Source: http://bpp.worldbank.org/en/data/exploreeconomies/italy/2017
Timestamp: 2019-04-19 06:27:44+00:00

Document:
PPPs in Italy are mainly regulated by the Legislative Decree no. 50/2016 of April 18, 2016 implementing Directives 2014/23/EU, 2014/24/EU and 2014/25/EC (hereinafter "Public Contracts Code") and its subsequent amendments (inter alia, Legislative Decree no. 56/2017). The Public Contracts Code has repealed the previous regulations set by the Legislative Decree 12 April 2006 no. 163. The Public Contracts Code provides for implementation of its regulation through the adoption of Guidelines adopted by A.N.A.C, National Anti-corruption Authority. The current framework in Italy is in a transitional phase, until the entry into force of some pieces of legislations such as the ANAC (National Anti-Corruption Authority), the articles of Presidential Decree no. 207/2010 on the implementation of the legislative decree 12 April 2006 n. 163, entitled "Code of Public Contracts for Works, Services and Suppliers in Implementation of Directives 2004/17/EC and 2004/18 /EC" [hereinafter "Implementing Regulation"] still apply. PPPs are explicitly identified in Article 3 (paragraph 1, let. eee) of the Public Contracts Code as contracts for pecuniary interest concluded in writing by means of which one or more contracting authorities or contracting entities entrusts to one or more economic operators, for a period determined on the basis of the time required to recoup the investment or the conditions of the financing, the execution of a set of activities consisting in construction works or the transformation, operation and maintenance services of a facility, the consideration of which consists in the availability of the facility, or in the right to exploit it, or consisting in the provision of a service connected to the use by the operator of the facility itself, together with a transfer to the latter of an operating risk as provided in the relevant contract. In particular, PPP is regulated in Part IV, Title I (Articles 179-191), that is primarily dedicated to the public private partnership; and Part II (Public procurement) and III (Concession Contracts) which are applicable where compatible.
PPPs in Italy are mainly regulated by the Legislative Decree no. 50/2016 of April 18, 2016 implementing Directives 2014/23/EU, 2014/24/EU and 2014/25/EC (hereinafter "Public Contracts Code") and its subsequent amendments (inter alia, Legislative Decree no. 56/2017). The Public Contracts Code has repealed the previous regulations set by the Legislative Decree 12 April 2006 no. 163. The Public Contracts Code provides for implementation of its regulation through the adoption of Guidelines adopted by A.N.A.C, National Anti-corruption Authority.
The current framework in Italy is in a transitional phase, until the entry into force of some pieces of legislations such as the ANAC (National Anti-Corruption Authority), the articles of Presidential Decree no. 207/2010 on the implementation of the legislative decree 12 April 2006 n. 163, entitled "Code of Public Contracts for Works, Services and Suppliers in Implementation of Directives 2004/17/EC and 2004/18 /EC" [hereinafter "Implementing Regulation"] still apply.
PPPs are explicitly identified in Article 3 (paragraph 1, let. eee) of the Public Contracts Code as contracts for pecuniary interest concluded in writing by means of which one or more contracting authorities or contracting entities entrusts to one or more economic operators, for a period determined on the basis of the time required to recoup the investment or the conditions of the financing, the execution of a set of activities consisting in construction works or the transformation, operation and maintenance services of a facility, the consideration of which consists in the availability of the facility, or in the right to exploit it, or consisting in the provision of a service connected to the use by the operator of the facility itself, together with a transfer to the latter of an operating risk as provided in the relevant contract.
In particular, PPP is regulated in Part IV, Title I (Articles 179-191), that is primarily dedicated to the public private partnership; and Part II (Public procurement) and III (Concession Contracts) which are applicable where compatible.
The new regulatory framework (Legislative Decree no. 50/2016), replacing the Legislative Decree no. 163/2006, came into force on April 19, 2016 (implementing Directives 2014/23/EU, 2014/24/EU and 2014/25/EU of the European Parliament and European Council of 26 February 2014), and its subsequent amendments (inter alia, Legislative Decree no. 56/2017) came into force on 20 may 2017.
According to Article 216 of the Public Contracts Code, a transitional phase is envisaged for the implementation of the new legal framework, which requires the adoption of several implementing decrees by the Ministry of Economy and Finance, the Ministry of Infrastructure and Transportation, as well as several binding and non-binding guidelines by ANAC (National Anti-Corruption Authority). The completion of the transitional phase will require, in the near future, the adoption of numerous implementing decrees. In particular, in February 2017, ANAC approved a first draft of the "Implementing guidelines" on the monitoring of the economic operator's activity in a PPP contract (hereinafter the "Guidelines"), which after a favorable opinion by the Council of State (which requested to ANAC some little changes that need to be made) are still waiting to be published in the Official Gazette for the purpose of their entry into force.
Article 18 of Legislative Decree no. 183/2011 (as modified by Articles 2 of Law Decree no. 83/2012 converted into Law no. 134/2012) regulates tax exemption measures that can be introduced in favor of PPP projects in order to reduce public non repayable contribution quota. The measures concern both new projects and infrastructures already awarded in which the balance of the economic-financial plan shall been restored. The only limit is that the maximum quota of the public contribution, including the tax exemption measures, shall not exceed 50% of the total investment cost and be compliant with the national and EU legislation.
Articles 33 of the Legislative Decree 179/2012 converted into Law 221/2012, provides that the private partner can benefit from the grant of an IRES (corporate tax) and IRAP tax credits for PPP definitive projects. This tax relief measure applies for works with a minimum value of €50 million, approved before the 31 December 2016, for which there is no public contribution and the non sustainability of the economic-financial plan has been established.
Article 14 of Law Decree no. 83/2012, converted into Law no. 134/2012, establishes a fund - funded by VAT revenues from port activities - for financing projects concerning the development of port infrastructures with a limit of 70 millions euros per year.
