Public procurement: infringement proceedings against Spain regarding the joint ventures set up by IVVSA and AUMSA

19 September 2008

The European Commission has decided to send a formal request to Spain regarding the joint ventures set up by the publicly owned companies IVVSA and AUMSA. In this instance, the Commission considers that, by setting up joint ventures, IVVSA and AUMSA have, in some cases, awarded public procurement contracts to those joint ventures in contravention of certain provisions of Directives 92/50/EEC, 93/37/EEC and 93/36/EEC (now consolidated and amended by Directive 2004/18/EC) and in violation of the principle of equal treatment referred to in those Directives and in Articles 43 and 49 of the EC Treaty. This formal request by the Commission will take the form of a ‘reasoned opinion’, the second stage of infringement proceedings under Article 226 of the EC Treaty. If there is no satisfactory response within two months, the Commission may refer the matter to the European Court of Justice.

IVSSA (Instituto Valenciano de Vivienda, S.A.) and AUMSA (Actuaciones Urbanas de Valencia, S.A) are limited companies wholly owned by the regional government of Valencia and the city of Valencia respectively. Among other things, they conduct urban planning studies and carry out infrastructure and management activities in the field of urban planning, including the renovation and promotion of social housing.

IVVSA and AUMSA have set up joint ventures with private shareholders. The purpose of those joint ventures is to perform tasks similar to those set out above (conducting studies, infrastructure projects, urban planning management, preparing restructuring (reparcelación) or compulsory purchase projects, purchasing sites or buildings and the acquisition, transfer, creation, modification and termination of rights to movable or immovable property, etc.).

The Commission considers that, by setting up certain joint ventures and giving them responsibility for carrying out various tasks in the field of urban planning, IVVSA and AUMSA have awarded public procurement contracts. The Commission is of the opinion that, when awarding those contracts, IVVSA and AUMSA did not comply with the Public Procurement Directives, particularly as regards advertising and the principle of equal treatment, which also derives from Articles 43 and 49 of the EC Treaty.

The latest information on infringement proceedings concerning all Member States can be found at:
http://ec.europa.eu/community_law/index_en.htm