Romania: New regulations for the provisional licence for participating to tenders regarding the concession of the natural gas distribution service

Romania

The National Regulatory Authority in the Natural Gas Sector ("ANRGN") has recently approved a new Regulation for granting the provisional licence in the natural gas sector. This follows discussion during the privatisation process of the two major natural gas distributors in Romania, S.N.D.G.N. Distrigaz Sud S.A. Bucharest and S.N.D.G.N. Distrigaz Nord S.A. Targu Mures(currently fully state owned, through the Ministry of Economy and Commerce) regarding the required concession of the natural gas distribution service.

Both Romanian and foreign parties require the provisional licence in order to participate in public tenders for the concession of the natural gas distribution service. In order to obtain the provisional licence, foreign businesses must establish a permanent unit in Romania for the duration of the concession contract.

The new regulation provides in detail the procedure to be followed and the documents to be submitted by the applicant for the purpose of obtaining the provisional licence. The licence enters into force at the issuance date and it is valid up to the moment the concession is adjudicated (in case the grantor of the concession decides to postpone the tender date, the validity of the licence is automatically extended). The provisional licence may not be transferred by its holder. The issuance of the licence is made upon the payment of a licensing tax.

For further information please contact Ana Radnev at [email protected] or on +40 21 231 64 74