tenders only after the time limit set for submitting them has expired .


### rules on the award of concessions ### rules on the award of concessions : general principles , transparency and procedural guarantees


### contracting authorities and contracting entities wishing to award a concession shall make known their intention by means of a concession notice . ### a grantor wishing to award a concession shall make known its intention by means of a concession notice in accordance with the procedures laid down in article 28 . the concession notice shall contain the information referred to in annex iv and , where appropriate , any other information deemed useful by the grantor .


### their price exceeds the contracting authority or contracting entity’s budget as determined prior to the launching of the concession award procedure and documented in writing ; ### their price exceeds the contracting authority or contracting entity’s budget as determined prior to the launching of the concession award procedure and documented in writing by more than 20 % ;


### not later than 48 days after the award of a concession , contracting authorities and contracting entities shall send a concession award notice on the results of the concession award procedure . ### not later than 48 days after the award of a concession , the grantor shall in accordance with the procedures laid down in article&#160 ; 28 send a concession award notice on the results of the concession award procedure .


### the notices referred to in articles 26 and 27 and the second subparagraph of article 43 shall include the information set out annexes iv to vi and in the format of standard forms , including standard forms for corrigenda . ### concession notices and concession award notices and the notice referred to in the second subparagraph of article 42 shall include the information set out annexes iv to vi and in the format of standard forms , including standard forms for corrigenda .


### the notices shall be drawn up , transmitted by electronic means to the commission and published in accordance with annex ix . notices shall be published not later than five days after they are sent . the costs of publication of the notices by the commission shall be borne by the union . ### the notices referred to in paragraph 1 shall be drawn up , transmitted by electronic means to the commission and published in accordance with annex ix . the commission shall give the grantor confirmation of the receipt of the notice and of the publication of the information sent , indicating the date of that publication and constituting proof of publication . notices shall be published not later than five days after they are sent . the costs of publication of the notices by the commission shall be borne by the union .


### the notices referred to in article 26 shall be published in full in an official language of the union as chosen by the contracting authority or contracting entity . that language version shall constitute the sole authentic text . a summary of the important elements of each notice shall be published in the other official languages . ### concession notices shall be published in full in an official language of the union as chosen by the grantor . that language version shall constitute the sole authentic text . a summary of the important elements of each notice shall be published in the other official languages .


### contracting authorities and contracting entities shall offer unrestricted and full direct access free of charge by electronic means to the concession documents from the date of publication of the notice in accordance with article 28 or the date on which the invitation to submit tenders is sent . the text of the notice or of these invitations shall specify the internet address at which this documentation is accessible . ### the grantor shall offer unrestricted and full direct access free of charge by electronic means to the concession documents from the date of publication of the concession notice or the date on which the invitation to submit tenders is sent . the text of the concession notice or of these invitations shall specify the internet address at which this documentation is accessible .


### provided that it has been requested in good time , the contracting authorities and contracting entities or competent departments shall supply additional information relating to the concession documents not later than six days before the deadline fixed for the receipt of tenders . ### provided that it has been requested in good time , the grantor shall supply additional information relating to the concession documents not later than six days before the deadline fixed for the receipt of tenders .


### chapter ii conduct of the procedure ### chapter ii procedural guarantees


### selection of and qualitative assessment of candidates ### selection and qualitative assessment of candidates and tenderers and grounds for exclusion


### where it is aware of any other serious violation of provisions of european union or of national law aimed at the protection of public interests compatible with the treaty ; ### where it is aware of any other serious violation of provisions of european union law , national law aimed at the protection of public interests compatible with the treaty or serious breaches in the area of social , labour and environmental law ;


### where the economic operator has shown significant or persistent deficiencies in the performance of any substantive requirement under a prior concession or concessions of a similar nature with the same contracting authority or contracting entity . ### where the economic operator has shown significant or persistent deficiencies in the performance of any substantive requirement under a prior concession or concessions of a similar nature .


### when fixing the time limits for the submission of applications for the concession and submission of tenders , contracting authorities or contracting entities shall take account in particular of the complexity of the concession and the time required for drawing up tenders , without prejudice to the minimum time limits set out in article 37 . ### when fixing the time limits for the submission of applications or of tenders , the grantor shall take account in particular of the complexity of the concession and the time required for drawing up tenders or applications .


### member states shall ensure that contracting authorities and contracting entities have the possibility , under the conditions determined by the applicable national contract law , to terminate a concession during its term , where one of the following conditions is fulfilled : ### member states shall ensure that the grantor has the possibility , under the conditions determined by the applicable national law , to terminate a concession during its term , where one of the following conditions is fulfilled :


### the exceptions provided for in article 15 cease to apply following a private participation in the legal person awarded the contract pursuant to article 15 ; ### the exceptions provided for in article&#160 ; 15 cease to apply following a private participation of more than ten per cent in the legal person awarded the contract pursuant to article&#160 ; 15 ;


### the delegation of power referred to in articles 4 , 21 , 23 , 25 , 40 and 52 shall be conferred on the commission for an indeterminate period of time from the [ date of entry into force of the present directive ] . ### the power to adopt delegated acts referred to in articles 21 and 23 shall be conferred on the commission for an indeterminate period of time from the [ date of entry into force of this regulation ] .