Any public authority in Italy may be a PPP procuring authority. Article 38 of the New Public Contracts Code has innovated the legislation regarding procuring authorities introducing a qualification system, that will be managed by the National Anti-Corruption Authority (and now not yet in force). The system will be based on the possession of specific requirements indicated in a Decree to be issued by the President of the Council of the Ministers. The relevant public authority for the single PPP projects is identifiable with reference to the powers awarded to it by the legal framework (in particular on the basis of the competences set forth by art. 117 of the Italian Constitution). A list would include, but not be limited to, the central government, the regional and local administrations (provinces, municipalities); peripherical offices of the central government; national health service bodies, such as ANAS (motorways), Rete Ferroviaria Italiana (RFI) (railways). For the case study assumption identified, the Ministry of Infrastructure and Transportation http://www.mit.gov.it/ would be most relevant.
In fact, Department for Planning and Coordination of Economic Policy (DIPE) of the Palace Chigi is renewed. With DPCM no. 2858/2015, DIPE incorporates the competences of the ex Department of Territorial Economies (DIST) and redesign the office division by focusing on development of urban policies and monitoring of CIPE resolutions. The strengths of the new organization are more coordinated public investment policies infrastructural, environmental, intangible, territorial cohesion, the strengthening of the functions of monitoring the implementation of public investment, in particular those decided by CIPE, through the optimization of DIPE databases. Finally, DIPE is advised to consult Public-private partnerships in public / private partnerships and project finance.
The DIPE's competences in this field are: i) promoting the PPP models; ii) assuring free counseling to Public Administrations through the provision of technical, legal and financial assistance services at all stages of the proceedings; iv)supporting to the MIT and CIPE decisions regarding PPP Contracts for Strategic Infrastructures; v) data collection and monitoring for the estimation of the impact on the public budget (deficit and debt) of PPP operations; vi) the activation of collaborative relations with institutions, including at international level, bodies and associations active in the fields of interest on PPP.
Additionally, DIPE advises on agreements and business plans for key infrastructures, tax relief measures (allocated under Article 18 of Law 183/2011); tax credits (pursuant to Article 33 of Law Decree no. 179/2012); approval of planning contracts and agreements between state and private concessionaires (in accordance with Article 36 of Law Decree no. 1/2012, converted into Law 27/2012).
Please provide the relevant legal/regulatory provisions: Article 1, paragraph 589, of Law 28 december 2015, No. 208.
Article 1, paragraph 589, of Law 28 december 2015, No. 208.
Pursuant to art. 200 and 201 of the Public Contract Code, For strategic infrastructure projects, the Ministry for Infrastructures and Transportation and the Interministerial Committee for Economic Planning (CIPE) (Comitato Interministeriale per la Programmazione Economica) approve the project.
Art. 200 and 201 of the Code, the identification of the priority infrastructures and settlements for the development of the country, which can be realized in the form of PPPs, is entrusted to the Transport and Logistics General Plan (hereinafter, "TLGP"), as well as to the Multiannual Planning Documents (hereinafter, "MDP") referred to in art. 2, para. 1 of the Legislative Decree 228/2011.
Pursuant to Article 66 of the Public Contracts Code, before starting the procedure, the procuring authority may consult experts and economic operators, even requesting them to provide documents that will be used in order to prepare the tender documentation.
Additionally, Article 183, paragraph 2 of the Public Contracts Code provides that the tender feasibility project is drawn up by the staff of the procuring authorities. In case of shortage qualified staff, the procuring authorities may entrust the drafting of the feasibility study to third parties identified by the procedures set out in the Code.
According to Article 200 of the Public Contracts Code, 1. Infrastructures and priority settlements for development of the country, are evaluated and consequently placed in the planning and programming tools, referred to in the following articles, by the Ministry of Infrastructure and Transport.
According to Article 181 of the New Public Contracts Code, 3. The choice (of the procedure) is preceded by an appropriate inquiry with reference to the analysis of supply and demand, sustainability, socio-economic analysis, nature and intensity of the various risks involved in the operation, use of evaluation techniques and comparative tools to verify the convenience of recourse to public private partnership as an alternative to normal procurement procedures.
According to Article 181 (3) of the New Public Contracts Code public entities, before launching the PPP procedure, shall perform a preliminary activity of analysis concerning the economic and social sustainability of the planned operation. D.P.C.M. 3/8/2012 on the Implementation of Article 8 , paragraph 3, of Legislative Decree no. 228/2011 Concerning Guidelines for the Assessment of Investments related to the Public and Multi-Annual Planning Document of Investments in Public Works, (published in the Official Gazette on November 22, 2012 , n . 273) provides methodology on socio-economic assessments in Section I & II of (Allegato II).
If yes, please elaborate Article 167 of the Public Contracts Code deals with the method of calculating the estimated value of concessions.
Article 167 of the Public Contracts Code deals with the method of calculating the estimated value of concessions.
a) the value of any form of option and any extension of the duration of the concession; b) the proceeds from the payment, by the users of works and services, tariffs and fines other than those levied on behalf of the contracting authority or entity contracting; c) payments or any financial benefit to the dealer in any form by the contracting authority or entity or by other administrations public, including compensation for the performance of a public service obligation and investment public subsidies; d) the amount of subsidy or any other financial benefit in any form conferred by a third party for the execution of the concession; e) revenue from the sale of assets belonging to the concession; f) the whole value of the goods and services made ​​available to the dealer from contracting authorities or contracting entities, provided that they are necessary for the execution of works or the provision of services; g) any premium or payment to the candidates or tenderers.
According to Article 181 of the New Public Contracts Code, 3. The choice (of the procedure) is preceded by an appropriate inquiry with reference to the analysis of supply and demand, sustainability, socio-economic analysis, nature and intensity of the various risks involved in the operation, use of evaluation techniques and comparative tools to verify the convenience of recourse to public private partnership as an alternative to normal procurement procedures. .
We understand that in the PPP contract, the transfer of risk to the private partner should entail, in addition to construction risk, the risk of availiability of the works or services or demand or supply risk.
Typically, such risks shall derive from factors which are outside the control of the operator since, for instance, a contractual default or mismanagement, and even force majeure, are elements inherent in every contract, and not distinctive of a PPP/concession agreement. Article 181 (3) specifies that The public private partnership contract also covers risks, accidents on fees, arising from facts not attributable to the private partner.
Finally, we note that Article 3 (1) (zz) of the Public Contracts Code defines "operational risk" as the risk associated with the management of the work or services on the demand or on the supply side. The private partner assumes the operational risk if, under normal market conditions, no recovery of the investments made or costs incurred is guaranteed. In other words, the private partner must have a real exposure to the fluctuations of the market.
