Hg 346 Eng

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DECISIONS OF THE GOVERNMENT OF ROMANIA THE GOVERNMENT OF ROMANIA DECISION on the approval of the Framework-Regulation delegating the management of the public services of sanitation of towns and villages and of the FrameworkContract delegating the management of the public services of sanitation of towns and villages by concession On the basis of Art. 108 of the Constitution of Romania, republished, Art. 14 paragraph (1) letter b) of the Law No. 326/2001 on public services of communal husbandry, with the subsequent amendments and additions, and Art. 11 of Government Ordinance Nr. 87/2001 on the public services of sanitation of towns and villages, approved with amendments and additions by Law No. 139/2002, with the subsequent amendments and additions, The Government of Romania has adopted this decision. Sole article. – The Framework-Regulation delegating the management of the public services of sanitation of towns and villages and the Framework-Contract delegating the management of the public services of sanitation of towns and villages by concession, as set out in Annexes Nos. 1 and 2 which are an integral part of this decision, are hereby approved. PRIME-MINISTER ADRIAN NĂSTASE Countersigned by: Minister of State, Minister of Administration and the Interior, Ioan Rus Minister in charge of public administration, Gabriel Oprea for Public Finance Minister, Gheorghe Gherghina, Secretary of State Bucharest, March 18th, 2004, No. 346.

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Annex No.1 FRAMEWORK-REGULATION delegating the management of the public services of sanitation of towns and villages CHAPTER I Reference rules and regulations Art. 1. – This Framework-Regulation delegating the management of the public services of sanitation of towns and villages, hereinafter called FrameworkRegulation, was drawn up on the basis of the provisions of the Law No. 326/2001 on public services of communal husbandry, with the subsequent amendments and additions, of Government Decision No. 373/2002 on the organisation and functioning of the National Regulatory Authority for Public Services of Communal Husbandry – A.N.R.S.C., with the subsequent amendments, of Government Ordinance No. 87/2001 on the public services of sanitation of towns and villages, passed with amendments by Law No. 139/2002, with the subsequent amendments and additions, of Law No. 219/1998 on the regime of concessions, of Government Decision No. 216/1999 approving the Framework – Methodology of implementation of Law No. 219/1998 on the regime of concessions, with the subsequent amendments, of Government Ordinance No. 16/2002 on public – private partnership contracts, approved with amendments and additions by Law No. 470/2002, with the subsequent amendments, of Government Decision No. 621/2002 approving the Methodology of implementation of Government Ordinance No. 16/2002 on public – private partnership contracts. CHAPTER II General provisions Art. 2. – This Framework – Regulation sets a coherent juridical framework on the stages and methods to be carried out in the delegation of the management of the public services of sanitation or towns and villages. Art. 3. – (1) The provisions of this Framework - Regulation shall apply in all cases where the local authorities for public services decide to delegate the management of the public services of sanitation of towns and villages. (2) The subject of the management delegation shall be the management of the public service of sanitation of towns and villages. (3) Within 30 days of the adoption of the decision delegating the management of the public service of sanitation of towns and villages in the form of delegated management, the competent local authority for public services shall issue and approve, on the basis of the Framework – Regulation, its own regulation for the delegation of the service management, which is part and parcel of the documentation preparing the tender. (4) For the conclusion of the contracts under which the management of the public services of sanitation or towns and villages is delegated, the competent local authority for public services shall work out and approve, within 6 months of the decision to delegate the service management, a specialist study putting forward the solution for the delegation of the management of the public service of sanitation of

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towns and villages and the documentation required to prepare the tender for the said delegation. The tender procedures shall start within 2 months of the approval of the tender documents. (5) The management of the public services of sanitation or towns and villages may be delegated only to operators certified by the National Regulatory Authority for Public Services of Communal Husbandry – A.N.R.S.C. (6) The process of delegation of the management of the public services of sanitation of towns and villages shall be monitored by A.N.R.S.C. Art. 4. – The delegation of the management of the public services of sanitation or towns and villages shall comply with the legislation in force and shall be carried out under conditions of transparency, impartiality and competitiveness, being achieved on the basis of: a) concession contract; b) public – private partnership contract. CHAPTER III Delegation of the management under concession contract SECTION 1 Procedures preceding the delegation of management of the public services of sanitation of towns and villages on the basis of concession contract Art. 5. – (1) The subject matter of the contract delegating the management by concession is the public service of sanitation of towns and villages. (2) The delegation of the management of the public services of sanitation of towns and villages shall be made by open public tender, after the stages set out in Art. 3 (3) have been covered. Art. 6. – (1) In order to keep documentary evidence of all acts and data relating to the procedures of delegation of the management of the public services of sanitation of towns and villages and to the implementation of the concession contracts, the competent local authority for public services, as grantor, shall set up and keep two registers: a) the register of “Candidatures and Bids”, containing data and information about the procedures preceding the conclusion of the concession contract; it shall indicate at least the data and information relating to the preliminary study, the submission of candidatures and the bids; b) the register of “Contracts”, which shall contain data and information relating to the conclusion and implementation of the concession contract; it shall indicate at least the data and information relating to the subject matter of the concession contract, its term, the deadlines for investment completion, the royalty payment terms, the environment requirements. (2) The registers shall be set up and kept at the head office of the competent local authority for public services. Art. 7. – (1) All the public tender documents, drawn up during the public tender procedures, shall be kept together by the competent authority for local public services in a file on the delegation of the management of the public services of sanitation of towns and villages, which shall be set up for each and every concession contract.

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(2) The competent local authority for public services shall observe the confidentiality of the documents comprised in the file on the delegation of the management of the public services of sanitation of towns and villages. SECTION 2 The opening of the procedure of delegation of the management of the public services of sanitation or towns and villages Art. 8. – The competent local authority for public services, as grantor, may open the procedure for granting the concession by drawing up the preliminary study, the Specifications and publishing the announcement about the tender organisation in keeping with the provisions of Law No. 219/1998 and Government Decision No. 216/1999, with the subsequent amendments. SECTION 3 The preliminary study Art. 9. – The initiation of the delegation of the management of the public services of sanitation of towns and villages shall be based on a preliminary study, drawn up beforehand by care of the competent local authority for public services, which shall mainly contain the data set out in Art. 7 letters a) - h) of Law No. 219/1998. Art. 10. – The preliminary study shall be approved by decision of the local authority for public services. SECTION 4 The Specifications Art. 11. – (1) The Specifications shall contain the minimal terms and conditions for holding the tender for the delegation of the management of the public services of sanitation of towns and villages by concession. (2) The content of the Specifications together with the preliminary study shall be approved by decision of the local authority for public services. Art. 12. – (1) The Specifications shall be put up for sale by the local authority for public services at its head office and / or other places designated by it and specified in the published announcement. (2) The price of the Specifications shall be set by the local authority for public services. (3) The content of the Framework-Specifications shall be minimal and presented in the annex to the Framework-Contract. Art. 13. – The Specifications shall obligatorily provide for: a) the terms and conditions of exploitation of the public service of sanitation of towns and villages which forms the subject of concession and the economic, financial and environment objectives pursued by the local authority for public services in terms of an efficient exploitation of the service which constitutes the subject of concession; b) the obligations of the local authority for public services and of the concessionaire in terms of investments and ways to fund them, including the investment completion terms; c) the financial and insurance terms;

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d) the status of the assets used by the concessionaire during the concession term; e) the obligations concerning environmental and public health protection, as well as operating safety, as established under the law; f) the subject of concession: the data required for the precise identification of the public service of sanitation of towns and villages the management of which is delegated, as they come out from the technical-economic substantiation in the preliminary study, a full list of the assets related to the public service of sanitation and the relevant quantitative and technical data and values, and the area where the service granted by concession is carried out; g) the destination of the assets related to the activities carried out as part of the public service of sanitation of towns and villages; h) the obligation to provide a continuous and permanent delegated public service of sanitation of towns and villages, meeting at least the minimum performance indicators under the law; i) the interdiction to subdelegate the management of the public service of sanitation of towns and villages; j) the management delegation term; k) the minimum royalty value and the way it shall be calculated; l) specific conditions related to the nature of the assets and services the management of which is delegated, concerning such aspects as: operation in safety, the use and conservation of the public assets received with the delegation of management, environmental protection, labour safety, public health, conditions and terms imposed by the international agreements and conventions Romania is a party to, conditions of gradual adjustment to the European Union standards etc.; m) the amount of security to be deposited by the concessionaire under the law; n) clauses concerning the termination of the contract on the delegation of management; o) for the ongoing public services, clauses concerning the employees and social protection; p) procedures of transfer of the activity from the current operator; q) the inspections carried out by the grantor and the reporting requirements; r) the conditions of eligibility of the operators who take part in the public tender for the concession of the management of the public service of sanitation or towns and villages; s) the criteria of selection of the bids and their score on a scale which assesses the importance of these criteria. Art. 14. – (1) The investments shall be funded from the following sources: a) the concessionaire’s own funds and allocations from the local budget, according to the obligations laid down in the contract on the delegation of the management of the public services of sanitation of towns and villages; b) bank loans, including loans guaranteed by the local authority for public services or by the Government; c) financial grant obtained under bilateral or multilateral agreements; d) other sources under the law; e) funds allotted from the state budget as participation in co-financing projects achieved with external financial grants and / or external loans to the implementation of which the Government also contributes, and for financing programmes approved under special laws; f) savings obtained from the acquisition of performing equipment; g) other sources.

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(2) The investments made by the concessionaire for the rehabilitation, modernisation and development of the public system of sanitation shall be paid off by the concessionaire of the public service of sanitation or towns and villages, during the term of the contract delegating the management. (3) Any foreign investments in the public systems of sanitation shall enjoy all the legal facilities in force at the date of the contract conclusion. The facilities obtained shall be laid down in the contract on the delegation of the management of the public services of sanitation of towns and villages and shall be applied for the period set upon the contract conclusion. Where the investor is granted subsequent facilities, the contract on the delegation of management shall be adequately amended, by an additional act, signed by both Parties, and authorised by A.N.R.S.C. (4) Any investments made from the investors’ own funds shall remain in their property for the entire term of the contract on the delegation of the management of the public services of sanitation of towns and villages, unless otherwise agreed upon when the contract was signed; the contract shall provide for the way such assets shall be shared upon the termination of the contract for any reason whatsoever. SECTION 5 The advertising announcement Art. 15. – (1) After the Specifications have been approved, the competent local authority for public services shall publish the announcement on the holding of the tender. (2) If an open public tender is held, the announcement shall be published in The Official Gazette of Romania, Part VI, in a daily newspaper of nationwide circulation and in a local daily newspaper, and it shall obligatorily contain the following data: a) the name and the address of the head office of the authority for public services which organizes the tender; b) the description of the assets, activity or public service which constitutes the subject of the delegated management of the public services of sanitation of towns and villages and the delegation term; c) the place where the Specifications can be purchased against payment and where candidates can obtain the instructions concerning the organisation and unfolding of the procedure of delegation of the management of the public service of sanitation; d) the objectives pursued by the authority for public services; e) the documents to be produced by bidders which should prove their technical and managerial experience in the management of similar systems, their creditworthiness and financial capacity to meet the specific requirements laid down in the Specifications, including the criminal record of the person who shall act as manager of the operator; f) the date and place for the submission of the bids; g) the period of time during which the bidders shall be bound by the terms of their bids; h) the date, time and place for the opening of the bids. (3) The announcement on the organisation of the tender shall be posted up also at the head office of the competent local authority for public services and at the place where the public service of sanitation offered for concession takes place.

