In a recent supplementary reasoned opinion issued by the EFTA Surveillance Authority (ESA), it is of the view that municipalities in Norway are in breach of EEA law for failing to put waste-management contracts out to public tender.
The ESA argues that 12 municipalities in Norway awarded a waste management contract to a public-owned company, Midtre Namdal Avfallsselskap IKS, that is owned by a number of municipalities. The ESA points to a specific case involving Sunnfjord Miljøverk IKS, but also, raises the wider issue of the general practice of municipalities in Norway in the awarding of contracts, through use of public funds, for certain waste management services, through its reliance on the existence of exclusive rights for such publicly-owned companies, without any place for competition.
The ESA states that whilst there may be exceptions to the awarding of contracts in the public sector, it is of the view that the exceptions that may apply have not been met in this sector, given that there is significant innovation in the waste-management solutions sector, which accordingly, given the municipalities’ practices, are denying private actors the possibility to acquire public contracts through a tendering process.
The origin of the infringement procedure that has been opened by ESA is a complaint that it received regarding the awarding of the exclusive rights by municipalities to publicly-owned companies.
The supplementary letter of formal notice sent to Norway in September 2023 is available to read here, and the original letter of formal notice from December 2021 is available here.
The ESA may choose to follow up this issue with Norway through a reasoned opinion, upon after, may refer the matter to the EFTA Court to determine whether there has been an infringement of EEA law.