The PPP Guidelines detail in Article 3.1 the distinctive elements of the concession with respect to the contract and allocation risk. It identifies risks connected to construction, availability, and demand, in addition to others common to all project types that occur in long period, such as financial, legal, political, authoritative. The Guidelines refer to Eurostat Decision of February 11, 2004 integrated and updated with the contents of the new European System of national and regional accounts published by Eurostat in May of 2013 (cd. "SEC2010") and the Manual on government deficit and debt public (Manual on Government Deficit and Debt - MGDD), published for the first time by Eurostat in 1999 and most recently updated in August 2014, which devotes Chapter 4 of Part VI to Public Private Partnerships, http://www.programmazioneeconomica.gov.it/unita-tecnica-finanza-di-progetto-utfp/documenti/ serves as a guidance tool in terms of risk matrix.
i. the presence of a legal and regulatory framework compatible with the intervention; ii. the existence of risks transferred to the private party; iii. the organizational capacity and the presence of the know-how of the public administration forundertake a PPP; iv. the opportunity to practice a tie payment system to preset quantitative levels and qualitative within the management; v. The tariffs on services to be delivered and the verification of collective consensus to pay such services.
Additionally, according to Article 183 of the same code, "18. In order to ensure adequate levels of bankability and the involvement of the banking system in the operation, the provisions of Article 185 must be applied".
The PPP Guidelines identify in Article 5.3(d) analysis on financial feasibility, which includes an analysis of the flows of expenditure and revenue for both the step of building for that management. It is to assess the cost elements (which support especially in the phase of construction of the work and for the corresponding maintenance) and revenue (which is realize when the construction phase is completed and begins the management of the work). The horizon reference period of time becomes a decisive factor in calculating the financial sustainability of a work, as well as the discount rate used to discount the cost flows and future revenue. In this phase, It must perform a risk analysis in time, considering design alternatives through the risk matrix. The risk matrix, as already mentioned, it should disclose the nature of the risk and assigning: grantor, private partner or both. Please remember that a correct estimate of the costs and revenues, as well as representing an essential element for the proper allocation of risks, it is a fundamental element for the work bankability.
Details: The financial viability assessment is always done in practice for the PPP contracts in Italy.
features and connections to the context in which project is inserted, with particular reference to the verification of environmental, historical, archaeological and landscape constraints ... identification of appropriate measures to safeguard the Environmental protection and cultural and landscaping values.
Article 181 of the Public Contracts Code provides the relative rules on PPP operations:" ... calls for proposals and its annexes, have to include as appropriate, the project, the draft contract and the financial plan governing the risks allocation between the procuring authority and the private partner..."
Additionally, Article 165 (3) provides that call for proposal and its annexes, including the draft contract and the economic-financial plan, is defined to ensure adequate levels of bankability to the project.
If yes, please provide the relevant legal/regulatory provisions (if any): The standard document publication of the EU apply: Publication in Tenders Electronic Daily (TED).
The standard document publication of the EU apply: Publication in Tenders Electronic Daily (TED).
Additionally, Art. 183, para. 2 of the Code, on "Project Finance", and art. 188, para. 3 of the Code, on the "Contract of Availability", set forth that the tender notice shall be published in accordance with Article 72 or Article 36, para. 9, of the Code, depending on the total contract price.
In particular, Art. 72 of the Code provides that notices and tender notices shall be drawn up and electronically transmitted to the EU Publications Office to be published.
The format and the procedures established by the EU Commission for the electronic transmission of notices and tender notices are available online: .
Procuring authorities shall publish online the tender documents in their entirety.
Art. 74 of the Code sets forth that procuring authorities shall offer a free, unlimited and direct electronic access to tender documents from the date of publication of a notice in accordance with articles 70 and 72 of the Code, or from the date of the dispatch of an invitation to confirm the interest.
and paragraph IV.1.1 of the publication by Ministero dell'Economia e delle Finanze entitled "A focus on PPPS in Italy."
According to Article 14 of Law N.241-1990: 5. Without prejudice to the provisions contained in regional legislation governing Environmental Impact Assessments (EIAs), in cases involving the grant of a concession to carry out public works, a services conference shall be convened by the licensing authority or, with the latter’s consent, by the licensee within fifteen days. When the conference is convened at the request of the licensee, the licensing authority shall have the right to vote in any event.
Section 14-bis provides: 1. A services conference may be convened, at the request of the interested party, before the presentation of a definitive application or project for particularly complex projects or projects concerning installations producing goods or services. The request must contain a statement of reasons and, in the absence of a preliminary project, be documented by a feasibility study. The conference shall have the purpose of examining on what conditions the necessary formal consent may be obtained when the definitive application or project is presented. In such cases, the conference shall state its conclusions within thirty days of the date of the request and the related costs shall be borne by the party making the request. 2. In procedures concerning the realisation of public works or works in the public interest, the services conference shall evaluate the preliminary project for the purposes of indicating the conditions on which the understandings, opinions, concessions, authorizations, licences, permissions or assent documents of whatever denomination required by the legislation in force for the definitive project may be obtained. On that occasion, the authorities responsible for protection of the environment, the landscape and territory and the historical and artistic heritage or protection of health and public safety shall assess the project’s proposed solutions with reference to the interest that each one protects. If, on the basis of the available documentation, no elements definitively precluding the project’s realisation emerge, the aforesaid authorities shall, within forty-five days, indicate the conditions and elements necessary for obtaining formal consent when the definitive project is presented. 3. In cases where an EIA is required, the services conference shall express its view within thirty days of the conclusion of the preliminary phase defining the contents of the Environmental Impact Study, in accordance with the provisions governing EIAs. Should such phase not be concluded within ninety days of the request referred to in subsection (1), the services conference shall express its view within the following thirty days in any event. During such conference, the authority with competence for the EIA shall state the conditions governing development of both the project and the environmental impact study. During this phase, which constitutes an integral part of the EIA procedure, the aforesaid authority shall examine the main alternatives, including the zero alternative and, on the basis of the documentation available, check for potentially incompatible elements, including with reference to the project’s proposed location. Should no such elements exist, it shall, during the services conference, indicate the conditions on which the necessary formal consent may be obtained when the definitive project is presented. 3-bis. Dissent expressed during the preliminary conference by an authority responsible for protection of the environment, the landscape and territory, the historical and artistic heritage, health or public safety, with reference to inter-regional works, shall be subject to the provisions contained in section 14-quater(3). 4. In the cases referred to in subsections (1), (2) and (3), the services conference shall express its view on the basis of the documents at its disposal and the indications given on that occasion may be modified or integrated only if significant elements emerge during subsequent phases of the procedure, including following observations made by private parties in relation to the definitive project. Such modifications or integrations must include a statement of reasons. 5. In the case referred to under subsection (2), the officer with exclusive responsibility for the procedure shall send the authorities concerned a copy of the definitive project, drawn up on the basis of the conditions indicated by the same authorities during the services conference on the preliminary project. He/she shall convene the conference on a date falling between the thirtieth and sixtieth day following the project’s transmission. In cases where public works are entrusted by way of a procurement contract, competitive tendering or the grant of a licence, the contracting authority shall convene the services conference on the sole basis of the preliminary project, in accordance with the provisions of Law no. 109, dated 11 February 1994, as subsequently amended.