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SECTION 6 Instructions concerning the organisation and unfolding of the procedure of delegation of the management of the public services of sanitation of towns and villages on the basis of concession contract Art. 16. – The instructions concerning the organisation and unfolding of the procedure of concession of the management of the public services of sanitation of towns and villages and the selection criteria shall be issued and approved by the competent local authority for public services and shall be made available for those interested, when the Specifications are put up for sale, at its head office and / or any other place set out in the advertising announcement. I. The evaluation board Art. 17. – (1) The evaluation board members shall be appointed by decision of the competent local authority for public services. (2) The grantor’s representatives shall be specialists in the provision of the public service of sanitation or towns and villages. (3) The evaluation board shall have an odd number of members, not fewer than 5. (4) The evaluation board shall have the following membership: a) representatives of the grantor, of whom at least one with a degree in law; b) representatives of the Bucharest Municipality or County General Directorate of Public Finance, as appropriate; c) a representative of the competent environment authority. (5) The chairperson of the evaluation board shall be appointed by the grantor from among its representatives on the evaluation board. (6) The secretary of the evaluation board shall be appointed by the chairperson from among the evaluation board members. (7) The chairperson may invite to the evaluation board meetings personalities acknowledged for their expertise and competence in the sanitation of towns and villages as consultants. (8) The representatives of the central or local authorities for public services or the guests who are spouses, relatives or up to 4th degree consanguines included of the natural persons who take part in the public tender, the partners, the controlling shareholders in the business organisations which participate in the public tender and of their managers or auditors or who are in a situation of conflict of interests may not sit on the evaluation board. (9) The evaluation board members and the guests shall issue a declaration of compatibility, impartiality and confidentiality on their own responsibility, after the deadline for bid / candidature submission, which shall be kept in the concession file. (10) In case of incompatibility, the chairperson of the evaluation board shall forthwith notify the grantor of the state of incompatibility and propose that the incompatible person be replaced. (11) The evaluation board shall have the following powers: a) to analyse and evaluate the candidatures; b) to select the bids, on the basis of the data, information and documents contained in the outer envelope; c) to analyse and evaluate the bids; d) to draw up the evaluation report which shall describe the concession procedure and the evaluation operations, setting forth the essential elements of the

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bids submitted and the reasons for the selection of the winning bidder or, where no bidder has been designated as winner, the reasons of rejection; e) to draw up the minutes and reports under the law; f) to designate the winner of the public tender. (12) The evaluation board makes valid decisions only with all its members attending. (13) The evaluation board shall make decisions independently and only on the basis of the selection criteria laid down in the instructions concerning the organisation and carrying out of the concession procedures. (14) The evaluation board shall adopt decisions with the majority vote of its members. (15) The evaluation board members shall keep all the data, information and documents comprised in the candidatures or bids analysed confidential. II. Submission of the bids Art. 18. – (1) The bids shall be drawn up in the Romanian language. (2) The bids shall be submitted at the place indicated in the advertising announcement, in two closed and sealed envelopes, put one inside the other, which shall comply with the conditions laid down in paragraph (3) and within the term stated in paragraph (4). (3) The bids shall comply with the following conditions: a) the outer envelope shall contain the documents which prove the purchase of the Specifications and the documents listed in Art. 21 point 1; b) each participant may submit only one bid; c) the bids shall be recorded, in the order of submission, in a special register of “Candidatures and Bids”, with the specification of the date and time of submission; d) the bids received and recorded after the deadline for submission laid down in the advertising announcement shall not participate in the tender and shall be returned to the bidders without having been opened; e) the bid shall be submitted in the number of copies specified by the competent local authority for public services and in the advertising announcement. Each copy shall be signed by the bidder. (4) The term for the submission of the bids ranges between a minimum 20 calendar days and a maximum 60 calendar days from the date of publication of the tender announcement. Art. 19. – The bid shall deal in detail with all the conditions laid down in the Specifications and other obligations the bidder pledges to fulfil in the event of being awarded the tender, as well as technical and financial data concerning: a) the investments it undertakes to make, subject to Art. 13 letter b) and Art. 14 (1); b) the term estimated for the investment pay-off; c) the quality standards of the assets contributed as investments; d) the quality standards and performance indicators of the public service of sanitation of towns and villages to be provided; e) the prices and / or rates to be charged, subject to the terms and conditions in Government Ordinance No. 87/2001, approved and amended by Law No. 139/2002, with the subsequent amendments; f) the royalty it undertakes to pay the competent local authority for public services. Art. 20. – (1) The participants in the tender shall deposit a tender bond. (2) The amount of the tender bond shall be fixed by the grantor in the instructions concerning the organisation and carrying out of the concession procedure.

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(3) The bidder shall forfeit the tender bond if it withdraws its bid before the tender winner has been designated. (4) The tender bond of the winning bidder shall be retained by the grantor until the signing of the concession contract. (5) The grantor shall return the tender bonds to the other bidders within 7 days of the designation of the winning bidder. Art. 21. – The bids containing the sealed inner and outer envelopes shall comply with the following requirements: 1. The public tender for which the bid is submitted shall be indicated on the outer envelope. Besides the document proving the purchase of the Specifications, , the outer envelope shall also contain: a) a card with information about the bidder and a declaration of participation signed by the bidder, without any words in bold characters, erased or corrected; b) documents proving compliance with the eligibility conditions and the tender bond; c) the certification from A.N.R.S.C. 2. The bidder’s name and head office shall be indicated on the inner envelope. This envelope shall contain the bid proper. 3. The sealed envelopes shall be handed over to the evaluation board on the day set for their opening. III. The holding of the open public tender Art. 22. – (1) For the open public tender to take place it is obligatory that there should be at least 2 bidders. (2) After the outer envelopes are opened in public meeting, the evaluation board shall reject the bids which fail to contain all the documents and data laid down in Art. 21 and Art. 18 (3) and in the instructions for the organisation and carrying out of the procedure of delegation of the management of the public services of sanitation or towns and villages. (3) For the tender procedure to proceed, it is necessary that after the outer envelopes have been opened at least two bids should comply with the conditions laid down in Art. 21. (4) Unless at least 2 bids are submitted by the deadline for the submission of bids, the competent local authority for public services shall republish the advertising announcement and the public tender procedure shall be resumed from the stage of bid submission. Art. 23. – After the content of the outer envelope has been examined, the secretary of the evaluation board shall draw up a report with the results of the analysis. Art. 24. – The inner envelopes shall be opened only after the report has been signed by all the members of the evaluation board and by the bidders. Art. 25. – After the bids have been analysed, the evaluation board may ask the bidders, in writing, for further clarifications on the content of their bid. Art. 26. – (1) The weight carried by the bid selection criteria shall be decided by the competent local authority for public services, according to the characteristic features of the public service of sanitation which constitutes the subject matter of the contract of delegation of management by concession. (2) The bid selection criteria, as laid down in the Annex to this FrameworkRegulation, have a minimal character and shall be established by the competent local authority for public services in the instructions on the organisation and carrying out of the procedure of delegation of the management of the public services of sanitation of towns and villages by concession.

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(3) The bid selection criteria shall refer to the amount and quality of the services provided to users. (4) The bid selection criteria shall compare economic efficiency, the proposed investment amount, the services price, their cost-in-use, their technical value, the methods proposed for dealing with the requirements related to environmental protection and social problems, the professional and financial guarantees proposed by each bidder and the investment completion terms. Art. 27. – (1) The evaluation board shall select the bid it considers to meet best the selection criteria. (2) If the bidders placed first have received an equal number of points, the score of the criterion carrying the greatest weight shall differentiate them. Art. 28. – (1) After the evaluation of the bids, the evaluation board shall draw up a report which shall contain a description of the concession procedure and the evaluation operations, the essential elements of the bids submitted and the reasons for designating the winning bidder or, where no winning bidder has been designated, the reasons of rejection, as well as a bid evaluation account. (2) The bid evaluation account shall be drawn up by the secretary of the evaluation board and shall be signed by all its members. Art. 29. - (1) The evaluation board shall forward the report and the bids submitted to the competent local authority for public services. (2) The report shall be deposited in the management delegation file. (3) Within 5 calendar days of the receipt of the evaluation board’s report, the competent local authority for public services shall notify the winning bidder of its selection and the other bidders of the rejection of their bids. Art. 30. – If the open public tender has failed to designate a winner, this situation shall be recorded in a report and a new tender shall be held within 30 days. Art. 31. – Within 10 calendar days of the receipt of the bid rejection notification, at the request in writing from the rejected bidders, the competent local authority for public services shall send them a copy of the bid evaluation report. Art. 32. – (1) Within 5 calendar days of the receipt of the bid evaluation report, the bidders may file a complaint against the way the legal provisions which regulate concession by open public tender have been complied with, at the head office of the competent local authority for public services or at the place for bid submission, according to the advertising announcement. (2) Within 10 calendar days of the receipt of the complaint, the competent local authority for public services shall deal with the complaint and forward its decision to the bidder who filed the complaint. Art. 33. – (1) The competent local authority for public services shall appoint a 3-member commission to deal with the complaints. (2) The members of the commission dealing with the complaints shall be appointed by the competent local authority for public services, by resolution, order or decision, as appropriate. Art. 34. – (1) The commission dealing with the complaints shall analyse all the documents drawn up by the evaluation board and check compliance with the legal provisions which regulate the delegation of management by concession. (2) When checking the documents, the commission dealing with the complaints shall pay attention to the aspects contested as regards compliance with the legislation regarding: a) the make-up of the evaluation board; b) the incompatibility of the evaluation board members; c) the conditions for making valid decisions by the evaluation board;

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d) the evaluation of the bids on the basis of the selection criteria laid down in the instructions on the organisation and carrying out of the concession procedure; e) the decision-making procedure by the evaluation board; f) the way the evaluation board’s report has been drawn up. Art. 35. – (1) If the complaint is well-founded, the competent local authority for public services shall revoke the award decision and shall notify it to all the bidders. (2) In the situation presented in paragraph (1), the competent local authority for public services shall decide to cancel the tender and to hold a new tender. Art. 36. – In case of an unfavourable decision with regard to the complaint filed by the rejected bidder, he can refer his case to the competent court of common law having jurisdiction over the area where the competent local authority for public services has its head office. CHAPTER IV The contract on the delegation of management by concession Art. 37. – The contract on the delegation of the management of the public services of sanitation of towns and villages shall be concluded by the competent local authority for public services and the concessionaire to whom the management is delegated, subject to the terms and conditions laid down in the Framework-Contract on the delegation of the management of the public services of sanitation or towns and villages, presented in Annex No. 2. CHAPTER V Provisions on the right to control Art. 38. – (1) The right to control the delegation of the management of the public services of sanitation of towns and villages shall be exercised by the institutions empowered by the law and by A.N.R.S.C. (2) The control of the delegation of the management of the public services of sanitation of towns and villages shall in particular establish whether the following have been complied with: a) the decision to delegate the management; b) publicity; c) the content of the documentation, in particular of the Specifications; d) the make-up and working method of the bid evaluation board; e) the terms laid down in this Framework-Regulation; f) the notification of the factors concerned of the award or termination of the concession. Art. 39. – The responsibilities to monitor and control compliance with the obligations laid down in the contracts on the delegation of the management of the public services of sanitation of towns and villages shall be fulfilled by A.N.R.S.C. by continuous comparison of each performance indicator with the level attained by the most performing operator in the domain, as well as by the competent local authority for public services.

