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Bulgarian Law Introduces the Administrative Contract

11/10/2016

On 8 September 2016, amendments to the Bulgarian Administrative Procedure Code resulted in the introduction of the "administrative contract" to Bulgarian law. Explicit regulation of the administrative contract is necessary for proper functioning of, inter alia, concession and public procurement procedures, privatization agreements, project funding under European programs, the health insurance system, as well as agricultural estates.

General characteristics and scope of application of the administrative contract include:

  • it is concluded in administrative proceedings before an administrative authority on matters of important public interest;
  • it is a formal agreement, which must meet the statutory requirements for content, deadlines for conclusion, consent (if necessary) and conclusion with urgency in certain cases in the Administrative Procedure Code;
  • such contracts will contain a clause for preliminary execution, if necessary for the protection of public interest;
  • there is a possibility to amend the administrative contract due to a significant change of circumstances and, in case of refusal by the administrative authority, the private entity may terminate the contract;
  • the grounds for revocation include lack of competence, failure to comply with the prescribed form, contradiction to substantive law, serious violations of procedural norms and contradiction to the purpose of the law;
  • them being disputed in court will not stop execution;
  • on its basis, an enforcement procedure can be initiated.

Authors

Picture of Antonia Kehayova
Antonia Kehayova
Senior Associate
Sofia