The City of Zagreb has issued a public tender for the award of a 20-year concession for the distribution of thermal energy in the area of the central heating system (CTS). The estimated value of the contract is 682.66 million euros excluding VAT, and the concession period for the activity currently performed by HEP-Toplinarstvo begins on October 1, 2026.
Elimination of All Other Players
Although European public procurement rules insist on a transparent and public selection process, the City has set the conditions high enough to eliminate smaller players.
The potential concessionaire must prove a minimum of 32.5 million euros in annual revenue, positive capital, and clean accounts without blockages, along with possessing qualified engineering and technical staff and licenses. Additionally, bidders must pass rigorous exclusion criteria, and the selected company and its managers must not have tax debts, be in bankruptcy, or have final convictions for crimes such as corruption, fraud, or money laundering.
However, the greatest weight in scoring bids is given to the willingness to invest in the development and renewal of the network (30 percent of points), while the reliability of the heat supply itself is valued at 25 percent. The amount of the annual concession fee to the City carries only 20 percent of the points.
Guarantee of 3 Million Euros
The City has also secured itself regarding financial guarantees. In addition to an initial guarantee for the seriousness of the bid amounting to 150,000 euros (which is submitted in the form of a bank guarantee, deposit, or promissory note), the selected partner is required to provide a guarantee of up to three million euros for the proper fulfillment of the contract before the contract is signed.