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CHAPTER VI Sanctions Art. 40. – (1) The award of a contract delegating the management of the public services of sanitation of towns and villages without holding a public tender or to an unlicensed operator shall be deemed to infringe the law and shall be punishable with fining from ROL 50,000,000 to 100,000,000. (2) The provision of public services of sanitation or towns and villages without an operating license or contract delegating the management shall be deemed to infringe the law and shall be punishable with fining from ROL 50,000,000 to 100,000,000. CHAPTER VII Delegating the management of the public services of sanitation of towns and villages under a public-private partnership contract Art. 41. – The delegation of the management of the public services of sanitation of towns and villages under a public-private partnership contract shall comply with the terms and conditions laid down in Government Ordinance No. 16/2002, approved and amended by Law No. 470/2002, with the subsequent amendments and additions, and in Government Decision No. 621/2002. CHAPTER VIII Final provisions Art. 42. – The tender procedures in progress on the date of this FrameworkRegulation coming into force shall continue to be valid and shall be carried through, subject to the legal provisions in force at the time they started, insofar as the clauses of the contract which is going to be concluded are not contrary to the legal provisions in force. Art. 43. – The contracts granting the concession of public services of sanitation of towns and villages, validly concluded, produce effects in keeping with the contract clauses, subject to the legal provisions in force. Art. 44. – All the performance indicators laid down in the FrameworkRegulation on the organisation and functioning of the public services of sanitation of towns and villages shall be achieved on the basis of the plans of compliance drawn up by the bidder and which are part of the bid. The plans of compliance shall be part and parcel of the contract delegating the management of the public services of sanitation of towns and villages.

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ANNEX to the Framework-Regulation SELECTION CRITERIA The evaluation board shall evaluate the bids submitted, on the basis of the selection criteria presented below and in keeping with the maximum number of points for each criterion. The selection criteria presented below are minimal. Economic and financial aspects of the bid (60 points): Criterion

• • •

•

•

The bidder’s organisational structure and, if appropriate, its share capital The bidder’s economic and financial situation, including its creditworthiness The bidder’s experience and, if appropriate, the experience of its shareholders – the group members – in organising financing with a view to expanding and exploiting the public service of sanitation or similar services The level of the rates proposed for the public service of sanitation at the start of its exploitation and a rate setting system, taking account of the maximum and minimum rates considered adequate for the delegation of management and of the conditions for introducing them The financing plan for expanding and exploiting the objective which constitutes the subject of the delegation of management of the public service of sanitation, taking account of the following aspects, but without being limited to them: 1. the investments from the bidder’s own funds, which can be used immediately after the delegation contract has been signed 2. obtaining external financing – credits, loans 3. the bidder’s capacity to secure financing without pay-back guarantees from the local authority for public services 4. payments made to the local authority for public services and formulas proposed for sharing the profit generated by the delegation of management 5. financial insurance – for example: letter of credit, performance bond

Number of points

5 10 10

10

5 5 5 5 5

Technical aspects of the bid (60 points): Criterion

• • •

Number of points

The bidder’s organisational and technical preparations, the 20 technical procedures and solutions for boosting efficiency proposed by it The programme of investments proposed in the bid and their 10 contribution within the system, after commissioning The programme and system of monitoring, organisation and control 10 of the public service of sanitation delegated for management

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• •

The evolution of the quality indicators of the public service of 10 sanitation during the management delegation term The programme of rehabilitation of the public service of sanitation 10 and for rate cutting

General terms of the bid (30 points): Criterion

•

• •

Number of points

The conditions, cost level and procedures for environmental 10 protection as well as those for keeping, maintaining, modernising and returning the public assets used during the management delegation contract term The programme on the human resources taken over at the date of 10 management delegation, including the programme of staff training and retraining and the layoff terms, if appropriate The employment of Romanian contractors and the use of materials 10 and products manufactured locally, proposed by the bidder

Legal aspects of the bid (30 points): Criterion

•

The conditions of management delegation accepted by the bidder and laid down in the Specifications • Risk and liability sharing between the local authority for public services and the bidder • The form of control and monitoring demanded by the local authority for public services and the evolution of the performance indicators to be achieved during the management delegation contract term • The insurance system and the guarantees proposed for delegating the management of the public service of sanitation • The management delegation term The maximum number of points

Number of points

10 5 5 5 5 180

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ANNEX No. 2 FRAMEWORK CONTRACT delegating the management of the public services of sanitation of towns and villages by concession CHAPTER I The Contracting Parties Between the County Council / Local Council / the local public institution ……… …….., having its head office in …………….., No. ……, ………….. Street, bl…….., sc. ……., et……., ap. ….., county/sector …………… , represented by ……………… ……, holding the position of ………………. , as grantor, on the one hand, and the business organisation / Regie autonome (the economic operator’s incorporation act) ………………………………, single registration code ……………… …., having its head office in ………………, No. …….., …………….. Street, bl. ……, sc. ….., et. ….., ap. ……, county/sector …….., represented by ………….. , holding the position of ……………….. , as concessionaire, on the date of …………….. , at the grantor’s head office (other place, address, etc.) ……………………….. , on the basis of Law No. 219/1998 on the regime of concessions and of Decision (issued by the Government, County, Town or Village Council) approving the concession No. ……………. of ………………, this concession contract has been concluded. CHAPTER II The Subject of the Concession Contract Art. 1. – The subject of the concession contract shall be the exploitation of the public service of sanitation according to the objectives pursued by the beneficiary. Art. 2. – The public services of sanitation shall include the following activities: a) the pre-collection, collection, transport and dumping of solid waste, with the exception of the toxic, hazardous and the waste with special regime; b) the setting up and management of ecological waste dumps and compost production; c) the sweeping and washing of public roads, the maintenance of green areas and parks; d) the snow clearing and transport from public roads and road maintenance under conditions of sleet, freezing or snowfalls; e) the pre-selection and organisation of waste recycling; f) pest control, disinfection and deratization. Art. 3. – The grantor shall pursue the following objectives: a) the improvement of the population’s living conditions by the promotion of the quality and efficiency of these services; b) the promotion of the quality and efficiency of these services; c) the sustainable development of these services; d) environmental protection. Art. 4. – The following categories of assets shall be used by the concessionaire in exploiting the concession:

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a) return assets………………………………; b) take-over assets ………………………….; c) own assets ………………………………...; CHAPTER III General Provisions Art. 5. – The concession contract has the following obligatory annexes: a) the Specifications; b) the inventory of the assets held in public and private property, relating to the public service of sanitation; c) the certificate of hand-over – take-over of the delegated public service of sanitation. Art. 6. – (1) The local authorities for public services shall retain the powers of adoption of the policies and strategies of development of the public services of sanitation and the right to monitor, control and supervise the fulfilment of the obligations relating to the provision of the public services of sanitation: a) the observance and fulfilment of the contract obligations assumed by sanitation operators; b) the quality of the services carried out / provided; c) the parameters of the services carried out / provided; d) the administration, exploitation, conservation and keeping in operation, development and/or modernisation of the urban infrastructure connected with the public services of sanitation, given over under the concession contract; e) compliance with the rates applicable for the public services of sanitation; ………………………………………………………………………………………………….. (2) The National Regulatory Authority for Public Services of Communal Husbandry (A.N.R.S.C.) shall be responsible for monitoring the fulfilment of the obligations laid down in the contracts delegating the management of the public services of sanitation of towns and villages, in particular with regard to: compliance with the performance criteria, a regular rate adjustment on the basis of the adjustment formulas, compliance with the Competition Law No. 21/1996, with the subsequent amendments and additions, insurance of the user protection and an efficient exploitation of the public and/or private assets allocated to the services. (3) Upon the conclusion of the contracts on the provision of services, the standards, regulations, prices and rates in force at the date of contracts conclusion shall be stated. CHAPTER IV The Contract Term Art. 7. – The concession contract term shall be ………. years, as of ……….. . Art. 8. - The concession contract term may be extended with a period equal to half its initial term at the most, by the agreement of the Parties, which will conclude an additional act at least ………. years/months before its termination. CHAPTER V

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The Royalty Art. 9. – The royalty amounts to ROL………………… and shall be paid annually/monthly, in keeping with the Specifications. Art. 10. – The annual/monthly royalty shall be indexed every year/month by the average inflation or deflation rate index, as set out in the Price Statistical Bulletin. Art. 11. – The concessionaire shall, within 90 days of the contract signature date, deposit as security a fixed sum of money representing a share of the payment owed to the grantor, as established by the latter and due for the first year of activity; the security shall be deposited by the concessionaire with a commercial bank having its head office or branches in …………………. , in an interest bearing account from which the grantor will be able to draw any penalties and sums due by the concessionaire under the contract. Art. 12. – The amount of the security shall be ROL ……………. . CHAPTER VI The Royalty Payment Art. 13. – The amount set out in Art. 10 shall be paid by check, payment order, to account No. ………………………………. , opened with ……………………………. . Art. 14. – The amount set out in Art. 10 shall be paid by the date of …………… ….. of the current year/month, for the previous year/month. CHAPTER VII The Rights of the Parties The concessionaire’s rights Art. 15. – The operator has the following rights: 1. to exploit directly, at its own risk and responsibility, the assets, activities and public services of sanitation which constitute the subject matter of the concession contract; 2. to collect the rate for the public service of sanitation provided; 3. to suspend provision of the public service of sanitation if the local authority for public services defaults on its contract obligations, under the legislation in force; 4. to initiate amendments and/or additions to this contract following changes in the regulations and/or the technical-economic conditions which underlay its conclusion; 5. to charge the rate approved or adjusted according to the influences exerted on the values of the cost price components. The grantor’s rights Art. 16. – The grantor has the following rights: 1. to inspect the asset granted by concession, to check the progress of investment works and the way in which the public interest has been satisfied by the provision of the public service of sanitation, checking whether the obligations assumed under the concession contract have been fulfilled;

