CELEX: 52021PC0132
Language: en
Date: 2021-03-22
Title: Proposal for a COUNCIL DECISION on the position to be taken on behalf of the European Union in the Association Committee in Trade configuration and in the Association Council established by the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part, as regards a favourable opinion to the comprehensive roadmap approved by the Georgian Government for the implementation of the legislation related to public procurement and recognizing the completion of phase 1 of Annex XVI-B of the Association Agreement

EUROPEAN COMMISSION
            Brussels, 22.3.2021
            COM(2021) 132 final
            2021/0067(NLE)
            Proposal for a
            COUNCIL DECISION 
            on the position to be taken on behalf of the European Union in the Association Committee in Trade configuration and in the Association Council established by the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part, as regards a favourable opinion to the comprehensive roadmap approved by the Georgian Government for the implementation of the legislation related to public procurement and recognizing the completion of phase 1 of Annex XVI-B of the Association Agreement
            
               
         
         
            
               EXPLANATORY MEMORANDUM
            
            
               1.Subject matter of the proposal
            
            
               This proposal concerns the decision establishing the position to be taken on the Union's behalf in the EU-Georgia Association Committee in Trade configuration in connection with the envisaged adoption of a decision giving a favourable opinion to the comprehensive roadmap approved by the Georgian Government for the implementation of the legislation related to public procurement and recognizing the completion of phase 1 of Annex XVI-B of the Association Agreement.
            
            
               Additionally, this proposal concerns the decision establishing the position to be taken on the Union’s behalf in the EU-Georgia Association Council granting further market access to the parties as foreseen in Title IV of the Association Agreement. 
            
            
               2.Context of the proposal
            
            
               2.1.The Association Agreement
            
            
               The Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part
                  1
                (‘the Agreement’) establishes a Deep and Comprehensive Free Trade Area (‘DCFTA’) which aims to establish conditions for enhanced economic and trade relations. This includes the progressive approximation of legislation in the area of public procurement. The Agreement entered fully into force on 1 July 2016.
            
            
               2.2.The Association Committee in Trade configuration
            
            
               The Association Committee in Trade configuration was established in Article 408(4) of the Agreement and performs the tasks conferred upon it under Title IV of the Agreement, i.e. Trade and Trade-related matters. 
            
            
               According to Article 408(3), the Association Committee shall have the power to adopt decisions in the cases provided for in this Agreement. The decisions of the Association Committee are binding, and the Parties shall take appropriate measures to implement them. The Association Committee adopts its decisions by agreement between the Parties, taking into account the respective internal procedures.
            
            
               2.3.The Association Council
            
            
               The Association Council was established in Article 404 of the Agreement. It supervises and monitors the application and implementation of the Agreement and periodically reviews the functioning of the Agreement in the light of its objectives. In addition to supervising and monitoring the application and implementation of this Agreement, the Association Council shall examine any major issues arising within the framework of the Agreement, and any other bilateral or international issues of mutual interest. 
            
            
               According to Article 406 of the Agreement, the Association Council shall have the power to take decisions within the framework of the Agreement, which shall be binding upon the Parties. In particular, Article 419(5) stipulates that if the Parties agree that necessary measures covered by Title IV (Trade and Trade-related Matters) of the Agreement have been implemented and are being enforced, the Association Council, under the powers conferred to it in Articles 406 and 408 of the Agreement, shall decide on further market opening where provided for in Title IV.
            
            
               The decisions of the Association Council are binding, and the Parties shall take appropriate measures to implement them. The Association Council adopts its decisions and recommendations by agreement between the Parties following the completion of their respective internal procedures.
            
            
               2.4.The envisaged act of the Association Committee in Trade configuration
            
            
               The purpose of the envisaged act is to give a favourable opinion to the recent comprehensive reform roadmap in the area of public procurement approved by the Georgian government and to acknowledge the completion of phase 1 of Annex XVI-B of the Agreement (Indicative Time Schedule for Institutional Reform, Approximation and Market Access).
            
            
               Annex XVI-B of the EU-Georgia DCFTA stipulates the following requirements for completion of phase 1:
            
            
               ·Implementation of Article 143(2) and Article 144 of this Agreement 
            
            
               ·Agreement of the Reform Strategy set out in Article 145 of this Agreement.
            