### as far as gas and heat are concerned : the provision or operation of fixed networks intended to provide a service to the public in connection with the production , transport or distribution of gas or heat ; the supply of gas or heat to such networks . the supply of gas or heat to networks which provide a service to the public by a contracting entity referred to in paragraph 1 subparagraph 2 and subparagraph 3 of article 4 shall not be considered a relevant activity within the meaning of paragraph 1 where all of the following conditions are met : the production of gas or heat by the entity concerned is the unavoidable consequence of carrying out an activity other than those referred to in this paragraph or in paragraphs 2 to 4 of this annex ; the supply to the public network is aimed only at the economic exploitation of such production and amounts to not more than 20 % of the entity ' s turnover on the basis of the average for the preceding three years , including the current year . ### as far as gas , heat and cold are concerned : the provision or operation of fixed networks intended to provide a service to the public in connection with the production , transport or distribution of gas or heat and cold ; the supply of gas or heat and cold to such networks . the supply of gas or heat and cold to networks which provide a service to the public by a contracting entity referred to in paragraph 1 subparagraph 2 and subparagraph 3 of article 4 shall not be considered a relevant activity within the meaning of paragraph 1 where all of the following conditions are met : the production of gas or heat and cold by the entity concerned is the unavoidable consequence of carrying out an activity other than those referred to in this paragraph or in paragraphs 2 to 4 of this annex ; the supply to the public network is aimed only at the economic exploitation of such production and amounts to not more than 20 % of the entity ' s turnover on the basis of the average for the preceding three years , including the current year .


### activities relating to the exploitation of a geographical area for the purpose of the provision of airports and maritime or inland ports or other terminal facilities to carriers by air , sea or inland waterway . ### activities relating to the exploitation of a geographical area for the purpose of the provision of airports and maritime or inland ports or other general infrastructure to carriers by air , sea or inland waterway .


### description of the procurement : nature and extent of works , nature and quantity or value of supplies , nature and extent of services . where the concession is divided into lots , this information shall be provided for each lot . where appropriate , description of any options . ### description of the contract : nature and extent of works , nature and extent of services .


### cpv nomenclature reference no . where the concession is divided into lots , this information shall be provided for each lot . ### cpv nomenclature reference no .


### cpv nomenclature reference no ; where the contract is divided into lots , this information shall be provided for each lot . ### cpv nomenclature reference no .


### nuts code for the main location of works in case of works concessions or nuts code for the main place of performance service concessions ; where the concession is divided into lots , this information shall be provided for each lot . ### nuts code for the main location of works in case of works concessions or nuts code for the main place of performance service concessions .


### nuts code for the main location of works in case of public works concessions or works concessions or nuts code for the main place of delivery or performance in service concessions ; ### nuts code for the main location of works in case of works concessions or nuts code for the main place of performance in service concessions ;


### time - frame for delivery or provision of supplies , works or services and , as far as possible , duration of the concession . ### time frame for implementation of the concession ; duration of the concession .


### description of award procedure used , if the procedure is to be conducted in stages , number of candidates to be admitted to a given stage or to be invited to submit tenders and objective criteria to be used to choose the candidates in question . ### description of award procedure used :


### time limit for the submission of applications ### time limit for the submission of applications or receipt of tenders ;


### name and address of the oversight body and the body responsible for review and , where appropriate , mediation procedures . precise information concerning the deadline for review procedures , or if need be , the name , address , telephone number , fax number and email address of the service from which this information may be obtained . ### name and address of the body responsible for review and , where appropriate , mediation procedures . precise information concerning the deadline for review procedures , or if need be , the name , address , telephone number , fax number and email address of the service from which this information may be obtained .


### at least a summary indication of the nature and quantity of the services and if applicable , works and supplies provided . ### summary indication of the subject of the concession .


### description of the concession before and after the modification : nature and extent of the works , nature and quantity or value of supplies , nature and extent of services . ### description of the concession before and after the modification : nature and extent of the works , nature and extent of services .


### where applicable , modification of financial terms of the concession , including increase in prices or fees caused by the modification . ### where applicable , modification of financial terms of the concession .


### in order to establish coherent rules to ensure the technical implementation of the kyoto protocol in the union after 2012 , to enable the effective operation of the joint fulfilment of the commitments of the union , its member states and iceland , and ensure its alignment with the operation of the eu ets and the effort sharing decision , the power to adopt delegated acts in accordance with article 290 tfeu should be delegated to the commission . the commission , when preparing and drawing up delegated acts , should ensure their consistency with internationally agreed accounting requirements , the terms of the joint fulfilment set out in decision [ … ] and relevant union legislation , ### in order to establish coherent rules to ensure the technical implementation of the kyoto protocol in the union after 2012 , to enable the effective and efficient operation of the joint fulfilment of the commitments of the union , its member states and iceland , and ensure its alignment with the operation of the eu ets and the effort sharing decision , the power to adopt delegated acts in accordance with article 290 tfeu should be delegated to the commission . the commission , when preparing and drawing up delegated acts , should ensure their consistency with internationally agreed accounting requirements , the terms of the joint fulfilment set out in decision [ … ] and relevant union legislation ,