Article 6 (8) of Presidential Decree 327 of June 2001 states : If public works or public works are to be carried out by a concessionaire, the granting authority may delegate, in whole or in part, its expropriation powers, clearly determining the scope of the delegation in the concession, the ends of which must be specified in each act of the expropriation procedure.
9. in case of renewal of the procedure following the annulment of the award or the exclusion of canceling out any of the competitors, it is reconvened the same commission.
provides indications about the procedures for the appointment and for the functioning modalities of the tender commission.
According to Articles 71, 72 and 73 of the Public Contracts Code, the public procurement notice is published in the Official Gazette, either the Official Journal of the European Community (if the value of the contract exceeds the Community threshold), or in the National Official Journal depending on the type of contract, and on the website of the procuring authority and of ANAC (The National Anticorruption Authority). Additionally, other forms of direct advertising may be included, such as newspapers and institutional websites.
Article 60 of the Public Contracts Code identifies a 35 day minimum time period (which be reduced to 15 days under certain conditions) for open tenders. In restricted procedures (Article 61), negotiated procedures with publication of a contract notice (Article 62), and the competitive dialogue (Article 64), the time limit for receipt of requests to participate cannot be less than thirty days from the date of transmission of the notice. In case of concession contracts and PPP contracts, article 173(2) of the Public Contracts Code (which applies to PPPs by reference made by Article 179 to Part III of the Code) identifies a 30 day minimun time period to submit bids (regardless of the type of procedure).
Unlike what was stated in the previous code, which fixed precisely the time limits to be respected in order to submit the bids, the current Article 79 of the Public Contracts Code merely states that, in fixing the deadlines for the receipt of applications for participation and the offers, the procuring authorities should take into consideration the complexity of the contract and the time necessary for the preparation of tenders, subject to the minimum deadlines laid down in Articles 60, 61, 62, 64 and 65 of the Public Contracts Code.
According to Article 59(1) of the Public Contracts Code: 1. In the award of public contracts, the contracting authority uses open or restricted procedures, upon publication of a notice of invitation to tender. They may also ' use the innovation partnership when there are the conditions laid down in Article 65, the competitive procedure with negotiation and competitive dialogue when the conditions provided for in paragraph 2 are met, and the negotiated procedure without prior publication notice of a call for tenders when the conditions provided for in Article 63 are met.
Additionally, article 60 (1) provides: "In open procedures, any economic operator can submit an offer in response to a notice of Invitation to tender."
According to article 61 (1) of the Public Contracts Code : "1. In restricted procedures, any economic operator may submit a request for participation in response to a notice of Invitation to tender ... providing the information set by the contracting authority for the purpose of qualitative selection".
Article 171 (4) of the Public Contracts Code (applicable to concessions but also PPP by reference to Part III in article 179) provides: "The contracting authority may limit the number of candidates ... as long as the number of tenderers invited to participate remian sufficient to ensure effective competition"
Article 91 (1) of the Public Contracts Code provides that : in restricted procedures, when the complexity of the works or the supply or service requires it, the contracting authority may limit the number of candidates who meet the selection criteria and who can be invited to submit an offer or negotiate.
1) the requirements of the contracting authority require the adoption of solutions that are immediately available; 2) involve design or innovative solutions; 3) the contract can not be awarded without any prior notice negotiations due to particular circumstances in relation to the nature, complexity or financial and legal setting of the contract or of the risks associated with it; 4) technical specifications can not be established with sufficient precision by the contracting authority reference to a standard, a European technical evaluation, one common technical specification or technical reference under points 2 to 5 of Annex XIII; (B) for the award of works, supplies or service contracts for which, following an open or restricted procedure, the tenders submitted were unreasonable or inadmissible according to paragraphs 3 and 4. In such situations, the contracting authorities are not required to publish a notice if they only include the bidders who meet the requirements of Articles 80 to 90 who, in the open or restricted procedure, have submitted bids conforming to the formal requirements of the procurement procedure.
Additionally, article 181 (1) of the Public Contracts Code provides (under the section related to PPPs): 1. The economic operator's choice is made through competitive dialogue.
Furthermore, according to article 64 (2) of the Public Contracts Code ; " In the competitive dialogue any economic operator may respond to a call for tender, (or a notice of invitation to tender) by providing the information requested by the procuring authority for qualitative selection". Article 64 (5) provides that the procuring authority proceeds with the dialogue phase in order to identify and define the proper means to cover their needs. In the Dialogue phase, all the selected participants discuss aspects of the contract." and article 64 (9) further states " The procuring authority continues the dialogue until it identifies the solutions that satisfy its needs."
Finally, Article 91 (1) of the Public Contracts Code provides that : in a competitive dialogue, when the complexity of the works or the supply or service requires it, the contracting authority may limit the number of candidates who meet the selection criteria and who will be invited to participate in the dialogue.