         
         
            
               With regard to the first requirement, Article 143(2) states that Georgia shall designate in particular:
            
            
               ·an executive body at central government level tasked with guaranteeing a coherent policy and its implementation in all areas related to public procurement. That body shall facilitate and coordinate the implementation of this Chapter and guide the process of gradual approximation to the Union acquis, as set out in Annex XVI-B to this Agreement;
            
            
               ·an impartial and independent body tasked with the review of decisions taken by contracting authorities or entities during the award of contracts. In this context, ‘independent’ means that that body shall be a public authority which is separate from all contracting entities and economic operators. There shall be a possibility to subject the decisions taken by this body to judicial review.
            
            
               These measures were completed respectively on 23 April 2014 by Government Decree 306 and on 2 July 2020 by Law of Georgia no 6730.
            
            
               According to article 144, the Parties shall comply with a set of basic standards for the award of all contracts as stipulated in paragraphs 2 to 15 of this Article on publication, award of contracts and judicial protection. These basic standards derive directly from the rules and principles of public procurement, as regulated in the Union public procurement acquis, including the principles of non-discrimination, equal treatment, transparency and proportionality. 
            
            
               These principles have been incorporated into Georgian public procurement rules with the introduction of an e-Procurement system in 2010 and the adoption of Law of Georgia 617, of 6 April, 2017 amending the Law on State Procurement. 
            
            
               With regard to the second requirement of phase 1 of Annex XVI-B, the approval of a roadmap as set out in Article 145 of the Agreement is necessary. Article 145(1) of the Association Agreement provides that, prior to the commencement of gradual approximation, Georgia shall submit to the Association Committee in Trade configuration a comprehensive roadmap for the implementation of Chapter 8 of Title IV of the Agreement with time schedules and milestones. This document, which according to the Association Agreement shall comply with the phases and time schedules set out in Annex XVI-B, shall include all reforms in terms of approximation to the Union acquis and institutional capacity building. 
            
            
               On 31 March 2016, the Government of Georgia approved Decree 536 of the Government of Georgia, on approval of the Roadmap “Concerning the planned changes in the Public Procurement field envisaged in compliance with the obligations between Georgia and EU within the scope of the Deep and Comprehensive Free Trade Area (DCFTA) agreement”. This decree was modified by Government Decrees no 154 of 22 January 2018 and no 974 of 12 June 2020. The Roadmap fulfills the requirements of Article 145 (1).
            
            
               The envisaged act will become binding on the parties in accordance with Article 145(2) of the Agreement, which provides that “following a favourable opinion by the Association Committee in Trade configuration, the roadmap shall be considered as the reference document for the implementation of this Chapter. The Union shall make its best efforts in assisting Georgia in the implementation of the roadmap.” According to Article 146(3) the acknowledgement of completion of phase 1 of Annex XVI-B will allow the Association Committee in Trade configuration to proceed to the evaluation of the next phase. 
            
            
               2.5.The envisaged decision by the Association Council on market access
            
            
               After the acknowledgement of completion of phase 1 the Association Council shall in accordance with Article 146(2) and 419(5) and the schedule for institutional reform, approximation and market access contained in Annex XVI-B decide to grant reciprocal market access for supplies for central government authorities.
            
            
               3.Positions to be taken on the Union's behalf
            
            
               The position to be adopted on behalf of the Union by the Association Committee in Trade configuration aims at giving a favourable opinion to the roadmap approved by the Georgian government for the implementation of the legislation related to public procurement. 
            
            
               Additionally, it aims at acknowledging that, by approving the comprehensive reform strategy in accordance with article 145 and recognising the implementation of Articles 143(2) and 144 of the Agreement, Georgia has completed phase 1 of Annex XVI-B of the Association Agreement (Indicative Time Schedule for Institutional Reform, Approximation and Market Access). 
            
            
               According to Article 145(2) of the Agreement, following a favourable opinion by the Association Committee in Trade configuration the roadmap shall be incorporated as a reference document for the implementation of Chapter 8 of Title IV of the Association Agreement. 
            
            
               The position to be adopted on behalf of the Union by the Association Council aims at deciding on granting further market access to the parties as provided for in Title IV of the Agreement.
            