### in order to establish coherent rules to ensure the technical implementation of the kyoto protocol in the union after 2012 , to enable the effective operation of the joint fulfilment of the commitments of the union , its member states and iceland , and ensure its alignment with the operation of the eu ets and the effort sharing decision , the power to adopt delegated acts in accordance with article 290 tfeu should be delegated to the commission . the commission , when preparing and drawing up delegated acts , should ensure their consistency with internationally agreed accounting requirements , the terms of the joint fulfilment set out in decision [ … ] and relevant union legislation , ### in order to establish coherent rules to ensure the technical implementation of the kyoto protocol in the union after 2012 , to enable the effective operation of the joint fulfilment of the commitments of the union , its member states and iceland , and ensure its alignment with the operation of the eu ets and the effort sharing decision , the power to adopt delegated acts in accordance with article 290 tfeu should be delegated to the commission . the commission , when preparing and drawing up delegated acts , should ensure a simultaneous , timely and appropriate transmission of the relevant documents to the european parliament and to the council , as well as their consistency with internationally agreed accounting requirements , the terms of the joint fulfilment set out in the council decision for ratification of the doha amendment to the kyoto protocol and relevant union legislation ,


### the coordination committee shall have the power to request relevant information from the infrastructure manager on points to in order to be able to carry out these tasks . ### without prejudice to commercial confidentiality , the coordination committee shall have the power to request relevant information from any of its members on points to in order to be able to carry out these tasks .


### the coordination committee shall draw up rules of procedure that include , in particular , rules on participation in and frequency of meetings which shall be at least quarterly . a report of the coordination committee ' s discussions shall be submitted annually to the infrastructure manager , the member state , the regulatory body concerned and the commission with an indication of the respective positions taken by the committee members . ### the coordination committee shall draw up rules of procedure that include , in particular , rules on participation in and frequency of meetings which shall be at least quarterly . a report of the coordination committee ' s discussions shall be submitted annually to the infrastructure manager , the member state and the regulatory body concerned with an indication of the respective positions taken by the committee members .


### ‘ 1 . member states may limit the right of access provided for in article 10 to passenger services between a given place of departure and a given destination when one or more public service contracts cover the same route or an alternative route if the exercise of this right would compromise the economic equilibrium of the public service contract or contracts in question . ’ ; ### ‘ 1 . member states may limit the right of access provided for in article 10 to passenger services between a given place of departure and a given destination when one or more public service contracts cover the same route or an alternative route if the exercise of this right would compromise the economic equilibrium of the public service contract or contracts in question or erode the quality of the service provided . ’ ;


### member states shall require railway undertakings operating passenger services to put in place and coordinate contingency plans to provide assistance to passengers , in the sense of article 18 of regulation no 1371 / 2007 , in the event of a major disruption to services . ### member states shall set up , and coordinate with respect to major eu routes , national contingency plans to provide assistance to passengers in the event of a major disruption to services triggered by natural or man - made disasters . each railway undertaking operating passenger services and station manager shall put in place its own contingency plan in accordance with national contingency plans .


### member states shall require issuers active in the extractive or logging of primary forest industries , as defined in [ … ] to prepare , in accordance with chapter 9 of directive 2011 / . . / eu of the european parliament and of the council , a report on payments made to governments on an annual basis . the report shall be made public at the latest six months after the end of each financial year and shall remain publicly available for at least five years . payments to governments shall be reported at consolidated level . ### member states shall require issuers active in the extractive or logging of primary forest industries , as defined in [ … ] to prepare , on an annual basis and in accordance with chapter 9 of directive 2011 / . . / eu of the european parliament and of the council , a disclosure on a country - by - country and project - by - project basis on payments made to governments , where a project means a contract , licence , lease or other legal agreement under which an undertaking operates , which gives rise to specific revenue liabilities . this disclosure shall be annexed to the annual financial statements and made public at the latest six months after the end of each financial year and shall remain publicly available for at least five years . payments to governments shall be reported at consolidated level .


### libraries , museums , archives , edcuational establishments , film heritage institutions and public service broadcasting organisations are engaged in large - scale digitisation of their collections or achives in order to create european digital libraries . libraries , museums , archives , edcuational establishments , film heritage institutions and public service broadcasting organisations in the member states contribute to the preservation and dissemination of european cultural heritage , which is also important for the creation of european digital libraries , such as europeana . technologies for mass scale digitisation of print materials and for search and indexing enhance the research value of the libraries ' collections . ### libraries , museums , records offices , archives , educational establishments , film heritage institutions , broadcasting organisations and other cultural organisations in the member states , as well as private collections , are engaged in digitisation of their collections or archives . they also contribute to the preservation and dissemination of european cultural heritage , which is also important for the creation of european digital libraries , such as europeana . technologies for mass scale digitisation of print materials and for search and indexing enhance the research value of the libraries ' collections .


### creating a legal framework to facilitate the digitisation and dissemination of works for which no author is identified or , even if identified , is not located , so called orphan works , is a key action of the digital agenda for europe , as set out in the communication from the commission to the european parliament , the council , the european economic and social committee and the committee of regions – a digital agenda for europe . ### creating a legal framework to facilitate the digitisation and dissemination of so - called orphan works for which no rightholder is identified or , even if identified , is not located , is a key action of the digital agenda for europe , as set out in the communication from the commission to the european parliament , the council , the european economic and social committee and the committee of regions – a digital agenda for europe .