According to article 65 (1) of the Public Contracts Code : "Contracting authorities can resort to innovation partnerships when they need to develop innovative products, services or works, and to subsequently purchase the supplies, services or works that cannot be satisfied with the solutions already available on the market...". Furthermore according to article 65 (5) "The Innovation Partnership is structured in stages according to the sequence of the phases of the research process and Innovation, which may include the manufacture of products or the provision of services or the realization of works. The Innovation partnerships set intermediate goals for the parties to reach and provide for appropriate remuneration rates. The contracting entity may, after each stage, resolve the innovation partnership or, in the case of a partnership with more operators, reduce the number of operators, provided that it has indicated such possibilities and set the conditions of use in the tender documents. "
Finally, Article 91 (1) of the Public Contracts Code provides that : in partnership for innovation, when the difficulty or the complexity of the works or the supply or service requires it, the contracting authority may limit the number of candidates who meet the selection criteria and can be invited to participate in the dialogue.
1. Name, address, telephone number, fax number, email address of the contracting authority.
7. Description of the contract : nature of the works or service.
8. Estimated total value of the contract or of the contracts.
9. Admission or prohibition of changes.
10. Time of delivery or supply of goods, works or services and the duration of the contract.
(C) a list and a brief description of the criteria relating to the personal situation of the economic operators (can Include exclusion and selection criteria); Level or Minimum specific levels of capacity as required. Indication of the required information (self-certification, documentation).
18. Award criteria or contract award criteria.
Acccording to article 179 of the Public Contracts Code (applicable to PPP) "The procedures referred to in this Part shall be: Apply the provisions of Parts I, III, V and VI as compatible."
Article 183 of the Public Contracts Code (applicable to PPP) states :" (6)The notice indicates the criteria in the order of importance attributed to them on the basis of which a comparative assessment is carried out among the various proposals.
(7)The tender specifications, explicitly mentioned in the notice, indicate, in particular, the location and description of the project, the urban planning, the consistency, the types of service to be handled, so that the proposals are presented in accordance with homogeneous assumptions.
(9) Tenders must contain a final draft, a draft of contract, and an economic-financial plan"
According to article 61 (1) of the Public Contracts Code : "1. In restricted procedures, any economic operator may, submit a request for participation in response to a notice of Invitation to tender containing the information set out in Annex XIV, Part I, Letter B or C as appropriate, provided by the contracting authority in order to make a qualitative selection."
According to article 62 (1) of the Public Contracts Code : " In any competitive negotiated procedures any economic operator can submit a request for participation in response to a notice of invitation to tender containing the information referred to in Annex XIV, Part I, points B and C, by providing the information requested by the contracting authority for qualitative selection purposes."
Acording to article 64 (2) of the Public Contracts Code "In the competitive dialogue any economic operator may participate in response to a call for tenders, or to a notice of invitation to tender by providing the information requested by the procuring authority, for qualitative selection."
According to article 65 (3) of the Public Contracts Code "Any economic operator in the innovation partnership can make a request for participation in response to an invitation to tender or a notice of invitation to tender, by submitting the information required by the procurement authority for the qualitative selection."
Article 171 (4) of the Public Contracts Code (applicable to concessions but also PPP by reference to Part III in article 179) provides: "The contracting authority may limit the number of candidates, as long as it is a transparent process and as long as it is done on the basis of objective criteria. The number of candidates or tenderers invited to participate must be sufficient to ensure effective competition"
Article 91 (1) of the Public Contracts Code provides that : in restricted procedures, in competitive procedures with negotiation, competitive dialogue procedures and partnership for innovatiom, when the complexity of the works or the supply or service requires it, the contracting authority may limit the number of candidates who meet the selection criteria and can be invited to submit an offer or negotiate.
Article 74 (4) of the New Public Contracts Code provides that inquiries - which have been requested in time - and additional information relating to the specifications and any supporting documents shall be supplied by the contracting authorities at least six days before the fixed deadline for the receipt of the offers.
In Italy, the disclosure to all potential bidders of questions and clarifications about the public procurement notice and/or the request for proposals is always done in practice. In addition, very often the procuring authority publishes on its website a page dedicated to the FAQ.
According to article 165 (3) of the Public Contracts Code : the contracting authority may organize a preliminary consultation with the invited bidders, before the expiration of the deadline to submit bids, in order to hear any potential criticism of the project based on competition in terms of financibility. Following the consultation, the procuring authority may update the deadline for submission of tenders, (which may not be less than thirty days from the communication of the new deadline to interested parties."
According to Article 183 (9) of the Public Contracts Code, the offer must contain an economic-financial plan attested by a credit institution, a company constituted by the credit institution itself and registered on the general list of financial intermediaries or by an auditing firm. Article 181 (2) of the Public Contracts Code provides that the procuring authorities shall ensure that contracts are awarded on the basis, inter alia, of an economic and financial plan scheme, which shall provide for the allocation of risks between the procuring authority and the economic operator.
According to article 95 (1) of the Public Contracts Code "The award criteria limit the discretion of the contracting authority for the choice of the winning bidder. The criteria guarantee effective competition and the specifications allow for effective verification of the information provided by tenderers in order to assess fulfillment of the criteria for the award of tenders."
According to article 183 (10) of the Public Contracts Code "The contracting authority shall: A) examine the offers that have been received according to the terms provided in the notice; B) the contracting authority ... may award the contract to a bidder even in the presence of one offer"
According to Article 72, 73 and 98 of the Public Contracts Code, the award notice is published in the website of the awarding authorities, in the website of the Ministry of the Infrastructures and Transportation, in the platform of the Italian Anti-Corruption Autority (which is coming into use), in national newspapers, in the Official Gazette of Italy , and for contracts above EU threshold, in the Official Journal of the European Union (TED).
According to article 98 (1) of the Public Contracts Code "Procuring authorities that have awarded a public contract send a notice ... on the results of award procedure, within thirty days of such award."
Additionally, According to article 76 (1) of the Public Contracts Code : "The procuring authorities shall promptly inform each candidate about the result of the procurement process." And finally, according to article 76 (5) of the Public Contracts Code "the procuring authorities shall immediately communicate, within a maximum of five days: (C) the decision not to award a contract ... to all candidates;"
(C) to any tenderer who submitted a bid, the result and progress of the negotiations and dialogue with the bidders."
According to Article 32 (9) of the Public Contracts Code: " However, the contract may not be concluded before thirty - five days from the last communication of the Award decision."
Article 46 of the European Concession Directive referring to the Directive 89/665/EEC that regulates review procedures for public contracts, the award notice will include reference to the standstill period (article 2.a of the mentioned Directive 89/665/EEC).