            
               These decisions should be seen in the broader context of the efforts undertaken by the EU and Georgia to approximate their legislations, including in the area of public procurement, in order to establish conditions for enhanced economic and trade relations.
            
            
               4.Legal basis
            
            
               4.1.Procedural legal basis
            
            
               4.1.1.Principles
            
         
         
            
               Article 218(9) of the Treaty on the Functioning of the European Union (TFEU) provides for decisions establishing ‘the positions to be adopted on the Union’s behalf in a body set up by an agreement, when that body is called upon to adopt acts having legal effects, with the exception of acts supplementing or amending the institutional framework of the agreement.’
            
            
               The concept of ‘acts having legal effects’ includes acts that have legal effects by virtue of the rules of international law governing the body in question. It also includes instruments that do not have a binding effect under international law, but that are ‘capable of decisively influencing the content of the legislation adopted by the EU legislature’
                  2
               .
            
            
               4.1.2.Application to the present case
            
            
               The Association Committee in Trade configuration is a body set up by an agreement, namely the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part. 
            
            
               The act which the Association Committee in Trade configuration is called upon to adopt constitutes an act having legal effects. The envisaged act will be binding under international law in accordance with Article 408(3) of the Agreement. 
            
            
               The Association Council decision to grant reciprocal market access will produce legal effects in the territories of the signatories, pursuant to Article 406(1) of the Agreement,
            
            
               The envisaged acts do not supplement or amend the institutional framework of the Agreement
            
            
               Therefore, the procedural legal basis for the proposed decision is Article 218(9) TFEU.
            
            
               4.2.Substantive legal basis
            
            
               4.2.1.Principles
            
            
               The substantive legal basis for a decision under Article 218(9) TFEU depends primarily on the objective and content of the envisaged act in respect of which a position is taken on the Union's behalf. If the envisaged act pursues two aims or has two components and if one of those aims or components is identifiable as the main one, whereas the other is merely incidental, the decision under Article 218(9) TFEU must be founded on a single substantive legal basis, namely that required by the main or predominant aim or component.
            
            
               4.2.2.Application to the present case
            
            
               The main objective and content of the envisaged act relate to ensuring the implementation of the Union’s common commercial policy. 
            
            
               Therefore, the substantive legal basis of the proposed decision is the first subparagraph of Article 207(4) TFEU. 
            
            
               4.3.Conclusion
            
            
               The legal basis of the proposed decision should be the first subparagraph of Article 207(4) TFEU, in conjunction with Article 218(9) TFEU.
            
            
               5.Publication of the envisaged acts
            
            
               According to Article 145(2) the act of the Association Committee in Trade configuration will incorporate the roadmap approved by the Georgian authorities as a reference document for Chapter 8 of Title IV of the Agreement and it acknowledges the completion of phase 1 of Annex XVI-B (Indicative Time Schedule for Institutional Reform, Approximation and Market Access). The Association Council decision to grant reciprocal market access will produce rights and obligations. It is therefore appropriate to publish the acts in the Official Journal of the European Union after their adoption. 
            
            
               2021/0067 (NLE)
            
            
               Proposal for a
            
         
         
            
               COUNCIL DECISION
            
            
               on the position to be taken on behalf of the European Union in the Association Committee in Trade configuration and in the Association Council established by the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part, as regards a favourable opinion to the comprehensive roadmap approved by the Georgian Government for the implementation of the legislation related to public procurement and recognizing the completion of phase 1 of Annex XVI-B of the Association Agreement
            
            
               THE COUNCIL OF THE EUROPEAN UNION,
            
            
               Having regard to the Treaty on the Functioning of the European Union, and in particular Article 207(4), first subparagraph, in conjunction with Article 218(9) thereof,
            
            
               Having regard to the proposal from the European Commission,
            
            
               Whereas:
            
            
               (1)The Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part
                  3
                (‘the Agreement’) was concluded by the Union by Council Decision (EU) 2016/838
                  4
                and entered into force on 1 July 2016.
            
            
               (2)Article 145(1) of the Agreement stipulates that Georgia should submit to the Association Committee in Trade Configuration a comprehensive roadmap for the implementation of the legislation related to public procurement with time schedules and milestones, which should include all reforms in terms of legislative approximation to the Union acquis.
            
