The European Commission announced the opening of two in-depth investigations under the Foreign Subsidies Regulation (FSR) into potential market distortions caused by foreign subsidies in a public procurement procedure for the development, construction, and operation of a 110 MW photovoltaic park in Romania, partly financed by the EU Modernisation Fund.
Following the FSR requirement for companies to report their participation in public procurement procedures exceeding specific thresholds, the ENEVO Group in cooperation with LONGi Solar Technologie GmbH, Shanghai Electric UK Co. Ltd. and Shanghai Electric Hong Kong International Engineering Co. Ltd. sent respective notifications to the Commission. Both companies are wholly owned and controlled by Shanghai Electric Group Co. Ltd, a State-Owned Enterprise of the People's Republic of China.
The Commission now has 110 working days to assess the alleged foreign subsidies to determine whether they enabled the companies to submit disproportionately advantageous bids in response to the tender, thereby potentially hindering fair competition in the process. At the end of its in-depth investigation the Commission may (i) accept commitments proposed by the company if they fully and effectively remedy the distortion, (ii) prohibit the award of the contract, or (iii) issue a no-objection decision.
For further information: see Commission’s Press Release