### for the purposes of this directive , cinematographic , audio and audiovisual works in the archives of public service broadcasting organisations should be understood as including works commissioned by such organisations for their exclusive exploitation . ### for the purposes of this directive , cinematographic works and works forming a part of audio and audiovisual works , photographs and other images , or contributions to works contained therein , held in the archives of broadcasting organisations and other cultural organisations should be understood as including works commissioned by such organisations for their exclusive exploitation .


### before a work can be considered an orphan work , a good faith and reasonable diligent search for the author should be carried out . member states should be permitted to provide that such a diligent search may be carried out by the organisations referred to in this directive or by other organisations . ### before a work can be considered an orphan work , a reasonable diligent search for its rightholders should be carried out . member states should provide that organisations wishing to use it are given the choice of either carrying out such a diligent search by their own means or having it carried out by other organisations , including collecting societies .


### before a work can be considered an orphan work , a good faith and reasonable diligent search for the author should be carried out . member states should be permitted to provide that such a diligent search may be carried out by the organisations referred to in this directive or by other organisations . ### before a work can be considered an orphan work , a good faith and reasonable diligent search for the rightholder should be carried out . member states should be permitted to provide that such a diligent search may be carried out by the organisations referred to in this directive or by other organisations . in the latter instance , liability in respect of the good faith and reasonable diligent search carried out lies with the organisations referred to in this directive .


### in order to promote learning and culture , member states should permit libraries , educational establishments and museums which are publicly accessible , as well as archives , film heritage institutions and public service broadcasting organisations , to make available and reproduce orphan works , provided such use fulfils their public interest missions , notably preservation , restoration and the provision of cultural and educational access to works contained in their collections . film heritage institutions should , for the purposes of this directive , cover organisations designated by member states to collect , catalogue , preserve and restore films forming part of their cultural heritage . ### in order to promote learning and culture , member states should permit libraries , educational establishments and museums which are publicly accessible , as well as archives , records offices , film heritage institutions and public service broadcasting organisations , to make available , to communicate to the public and to reproduce orphan works , provided such use fulfils their public interest missions , notably preservation , restoration and the provision of cultural and educational access to works contained in their collections . film heritage institutions should , for the purposes of this directive , cover organisations designated by member states to collect , catalogue , preserve and restore films forming part of their cultural heritage .


### contractual arrangements may play a role in fostering the digitisation of european cultural heritage , it being understood that libraries , educational establishments , museums or archives and film heritage institutions may , with a view to undertake the uses permitted under this directive , conclude agreements with commercial partners for the digitisation and making available of orphan works . these agreements may include financial contributions by such partners . ### contractual arrangements may play a role in fostering the digitisation of european cultural heritage , it being understood that libraries , educational establishments , museums , records offices or archives , film heritage institutions , broadcasting organisations and other cultural institutions in the member states , as well as private collections , may , with a view to undertake the uses permitted under this directive , conclude agreements with commercial partners for the digitisation , the making available and the communication to the public of orphan works . these agreements may include financial contributions by such partners .


### in order to foster the union ' s citizens ' access to europe ' s cultural heritage , it is also necessary to ensure that orphan works which have been digitised and made available to the public in one member state are also available in other member states . publicly accessible libraries , educational establishments , museum , archives , film heritage institutions and public service broadcasting organisations that use an orphan work in order to achieve their public interest missions should be able to make the orphan work available to the public in other member states . ### in order to foster the union ' s citizens ' access to europe ' s cultural heritage , it is also necessary to ensure that orphan works which have been digitised and made available or communicated to the public in one member state are also available in other member states .


### this directive should be without prejudice to existing arrangements in the member states concerning the management of rights such as extended collective licences . ### this directive should be without prejudice to the member states’ arrangements concerning the management of rights such as extended collective licences . it should also be without prejudice to the member states’ arrangements concerning mass - scale digitisation of works , such as those relating to out - of - commerce works .


### a work shall be considered an orphan work if the rightholder in the work is not identified or , even if identified , is not located after a diligent search for the rightholder has been carried out and recorded in accordance with article 3 . ### a work or a sound recording shall be considered orphan if the rightholder in the work is not identified or , even if identified , is not located after a diligent search for the rightholder has been carried out and recorded in accordance with article 3 .


### where a work has more than one rightholder , and one of the rightholders has been identified and located , that work shall not be considered an orphan work . ### where a work has more than one rightholder , and at least one of the rightholders has not been identified or located , that work shall be considered an orphan work . the rights of known or identified rightholders shall not be affected .


### where a work has more than one rightholder , and one of the rightholders has been identified and located , that work shall not be considered an orphan work . ### where a work or a sound recording has more than one rightholder , and one of the rightholders has been identified and located , that work shall not be considered an orphan .


### for the purposes of establishing whether a work is an orphan work , the organisations referred to in article 1 shall ensure that a diligent search is carried out for each work , by consulting the appropriate sources for the category of works in question . ### for the purposes of establishing whether a work is an orphan work , the organisations referred to in article 1 shall ensure that a good faith and diligent search is carried out for each work , by consulting the appropriate sources for the category of works in question .


