EU Probes Into Romanian Solar Park Construction Tender

The European Commission has opened two in-depth investigations targeting a public tender in Romania, organized by Parc Fotovoltaic Rovinari Est SA, regarding the design, construction and operation of a 110 MW photovoltaic park. Companies controlled by China submitted bids at the auction. According to the Commission, a possible distortion of the market based on foreign subsidies granted to bidders in a public procurement procedure is being investigated.

Societatea Parc Fotovoltaic Rovinari Est SA is equally owned by OMV Petrom and Complexul Energetic Oltenia.

According to the Foreign Subsidies Regulation, companies are required to notify their public procurement tenders in the EU when the estimated value of the contract exceeds 250 million euros and when they have received foreign financial subsidies of at least 4 million euros, from at least one third country, in the three years preceding the notification.

According to the Commission, in recent years, foreign subsidies appear to have distorted the EU’s internal market, including giving their beneficiaries an unfair advantage to acquire businesses or obtain public procurement contracts in the EU to the detriment of fair competition.

The Commission will assess whether the Chinese firms in question benefited from an unfair advantage to win public procurement contracts in the EU. On the one hand, the Enevo Group, including LONGi Solar Technologie GmbH, and on the other hand, Shanghai Electric UK Co. are being investigated. Ltd. and by Shanghai Electric Hong Kong International Engineering Co. Ltd.

The tender was launched by a company PARC fotovoltaic ROVINARI EST S.A., owned in equal proportions by OMV Petrom and Complexul Energetic Oltenia, for the design, construction and operation of a photovoltaic park in Romania, with an installed power of 110 MW. This project is partially financed by the EU Modernization Fund.

Following the preliminary examination of all submissions, the Commission considered that there were sufficient indications that both bidders received foreign subsidies distorting the internal market.