            
               (3)Pursuant to Article 145(2) of the Agreement, a favourable opinion by the Association Committee in Trade Configuration is needed in order for the comprehensive roadmap to become a reference document for the process of implementation, namely for the legislative approximation of the public procurement related legislation to the Union acquis.
            
            
               (4)In accordance with Article 146(2) of the Agreement, the approximation to the Union acquis is to be carried out in consecutive phases as set out in the schedule in Annex XVI-B to the Agreement. The implementation of each phase should be evaluated by the Association Committee in Trade configuration, as set out in Article 408(4) of the Agreement, and, following a positive assessment by that Committee, be linked to the reciprocal granting of market access as set out in Annex XVI-B to the Agreement.
            
            
               (5)The Association Committee in Trade configuration, is to adopt a decision according to Article 11(2) of Annex II of Decision No 1/2014 of the EU-Georgia Association Council of 17 November 2014 on rules of procedure, giving an opinion regarding the roadmap approved by the Georgian authorities as well as an assessment of the approximation of Georgian law to Union law so far in the completion of phase 1 as set out in Annex XVI-B to the Agreement. The roadmap was approved by the Government of Georgia in Decree no 536 of 31 March 2016 of the Government of Georgia, on approval of the Roadmap “Concerning the planned changes in the Public Procurement field envisaged in compliance with the obligations between Georgia and the EU within the scope of the Deep and Comprehensive Free Trade Area (DCFTA) Agreement” as amended by Decrees no 154 of 22 January 2018 and no 974 of 12 June 2020 of the Government of Georgia
            
            
               (6)After the acknowledgement of the completion of phase 1, the Association Council, should take a decision, according to Article 11(2) of Annex I of Decision No 1/2014 of the EU-Georgia Association Council of 17 November 2014 on rules of procedure, on granting reciprocal market access, in accordance with Annex XVI-B to the Agreement, for supplies for central government authorities.
            
            
               (7)It is appropriate to establish the position to be taken on the Union’s behalf in the Association Committee in Trade configuration as well as in the Association Council as the envisaged decisions will be binding on the Union,
            
            
               HAS ADOPTED THIS DECISION:
            
            
               Article 1
            
            
               The position to be taken on the Union’s behalf in the Association Committee in Trade configuration as regards the comprehensive roadmap approved by the Government of Georgia, and the completion of phase 1 as set out in Annex XVI-B to the Deep and Comprehensive Free Trade Area (DCFTA) shall be based on the draft Decision of the Association Committee in Trade configuration attached to this Decision in Annex I.
            
            
               Article 2
            
            
               The position to be taken on the Union’s behalf in the Association Council as regards the granting of reciprocal market access in accordance with Annex XVI-B thereto shall be based on the draft Decision of the Association Council attached to this Decision in Annex II.
            
            
               Article 3
            
            
               After their adoption, the Decision of the Association Committee in Trade configuration referred to in Article 1 and the Decision of the Association Council referred to in Article 2 shall be published in the Official Journal of the European Union. 
            
         
         
            
               Article 4
            
            
               This Decision is addressed to the Commission.
            
            
               Done at Brussels,
            
            
               
                     For the Council
               
               
                     The President
               
            
         
         
            
                  
                     (1)
                  
                        OJ L 261, 30.8.2014, p. 744.
               
               
                  
                     (2)
                  
                        Judgment of the Court of Justice of 7 October 2014, Germany v Council, C-399/12, ECLI:EU:C:2014:2258, paragraphs 61 to 64. 
               
               
                  
                     (3)
                  
                        OJ L 261, 30.8.2014, p. 4.
               
               
                  
                     (4)
                  
                        Council Decision (EU) 2016/838 of 23 May 2016 on the conclusion, on behalf of the European Union, of the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part (OJ L 141, 28.5.2016, p. 26).
               