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2. to unilaterally modify the regulated part of the concession contract for exceptional reasons related to the national or local interest; 3. to decide the programmes of rehabilitation, extension and modernisation of the existing facilities; 4. to coordinate the design and implementation of the investment works so that they should be implemented in a coherent manner, correlated with the economic and social development programmes of towns and villages and with town and country planning; 5. to approve the feasibility studies concerning the rehabilitation, extension and modernisation of the public facilities related to the public services of sanitation; 6. to carry out investments of mutual interest in the town and country infrastructure related to the public services of sanitation and/or by partnership between the local Councils; 7. to finance works required by the public services of sanitation; 8. to contract and guarantee, under the law, loans for financing programmes of investment in the infrastructure related to the public services of sanitation; 9. to express the intention to acquire the take-over assets and to ask the concessionaire that a contract of purchase and sale of these assets be concluded. Within ……………….. the grantor shall exercise its right of option under pain of losing this right. CHAPTER VIII The Obligations of the Parties The concessionaire’s obligations Art. 17. – The concessionaire has the following obligations: 1. to obtain from the competent authorities: a) the functioning authorisation, under the law; b) the operating authorisation issued by the local authority for public services; c) the authorisation issued by the local authority for environmental protection; 2. to meet the commitments assumed under the concession contract; 3. to comply with the provisions of the Framework-Regulation for the organisation and functioning of the public services of sanitation or towns and villages; 4. to provide services to all the users in the area for which it has been authorised to operate in keeping with the provisions of the regulations of the public service of sanitation; 5. to observe the performance indicators laid down in the concession contract; 6. to supply the local authorities for public services and A.N.R.S.C. with the information requested and to ensure access to all the data required for checking and assessing the functioning and development of the public services of sanitation in keeping with the clauses of the delegation contract and the legislation in force; 7. to put in place performing management methods which should result in lower operating costs, including by the application of the competitive procedures laid down in the legislation in force; 8. to take over from the local authorities for public services, on the basis of a delivery-takeover certificate, the assets and the employees required for the provisions of the services under contract; 9. to provide the public service of sanitation in keeping with the provisions laid down in the Specifications, under conditions of quality and efficiency;

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10. to substantiate and submit for approval the rates to be charged in the sanitation activities; 11. not to sub-concession the assets which constitute the subject matter of the concession; 12. to pay the royalty in the amount established and at the term set in the concession contract; 13. to adopt all the necessary measures with regard to the return assets, so that at the end of the concession contract term the grantor’s capacity to provide the public service of sanitation be at least equal to that at the date on which the contract comes into force; 14. to substantiate the annual funding requirements for investments from its own sources and from the rate difference for social protection; 15. to submit proposals to the grantor for putting out of operation the fixed means belonging to the assets granted in the form of concession on the basis of the law in force; 16. to notify the grantor of any asset changes which have occurred during the year and of the situation of the public assets (quantity and value) on December 31 of each year in order to be recorded in the grantor’s books; 17. to give back the return assets, in full property, for no consideration and free of any encumbrance, upon the termination of the concession contract; 18. the operator shall, upon the termination of the concession contract for reasons other than the term, force majeure and the Parties’ agreement, ensure the continuity of operation under the conditions laid down in the concession contract, until the operation is taken over by the grantor, but not for more than 90 days; 19. to give notice of the causes which may bring about a reduction of the operation and the measures to be taken to ensure the continuity of the operation; 20. to adopt the necessary measures to ensure proper hygiene, safety at the workplace and the observance of labour safety regulations; 21. to hand-over, upon the termination of the concession contract, all the technical-economic documentation related to the service provided; 22. to carry out the following investments: a) the assets brought over as investments (their identification data, technical data): ………………………………………………………………………………………… ………………………………………………………………………………………………… ………; b) the terms for investment completion ………………………………………….. ; c) the investments which are not paid off during the concession term …… …… ………………………………………………………………………………………………… …………………………………………………………………………………………… ; d) the permits to be obtained unless assets with a special regime are allocated ………………………………………………………………………………………………… ; e) the quality standards of the operations and public services carried out …… …………………………………………………………………………………………… ; 23. to comply with the conditions imposed by the nature of the assets, operations or public services (to keep the state secret, materials with a special regime, safety in operation, environmental protection, labour safety, conditions for the use and protection of heritage, etc.) ……………………………………………………… ……………………………………….. ; 24. to conclude with the grantor, upon the termination of the concession contract, a purchase – sale contract the subject matter of which are the take-over assets as laid down in the Specifications and established under this concession contract, and which the grantor has expressed the intention to acquire;

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25. within 90 days of the concession contract signature, the concessionaire shall deposit, as security, the amount of ROL …………. , representing a share of the amount owed to the grantor as royalty for the first year of operation; 26. upon the termination of the concession contract for reasons other than the term expiry, excluding force majeure, the concessionaire shall ensure the continuity of the operation or public service, under the conditions laid down in the contract, until the operation or public service is taken over by the grantor; 27. where the concessionaire becomes aware of the existence or likelihood of a cause which may render the operation or public service impossible, it shall forthwith notify the grantor thereof, for the adoption of measures ensuring the continuity of operation or public service; 28. the concessionaire shall continue the exploitation of the assets, the operation or the provision of the service under the new conditions set by the grantor, unilaterally, according to Art. 16 point 2, without being entitled to ask for its termination; 29. the concessionaire shall keep a number of ……………… employees; 30. the concessionaire shall undertake to pay …………………% of the insurance premium. Art. 18. – Clauses on the concessionaire’s obligations as laid down in the hereto annexed Specifications: ………………………………………………………………………………………………….. The grantor’s obligations Art. 19. – The grantor has the following obligations: 1. to draw up and approve the local rules and regulations of functioning of the service providers which carry out sanitation activities on the basis of the frameworkregulations provided for by the law; 2. to set and approve the rates for the public services of sanitation, set the subsidy to be paid from the local budget to cover the difference between the costs borne by the sanitation operator and the sums effectively cashed in from the provision of services; 3. to hand-over to the concessionaire, upon the entry into force of the concession contract, all the assets, plant, equipment and facilities used in all operations, with the existing inventory, free from any charges, on the basis of a delivery-takeover certificate; 4. to send the sides concerned information about the conclusion of this concession contract; 5. to help the operator be issued with an authorisation for works and investments in the public and private domain, in keeping with the legislation in force; 6. to assume, for the entire concession contract term, all the responsibilities and obligations lying with it as owner, except for those explicitly transferred to the operator under the concession contract; 7. to adopt all the necessary measures to replace the assets put out of use, so that the continuity of the public service of sanitation be ensured; 8. not to prevent the concessionaire from exercising its rights under this concession contract; 9. not to unilaterally modify the concession contract, with the exception of the cases provided for under the law; 10. to notify the concessionaire of the occurrence of any circumstances likely to harm the concessionaire’s rights. CHAPTER IX

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The Quantity and Quality of Services – Performance Indicators Art. 20. – (1) The performance indicators, the quantity and quality of services shall be laid down in the Specifications presented in the Annex which is an integral part of this concession contract. (2) The performance indicators shall lay down the requirements to be complied with by operators in providing public services of sanitation. (3) The performance indicators shall set out the conditions which the public services of sanitation should meet, including: a) continuity from a quantitative and qualitative point of view; b) permanent adaptation to the user requirements; c) banning any discrimination in ensuring access to the public services of sanitation; d) compliance with the specific regulations in the area of sanitation. Art. 21. – The performance indicators for the public service of sanitation shall refer to: a) the progress in fulfilling the parameters stated in the concession contract (timetable by hour and by day, periodical service); b) the operator / user general relationships; c) the staff situation: number, structure, industrial accidents, health condition; d) the employer – trade union social relations; e) the technical conditions of the infrastructure and vehicles; f) a comparative analysis of operating costs; g) the state of implementation of the investment programme; h) the income and expenditure budget implementation; i) unhindered access of the central and local authorities for public services, in keeping with their competence and duties under the law, to the information required in order to ascertain: - compliance with the contract obligations; - the quality and efficiency of the services carried out / provided as against the performance indicators laid down in the concession contract; - fulfilment of the requirements of administration, exploitation, conservation and maintenance in operation, development and/or modernisation of the public systems in the town infrastructure, given over under the contract delegating management; - the way the rates for the public services of sanitation are calculated and set; - the progress in investment implementation; - compliance with the parameters laid down in the technical instructions; j) the maintenance of equitable relations between operator and user by a prompt and objective solution of the problems, with the rights and obligations of each Party being observed. Art. 22. – The minimal, general and guaranteed performance indicators for public services of sanitation shall be laid down in Annex No. 1 to the FrameworkRegulation for the organisation and functioning of the public services of sanitation or towns and villages.

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CHAPTER X Rates Charged and Adjustment Formulas Bill Collection Art. 23. ……………………………………………………………………………….. CHAPTER XI Termination of Contract Art. 24. – (1) This concession contract shall terminate in the following situations: a) upon the expiry of the term laid down in the concession contract, unless the Parties agree in writing on its extension under the law; b) where the national or local interest so requires, by unilateral notice of termination by the grantor, with the payment of a just compensation beforehand by the grantor; c) in case of default on contract fulfilment by the concessionaire, by cancellation, with the payment of a compensation by the concessionaire; d) in case of default on contract fulfilment by the grantor, by cancellation, with the payment of a compensation by the grantor; e) in case of loss, for reason for force majeure, of the assets given as concession, or in case of objective impossibility on the part of the concessionaire to exploit it, by renunciation, without the payment of any compensation; f) where the local interest so requires, by redemption of the concession, which can only be done by administrative act, upon the grantor’s proposal; in this case, a technical-economic documentation setting the redemption price shall be drawn up. No damages shall be paid in such a case of termination of the concession; g) other clauses on the termination of the concession contract, without prejudice to the clauses and conditions regulated by law. (2) Upon the termination, for any reason, of the concession contract, the assets which were used by the concessionaire in the process of running its concession shall be distributed as follows: a) return assets ……………………………….. ; b) takeover assets ……………………………. ; c) own assets …………………………………. ; CHAPTER XII Special Clauses on the Maintenance of the Contractual Balance Generated by the Tender Results and Corruption Prevention Art. 25. - ………………………………………………………………………………

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CHAPTER XIII Contract Clauses on Sharing Environment Liabilities between the Grantor and the Concessionaire Art. 26. ……………………………………………………………………………… CHAPTER XIV Keeping the Staff, Retraining Policies and Staff Protection during the Concession Contract Term Art. 27. - …………………………………………………………………………….. CHAPTER XV Force Majeure Art. 28. – Neither Contracting Party shall be held responsible for failure to fulfil on schedule and/or failure to fulfil properly, totally or partially, any obligation lying with it under this concession contract, if the default was caused by force majeure. The Party which claims force majeure shall notify the other Party within …… ….. of the occurrence of the event and shall take every possible action to limit its consequences. If within ……….. of the occurrence, the event does not come to an end, the Parties have the right to notify each other of the termination de jure of this concession contract without any of them being entitled to claim damages. CHAPTER XVI The Termination of the Concession Contract Art. 29. - …………………………………………………………………………. CHAPTER XVII Contractual Liability Art. 30. - ……………………………………………………………………………… Proven failure by the Contracting Parties to fulfil the obligations laid down in this concession contract carries the contractual liability of the defaulting Party. The defaulting Party shall pay the penalties laid down in the Specifications, and if such penalties do not cover the damage, it shall pay extra damages for the part left uncovered. The Contracting Parties shall explicitly set the penalties for default on each of the obligations laid down in this contract.

