Low rates for waste disposal and building a waste recycling and recovery system by municipalities – these are the main reasons for introducing in-house awards for waste utilisation under the garbage act. Interested suppliers who deal with waste disposal and management are against its provisions.
Under the new Directive of the European Parliament (2014/24/EU of 26 February 2014) on public procurement, in force as of 18 April 2014, if the contracting authority controls the company (a utility company), and the company conducts a substantial part of its business in favour of the contracting authority, the authority may order the service without the award procedure. This is so called in-house award for a subsidiary and the contract may be awarded under an uncompetitive negotiated procedure.
It seems that in Poland this solution may be, in the first place, implemented within the framework of the so-called garbage act amendment. A great number of local government members approve introduction of the in-house award. The main reason for approval is the market monopoly by big companies that are able to offer low rates for waste disposal, and the need to build the waste recycling and recovery system by municipalities.
The latter argument seems actually to be justified. A long-term cooperation with one company, preferably, with a utility company would certainly facilitate municipalities to achieve the goal of at least 50% of recycling level and prepare for further use such municipal waste as: paper, metals, plastics and glass, and minimum 70% level for construction and demolition waste by the end of 2020.
I have to admit that the first argument seems to be perverse. Will resigning from a competitive choice really protect the market from monopolisation? In my opinion the results will be quite the opposite, i.e. will bring reduction of the services market, and perhaps, in time, lower quality standards.