Article 183 (10) of the Public Contracts Code governs the selection procedure, where the procuring authority appoints the bidder who submitted the most convenient proposal and, if appropriate, requests the bidder to make amendments to such proposal. Only if the bidder makes the requested amendments, the PPP contract is signed. If the selected bidder does not agree to modify the project, the procuring authority may ask the subsequent competitors in the ranking to modify the project under the same terms.
Article 30 of the Public Contracts Code sets out the general principle that the execution of works, services and concession, governed by the Code, guarantees quality of performance.
The project manager identified in Articles 31, 101 and 111 of the Public Contracts Code is responsible for the proper implementation of the PPP contract (the guidelines approved by the National Anti-corruption Authority on November 16th, 2016, detail qualifications, functions and duties of the project manager: http://www.anticorruzione.it/portal/rest/jcr/repository/collaboration/Digital%20Assets/anacdocs/Attivita/Atti/determinazioni/2016/1096/Determina1096_Linee%20Guida%20N3.pdf).
According to article 166 (1) of the Public Contracts Code (applicable to concessions), the contracting authority is free to decide the best way to handle the execution of work and the provision of services to ensure in particular high level of quality, security and accessibility, parity treatment and the promotion of universal access and rights of public utilities.
Pursuant to Article 201 (6) of the Public Contracts Code the Ministry of Infrastructure and Transport draws up a report on the development of the public works included in the programming tools. In order to support the Ministry in this activity, the procuring authority, within 30 days from the final approval of the project, sends Ministry a report on the main characteristics of the infrastructure, the costs, the timetable and the eventual variations from the relevant feasibility project.
In case of priority infrastractures, pursuant to Article 214 (4), of the Public Contracts Code, the Ministry of Infrastructure and Transport can propose to the Chairman of the Council of Ministers the appointment of a commissioner to follow the progress of the works and provide the appropriate support and actions.
Article 181 (4) of the Public Contracts Code provides that the contracting authority introduces and applies monitoring systems in order to conduct effective controls over the activities carried out by the economic operator, in particular with regard to the risks transferred.
Article 182 (2) establishes that the contract defines the risks transferred to the private party and the tools to monitoor them during the execution of the contract.
In this context, the Italian Anti-corruption Authority has approved on 1st febrary 2017 "The Guidelines concerning the monitoring activities of the public authorities on economic operators in PPP contracts", pursuant to article 181 (4) of New Public Contracts Code, which are still waiting adoption. In particular, the Guidelines specify (see paragraphs 5.2 and 5.4) the minimum contents of the conventions, which is considered an essential aspect to enable rigorous monitoring to be carried out during the execution of the contract.
Public entities shall also establish and implement a risk matrix which defines the risks assessment, making reference to the different articles of the contract.
In case of modifications or revisions of the economic-financial plan, the public entity is entitled to verify that the allocation of risks set out in the tender documents has not been alterated.
The call for tender shall specify the most relevant data concerning the execution of works and the operating performance to be submitted to the public entity during the execution of the contract.
For PPP's projects related to the realization of public works subject to the monitoring procedure set out in Legislative Decree no. 229/2011, the information - to be requested to the private party -shall include the data that the public entity is required to provide to the Public Administrations Data Base (BDAP) pursuant to that Decree.
The project manager identified in Article 148 of the Implementing Regulations would also undertake the task of verification of the validity of the maintenance program, the user manuals and maintenance manuals, modifying and updating all the work to ensure it is completed and report to the head of the procedure about any failure on the part of the performer.
Article 31 of the Public Contracts Code and article 4 of the ANAC Guidelines on the "'Appointment, role and duties of the project manager for the award of contracts and concessions" define the qualifications of the project manager. In short, according to article 4 of the Guidelines, the project manager should be in possession of a degree, work experience and vocational training corresponding to the type and size of the work concerned.
The project manager identified in Articles 31, 101 and 111 of the Public Contracts Code is responsible for the proper implementation of the PPP contract (the guidelines approved by the National Anti-corruption Authority on November 16th, 2016, detail qualifications, functions and duties of the project manager.
Article 213 of the Public Contracts Code sets forth that (i) the supervision and control of public contracts, and (ii) the regulation of the same, are attributed to the ANAC - National Anti-Corruption Authority, within the limits provided by the Code.
According to article 180 (4) of the Public Contracts Code "Regarding the availability of the work or Service, the contracting authority may choose to reduce, or cancel the payment of the economic operator proportionally to the reduction or lack of availability of the work, or lack of provision of the services."
According to article 5.2 of the Guidelines, the bid should contain : "the mechanism of variation of the fee commensurate with the lack or non-availability of the work or service"
The project manager identified in Article 101(3) of the Public Contracts Code would periodically verify the ownership and regularity by the performer and the subcontractor of the documentation required by current laws and would undertake the task of verifying the validity of the maintenance program, the user manuals and maintenance manuals, modifying and updating all the work to ensure it is completed and report to the head of the procedure about any failure on the part of the performer.
Article 175 (1d) of the New Public Contracts Code regulates the different changes that can occur during the execution of a concession. In particular, it establishes that concessions may be modified without a new concession award procedure in case of universal or partial succession into the position of the initial concessonaire, following corporate restructuring - including takeover, mergers, acquisitions, insolvency - of another economic operator that fulfils the criteria for qualitative selection initially established, provided that this does not entail other substantial modifications to the contract and is not aimed at circumventing the application of the Code. In this case, the authorization of the public entity could occur, in accordance to the sector regulatory framework.
In addition, article 106 and article 184 (3) of the Public Contracts Code details the procedure according to which the transfer of project company shares shall be executed.
According to Article 184(3) of the Public Contracts Code, the change of ownership rules have to be provided in the relevant PPP contract and, in any case, the shareholder, which has granted the project company with the requirements for the qualification to the public tender, shall remain a shareholder of the project company until the issuance of the commissioning certificate (i.e. the end of the construction phase). The rationale of this provision is to guarantee the proper performance of the project company's obligations in favour of the procuring authority during the whole construction phase. Subsequently, during the operation phase, a shareholder shall be able to transfer its share capital to third parties, also without the consent of the procuring authority, provided that the new shareholder, which has to perform the operation services under the PPP contract, satisfies the requirements necessary for the operation of the relevant services. Lastly, if (i) the potential acquirer or (ii) the shareholder, which did not grant the requirements for the qualifying to the public tender, is a bank or a financing institution, such change of ownership is permitted at any time.