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CHAPTER XVIII Disputes Art. 31. – (1) Disputes of any kind arising from the implementation of the concession contract shall be dealt with by a court of common law. (2) For the solution of any possible disputes, the Parties may include arbitration clauses in the concession contract. CHAPTER XIX Other Clauses (for example: conventional termination clauses, criminal clauses) Art. 32. ………………………………………………………………. CHAPTER XX Reference Regulations Art. 33. – This framework concession contract has been drawn up on the basis of the following reference documents: a) Law No. 326/2001 on public services of communal husbandry, with the subsequent amendments and additions; b) Government Decision No. 373/2002 on the organisation and functioning of the National Regulatory Authority for Public Services of Sanitation of Towns and Villages – A.N.R.S.C., with the subsequent amendments and additions; c) Government Ordinance No. 87/2001 on public services of sanitation of towns and villages, approved and amended by Law No. 139/2002, with the subsequent amendments and additions; d) Law No. 219/1998 on the regime of concessions; e) Government Decision No. 216/1999 approving the framework methodology for the application of Law No. 219/1998 on the regime of concessions, with the subsequent amendments; f) Government Decision No. 162/2002 on waste disposal; g) Government Decision No. 128/2002 on waste burning; h) Government Decision No. 856/2002 on keeping waste management records and approving the list of waste, including hazardous waste; i) Government Decision No. 349/2002 on packaging and packaging waste management. Art. 34. – Any amendment to this concession contract shall be made only by additional act concluded between the Contracting Parties. The grantor may unilaterally amend the regulatory part of this concession contract, sending notice thereof beforehand to the concessionaire, for exceptional reasons related to the national or local interest, as appropriate. This concession contract together with the Annexes, which are part and parcel of it, represents the will of the Parties. This concession contract shall come into force on the day of its signature and has been drawn up in …………… copies.

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Grantor, ………………..

Concessionaire, ……………………

NOTE: Art. 23, 25, 26, 27, 29, 30 and 32 will be added if so required by the Parties’ interests and the concrete situation, under the law.

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ANNEX to the Framework-Contract FRAMEWORK-SPECIFICATIONS for the delegation of the management of the public services of sanitation of towns and villages CHAPTER I General provisions Art. 1. – (1) These Specifications were drawn up on the basis of the legislation in force and spell out the minimum conditions for holding the tender for delegating the management by concession of the public service of sanitation of a town or village. (2) It is the responsibility of the competent local Council to issue the Specifications, to decide on the method of management and to work out the preliminary study with a view to establishing the solution of delegation of the management of the public services of sanitation, and also the documents required to prepare the tender. (3) The Specifications and the preliminary study shall be approved by decision of the local Council. Art. 2. – The Specifications constitute an annex to the Framework-Contract delegating the management of the public services of sanitation of towns and villages. CHAPTER II The subject-matter of the concession A. Data of identification of the public service of sanitation Art. 3. – (1) The public service / services of sanitation which constitute(s) the subject-matter of the concession is / are: - ……………………………………………………………… - ……………………………………………………………… - ……………………………………………………………… (2) The grantor of the public service of sanitation is the local / county Council of the village / town/ county ………………………….. , its head office being situated in ………………. , No. …….. …………….. Street, county/sector ……….. . B. The activities of the public services of sanitation of towns and villages SECTION 1 The pre-collection, collection, transport and dumping of solid waste, except for the toxic, hazardous and the waste with a special regime 1. Description of activities Art. 4. – This activity implies the following cycle of operations:

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a) pre-collection; b) selective collection of municipal waste, including packaging waste and the biodegradable fraction; c) transport of municipal waste; d) inspection / analysis of waste upon entry to the dump; e) sorting of waste at the dump; f) waste dumping; g) waste compaction; h) environment monitoring at the dump; i) weighing the lorry for waste collection at the entry to and exit from the dump; j) disinfection of the lorry for waste collection. 2. Technical conditions 2.1. Pre-collection of municipal waste Art. 5. – The pre-collection of municipal waste shall be carried out by the waste producers, at the pre-collection points which shall be provided with standard bins having a capacity correlated with the number of users and the waste removal periodicity. The pre-collection points shall be organised in such a way as to comply with the sanitary and environmental protection standards, without causing any discomfort to the neighbours, under the legislation in force. 2.2. Collection of municipal waste Art. 6. – (1) The collection of municipal waste shall be made only from standard bins, by unloading the waste into the lorries for waste collection. (2) The bins used by the users shall be standard containers and shall be supplied by the operator under a commodate contract to natural persons and associations of tenants / owners and by renting or sale to economic operators. (3) Municipal waste collection shall be made by lorries, and these shall be loaded in such a way that the waste should not be visible and likely to be scattered on the public road. The bins shall not be overturned in yards, on the street or on pavement, with a view to reloading the municipal waste into the lorries. 2.3. The transport of municipal waste Art. 7. – (1) The municipal waste shall be transported with lorries, which shall be loaded at full capacity. (2) The lorries for waste collection shall be in a technical and maintenance state adequate to circulation on public roads, without any fuel, lubricant or special liquid leakage, shall be compatible with the type of pre-collection bins, the charging baskets shall be leak-free and personalised with an inscription visible on at least two sides and not smaller than 1 sq.m. (3) The lorries for waste collection shall be fitted up with hangers for shovels or other tools used to clean up the work area. (4) The travel from the work area to the dump shall follow the shortest route admissible, without any intermediate stationing. (5) Each lorry for waste collection shall have a manufacture licence issued by the Ministry of Transport, Construction and Tourism.

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2.4. Municipal waste dumping Art. 8. – (1) Municipal waste, after collection, shall be dumped only at the dumps …………………………………….. set up for this purpose alone and which function under the legislation in force. (2) Only municipal waste brought over by authorised means of conveyance shall be accepted at the dump. (3) The dump operator shall issue the person who delivers the waste with a standard confirmation act, according to the Technical Regulations on waste dumping – the building, exploitation, monitoring and closure of waste dumps, approved by Order No. 1147/2002 of the Minister of Waters and Environmental Protection. 3. Quantity of works Art. 9. – (1) The municipal city/town/village of …………………… has ………… inhabitants registered every year on an average, including the floating population, of whom ……. % live in individual houses and ……….. % in associations of tenants/apartment owners. (2) The estimated quantity of municipal waste which shall be taken into account when calculating the bid is the following: - municipal waste: 0.5 – 0.8 kg/inhabitant/day, the equivalent of …………. tons/day, ……………. tons/month, …………… tons/year, of which: …………. tons/month from individual houses and ………………. tons/month from associations of tenants / apartment owners; - waste deemed equivalent to household garbage, coming from economic operators: ………… tons/month, of which ……. tons/month from economic operators in the food sector and …………. tons/month from economic operators in sectors other than the food sector. (3) The specific average weight of waste stands at …….. kg/cu.m. (4) The waste collected falls under the following categories: - garbage from households; - waste deemed equivalent to household garbage, produced by economic operators. (5) These amounts of waste shall be collected from both the users who have a contract on the provision of the sanitation service concluded with a licensed operator and from the persons who are exempt from the payment of this service under the legislation in force. 4. The service provision schedule Art. 10.- (1) The activities laid down in Art. 4 shall be carried out according to the service provision schedules which shall be annexed to the contract delegating the management of the public services of sanitation. (2) The municipal waste collection schedule shall be laid down in the contract on the provision of the sanitation service, concluded by the operator and the user. When establishing the frequency of municipal waste collection account shall be taken of the average amount of waste generated every day by each inhabitant and the need for hygiene maintenance at the pre-collection points. (3) When completing the bid form, account shall be taken of a municipal waste collection frequency as follows: a) during the hot season: April 1 – October 1: - on a daily basis, from the central areas and from food shops, health units, market places, canteens, restaurants, hotels, kindergartens and nurseries; - every two days at the most, from households; b) during the cold season: October 1 – April 1:

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- on a daily basis, from the central areas and from food shops, health units, market places, canteens, restaurants, hotels, kindergartens and nurseries; - every 3 days at the most, from households. (4) Every month, the operator shall enclose to the bill any changes in the service provision schedule for the following month, with the specification of the waste collection periodicity. (5) The waste collection shall preferably be carried out during the day, and according to necessity, in the afternoons and at night, with the user’s consent. (6) The municipal waste collection schedule shall indicate the division of the authorised area by cantons, each user’s address and number of persons, the days of the week on the which the waste is collected, the route covered by each waste collection lorry every day, the routes to the dumps, the total number, type and capacity of the lorries in operation every day and/or the reserve lorries. 5. Quality requirements Art. 11. – The service provision shall meet the following quality standards: a) municipal waste pre-collection shall be made only in standard bins and in a number sufficient for the temporary storage of the waste between two collections; b) the dumps shall be supplied with containers for the selective collection of the municipal waste, including packaging waste and the biodegradable faction; c) the staff working on the waste collection lorries shall not leave any waste remains on the pre-collection platform / the area where the containers are placed; d) the operator shall inform the user about the day and time of waste collection; e) the day and time established for municipal waste collection shall be complied with; f) the pre-collection bins shall be periodically disinfected; g) the municipal waste shall be transported with special lorries, which are in a proper technical and maintenance condition, personalised with the operator’s name; h) the municipal waste shall be dumped only in authorised dumps; i) the waste collection lorries shall be disinfected by the operator in keeping with the sanitary regulations in force. 6. Staff and equipment Art. 12. – The operator shall establish the number of the staff, lorries and equipment for the collection and transport of municipal waste on the basis of the workload estimated in Art. 9, ensuring strict compliance with the days and times for waste collection decided with the user. 7. Technologies Art. 13. – The operator shall specify in the tender documentation its plans with regard to the organisation and functioning of the service of collection and transport of municipal waste, with reference to the equipment to be used, the insurance of the use factor and the dump operation plan. 8. Inspections, acceptance of work, guarantees Art. 14. – (1) The grantor shall carry out frequent inspections of the way the operator is providing the service, drawing up daily reports on the service quality and the amount of municipal waste effectively transported, on the basis of the weighing receipt issued by the dump authority.