            
      
    ---documentbreak--- 
      
         
               EUROPEAN COMMISSION
            Brussels, 22.3.2021
            COM(2021) 132 final
            ANNEXES 
            to the
            Proposal for a Council Decision
            on the position to be taken on behalf of the European Union in the Association Committee in Trade configuration and in the Association Council established by the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part, as regards a favourable opinion to the comprehensive roadmap approved by the Georgian Government for the implementation of the legislation related to public procurement and recognizing the completion of phase 1 of Annex XVI-B of the Association Agreement
            
               
         
         
            
               ANNEX I
            
            
               Decision No …/2021 of the Association Committee in Trade configuration
            
            
               of xx.xx.2021
            
            
               on the positive assessment of phase 1 as set out in Annex XVI-B to the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part
            
            
               THE ASSOCIATION COMMITTEE IN TRADE CONFIGURATION,
            
            
               Having regard to the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part, and in particular Article 146 thereof,
            
            
               Whereas:
            
            
               (1)The Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part (‘the Agreement’) was signed on 27 June 2014 and entered into force on 1 July 2016.
            
            
               (2)The Preamble to the Agreement recognises the commitment of Georgia to progressively approximate its legislation in the relevant sectors with that of the Union, in accordance with the Agreement and to implementing it effectively, thus contributing to closer political association and economic integration of Georgia with the Union to all citizens of Georgia including the communities divided by conflict.
            
            
               (3)In accordance with Article 147 of the Agreement, the Parties agree that the effective and reciprocal opening of their respective markets is to be attained gradually and simultaneously.
            
            
               (4)Pursuant to Article 146 of the Agreement, Georgia should ensure that its legislation on public procurement is gradually approximated to the Union's public procurement acquis, and that approximation to the Union acquis is to be carried out in consecutive phases as set out in the schedule in Annex XVI-B to the Agreement as amended by Decision No 2/2019 of the EU-Georgia Association Committee in Trade configuration of 18 October 2019
                  1
               .
            
            
               (5)In accordance with Article 146 of the Agreement, a decision by the Association Committee in Trade configuration is to be taken for each of the phases set out in Annex XVI-B to the Agreement on the basis of a positive assessment by that Committee.
            
            
               (6)Annex XVI-B to the Agreement as amended by Decision No 2/2019 of the Association Committee in Trade configuration of 18 October 2019 lays down the requirements to be fulfilled by Georgia for completing phase 1,
            
            
               HAS ADOPTED THIS DECISION:
            
            
               Article 1
            
            
               A favourable opinion is given to the comprehensive roadmap approved by the Government of Georgia in Decree no 536 of the Government of Georgia of 31 March 2016, “Concerning the planned changes in the Public Procurement field envisaged in compliance with the obligations between Georgia and the EU within the scope of the Deep and Comprehensive Free Trade Area (DCFTA) Agreement”, as amended by Decrees no 154 of 22 January 2018 and no 974 of 12 June 2020 of the Government of Georgia.
            
            
               Article 2
            
            
               A positive assessment is given regarding the completion by Georgia of phase 1 as set out in Annex XVI-B to the Agreement based on the reasons provided in the Annex to this Decision.
            
            
               Article 3
            
         
         
            
               This decision has been established in Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish, Swedish and Georgian languages, each of them being equally authentic.
            
            
               Article 4
            
            
               This Decision shall enter into force on the day of its adoption.
            
            
               Done at …
            
            
                     
                        For the Association Committee
                     
                     
                        in Trade configuration
                     
                     
                  
               
                     
                        The Chair
                     
                  
                  
                     
                        The secretaries
                     
                  
               
               ANNEX
            
            
               In accordance with Annex XVI-B to the Deep and Comprehensive Free Trade Area (DCFTA), referred to in its Chapter 8 on public procurement, the following conditions shall be met for the completion of phase 1:
            
            
               (1)Implementation of Article 143(2) and Article 144 of the Agreement;
            
            
               (2)Agreement of the Reform Strategy set out in Article 145 of the Agreement.
            
            
               Ad 1) a) With regard to the first requirement, first part, Article 143(2) provides that “Georgia shall designate in particular:
            
            
               (a)an executive body at central government level tasked with guaranteeing a coherent policy and its implementation in all areas related to public procurement. That body shall facilitate and coordinate the implementation of this Chapter and guide the process of gradual approximation to the Union acquis, as set out in Annex XVI-B to the Agreement;
            
            
               (b)an impartial and independent body tasked with the review of decisions taken by contracting authorities or entities during the award of contracts. In this context, ‘independent’ means that that body shall be a public authority which is separate from all contracting entities and economic operators. There shall be a possibility to subject the decisions taken by this body to judicial review.”
            