Article 175 (1) (D) (2) of the Public Contracts Code states "following corporate restructuring, including merger, acquisition or insolvency, the new economic operator shall meet the qualitative criteria of selection established initially for the initial concessionaire, although that does not imply other substantial changes. This is not intended to circumvent the application of the code, subject to the authorization of the grantor..."
Article 175 (1) of the New Public Contracts Code regulates the different changes that can occur during the execution of a concession. In particular, it establishes that concessions may be modified - without a new concession award procedure: (a) where the modifications, irrespective of their monetary value, have been provided for in the initial concession documents; (b) for additional works or services by the original concessionaire that have become necessary and that were not included in the initial concession, if the specific conditions set out in Article 175 (1b) are met; (c) where the need for modification has been brought about by circumstances which a diligent contracting authority could not foresee, if the specific conditions set out in Article 175 (1c) are met; (d) where a new concessionaire replaces the one to which the contracting authority had initially awarded the concession as a consequence of a review clause or a universal or partial succession, pursuant to Article 175 (1d); (e) where the modifications, irrespective of their value, are not substantial within the meaning of Article 175 (7); (f) for modifications with a value lower than the EU threshold and lower than 10% of the the value of the initial concession according to Article 175 (4).
alterating the equilibrium of the economic-financial plan. The parties may ridetermine the conditions of economic equilibrium but in any case the initial risk assesment and the condion of equilibrium related to the contract shall be preserved. For works of public interest or financed with public funds the previous evaluation of the Consulting Nucleous for the implementation of the Guide Lines for the regulation of services of public utilities (NARS) is requested. If no agreement is reached, the parties may withdraw from the contract, according to the economic conditions set out in the above said articles.
Article 106 of the Public Contracts Code also regulates the modification of a contract.
Pursuant to article 165 (6) & article 182(3) of the Public Contracts Code, the approval of the NARS, a specific Committee set up at the Presidency of the Council of Ministers - Department for Planning and Coordination of Economic Policy, is required in case of public works partially funded by the State.
Article 175(1) of the Public Contracts Code provides for the renegotiation of concession contracts in case of additional works or services by the original concessionaire that have become necessary and that were not included in the initial concession, where a change of concessionaire: i) cannot be made for economic or technical reasons such as requirements of interchangeability or interoperability with existing equipment, services or installations procured under the initial concession; and ii) would cause significant delay or substantial costs for the contracting authority or contracting entity. However, any increase in value shall not exceed 50% of the value of the original concession.
Articles 165(6) and 182(3) of the Public Contracts Code provide for the renegotiation of the PPP contract in case of changes in the financial or economic balance of the contract not attributable to the private partner.
Under Article 175 (2) of the Public Contracts Code the sum of any change in the agreed value cannot exceed 50% of the original value.
Article 158 & 159 of the Implementation Regulation and Article 107 of the New Public Contracts Code regulate force majeure as an unforseen condition in the context of suspension of the contract, where, when certain portions of the work are executable in such conditions, they should resume.
Article 175 (1 c) of the New Public Contracts Code regulates the need for modification during the execution of a concession brought about by circumstances which a diligent contracting authority could not foresee. In this case concession may be modified without a new concession award procedure if the modification does not alter the nature of the concession and the increase value is not higher than the 50% of the value of the initial concession.
Articles 165 (6) & 182(3) of the New Public Contracts Code regulate the procedure for the revision of the economic-financial plan in case of events non attributable to the economic operator and alterating the equilibrium of the economic-financial plan.
Are the events of force majeure such as to render objectively impossible or excessively Onerous, in whole or in part, the fulfillment of contractual obligations. The PPP contract Reports a list of cases of force majeure.
And / or services necessary for the implementation of the intervention.
Article 1218 of the Italian Civil Code provides "The debtor who does not exactly render due performance is liable for damages unless he proves that the non-performance or delay was due to impossibility of performance for a cause not imputable to him"
Articles 205 and 206 of the Code provides for an amicable settlement procedure for the settlement of contracts of works, services and supply related disputes.
In particular, art. 205 provides for the amicable settlement procedure for public works awarded by procuring authorities or concessionaires, where, following the registration of reservations on accounting documents, the amount of the work may vary between 5 and 15 per cent of the contractual price.
Art. 209 of the Code provides that disputes concerning rights arising from the execution of public contracts relating to works, services, supplies and design and ideas contests, including those resulting from the failure to reach the amicable settlement referred to in articles 205 and 206, may be referred to arbitrators.
Art. 208 of the Code, a residual provision, provides that disputes concerning rights arising from the execution of public contracts of works, services and supplies may be resolved by means of a transaction in accordance with the Italian Civil Code, provided that remedies alternative to litigation cannot be initiated.
According to article 211 of the Public Contracts Code "At the initiative of the contracting station or one or more of the Other parties, the ANAC expresses its views on issues raised During the course of the tendering procedures, within thirty days Upon receipt of the request. The opinion obliges the parties that you Have previously agreed to abide by what is in it established. The binding opinion can be appealed to the competent authorities Organs of administrative justice within the meaning of Article 120 of the Administrative procedure code"
the enforceability of domestic arbitration awards is provided for in art. 209, paras. 12-13 of the Code (public procurement related arbitration), and in articles 824-bis and 825 of the Italian Code of Civil Procedure (domestic arbitration in general).
the enforceability of international arbitration awards is provided for in article 839 of the Italian Code of Civil Procedure.
Article 176 of the Public Contracts Code provides that lenders (including project bond holders) could designate a company that takes over the concessionaire under specific circumstances.
Article 176 (8) of the Public Contracts Code states that in the cases that would result in the termination of a concession for causes attributable to the concessionaire, the procuring authority shall communicate in writing to the concessionaire and to the lending institutions its intention to terminate the contractual relationship.
The lending institutions, including holders of bond and other similar securities issued by the concessionaire, within 90 days of receipt of the communication, may indicate an economic operator who may replace the original concessionaire, provided that such economic operator has technical and financial characteristics corresponding or similar to those provided for in the tender notice, with regard to the state of progress of the concession on the date of the succession.