### for the purposes of establishing whether a work is an orphan work , the organisations referred to in article 1 shall ensure that a diligent search is carried out for each work , by consulting the appropriate sources for the category of works in question . ### for the purposes of establishing whether a work or a sound recording is orphan , the organisations referred to in article 1 shall ensure that a diligent search is carried out for each work , by consulting the appropriate sources for the category of works in question .


### a diligent search is required to be carried out only in the member state of first publication or broadcast . ### a diligent search is required to be carried out only on the territory of the member state of first publication or broadcast . if there is evidence to suggest that rightholders from the territory of other member states were involved in the creation of the work , the diligent search shall be deemed to have been concluded only if it also encompassed the territories of those member states .


### member states shall ensure that the results of diligent searches carried out in their territories are recorded in a publicly accessible database . ### member states shall ensure that the results of diligent searches carried out in their territories are recorded in a publicly accessible database . the member states’ databases shall be designed and implemented so as to permit interlinkage with each other on a pan - european level .


### member states shall ensure that a rightholder in a work considered to be orphan has , at any time , the possibility of putting an end to the orphan status . ### member states shall ensure that a rightholder in a work or a sound recording considered to be orphan has , at any time , the possibility of putting an end to the orphan status .


### however , unless otherwise provided in article 7 , the organisations referred to in article 1 may not use orphan works in order to achieve aims other than their public interest missions , notably preservation , restoration and the provision of cultural and educational access to works contained in their collections . ### however , organisations using orphan works shall not do so in order to achieve aims other than their public interest missions , notably the preservation and restoration of works contained in their collections and the provision of access to those works for cultural , educational and research purposes .


### member states may authorise the organisations referred to in article 1 to use an orphan work for purposes other than those referred to in article 6 , provided that : ### member states may authorise the organisations referred to in article 1 to use an orphan work or a sound recording for purposes other than those referred to in article 6 , provided that :


### the organisations maintain publicly accessible records of their use of orphan works ; ### the organisations maintain publicly accessible records of their use of orphan works or sound recordings ;


### rightholders which put an end to the orphan status of the work , within the meaning of article 5 , are remunerated for the use that has been made of the work by the organisations referred to in article 1 ; ### rightholders which put an end to the orphan status of the work , within the meaning of article 5 , are remunerated for the use that has been made of the work or the sound recording by the organisations referred to in article 1 ;


### the provisions of this directive shall apply in respect of all works referred to in article 1 which are , on [ transposition date ] , protected by the member states ' legislation in the field of copyright . ### the provisions of this directive shall apply in respect of all works or sound recordings referred to in article 1 which are , on [ transposition date ] , protected by the member states ' legislation in the field of copyright .


### the publishers association in the respective country and the authors and journalists associations ; ### the publishers and the publishers ' association in the respective country and the authors ' and journalists ' associations ;


### the commission should adopt by delegated act a common strategic framework which translates the objectives of the union into key actions for the csf funds , in order to provide clearer strategic direction to the programming process at the level of member states and regions . the common strategic framework should facilitate sectoral and territorial coordination of union intervention under the csf funds and with other relevant union policies and instruments . ### the commission should adopt by delegated act a common strategic framework which translates the objectives of the union into key actions for the csf funds , in order to provide clearer strategic direction to the programming process at the level of member states and regions . the common strategic framework should facilitate sectoral and territorial coordination of union intervention under the csf funds and with other relevant union policies and instruments ; takes the view that structural funds should be deployed to their full extent to support capacity building in the regions through dedicated activities aimed at founding centres of excellences , modernising universities , purchase of scientific equipment , local technology transfer , support to start - ups and spin - offs , and local interaction between industry and academia ; believes that this will allow a stairway of excellence to be developed , leading these regions to fully participate in the horizon 2020 , based on quality and excellence ; downstream from horizon 2020 , the structural funds could be used to finance or co - finance the follow up to horizon 2020 research projects and to valorise research results in such a way as to encourage easy access to knowledge or to facilitate the deployment of the resulting knowledge in terms of its direct economic or societal use ;


### the commission should adopt by delegated act a common strategic framework which translates the objectives of the union into key actions for the csf funds , in order to provide clearer strategic direction to the programming process at the level of member states and regions . the common strategic framework should facilitate sectoral and territorial coordination of union intervention under the csf funds and with other relevant union policies and instruments . ### a common strategic framework in the annex to this regulation will detail the objectives of the union , in order to provide clearer strategic direction to the programming process at the level of member states and regions . the common strategic framework should facilitate sectoral and territorial coordination of union intervention under the csf funds and with other relevant union policies and instruments .


### member states should concentrate support to ensure a significant contribution to the achievement of union objectives in line with their specific national and regional development needs . ex ante conditionalities should be defined to ensure that the necessary framework conditions for the effective use of union support are in place . the fulfilment of those ex ante conditionalities should be assessed by the commission in the framework of its assessment of the partnership contract and programmes . in cases where there is a failure to fulfil an ex ante conditionality , the commission should have the power to suspend payments to the programme . ### member states should concentrate support to ensure a significant contribution to the achievement of union objectives in line with their specific national and regional development needs . ex ante conditionalities should be defined which have a close substantive relationship with , and a direct impact on , the efficient use of the csf funds to ensure that the necessary framework conditions for the effective use of union support are in place . the fulfilment of those ex ante conditionalities should be assessed by the commission in the framework of its assessment of the partnership contract and programmes . in cases where there is a failure to fulfil an ex ante conditionality , the commission should have the power to suspend payments to the programme .


