2.4.10. Preferences (EDF only)

EDF-FUNDED PROGRAMMES

UNTIL THE ENTRY INTO FORCE OF THE REVISION OF THE ANNEX IV TO COTONOU AGREEMENT

Measures must be taken to encourage the widest participation of the natural and legal persons of ACP States in the performance of contracts financed by the EDF in order to ensure the optimisation of the physical and human resources of those States. To this end:

1.(a) for works contracts of a value of less than EUR 5 000 000, tenderers from the ACP States, provided that at least one quarter of the capital stock and management staff originates from one or more ACP States, shall be accorded a 10% price preference where tenders of an equivalent economic, technical and administrative quality are compared;

(b) for supply contracts, irrespective of the value of the supplies, tenderers from the ACP States who offer supplies of at least 50% in contract value of ACP origin, shall be accorded a 15% price preference where tenders of equivalent economic, technical and administrative quality are compared

(c) in respect of service contracts other than the European Commission's Framework contracts, and subsequent specific contractswhere tenders of equivalent economic and technical quality are compared, preference shall be given to:

(i) experts, institutions or consultancy companies or firms from ACP States with the required competence;

(ii) tenders submitted by ACP firms, either individually or in a consortium with European partners; and

(iii) tenders presented by European tenderers with ACP sub-contractors or experts;

(d) where subcontracting is envisaged, preference shall be given by the successful tenderer to natural persons, companies and firms of ACP States capable of performing the contract required on similar terms; and

(e) the ACP State may, in the invitation to tender, offer prospective tenderers assistance from other ACP States' companies or firms or national experts or consultants selected by mutual agreement. This cooperation may take the form either of a joint venture, or of a subcontract or of on-the-job training of trainees.

2.  Where two tenders are acknowledged to be equivalent on the basis of the criteria stated above, preference shall be given:

(a) to the tenderer of an ACP State; or

(b) if no such tender is forthcoming, to the tenderer who:

(i) allows for the best possible use of the physical and human resources of the ACP States;

(ii) offers the greatest subcontracting possibilities for ACP companies, firms or natural persons; or

(iii)  is a consortium of natural persons, companies and firms from ACP States and the European Union.

NB: South African bodies cannot benefit from the preference system.

WHEN THE REVISION OF THE ANNEX IV TO COTONOU WILL ENTER INTO FORCE (subject to modifications during ongoing negotiations):

Article 26

Measures must be taken to encourage the widest participation of the natural and legal persons of ACP States in the performance of contracts financed by the EDF in order to permit the optimisation of the physical and human resources of those States. To this end:

1. a)  for works contracts of a value of less than EUR 5 000 000, tenderers of the ACP States, provided that at least one quarter of the capital stock and management staff originates from one or more ACP States, shall be accorded a 10% price preference during the financial evaluation;

b) for supply contracts of a value of less than EUR 300 000, tenders submitted by ACP firms, either individually or in a consortium with European partners shall be accorded a 15% price preference during the financial evaluation;

c) in respect of service contracts other than the European Commission's Framework contracts and subsequent specific contracts, of less than EUR 300 000, when technical offers are evaluated, preference shall be given to:

i) tenders submitted by legal persons of ACP States individually or in a consortium with European partners; and

ii) tenders including in the technical offer 50% of experts from ACP states.

d) where subcontracting is envisaged, preference shall be given by the successful tenderer to natural persons, companies and firms of ACP States capable of performing the contract required on similar terms; and

e) the ACP State may, in the invitation to tender, propose to the prospective tenderers the assistance of other ACP States' companies or firms or national experts or consultants selected by mutual agreement. This cooperation may take the form either of a joint venture, or of a subcontract or of on the job training of trainees

2. where two tenders for works, supplies or service contracts are acknowledged to be equivalent preference shall be given:

(a)  to the tenderer of an ACP State; or

(b)  if no such tender is forthcoming, to the tenderer who:

i) allows for the best possible use of the physical and human resources of the ACP States;

ii) offers the greatest subcontracting possibilities for ACP companies, firms or natural persons; or

ii) is a consortium of natural persons, companies and firms from ACP States and the Community

NB: South African natural or legal persons cannot benefit from the preference system.