            
               The requirement for Article 143(2)(a) was completed on 23 April 2014 by Government Decree no 306.
            
            
               The central executive body at the Georgian central government level is tasked with guaranteeing a coherent policy and its implementation in all areas related to public procurement is the State Procurement Agency (SPA) of Georgia. SPA is an independent legal entity under public law authorized to ensure compliance with and fulfilment of the provisions of the Law on State Procurement (PPL).
            
            
               The State Procurement Agency was established by the Decree of the President of Georgia no 223 of 5 June 2001, which was based on the PPL adopted on 9 December 1998 by the Parliament of Georgia. Later SPA merged with the Georgian Competition Agency (GCA). After signing of the Association Agreement, in order to fully meet the DCFTA requirements, SPA and GCA have been divided into two separate institutions. Accordingly, the current status of the SPA was determined by the Decree no 306 of the Government of Georgia of 23 April 2014.
            
            
               The activities of the SPA are governed by the Constitution of Georgia, international agreements, including AA/DCFTA, the Law and the Statute of the SPA. State control over the activities of the SPA is implemented by the Government of Georgia. The Government of Georgia also approves the SPA structure and Statute.
            
            
               The chairperson of the SPA is appointed and removed by the Prime Minister.
            
            
               The staff of the SPA is recruited and promoted in accordance with the Labour Code. The total number of permanent staff is currently 123, and 22 employees are hired on a limited period contract basis which seems adequate given the functions it currently performs. 
            
            
               The SPA has built strong reputation within the Georgian government administration, as well as among International Financial Institutions (IFI), donor community and international stakeholders, for exercising its duties and responsibilities in an efficient and effective manner. The SPA plays a central role to facilitate and coordinate the implementation of DCFTA obligations and guides the process of gradual approximation to the Union acquis, as set out in Annex XVI-B to the DCFTA. The SPA has the capacity to effectively support the development of the public procurement system (including legal landscape and whole eco system) in Georgia. 
            
            
               The range of functions that the Law confers to the SPA covers the general requirements recommended in international practice for such institutions in order to support the improvement of the legal framework and to strengthen the operational capacity at the contracting authorities’ and economic operators level. Regulatory function, monitoring function, help-desk and training functions are adequately exercised by the SPA.
            
         
         
            
               The additional functions of the SPA are the following:
            
            
               ·Monitor public procurement process;
            
            
               ·To prepare and issue subordinate normative acts to govern public procurement process;
            
            
               ·To study and analyse the situation in the procurement system based on the reports received from contracting authorities and to submit proposals to the Government of Georgia to make relevant decisions;
            
            
               ·To prepare standard and special training programmes and methodological tools, hold seminars and training for central and local self-government authorities, mass media representatives and other interested persons;
            
            
               ·To create, update and supervise a unified procurement database;
            
            
               ·To provide advisory services to contracting authorities;
            
            
               ·To support the introduction of modern information and communication technologies in the procurement system;
            
            
               ·To support the functioning of the Unified Electronic System of Public Procurement and to ensure electronic document flow during procurement proceedings;
            
            
               ·To consider disputes arising during procurements;
            
            
               ·To supervise the lawfulness of procurement procedures and to determine the policy for regulating procurement proceedings;
            
            
               ·To maintain the Black List and White List;
            
            
               ·To identify and/or integrate a procurement object into the classification system;
            
            
               ·To conduct consolidated tenders for certain procurement objects; 
            
            
               ·To prepare an annual report on its activities and submit it to the Government of Georgia by 15 May of each year and to publish the report on the SPA’s website.
            
            
               The requirement for Article 143(2)(b) was completed on 2 July 2020 by Law of Georgia no 6730.
            
            
               By this law the former review body “Dispute Resolution Council” (formal translation from the Georgian) was abolished and a new independent and impartial public body was established. The newly established administrative body will function as a review body concerning complaints regarding public procurement, Public Private Partnerships and concessions activities. The amendments also applied to issues related to awarding contracts through “simplified” (direct, single-source) procurement, e.g. to the procedure of seeking approval of the State Procurement Agency for carrying out public procurement transactions through “simplified” procurement upon “urgent necessity”. 
            
