You're reading: Poroshenko enacts bill on procurement of ESCO services via ProZorro system

Ukrainian President Petro Poroshenko has signed law No. 1980-VIII envisaging procurement of services of energy service companies (ESCO services) using the ProZorro e-procurement system, the press service of the State Agency for Energy Efficiency and Energy Saving has reported.

The authority said that the new law expands the largest term for ESCO services contracts to 15 years. It envisages a possibility of holding a joint tender at once for several facilities.

The document specifies the terms for approving the essence of the ESCO services contracts, expands the opportunities for the sides in distributing saved funds.

The law says that tenders to provide ESCO services are open. The negotiations are foreseen only if the tender was annulled twice due to a lack of bidders.

“In 2017, we will continue opening the energy service market in the Ukrainian budget sphere. Its potential is reaching some €5 billion,” Head of the Agency Serhiy Savchuk said.

He said that in 2017 it is planned to sign around 100 ESCO service contracts for budget-sustained institutions in Ukraine.

As reported, Ukraine’s Verkhovna Rada on March 23, 2017 passed at second reading bill No. 4549 registered in parliament on April 29, 2016. The document envisages purchase of ESCO services using the ProZorro e-procurement system. A total of 228 lawmakers supported the decision.

Parliament passed bill on ESCO services in 2015. Its mechanisms allow thermal modernization of buildings of municipal and state-owned buildings using funds of private investors. The investment will be return in the form of future payments thanks to saving of energy.