√ Replacement of the performance guarantees affected by the withdrawal of the functioning license of the issuing insurer
√ Provision of new performance guarantees by 31 January 2023
√ The new performance guarantees can be constituted in any manner regulated by the law
Exceptional rules for replacement of the existing performance guarantees (under public procurement contracts) issued by insurers for which the functioning license was withdrawn have been enacted on 4th of March 2022 through Government Emergency Ordinance (GEO).
Such new rules are provided in the context of the recent bankruptcy of a major insurer from Romania and aims to ensure the continuing implementation of ongoing investment projects, financed from public funds.
Most relevant provisions of the GEO include
- The GEO applies exclusively to ongoing public procurement contracts for which the initial performance guarantees have been issued by insurance companies that have the functioning license withdrawn.
- Upon request of the awarding authority, the contractors have the obligation to provide a new performance guarantee no later than 31 January 2023.
- The new performance guarantee can be created in any manner (single or combined) provided by the law. The awarding authority will establish the mechanism of creation of the new performance guarantee depending on the type and specifics of each project.
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