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Hungary: changes to public procurement law

Hungary
10/10/2014
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From 30 September 2014, important changes were made to public procurement law, including:

Loans

Public procurement obligations no longer apply to loan transactions by contracting authorities, whether related to issuing, purchasing or transferring securities or other financial instruments.

This change incorporates EU public procurement directives (2014/24/EU and 2014/25/EU) into Hungarian law, except that it does not extend the exemption from procurement obligations to financial services relating to real estate acquisitions. This will require a further amendment to legislation by the 18 April 2016 deadline for implementing the directives. In the meantime, CMS Hungary has asked the Public Procurement Authority for a ruling to clarify the situation.

Postal procurements

Public procurement legislation no longer applies to certain postal services:

  • value added services linked to and provided entirely by electronic means (including the secure transmission of coded documents by electronic means, address management services and transmission of registered electronic mail)
  • certain financial services, including postal money orders and postal giro transfers
  • philatelic services, and
  • logistics services (physical delivery and/or warehousing).

The removal of these services from the scope of the Public Procurement Act is also to bring Hungarian legislation into line with EU procurement legislation.

Central governmental communication services

The Government now has the right to order that the public procurement of communication services ensuring the performance of government communication tasks and related products be conducted within the framework of centralised procedures. Detailed rules will be introduced by Government Decree.

Chairman of the Public Procurement Arbitration Board

Candidates for the position of chairman of the Public Procurement Arbitration Board need only have at least 5 years of public procurement experience (previously it was 10 years) or to have held a state office for 3 years.

Law: amendment of Act 108 of 2011 on public procurement

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