            
               The provisions of the Law of Georgia no 6730 of 2 July 2020 provide for appropriate guarantees related to independence and impartiality as required by Article 143(2)(b) of the Agreement.
            
            
               Ad 1) b) With regard to the first requirement, second part, according to Article 144, the Parties shall comply with a set of basic standards for the award of all contracts as stipulated in paragraphs 2 to 15 of that Article on publication, award of contracts and judicial protection. Those basic standards derive directly from the rules and principles of public procurement, as regulated in the Union public procurement acquis, including the principles of non-discrimination, equal treatment, transparency and proportionality. 
            
            
               These principles have been incorporated into Georgian public procurement rules with the introduction of an e-Procurement system in 2010 and the adoption of the amendment by Law of Georgia no 617 of 6 April 2017to the Public Procurement Law. 
            
         
         
            
               In 2010, Georgia introduced an e-Procurement system by creating the so-called “GE-GP” - Georgian “Unified Electronic System of Public Procurement”. Since the introduction of the e-Procurement system, 100% of public procurement in Georgia is conducted via e-Procurement, which ensures transparency and stimulates competition. Transparency of the e-Procurement system fully complies with EU requirements of publication principles, as all information on tender notices and contract award are fully transparent without any restrictions. 
            
            
               In order to meet some of the other basic standards of Article 144 of the Agreement and to address the non-compliance of the PPL, the SPA prepared draft amendments to the PPL. The Government of Georgia approved the proposed amendments, already in December 2016 and subsequently forwarded them to the Parliament of Georgia. Those amendments were adopted by the Parliament of Georgia on 6 April 2017 by the Law of Georgia no 617. The amendments concerned the following key directions: (a) basic principles; (b) technical specifications; and (c) time limits. 
            
            
               (a)The amendment to the PPL concerned Article 2(c) and Article 13 of the PPL in order to introduce the principles of equal treatment and proportionality, which were not explicitly mentioned in the Law. 
            
            
               (a)The amendment to the PPL concerned Article 12-1(6) the PPL in order to introduce the use of general description of performance, technical and/or functional criteria for defining the characteristics of the works, supplies or services required. Pursuant to the new provision, contracting authorities will be able to draw up specifications on the basis of performance, technical and/or functional criteria, thus it will allow the submission of tenders that reflect the diversity of technical solutions in the marketplace. It was specified that the preferences shall be given to the performance and functional criteria, when drawing up the tender requirements; 
            
            
               (b)The amendment introduced reasonable timeframes on the call for tender and for familiarization to the terms of tender. 
            
            
               Those amendments to the PPL entered into force on 19 July 2017. New amendments have increased time-limits for submission of tender below the Union thresholds as well. Currently time-limits for each types of procedures, under and above Union thresholds, are as follows: 
            
            
                     
                        Type of Procedure 
                     
                  
                  
                     
                        Object 
                     
                  
                  
                     
                        Monetary Threshold
                     
                  
                  
                     
                        Time-limits
                     
                  
               
                     
                        Electronic Tender 
                     
                  
                  
                     
                        Supplies and services contracts 
                     
                  
                  
                     
                        From 5 000 GEL to 150 000 GEL
                     
                  
                  
                     
                        7 days 
                     
                  
               
                     
                  
                  
                     
                  
                  
                     
                        150 000 GEL and more
                     
                  
                  
                     
                        10 days
                     
                  
               
                     
                  
                  
                     
                        Works contracts 
                     
                  
                  
                     
                        From 5 000 GEL to 300 000 GEL
                     
                  
                  
                     
                        10 days 
                     
                  
               
                     
                  
                  
                     
                  
                  
                     
                        300 000 GEL and more
                     
                  
                  
                     
                        20 days 
                     
                  
               
                     
                        Above EU Thresholds
                     
                  
                  
                     
                        Supplies and services contracts 
                     
                  
                  
                     
                        EURO 135 000 and more
                     
                  
                  
                     
                        30 days 
                     
                  
               
                     
                  
                  
                     
