President Iohannis promulgates law on public-private partnerships

President Klaus Iohannis on Wednesday promulgated a law on public-private partnerships.

Parliament passed the bill in 2013, as initiated by the Ponta Cabinet, but then President Traian Basescu asked for a reexamination of the bill.

In 2014, Parliament passed the bill again, but the National Liberal Party (PNL) and the Liberal Democratic Party (PDL) challenged it with the Constitutional Court, which ruled unconstitutional some of its provisions.

CCR ruled that Article 38 (1) in the bill was unconstitutional. It said that “for exceptional reasons related to national or local interests, the public partner, after prior notification of the private partner and the project company may: a) unilaterally modify provisions in the public private partnerships when such possibility is included in the award document, in a clear, precise and unequivocal manner, without changing the overall nature of the initial contract or any other possibility for unilateral modification of the contract provided for under Government’s Emergency Ordinance 34/2006, as subsequently amended and supplemented under Law 337/2006, as subsequently amended and supplemented, which shall apply correspondingly; b) unilaterally denounces the public-private partnership, legally compliant.”

The Legislature resumed debates on the bill in 2015, with the Chamber of Deputies passing it on November 7, 2016.

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