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(2) In its daily reports, the grantor shall also record the way the operator has dealt with the complaints received from users and, possibly, the penalties imposed on the operator for any shortcomings found out. (3) At the end of each month a certificate of acceptance of work shall be drawn up and signed by both Parties, including the findings from the daily reports. (4) The operator shall bear responsibility and liability form a financial point of view for the proper provision of the service and the quality and quantity established. (5) The operator shall fill in and sign the bid form presented in Annex No. …… …. to the Specifications. SECTION 2 Sweeping and washing of public roads 2.1. Description of activity Art. 15. – (1) The activities of sweeping and washing of public roads shall be carried out in order to ensure a state of cleanness of the public domain. (2) These activities shall imply the following operations: a) the sweeping of the roadway, pavement, squares, parking areas, and of the areas adjacent to traffic, rest or recreational areas; b) the washing of the roadway and the pavement; c) the roadway sprinkling; d) the street waste collection; e) the transport of street waste; f) the weighing of street waste; g) the unloading of street waste at authorised dumps; h) the disinfection of the lorries used by the operator for the transport of street waste. (3) The following categories of street waste shall be collected: waste resulting after manual sweeping, scraping the kerbstone clean, emptying street tidies, from refuse dumped at unauthorised places, various objects thrown about on the street, including dead animals. (4) Street waste shall be collected from the public domain areas specified in Annex No. ……… (5) The public domain to be kept in a salubrious state shall include the whole surface of the roadway and pavement, underground passes, overpasses, the public squares specified in Annex No. …………. . (6) The public domain shall be kept in a salubrious state as a result of all the activities referred to in Art. 15 (2). 2.2. Technical conditions 2.2.1. Manual sweeping Art. 16 – (1) Manual sweeping shall be carried out on the entire surface of the roadway and pavement, squares, parking areas, and of the zones adjacent to traffic, rest or recreational areas; (2) This activity shall be carried out in the period from March 1 to November 15, a period which can be modified according to the weather conditions on the basis of an additional act to the Framework-Contract delegating the management of the public services of sanitation of towns and villages. (3) The manual sweeping shall be carried out both during the day and at night, but not when it rains.

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(4) This operation shall be carried out in the authorised area, on the streets and with the frequency laid down in Annex No. …………….. . (5) The sanitation service shall include the following operations: a) the sweeping of the roadway and pavement with brooms made of twigs or plastic brooms; the marks left by the broom shall be uniform and shall not raise dust; b) the pre-collection of street waste: paper, bags, boxes, plastic bottles, vegetal remains in Euro-bins; c) the depositing of street waste in Euro-containers of 1.1 cu.m.; d) the emptying of the street tidies into plastic bags or Euro-bins; e) the washing of the street tidies and of the Euro containers located in the public domain; f) the unloading of the street waste into lorries and its daily transport to the following authorised dumps: ………………………………………………….. 2.2.2. Mechanical sweeping Art. 17. – (1) Power road sweeping shall be carried out with sweepercollectors, fitted up with cylindrical and/or circular brushes which clean the street all over its width. (2) The entire surface of the roadway and of the pavement to the extent to which this is possible shall be swept. The operation shall be carried out in the authorised area, on the streets and with the frequency established in Annex No. ……. . (3) This activity shall be carried out during the day or at night, but not when it rains. The working season lasts from snow melting to the first snowfalls. (4) This activity shall include the following operations: a) the effective power sweeping of the areas to be cleaned; b) the emptying of street tidies with the vacuum tube; c) the unloading of the collected waste at the following authorised dumps: …………………………………………………………. 2.2.3. Keeping the streets clean Art. 18. – (1) Keeping the streets clean shall imply the collection by hand of any normal or accidental waste deposits from the areas already swept – roadway and pavement. (2) This activity shall be carried out as a rule in the areas already swept. It shall be carried out all the year round, according to the programme drawn up by the operator, save for the days when public roads are covered by snow. (3) This activity shall include the following operations: a) the collection of waste deposits into Euro-bins; b) the emptying of street tidies into plastic bags or Euro-bins; c) the loading of the waste from the plastic bags or Euro-bins into lorries and its daily transport to the following authorised dumps: ………………………… ………………………………………………………………… 2.2.4. Scraping the kerbstone clean Art. 19. – (1) Scraping the kerbstone clean is an activity which shall be carried out all the year long, whenever necessary, save for the cold season when the roadway is covered with snow or ice. (2) Scraping the kerbstone clean is an activity rendered necessary by objective causes, accidental causes (torrential showers which carry along slime), underground network breakdowns, building works, etc. (3) Scraping the kerbstone clean shall consist of the removal of mud, sand, dust or vegetal remains from an area 0.75 m wide from the street curb towards

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the street median, in the authorised area, on the streets and with the frequency laid down in Annex No. ……………….. . (4) The activity shall include the following operations: a) kerbstone scraping with the drilling iron rod or the shovel; b) heaping up the mud, sand, earth or dust which resulted from the scraping; c) loading the heaps into Euro-bins; d) emptying the Euro-bins into the lorries and the daily transport of the waste to the following authorised dumps: ………………………………………….. . 2.2.5. Street washing Art. 20. – (1) The activity shall imply the washing of the surface of the streets, alleys and pavements with a hose connected to a tank truck or to hydrants and shall be carried out only on the days when the temperature does not fall below 5oC. (2) The washing shall be made with a powerful water jet, after sweeping. For a quality operation, special solutions (detergents) and brushes can be used. 3) The activity shall be carried out in the authorised area, on the streets and with the frequency laid down in Annex No. ……………….. . 2.2.6. Roadway sprinkling Art. 21. – (1) Roadway sprinkling shall be performed during the period between April 1 and October 1, a period which can be modified depending on the effective weather conditions, and shall be carried out on the areas already swept. (2) The sprinkling shall consist of water dispersion all over the roadway, to prevent dusting and to raise the standard of comfort and hygiene. (3) This activity shall be carried out only with specialised equipment. It shall be performed in such a way as to avoid causing any inconvenience to passers-by and sprinkling buildings, shop windows and other facilities with water. (4) The activity shall be carried out in the authorised area, on the streets and with the frequency laid down in Annex No. ……………….. . (5) The activity shall include the following operations: a) the filling of the tank truck with water from the following water supply points: ……………………………………………… , authorised by the operator of the public services of water supply and sewerage; b) the effective sprinkling of the roadway. SECTION 3 Snow clearing and transport from public roads to keep them usable under weather conditions causing icy roads or frost 3.1. Description of the activity Art. 22. – This activity shall be carried out during the day or at night, depending on how necessary it is; it is aimed at keeping roads usable and includes the following operations: a) the manual clearing of snow; b) the power clearing and loading of snow and snow ploughing; c) action against icy roads; d) clearing of discharge openings.

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3.2. Technical conditions 3.2.1. The manual clearing of snow Art. 23. – (1) This activity shall be carried out during the day or at night, depending on how necessary it is. The activity shall imply snow heaping up, 10 – 15 metres apart, in areas where the snow heaps do not cause any inconvenience to road traffic or to passers-by and do not affect the public domain utilities. (2) The manual clearing of ice shall be carried out by breaking or cutting, with special devices and tools. 3.2.2. The power clearing and loading of snow and snow ploughing Art. 24. – (1) The power clearing of snow consists in the power brushing of snow, snow ploughing, loading, transport and unloading of snow at the following authorised places: ………………………………………………………………. . (2) Power brushing of snow means its removal from traffic areas by means of metal brushes fitted up on vehicles. (3) Snow ploughing shall be carried out on streets where the snow layer is thicker than 10 cm as a rule; it shall not be carried out on uneven streets. (4) Public roads shall be made usable again within 4 hours of the end of the snowfall. (5) The snow loading and transport shall be made with adequate vehicles, until best conditions have been created for road traffic and for the movement of passers-by. 3.2.3 Action against icy roads Art. 25. – (1) This activity aims to increase the factor of vehicle adhesion to the road and shall be carried out in the authorised area, on the streets and with the frequency laid down in Annex No. ………….. . (2) Action against icy roads shall be undertaken with: a) a mixture of salt and sand; b) a salt emulsion. (3) This activity shall be carried out with special equipment or manually, in particular on sloping roads, bridges, at crossroads, the stops of public transport vehicles, squares, on roads near rivers or lakes. 3.2.4. Clearing of discharge openings Art. 26. – (1) Rain water is collected by the sewerage system, which is managed and maintained by ……………………….. . (2) The operator shall remove the snow – the ice from the discharge openings of the sewerage system to facilitate the discharge of the water caused by snow melting. 3.3. Workload Art. 27. – (1) A number of ………. streets shall be cleared, according to Annex No. …………., with a total length of …………. m., with a total area of roadway and pavement to be cleared of …………. sq.m., of which the pavement area is ….. sq.m., and the roadway area is …….. sq.m. (2) The areas to be cleared, the amount of street waste resulting from them and from street tidies, and also the number of discharge openings on the public domain to be cleared, which shall be taken into account by the operator when drawing up its bid, are presented in Annex No. ……… . (3) The quantities resulting according to Annex No. …. shall be taken into account by the operator when filling in the bid form.