### member states should concentrate support to ensure a significant contribution to the achievement of union objectives in line with their specific national and regional development needs . ex ante conditionalities should be defined to ensure that the necessary framework conditions for the effective use of union support are in place . the fulfilment of those ex ante conditionalities should be assessed by the commission in the framework of its assessment of the partnership contract and programmes . in cases where there is a failure to fulfil an ex ante conditionality , the commission should have the power to suspend payments to the programme . ### member states should concentrate support to ensure a significant contribution to the achievement of union objectives in line with their specific national and regional development needs . ex ante conditionalities should be defined to ensure that the necessary framework conditions for the effective use of union support are in place . the fulfilment of those ex ante conditionalities should be assessed by the commission in the framework of its assessment of the partnership contract and programmes . in cases where there is a failure to fulfil an ex ante conditionality , the commission should have the power to consider suspending payments to the programme .


### a performance framework should be defined for each programme with a view to monitoring progress towards the objectives and targets set for each programme over the course of the programming period . the commission should undertake a performance review in cooperation with the member states in 2017 and 2019 . a performance reserve should be foreseen and allocated in 2019 where milestones set in the performance framework have been attained . due to their diversity and multi - country character , there should be no performance reserve for ' european territorial cooperation ' programmes . in cases where the shortfall in the achievement of milestones or targets is significant , the commission should be able to suspend payments to the programme or , at the end of the programming period , apply financial corrections , in order to ensure that the union budget is not used in a wasteful or inefficient way . ### a performance framework should be defined for each programme with a view to monitoring progress towards the objectives and targets set for each programme over the course of the programming period . the commission should undertake a performance review in cooperation with the member states in 2017 and 2019 . a performance reserve should be foreseen and allocated in 2019 where milestones set in the performance framework have been attained . due to their diversity and multi - country character , there should be no performance reserve for ' european territorial cooperation ' programmes . in cases where the shortfall in the achievement of milestones or targets is significant , the commission should be able to suspend payments to the programme or , at the end of the programming period , apply financial corrections , in order to ensure that the union budget is not used in a wasteful or inefficient way . if these corrections or suspensions apply to a member state which is facing , or in danger of being faced with , serious difficulties in relation to its financial stability , these appropriations may be made available to the member state in a separate growth programme administered by the commission . this should be done on the basis of the programmes concerned but while taking the priorities into account which ensure the maximum economic efficiency . the purpose of this arrangement is to avoid further aggravating the economic difficulties .


### a performance framework should be defined for each programme with a view to monitoring progress towards the objectives and targets set for each programme over the course of the programming period . the commission should undertake a performance review in cooperation with the member states in 2017 and 2019 . a performance reserve should be foreseen and allocated in 2019 where milestones set in the performance framework have been attained . due to their diversity and multi - country character , there should be no performance reserve for ' european territorial cooperation ' programmes . in cases where the shortfall in the achievement of milestones or targets is significant , the commission should be able to suspend payments to the programme or , at the end of the programming period , apply financial corrections , in order to ensure that the union budget is not used in a wasteful or inefficient way . ### a performance framework should be defined for each programme with a view to monitoring progress towards the objectives and targets set for each programme over the course of the programming period . the commission should undertake a performance review in cooperation with the member states in 2017 and 2019 . due to their diversity and multi - country character , there should be no performance reserve for ' european territorial cooperation ' programmes . in cases where the shortfall in the achievement of milestones or targets is significant , the commission should be able to suspend payments to the programme or , at the end of the programming period , apply financial corrections , in order to ensure that the union budget is not used in a wasteful or inefficient way .


### financial instruments are increasingly important due to their leverage effect on csf funds , their capacity to combine different forms of public and private resources to support public policy objectives , and because revolving forms of finance make such support more sustainable over the longer term . ### financial instruments are increasingly important due to their leverage effect on csf funds , their capacity to combine different forms of public and private resources to support public policy objectives , and because revolving forms of finance make such support more sustainable over the longer term and enable a broader range of potential beneficiaries to be reached .


### it is necessary to lay down specific rules regarding the amounts to be accepted as eligible expenditure at closure , to ensure that the amounts , including the management costs and fees , paid from the csf funds to financial instruments are effectively used for investments and payments to final recipients . it is also necessary to lay down specific rules regarding the reuse of resources attributable to the support from the csf funds , including the use of legacy resources after the closure of the programmes . ### it is necessary to lay down specific rules regarding the amounts to be accepted as eligible expenditure at closure , to ensure that the amounts , including the management costs and fees , paid from the csf funds to financial instruments are effectively used for investments and payments to final recipients . it is also necessary to lay down specific rules regarding the reuse of resources attributable to the support from the csf funds , including the use of legacy resources after the closure of the programmes . these csf - attributed resources and legacy resources should be made available to member states experiencing substantial difficulties with regard to their financial stability jointly with other available funds , for example from financial corrections , under the administration of the commission and taking into account the priorities which most promote growth .


