Objectives

The Parties recognise the contribution of transparent, non-discriminatory, competitive and open tendering to sustainable economic development and set as their objective the effective, reciprocal and gradual opening of their respective procurement markets.

This Chapter envisages mutual access to public procurement markets on the basis of the principle of national treatment at national, regional and local level for public contracts and concessions in the traditional sector as well as in the utilities sector. It provides for the progressive approximation of the public procurement legislation in Ukraine with the EU public procurement acquis, accompanied with an institutional reform and the creation of an efficient public procurement system based on the principles governing public procurement in the EU Party and the terms and definitions set out in Directive 2004/18/EC of the European Parliament and of the Council of 31 March 2004 on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts (hereinafter referred to as "Directive 2004/18/EC") and Directive 2004/17/EC of the European Parliament and of the Council of 31 March 2004 coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors (hereinafter referred to as "Directive 2004/17/EC").

Article 149

Scope

1. This Chapter applies to works, supplies and services public contracts, as well as works, supplies and services contracts in the utilities sectors and works and services concessions.

2. This Chapter applies to any contracting authority and any contracting entity which meets the definitions of the EU public procurement acquis (hereinafter both referred to as the "contracting entities"). It covers also bodies governed by public law and public undertakings in the field of utilities such as state-owned enterprises carrying

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out the relevant activities and private undertakings operating on the basis of special and exclusive rights in the field of utilities.

3. This Chapter applies to contracts above certain value thresholds. These thresholds shall be for both parties³⁸:

(a) EUR 133.000 for public supply and service contracts awarded by central government authorities, except for public service contracts defined in Directive 2004/18/EC Article 7. b. 3^rd indent;

(b) EUR 206.000 in the case of public supply and public service contracts not covered by point a);

(c) EUR 5.150.000 in the case of public works contracts and concessions;

(d) EUR 5.150.000 in the case of works contracts in the utilities sector;

(e) EUR 412.000 in the case of supply and service contracts in the utilities sector.

The calculation of the estimated value of a public contract shall be based on the total amount payable, net of Value Added Tax. When applying these thresholds, Ukraine will calculate and convert these values into its own national currency, using the exchange rate of its National Bank.

These value thresholds shall be revised regularly every two years, beginning in 2014, based on the average daily value of the Euro, expressed in Special Drawing Rights, over the 24 months terminating on the last day of August preceding the revision with effect from January 1. The value of the thresholds thus revised shall, where necessary, be rounded down to nearest thousand Euro. The revision of the thresholds shall be adopted by the Trade Committee according to the procedure defined in Title VII (Institutional General and Final Provisions) of this Agreement.

Article 150

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