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(4) Other details concerning each street shall be supplied to the operator when the works get under way. 3.4. The works schedule Art. 28. – The works schedule shall be drawn up by the operator, who shall take care that the public domain areas covered by the programme should be kept clean on a daily basis by carrying out all the required works under Section 2 and this Section – depending on the season –, and shall be notified to the grantor before the start of the planned works. 3.5. Quality standards Art. 29. – The public domain (roadway – pavements) which constitutes the subject matter of this contract is deemed to have been cleaned up after the works below have been carried out, at an adequate rate (as laid down in the performance schedule issued by the operator), depending on the season and the urban population size:  manual sweeping;  keeping streets and pavements clean;  power sweeping;  kerbstone cleaning by manual scraping;  sprinkling roads and alleys with water;  power washing of the roadway and pavements by a water jet from the tank truck;  manual washing with the hose connected to the tank truck;  power clearing of snow;  manual clearing of snow;  action against icy roads by spreading non-skid substances, manually, from tip-up lorries and trailers;  action against icy roads by spreading non-skid substances, mechanically, from specialised equipment;  collection, loading and transport of the waste resulted from street cleaning, street tidies and street Euro-bins;  clearing of discharge openings. 3.6. Supply with staff – equipment Art. 30. – The operator shall establish the number of staff, lorries and equipment for the collection and transport of municipal waste on the basis of the workload estimated in Section 2 and this Section, taking care that the public domain areas covered by the performance schedule be kept in a state of cleanness on a daily basis by the carrying out of all necessary works – depending on the season -, so as to obtain and maintain the quality standard under this Chapter. 3.7. Technologies Art. 31. – The operator shall specify in the tender documentation its plans with regard to the organisation and functioning of the service of sanitation of the public domain and transport of municipal waste, with reference to the equipment to be used, the insurance of their use factor, the facilities offered, etc. 3. 8. Inspections, acceptance of work, guarantees Art. 32. – (1) The grantor shall carry out frequent inspections of the way the operator is providing the service, drawing up daily reports, confirmed also by the

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operator, on the quality and quantity of the works performed, the amount of municipal waste effectively transported, established on the basis of the weighing receipt issued by the dump authority for the equipment used to transport such waste. (2) In its daily reports, the grantor shall also record the way the operator has dealt with the complaints received from the grantor and, possibly, the penalties imposed on the operator for the shortcomings found out. (3) At the end of each month a certificate of acceptance of work shall be drawn up and signed by both Parties, including the findings from the daily reports. (4) The operator shall bear responsibility and liability from a financial point of view for the proper performance of the works, the quality and quantity established in the performance schedule. (5) The operator shall fill in and sign the bid form presented in Annex No. …… …. to the Specifications. 3.9. Snow clearing 3.9.1. Description of the works Art. 33. – (1) Snow clearing consists of specific works of removal of snow or ice and action taken against icy roads so as to secure a safe road traffic and movement of passers-by. (2) Specialised or general power equipment and human workforce shall be used for the performance of these works. (3) The operator shall be experienced and shall possess efficient equipment. All snow clearing equipment shall be fitted up with modern communication devices (transmitting-receiving stations, cell phones). (4) The snow clearing schedule shall be established by the local authority for public services. 3.9.2. Performance schedule Art. 34. – (1) The snow clearing schedule shall be submitted for approval to the local authority for public services by October the 1st and shall be implemented under its direct coordination. (2) The schedule shall be drawn up for the main and secondary roads, which are presented in Annex No. ……, and shall contain a descriptive and a graphic part. (3) The schedule shall set forth the algorithm of the snow clearing works, which shall be strictly complied with. The prime urgency shall be snow clearing works on the roads ensuring access to public institutions, bread factories, the facilities of the operators of public services, educational establishments. (4) The operator providing the services shall be adequately prepared for direct intervention (equipment, materials, workforce, work programmes) by November the 15th of each year at the latest. The existing equipment shall cover the whole gamut of works which are to be carried out according to the approved schedule. (5) The operator providing the services shall take all necessary measures to be prepared for action within one hour of receiving the instructions to start work and within two hours at the full planned capacity. The first operations shall fight ice formation on sloping roads, bridges, at major crossroads, in squares and public transport system stops. (6) The main roads shall become usable again within 4 hours of the cessation of the snowfall. (7) If need be, the snow clearing equipment shall work around the clock, the activity being organised in shifts.

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(8) Confirmation of the snow clearing works shall be done on the basis of the approved working schedule and daily job tickets to be drawn up by the operator and confirmed by the grantor. 3.9.3. Financial terms for the performance of the works Art. 35. – (1) The operator providing the services shall collect every month from the grantor, under the performance contract, the payment for the works carried out (labour, equipment, materials) and confirmed by the grantor. (2) The prices of the materials shall be selected by the operator and shall be the most advantageous from a minimum 3 bids which shall be submitted to the grantor before the bid selection, by October the 15th of each year. SECTION 4 Pest control, disinfection and deratization 4.1. Description of the activity Art. 36. – This activity shall include the following operations: a) the selection of the objectives where the procedure is going to be applied; b) the selection of the materials and substances to be used; c) the selection of the devices and equipment to be used; d) the selection of the protection equipment; e) the confirmation of the works performed. Art. 37. – Pest control shall be carried out at the following places: - buildings of public institutions; - communal parts in condominium-type buildings, houses; - channels where water supply, sewerage, heating systems are located; - parks, graveyards, lake shores; - market places, fairs, stock markets; - demolished areas, left as such; - on the surfaces of parks, graveyards, green areas and lake shores; - in dry, damp or inundated basements. Art. 38. Disinfection shall be carried out at the following places: - dumping platforms; - dumps; - garbage chutes in condominium-type buildings; - specially built dumping platforms; - public transport vehicles; - educational and health units under the control of the local government authorities; - at the places with declared infection points which put human and animal health at risk. Art. 39. – Deratization shall be carried out at the following places: - buildings of public institutions; - communal parts in condominium-type buildings, houses; - channels where water supply, sewerage, heating systems are located; - parks, graveyards, lake shores; - market places, fairs, stock markets;

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demolished areas, left as such; on the surfaces of parks, graveyards, green areas and lake shores; in dry, damp or inundated basements.

4.2. Performance of the works Art. 40. – (1) The activities shall be carried out according to the regulations approved by the local authority for public services. The materials to be used and the specific consumptions are presented in Annex No. ….. . (2) The products to be used shall be authorised by the Health Ministry for human sanitary prophylaxis. (3) The works shall be so performed as not to cause any damage to the objective where the procedure is applied and shall not be harmful to human life and health. (4) Before the start of the works, the operator shall give the user a notice of performance. 4.3. Workload Art. 41. – The pest control, disinfection and deratization activities shall be applied to a number of …….. buildings of public institutions, to a number of ….. condominiums, houses, to a number of …… channels for water supply, sewerage and heating systems, to a number of …. parks, to a number of …… graveyards, to a number of …. marketplaces, stock markets, fairs, and on an area of ……… sq.m., representing surfaces of parks, graveyards. green areas, lake shores. The buildings and areas to be calculated when drawing up the bid are specified in Annex No. ….. . 4.4. The works schedule Art. 42. – (1) The works schedule shall be drawn up by the operator, taking into account the number of buildings and areas specified in Art. 41 and shall be brought to the grantor’s knowledge before the works so planned start. (2) The works shall be carried out in keeping with the procedures established for each type of activity. A job certificate shall be issued for each work performed. 4.5. Staff and equipment Art. 43. – The operator shall establish the number of staff, lorries and equipment required for the performance of the works on the basis of the workload estimated in Art. 41. 4.6. Technologies Art. 44. - The operator shall specify in the tender documentation its plans with regard to the organisation and functioning of the service provided by it, with reference to the equipment to be used, the insurance of their use factor, the facilities offered, etc. 4.7. Inspections, acceptance of work, guarantees Art. 45. – (1) The grantor shall carry out frequent inspections of the way the operator is providing the service, drawing up daily reports, confirmed also by the operator, on the quality and quantity of the works performed, the quantities of materials and substances used and established on the basis of the job certificate issued by the operator.

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(2) In its daily reports, the grantor shall also record the way the operator has dealt with the complaints received from the grantor and, possibly, the penalties imposed on the operator for the shortcomings found out. (3) At the end of each month a certificate of acceptance of work shall be drawn up and signed by both Parties, including the findings from the daily reports. (4) The operator shall bear responsibility and liability from a financial point of view for the proper performance of the works, the quality and quantity established in the performance schedule. (5) The operator shall fill in and sign the bid form presented in Annex No. …… …. to the Specifications. SECTION 5 The setting up and management of ecological waste dumps 5.1. Description of activity Art. 46. – (1) The setting up and management of an ecological dump and a transfer station shall meet the requirements of environmental and public health protection and shall take account of the provisions of the National Strategy and Plan for Waste Management. (2) The aim of setting up an ecological dump is to prevent or reduce the adverse impact on the environment, in particular the pollution of surface and underground waters, soil, air, including the greenhouse effect, and any hazard for the population’s health, throughout the life of the dump and after its expiry. 5.2. Technical conditions for the setting up and management of an ecological dump Art. 47. – (1) When choosing the location, account shall be taken of the following: a) the general and zonal town planning; b) the National Strategy and Plan for Waste Management; c) the class of the dump to be set up; d) a location favourable to the project; e) the types of waste which will be accepted for dumping. (2) The criteria to be met when choosing the location are presented in Annex No. ……… . (3) The minimum distances between the location and certain objectives shall be established for each specific case, on the basis of a survey of impact on environment and public health, and shall be specified in Annex No. …….. . (4) The dump design shall meet the requirements laid down in Annex No. … …., the designer assuming responsibility that the dump shall not put the environment factors at risk. The dump design shall also provide for the dump closing and the amount of money required for such closing. (5) The size of the dump shall be so established as to allow a daily dumping of ……… tons of waste for a period of ……….. years, with/without works of expansion being needed during the concession term, works which shall include: ………. (6) A full inventory of the components of the dump and the transfer station, in terms of quantities and values, as well as the technical characteristics, sizes and exploitation data of these components are presented in Annex No. ………. . (7) The operator shall set up its “Closing and Post-Closing Monitoring Fund”, based on the dump closing cost calculated and laid down in the design.

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SECTION 6 Pre-selection, organisation of waste recycling and exploitation of recyclable waste Art. 48. – (1) The waste circuit shall/shall not provide for the activity of preselection at producer / selection in special dumps / selection in the final dump, operations which are carried out in collection containers by type of waste at the producer ……….. / specialised selection platforms located in …………… / selection point in the final dump / …………. other selection measures which consist in the separation of the following materials: glass/textile/cardboard, paper/PET/other recyclable material which is selected for further use, accounting for ………….% of the amount produced, representing by selected category …………………..kg/ton/h, …… ……….kg/ton/24 h, which calls for / does not call for the expansion of the capacity for separate selection and exploitation during the term of the concession ………………… ……………………………………………………………………… . (2) The selection platforms / plants shall be located in …………… and consist of …………….., located as follows: ………………………………………………………………………………………………. . (3) The selection platforms / plants have been issued / have not been issued with the following authorisations ………………….. out of those required by the public health and environmental protection authorities. (4) The materials separated in the process of waste pre-selection and selection shall be exploited by category, as follows: a) ……………………………. tons/year …………………….. lei; b) ……………………………. tons/year …………………….. lei; c) ……………………………. tons/year …………………….. lei; d) ……………………………. tons/year …………………….. lei; (5) The sums collected as a result of the exploitation of these materials shall be used during the concession term for the following: …………………………………… ………………………………………………………………………………………………… …………………………………………………………… . (6) A full inventory of the components of the waste pre-selection, recycling and exploitation system, in terms of quantities and values, as well as the technical characteristics, sizes and exploitation data of these components are presented in Annex No. ………. . SECTION 7 Compost production Art. 49. – (1) The organic waste, separated from the rest of the waste, shall be treated and processed in a special compost station, with aerobic/anaerobic treatment of …………..type, having a processing capacity of …………….. tons/h, ………. tons/24 h, treating ………. % of the amount of organic waste, and which calls for / does not call for expansion works during the concession term, which shall include: … ……………………………………………………………………………………………… . (2) The compost production station is located in a building / several buildings with the following geometrical features ……………………….., and the compost shall be stored / exploited as follows: ……………………………………………………………..