### the frequency of audits on operations should be proportionate to the extent of the union ' s support from the funds . in particular , the number of audits s carried out should be reduced where the total eligible expenditure for an operation does not exceed eur 100 000 . nevertheless , it should be possible to carry out audits at any time where there is evidence of an irregularity or fraud , or , following closure of a completed operation , as part of an audit sample . in order that the level of auditing by the commission is proportionate to the risk , the commission should be able to reduce its audit work in relation to operational programmes where there are no significant deficiencies or where the audit authority can be relied on . ### the frequency of audits on operations should be proportionate to the extent of the union ' s support from the funds . in particular , the number of audits s carried out should be reduced where the total eligible expenditure for an operation does not exceed eur 100 000 . for projects exceeding eur 10 million the commission is required to carry out a mandatory audit . nevertheless , it should be possible to carry out audits at any time where there is evidence of an irregularity , relocation or fraud , or , following closure of a completed operation , as part of an audit sample . in order that the level of auditing by the commission is proportionate to the risk , the commission should be able to reduce its audit work in relation to operational programmes where there are no significant deficiencies or where the audit authority has , over the previous funding period , shown that it can be relied on .


### the commission should be empowered to adopt , by means of implementing acts , as regards all csf funds , decisions approving the partnership contracts , decisions on the allocation of the performance reserve , decisions suspending payments linked to member states ' economic policies , and , in the case of decommitment , decisions to amend decisions adopting programmes ; and as regards the funds , decisions identifying the regions and member states fulfilling the investment for growth and jobs criteria , decisions setting out the annual breakdown of commitment appropriations to the member states , decisions setting out the amount to be transferred from each member state ' s cf allocation to the connecting europe facility , decisions setting out the amount to be transferred from each member state ' s structural funds allocation for food for deprived people , decisions adopting and amending operational programmes , decisions on major projects , decisions on joint action plans , decisions suspending payments and decisions on financial corrections . ### the commission should be empowered to adopt , by means of implementing acts , as regards all csf funds , decisions approving the partnership contracts and , in the case of decommitment , decisions to amend decisions adopting programmes ; and as regards the funds , decisions identifying the regions and member states fulfilling the investment for growth and jobs criteria , decisions setting out the annual breakdown of commitment appropriations to the member states , decisions setting out the amount to be transferred from each member state ' s cf allocation to the connecting europe facility , decisions setting out the amount to be transferred from each member state ' s structural funds allocation for food for deprived people , decisions adopting and amending operational programmes , decisions on major projects , decisions on joint action plans , decisions suspending payments and decisions on financial corrections .


### the commission should be empowered to adopt , by means of implementing acts , as regards all csf funds , decisions approving the partnership contracts , decisions on the allocation of the performance reserve , decisions suspending payments linked to member states ' economic policies , and , in the case of decommitment , decisions to amend decisions adopting programmes ; and as regards the funds , decisions identifying the regions and member states fulfilling the investment for growth and jobs criteria , decisions setting out the annual breakdown of commitment appropriations to the member states , decisions setting out the amount to be transferred from each member state ' s cf allocation to the connecting europe facility , decisions setting out the amount to be transferred from each member state ' s structural funds allocation for food for deprived people , decisions adopting and amending operational programmes , decisions on major projects , decisions on joint action plans , decisions suspending payments and decisions on financial corrections . ### the commission should be empowered to adopt , by means of implementing acts , as regards all csf funds , decisions approving the partnership contracts , decisions on the allocation of the performance reserve , decisions suspending payments linked to member states ' economic policies , and , in the case of decommitment , decisions to amend decisions adopting programmes ; and as regards the funds , decisions identifying the regions and member states fulfilling the investment for growth and jobs criteria , decisions setting out the annual breakdown of commitment appropriations to the member states , decisions setting out the amount to be transferred from each member state ' s cf allocation to the connecting europe facility , decisions setting out the amount to be transferred from each member state ' s structural funds allocation for food for deprived people , decisions adopting and amending operational programmes , decisions on major projects , decisions on joint action plans , decisions suspending payments and decisions on financial corrections and decisions on special programmes for member states in financial difficulties .


### the csf funds shall provide support , through multi - annual programmes , which complements national , regional and local intervention , to deliver the union strategy for smart , sustainable and inclusive growth , taking account of the integrated guidelines , the country - specific recommendations under article 121 of the treaty and the relevant council recommendations adopted under 148 of the treaty . ### the csf funds shall provide support , through multi - annual programmes , which complements national , regional and local intervention , to deliver the union strategy for smart , sustainable and inclusive growth , taking account of the relevant integrated guidelines , the country - specific recommendations under article 121 of the treaty , the relevant council recommendations adopted under 148 of the treaty based on national reform programmes .


### the commission and the member states shall ensure that support from the csf funds is consistent with the policies and priorities of the union and complementary to other instruments of the union . ### the commission and the member states shall ensure that support from the csf funds is consistent with the policies and priorities of the union and complementary to other instruments of the union while taking into account the specific context of each member state .