According to article 176 (10) of the Public Contracts Code, Except for the cases referred to in Article 175, para. 1, let. d), the replacement of the concessionaire is limited to the time necessary for the completion of a new tendering procedure.
The procuring authority shall provide in the tender documents the right to succeed of the lending institutions referred to in art. 176, para. 8, of the Code.
Article 180 (7) of the Public Contracts Code provides that the documented availability of funding is a necessary precondition for being allowed to enter into a PPP contract. Consequently, the PPP contract is terminated by law if the financing contract is not completed within twelve months of signing the PPP contract.
e) when the concession terminates for reasons attributable to the concessionaire.
c) compensation for loss of profit equal to 10 per cent of (i) the value of the works still to be carried out, or (ii) the value of the services, equal to the management costs provided for in the financial plan attached to the concession.
Without prejudice to the payment of the sums referred to in article 176 (4) of the Public Contracts Code, in all cases of contract termination other than termination for breach of contract by the concessionaire, the concessionaire is entitled to continue the ordinary management of the work, and to collect the related revenues, up to the actual payment of the above sums.
If the concession is terminated for breach of contract by the concessionaire, art. 1453 of the Italian Civil Code shall apply.
The Article 183(15) of the Legislative Decree no. 50 of April 18, 2016 provides that economic operators may submit proposals to the Contracting Authorities regarding the realization in public works concession or public utility works not in the three-year program laid down in Article 21 or in the instruments of programming approved by the contracting authority on the basis of existing legislation. According to the Article 183(16) the proposal may concern any PPP contract.
Economic operators may submit unsolicited proposals to the Contracting Authorities regarding the realization in public works concession or public utility works. A specific procedure is provided in art. 183 (15) to evaluate its feasibility. The approval of the project may be subject to changes according to the indications of the public administration, in order to admit the project in the schedule of approved public works of the contracting authority.
Once the proposed work is included in the annual schedule, the procuring authority may publish the public tender, containing criteria to evaluate offers of other competitors. The original proponent may participate to the tender, and under certain conditions, has the right of first refusal.
According to Article 183(15) of the Public Contracts Code, the procuring authority must evaluate the feasibilty of the unsolicited proposal within 3 months.
According to article 183 (15) of the Public Contracts Code: A feasible project, possibly modified, is included in the annual list of public works approved by the administration on the basis of current legislation and in accordance with the criteria required for approval of projects."
Article 183 (paragraph 15) of the Public Contracts Code provides for a basis for the competitive procedure when proceeding with PPP projects in the context of unsolicited proposals, where competitors, including the promoter, must be compliant with the requirements and make an offer containing a draft of the PPP contract, as well as the economic-financial plan. If the promoter is not successful, it may exercise, within fifteen days from the final award notice, the right of first refusal and be the successful tenderer if it declares its commitment to fulfill the contractual obligations under the same conditions as these of the successful bidder. If the promoter is not awarded the contract, and does not exercise his right of first refusal, he is entitled to reimbursment of the expenses occurred for the preparation of the proposal. If the promoter exercises his right of first refusal, the original contractor should be reimbursed for the expenses for preparation of the tender by the promoter.
Articles 79 and 183(15) of the Public Contracts Code provides rules on the minimum period for additional prospective bidders to prepare their proposals, which apply. In fact, according to article 79 (1): "In fixing the time-limits for the receipt of offers, contracting authorities take into account in particular the complexity of the contract and the time needed to prepare the offers, (subject to the terms set out in Articles 60 to 63).
According to article 60 (1) of the Public Contracts Code " In open procedures, (…) The minimum time limit for receipt of tenders Is thirty-five days (35) from the date of the announcement of the announcement race."
According to article 61 (1) and (2) of the Public Contracts Code : "In restricted procedures, (...) The minimum time limit for receipt of applications for Participation is thirty days (30) from the date of transmission of the Call for tenders or, if a pre - information notice is used as Means of an invitation to tender from the date of the invitation to Confirm interest."
The Swiss challenge in Italy falls within the definition of "diritto di prelazione", according to Article 183 (15) of the Public Contracts Code, the contracting authority evaluates, within three months, the feasibility of the proposal. To this end, the contracting authority may invite the proponent to make the necessary changes to the feasibility project for approval. If the applicant does not make the required changes, the proposal can not be evaluated positively. The feasability project is included in the programming tools approved by the administration on the basis of the current legislation; the proponent is required to make any further changes requested when approving the project; failing that, the project is not approved. The tender for the award of the concession is based on the approved feasability project ; the proponent, i.e. the promoter, is invited to participate. In the notice, the contracting authority may ask the competitors, including the promoter, the submission of any variations to the project. In the announcement it is specified that the promoter can exercise the right of first refusal.
If the promoter is not successful, he may exercise, within fifteen days from the final award notice, the right of first refusal and be the successful tenderer if he undertakes to fulfill the contractual obligations under the same conditions as the successful tenderer.
If the promoter is not awarded and does not exercise this right, he is entitled to the payment of the amount of expenses for the preparation of the proposal by the successful tenderee within the limits indicated in paragraph 9. If the promoter exercises the first refusal right, the original contractor is entitled to be paid by the promoter the amount of expenses for the preparation of the tender within the limits indicated in paragraph 9.
Central budgetary authority's approval No.
Standardized PPP model contracts and/or transaction documents Yes.
Direct negotiation not discretionary Yes.
Financial model submitted with proposal Yes.
Negotiations with the selected bidder restricted Yes.
Yes. Establishment of a PPP contract management team. Elaboration of a PPP implementation manual. PPP contract management team requires qualifications without specific detail.
Yes. Abatement of payments for non-performance. Private partner provides periodic info. Procurement authority gather info.
Dispute resolution mechanisms Yes. Local administrative review body. Domestic arbitration. International arbitration.
Assessment to evaluate unsolicited proposals Yes.
Vetting procedure and/or pre-feasibility analysis of USPs Yes.
Competitive PPP procurement procedure for USPs Yes.

References: art. 117
 art. 200

Art. 200
 art. 2
 v. 
 Art. 183
 art. 188
 Art. 72

Art. 74
 art. 205

Art. 209

Art. 208
 art. 209
 art. 176
 art. 1453
 art. 183