                        Works contracts 
                     
                  
                  
                     
                        EURO 5 225 000 and more
                     
                  
                  
                     
                  
               
               Ad 2) With regard the second requirement of phase I as set out in Annex XVI-B to the Agreement, the approval of a roadmap as set out in Article 145 of the Agreement is necessary. Article 145(1) of the Agreement provides that, prior to the commencement of gradual approximation, Georgia shall submit to the Association Committee in Trade configuration a comprehensive roadmap for the implementation of Chapter 8 of Title IV of the Agreement with time schedules and milestones. This document, which according to the Agreement shall comply with the phases and time schedules set out in Annex XVI-B, shall include all reforms in terms of approximation to the Union acquis and institutional capacity building. 
            
            
               On 31 March 2016, the Government of Georgia approved Decree no 536 on the approval of the Roadmap “Concerning the planned changes in the Public Procurement field envisaged in compliance with the obligations between Georgia and the EU within the scope of the Deep and Comprehensive Free Trade Area (DCFTA) Agreement”. This Decree was amended by Government Decrees no 154 of 22 January 2018 and no 974 of 12 June 2020.
            
            
               This roadmap includes all reforms in terms of approximation to the Union acquis and institutional capacity building and complies with the phases and time schedules set out in Annex XVI-B to the Agreement in accordance with Article 145 of the Agreement. 
            
            
               ANNEX II
            
            
               Decision No …/2021 of the EU-GEORGIA Association Council
            
            
               of xx.xx.2021
            
            
               on the granting of reciprocal market access for supplies for central government authorities in accordance with Annex XVI-B to the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part
            
            
               THE ASSOCIATION COUNCIL,
            
            
               Having regard to the Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part, and in particular Articles 146, 406 and Article 419(5) thereof, 
            
            
               Whereas:
            
            
               (1)The Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and Georgia, of the other part (‘the Agreement’) was signed on 27 June 2014 and entered into force on 1 July 2016.
            
            
               (2)The Preamble to the Agreement recognises the commitment of Georgia to progressively approximate its legislation in the relevant sectors with that of the Union, in accordance with the Agreement and to implementing it effectively, thus contributing to closer political association and economic integration of Georgia with the Union to all citizens of Georgia including the communities divided by conflict.
            
            
               (3)In accordance with Article 147 of the Agreement, the Parties agree that the effective and reciprocal opening of their respective markets is to be attained gradually and simultaneously.
            
         
         
            
               (4)Pursuant to Article 146 of the Agreement, Georgia should ensure that its legislation on public procurement is gradually approximated to the Union's public procurement acquis, and that approximation to the Union acquis is carried out in consecutive phases as set out in the schedule in Annex XVI-B to the Agreement as amended by Decision No 2/2019 of the EU-Georgia Association Committee in Trade configuration of 18 October 2019
                  2
               . In accordance with Decision [1/2021 tbc] of the Association Committee in Trade configuration of [date], the Association Committee in Trade configuration has given a positive assessment regarding the completion by Georgia of phase 1 as set out in Annex XVI-B to the Agreement
            
            
               (5)In accordance with Article 419(5) of the Agreement, the Association Council, under the powers conferred to it in Articles 406 and 408 of the Agreement, should decide on further market opening where provided for in Title IV (Trade and Trade-related Matters) of the Agreement,
            
            
               HAS ADOPTED THIS DECISION:
            
            
               Article 1
            
            
               Reciprocal market access is hereby granted for public procurement of supplies by central government authorities in the European Union to Georgia and for public procurement of supplies by Georgian central government authorities to the European Union in the territories as specified in Article 429 of the Agreement. 
            
            
               Article 2
            
            
               This decision has been established in Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish, Swedish and Georgian languages, each of them being equally authentic. 
            
            
               Article 3
            
            
               This Decision shall enter into force on the day of its adoption.
            
            
               Done at …
            
            
                     
                        For the Association Council
                     
                     
                  
               
                     
                        The Chair
                     
                  
                  
                     
                        The secretaries
                     
                  
               
         
         
            
                  
                     (1)
                  
                        OJ L 296, 15.11.2019, p. 33.
               
               
                  
                     (2)
                  
                        OJ L 296, 15.11.2019, p. 33.