### support from the csf funds shall be implemented in close cooperation between the commission and the member states . ### support from the csf funds shall be implemented in close cooperation between the commission and the member states in accordance with the principle of subsidiarity .


### the part of the union budget allocated to the csf funds shall be implemented within the framework of shared management between the member states and the commission , in accordance with article 53 of the financial regulation , with the exception of the amount of the cf transferred to the connecting europe facility referred to in article 84 and innovative actions at the initiative of the commission under article 9 of the erdf regulation , and technical assistance at the initiative of the commission . ### the part of the union budget allocated to the csf funds shall be implemented within the framework of shared management between the member states and the commission , in accordance with article 53 of the financial regulation , with the exception of the amount of the cf transferred to the connecting europe facility referred to in article 84 and innovative actions at the initiative of the commission under article 9 of the erdf regulation , and technical assistance at the initiative of the commission , as well as the programme of assistance for member states in financial difficulties referred to in article 22 .


### for the partnership contract and each programme respectively , a member state shall organise a partnership with the following partners : ### for the partnership contract and each programme respectively , a member state shall , in accordance with article 4 , organise a partnership with the relevant local and regional authorities and the following partners :


### enhancing the competitiveness of small and medium - sized enterprises , the agricultural sector and the fisheries and aquaculture sector ; ### enhancing the competitiveness especially of small and medium - sized enterprises and their networks , the agricultural sector and the fisheries and aquaculture sector ;


### supporting the shift towards a low - carbon economy in all sectors ; ### supporting , in all sectors , the shift towards a low - carbon economy with low emissions of the pollutants which have the greatest impact ;


### protecting the environment and promoting resource efficiency ; ### protecting the environment and cultural heritage and promoting resource knowledge and efficiency ;


### mechanisms for ensuring the coherence and consistency of the programming of the csf funds with the country - specific recommendations under article 121 of the treaty and the relevant council recommendations adopted under 148 of the treaty . ### mechanisms for ensuring the coherence and consistency of the programming of the csf funds with the relevant country - specific recommendations under article 121 of the treaty and the relevant council recommendations adopted under 148 of the treaty based on national reform programmes .


### the commission shall be empowered to adopt a delegated act in accordance with article 142 on the common strategic framework within 3 months of the adoption of this regulation . ### the common strategic framework is annexed to this regulation .


### where there are major changes in the union strategy for smart , sustainable and inclusive growth , the commission shall review and , where appropriate , adopt , by delegated act in accordance with article 142 , a revised common strategic framework . ### where there are major changes in the union strategy for smart , sustainable and inclusive growth , the commission may , on the request of the legislature , forward to it a proposed amendment .


### the partnership contract shall be drawn up by member states in cooperation with the partners referred to in article 5 . the partnership contract shall be prepared in dialogue with the commission . ### the partnership contract shall in accordance with article 4 , be drawn up by member states in cooperation with the partners referred to in article 5 . the partnership contract shall be prepared in dialogue with the commission .


### an analysis of disparities and development needs with reference to the thematic objectives and key actions defined in the common strategic framework and the targets set in the country - specific recommendations under article 121 of the treaty and the relevant council recommendations adopted under article 148 of the treaty ; ### an analysis of disparities and development needs with reference to the thematic objectives and key actions defined in the common strategic framework and the targets set in the relevant country - specific recommendations under article 121 of the treaty and the relevant council recommendations adopted under article 148 of the treaty based on national reform programmes ;


### an integrated approach to address the specific needs of geographical areas most affected by poverty or of target groups at highest risk of discrimination or exclusion , with special regard to marginalised communities , where appropriate , including the indicative financial allocation for the relevant csf funds ; ### an integrated approach to address the specific needs of the regions with geographical areas most affected by poverty or regions facing demographic challenges or of target groups at highest risk of discrimination or exclusion , with special regard to marginalised communities , where appropriate , including the indicative financial allocation for the relevant csf funds ;


### a summary of the assessment of the fulfilment of ex ante conditionalities and of the actions to be taken at national and regional level , and the timetable for their implementation , where ex ante conditionalities are not fulfilled ; ### a summary of the assessment of the fulfilment of ex ante conditionalities and of the actions to be taken at european , national and regional level , and the timetable for their implementation , where ex ante conditionalities are not fulfilled ;


### the commission shall assess the consistency of the partnership contract with this regulation , with the common strategic framework , and the country - specific recommendations under article 121 of the treaty and the council recommendations adopted under 148 of the treaty , taking account of the ex ante evaluations of the programmes , and shall make observations within three months of the date of submission of the partnership contract . the member state shall provide all necessary additional information and , where appropriate , shall revise the partnership contract . ### the commission shall assess the consistency of the partnership contract with this regulation , with the common strategic framework , and the relevant country - specific recommendations under article 121 of the treaty and the council recommendations adopted under 148 of the treaty based on national reform programmes , taking account of the ex ante evaluations of the programmes , and shall make observations within three months of the date of submission of the partnership contract . the member state shall provide all necessary additional information and , where appropriate , shall revise the partnership contract .


### ex ante conditionalities shall be defined for each csf fund in the fund - specific rules . ### ex ante conditionalities shall be defined for each csf fund in the fund - specific rules . these ex - ante conditionalities must be closely related to the effectiveness of the csf funds .