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May 24, 2022
BUSINESS ENVIRONMENT

Competition Council: Romsilva must separate market administrator and operator activities

The National Forestry Administration (RNP) Romsilva conducts both administrator and economic agent activities, which provides it with competitive advantages over the other competitors, shows the preliminary report on the timber market drawn up by the Competition Council, according to which Romsilva must separate these two activities.

“The preliminary report on the timber market shows that RNP Romsilva conducts both administrator and economic agent activities, which provides it with competitive advantages over the other competitors. Thus, according to the relevant legislation, RNP Romsilva, a national corporation that operates under the authority of the Ministry of Environment, Water and Forestry, administrates the state’s public property forest stock,” shows a Competition Council release remitted to Agerpres.

According to the Competition Council, the legislation provides that RNP Romsilva can purchase lumber and processed wood from the forestry stock under its administration, without a tender or competitive bidding. Only after it keeps the necessary volume for consumption, Romsilva sells the remaining lumber through tender.

“The Competition Council cautions that, under these circumstances, Romsilva must separate the two activities of market administrator and operator. Moreover, in case it trades lumber, a market competitive procedure is required (tender/competitive bidding). Also, the current legislation allows the organization of open outcry tenders whilst there is only one participant in the tender, a situation in which there is no competition,” the release also notes.

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