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and was issued / was not issued with the following authorisations …………………… …….. required by the public health and environmental protection authorities. (3) A full inventory of the components of the compost production station, in terms of quantities and values, as well as the technical characteristics, sizes and exploitation data of these components are presented in Annex No. ………. . SECTION 8 Waste burning Art. 50. – (1) Municipal waste burning shall be carried out in a waste burning or oxidation plant of the ……………….. type, with / without heating / electricity recovery, with a processing capacity of …………… tons/h, ……….. tons/24 h, treating …………….% of the waste quantity, and which calls for / does not call for expansion works during the concession terms, which shall include: ……………………………… ………………………………………………………………… . (2) The waste burning station is located in a building / several buildings with the following main features: …………………………………………………………….. and was issued / was not issued with the following authorisations …………………… …….. required by the public health and environmental protection authorities. (3) The waste burning station produces / does not produce heating / electricity in the amount of ……………….Gcal/24 h, ……… Mw/h, which is used/exploited as follows: ……………………………………………………………………………………. . (4) A full inventory of the components of the waste burning station, in terms of quantities and values, as well as the technical characteristics, sizes and exploitation data of these components are presented in Annex No. ………. . CHAPTER III Conditions of exploitation of the public services of sanitation of towns and villages A. Technical conditions Art. 51. – The public services of sanitation of towns and villages shall provide the service on a continuous basis for all the users in the authorised area, complying with the technical conditions specific to each activity. B. Objectives Art. 52. – The objectives to be met by the public service of sanitation which is the subject of the concession are the following: a) the improvement of the people’s living conditions; b) the promotion of the quality and efficiency of sanitation works; c) the sustainable development of services; d) the environmental protection, with the specification of the environmental protection measures by development stage, in keeping with the programme of adaptation to the European Union standards. C. Economic objectives Art. 53. – (1) The public service of sanitation shall try to achieve the best quality/cost ratio for the entire concession term and to strike a balance between the risks and the benefits assumed under the contract.

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(2) The structure and level of the rates charged shall reflect the effective cost of the service provided and shall be in keeping with the law. D. Environment objectives Art. 54. – (1) The terms and conditions laid down in the environment authorisation No. …………….. shall be complied with during the entire concession term. (2) The operator shall implement the requirements laid down in the regulations issued by the competent environment authorities in keeping with the programmes of compliance with the environment requirements during the entire concession term. CHAPTER IV The tasks of the local authorities for public services and of the operators with regard to investments Art. 55. – (1) The works shall be funded, as appropriate, from the following sources: a) the operator’s own sources and local budget appropriations to the amount of ROL ………………… billion, for the implementation of the objectives……………… ……………….. , with the completion term set for…………… ; b) bank loans to the amount of ROL …………………… billion, guaranteed by the local authorities for public services or by the Government, for the implementation of the objectives ……………………….. , with the completion term set for ……………; c) grant aid to the amount of ROL …………… billion, obtained under bi- or multilateral agreements under the programme ……………… , for the implementation of the objectives ………………… , with the completion term set for ………………. ; d) special funds to the amount of ROL ……………….. billion, based on local taxes levied under the law, for the implementation of the objectives ………………… , with the completion term set for ………………. ; e) the operator’s private capital contribution, to the amount of ROL ………… ….. billion, for the implementation of the objectives ………………… , with the completion term set for ………………. ; f) funds transferred from the State budget, to the amount of ROL …………….. billion, for the implementation of the objectives ………………… , with the completion term set for ………………. , as contribution to co-financing the external programme ………………. or for the implementation of the emergency programme regarding … …………………… or the social programme for ……………………………………… ; g) from savings to the amount of ROL …………………… lei, resulting from the acquisition of the following performing equipment: ……………………………………… ………………………………………………………………………………………………… ………………………………………………………… . The savings obtained shall be used for the implementation of the following objectives: …………………………………………………………………………………… ………………………………………………………………………………………………… …………… . (2) The investments made by the operator for the rehabilitation, modernisation and development of the public services of sanitation shall be paid off during the concession term, according to the following schedule: ………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… …………………………………………………………….. .

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(3) The foreign investments in the public services of sanitation shall benefit from all legal facilities in force on the date of the concession contract signature. The facilities obtained shall be set out in the contract delegating the management and shall be in force for the period …………………………………………………………… . (4) The investments which shall be made from the investors’ own funds shall remain in their possession during the concession term, and upon its termination they shall be shared as follows: ………………………………………………………………… . CHAPTER V Financial and insurance clauses Art. 56. – (1) The investments set out in Art. 55 shall be subject to the obligations and clauses imposed by the financing sources for each financing method. (2) These clauses set the procedures for loan reimbursement, the reimbursement terms, the redemption term, the quality standards of the assets contributed as investments, the methods for the take-over of the assets which were the subject of investments, clauses referring to the conservation of the assets entrusted during the concession term and to the hand-over of the return assets at the end of the concession term, so that upon the contract termination the grantor’s capacity to provide the service be at least equal to that existing at the date of the contract coming into force. (3) The Specifications shall provide for the operator’s obligation to conclude and fulfil insurance contracts on the public property assets, according to the insurance legislation in force. CHAPTER VI The regime of the assets used during the concession Art. 57. – (1) The public property assets, referred to in Chap. II – The Subject of Concession, shall be taken over under a hand-over – take-over certificate. (2) The operator shall be responsible for the maintenance, current and accidental repairs as well as overhaul repairs of the assets held in public property, in keeping with the schedule in Annex No. …………….. . (3) The operator shall put out of use the fixed means from the assets granted by concession, on the basis of the legislation in force, according to the schedule in Annex No. ……………… , and shall replace these means according to the schedule in Annex No. ………… . (4) The operator shall annually report the situation of the public assets on December the 31st and the changes in these assets so that they should be recorded in the grantor’s books. (5) Upon the termination of the concession contract, the return assets shall be given back to the grantor, for no consideration and free from any encumbrance. (6) Upon the termination of the concession contract, the operator shall conclude with the grantor a purchase-sale contract the subject of which shall be the take-over assets referred to in the Specifications which the grantor has expressed its intention to acquire, the worth of which amounts to ROL …….. billion and which accounts for …………….. and are presented in detail in Annex No. ……. .

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CHAPTER VII Environmental protection obligations Art. 58. – (1) The Specifications shall set out the environmental protection obligations which directly result from the provision of the public services of sanitation and those deriving from the activities connected to the service, such as the exploitation of the equipment and vehicle fleet. (2) Where the provisions of the agreements with the environment authorities cannot be complied with, a compliance programme shall be agreed upon with them, which shall be included in the Specifications, including the respective completion terms to be met. SECTION VIIII The concession term Art. 59. – (1) The term of the concession of the public services of sanitation of towns and villages is ………. years. (2) Throughout the term set out in paragraph (1), the operator shall be forbidden to sub-concession the public service of sanitation. SECTION IX The royalty Art. 60. – (1) The royalty shall amount to ROL ……….. , which shall be paid on an annual/quarterly/monthly basis. (2) The royalty shall be paid as follows: …………………………………………… ………………………………………………........ . (3) Failure to pay the royalty or falling behind with its payment shall entail: …… …………………………………………………………………………………………… . CHAPTER X The value of security due to be paid by the operator Art. 61. – Within 90 days of the concession contract signature, the concessionaire shall pay the grantor a sum amounting to ROL ……… as security, representing a share of the sum due to the grantor as royalty for the first year of activity. Art. 62. – (1) A guarantee amounting to ROL …….. shall be set for participation in the tender. (2) The tender guarantee shall be subject to the conditions set out in Art. 23 of the Methodology for the implementation of Law No. 219/1998 on the regime of concessions, approved by Government Decision No. 216/1999, with the subsequent amendments.

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CHAPTER XI Clauses on the termination of the delegation of management Art. 63. – The delegation of management by concession can be terminated in the following situations: a) if the operator’s functioning authorisation is withdrawn or is not renewed upon its expiry; b) upon the expiry of the term laid down in the concession contract, unless the Parties agree in writing upon its extension, subject to the law; c) if the national or local interest so requires, by unilateral notice of termination by the grantor, with the payment of a just compensation beforehand by the grantor; d) in case of default on contract fulfilment by the concessionaire, by cancellation, with the payment of a compensation by the concessionaire; e) in case of default on contract fulfilment by the grantor, by cancellation, with the payment of a compensation by the grantor; f) in case of loss, for reason of force majeure, of the assets granted by concession, or in case of an objective impossibility on the part of the concessionaire to exploit it, by renunciation, without the payment of any compensation; g) where the local interest so requires, by redemption of the concession, which can only be done by administrative act, upon the grantor’s proposal; in this case, a technical-economic documentation setting the redemption price shall be drawn up. No damages shall be paid in this case of termination of the concession; h) if the concessionaire does not have the authorisations under the law or when these authorisations or his licence are withdrawn. CHAPTER XII Clauses concerning the staff and social protection Art. 64. – (1) The current staff employed in the system of public services of sanitation of towns and villages amounts to……… employees, their complete structure by objective and profession being presented in Annex No. ………. . (2) The current staff covers …… % of the staff requirement, an extra number of staff being / being not required. (3) The take-over of the staff shall be done according to the conditions laid down in the collective agreement which shall be valid until the date of …… and which contains the following provisions concerning employees: ……………………………… ………………………………………………………………………………………………… ……………………………………………………………… . (4) Any lay-offs shall be carried out subject to the conditions set out in Art. ….. of the collective labour agreement.

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CHAPTER XIII Final provisions Art. 65. – (1) Only operators certified by A.N.R.S.C, may participate in the tenders organised for the concession of the public services of sanitation of towns and villages. (2) The tenderer …………. shall submit the copy of A.N.R.S.C. licence No. … … / …………. , proving that it has been certified by the competent authority. Art. 66. – (1) The Specifications shall be put up for sale by the local authority for public services ……………………….. at its head office …………….. and at the following other offices: ……………….., mentioned in the advertising announcement. (2) The price of the Specifications was set by the local authority for public services ……………………… at ROL ………… . (3) The purchase price of the Specifications can be paid as follows: ………… …………………………………………………………………………………… . Art. 67. – (1) The conditions laid down in the Specifications for holding the tender for the concession of the public services of sanitation shall be minimal. (2) Tenderers may also put forward any other conditions which they think would favour a smooth provision of this service. Art. 68. – The Framework-Specifications shall be used together with the Framework-Regulation and the Framework-Contract delegating the management of the public services of sanitation of towns and villages.