Solicitation of Expressions of Interest for a Legal Consultancy for the Drafting of a Regulation on the Conditions and Procedure for Defining the Liability of the State for Past Environmental Damage Caused by Enterprises under Privatization

18. August 2004.


The Republic of Serbia, under the coordination of the Ministry of Economy and its Privatization Agency (PA) and as part of its economic reforms, is carrying out a comprehensive privatization program. It aims at privatizing a number of publicly and socially owned companies by 2005. Methods of privatization used are by auction and by tender. Some of the enterprises that have been slated for privatization are associated with significant pollution problems, particularly soil contamination, violation of air emission standards, pollution of surface and ground waters. The situation worsened during the 1990s, when as a result of international isolation and lack of capital, the majority of enterprises were not able to upgrade production and environmental protection technologies, and environmental institutions lacked sufficient capacity to enforce environmental protection measures. As a result, uncontrolled air emissions and discharges and runoff of toxic and other harmful materials have not been uncommon threatening the public health, natural resources and the environmental amenities.
In 2003, the Parliament of Serbia recently passed an amended version of the Law on Privatization including a provision stating

"Article 41d. The funds necessary for settling a valid and matured commitment of the buyer of capital and/or assets based on pollution of the environment and/or damage inflicted on the environment, if the cause of the commitment had arisen prior to the conclusion of the contract of sale of the capital and/or assets, shall be provided in the Budget of the Republic of Serbia.
The way of and the conditions for settling the commitment referred to in paragraph 1 of this Article shall be set in greater detail by the minister responsible for the protection of natural resources and the environment."

While the Law on Privatization makes provisions for legal commitment by the State to secure budget resources for addressing environmental liabilities during privatization of state and socially owned enterprises, there is no supporting regulation which provides for a comprehensive framework of institutional responsibilities, procedures, approval authority and conflict resolution. The assignment involves consulting services for drafting of the regulation and necessary legal instruments governing procedures for defining liabilities for past and current environmental damage (including institutional responsibilities, financial mechanisms, decision-making and conflict resolution). The assignment will also include the development of all necessary supporting documentation on methodology and procedures that will provide detailed guidance to the parties involved, notably PA, Ministry for Science and Environmental Protection (MSEP), privatization advisors, the enterprises slated for privatization, potential buyers, Ministry of Finance (MOF), other relevant government agencies and environmental auditors.

The Privatization Agency, Republic of Serbia now invites expressions of interest from eligible firms. Local firms interested in participation solely or as a lead of consortium must submit a copy of legal evidence proving their registration in accordance with the local law (registration certificate) for providing subject services in the territory of SaM.
It is desirable that the consultant team consist of (i) an international environmental lawyer; (ii) an international environmental specialist; (iii) a local environmental lawyer; and (iv) a local environmental specialist. The following are recommendable minimum qualifications for these specialists:

International Environmental Lawyer
  • Considerable experience with privatization, development of environmental cleanup standards and assignment of responsibilities for cleanup in Eastern Europe.
  • Fluency with the proposed EU directive on environmental liability, on environmental liability provisions in the US and in nation-state laws, and on the comparison of US and national European standards for environmental clean-up.
  • Experience with implementing and designing procedures for pre-cleanup public consultations in order to ensure meaningful public involvement and compliance with relevant standards and international best practice (Aarhus Convention, etc).

International Environmental Specialist
  • An advanced degree in environmental sciences or environmental / chemical engineering
  • Experience with environmental audits, environmental clean-up operations and liability assessments in EU and transition countries.
  • Strong familiarity with European and other international clean-up standards.

Local Environmental Lawyer
  • Strong familiarity with current and draft legislation on environmental protection, waste management, and waste management strategy
  • Extensive knowledge of international agreements applicable in Serbia relating to environmental protection, notably waste management (Basel Convention)
  • Experience in drafting environmental legislation in Serbia
  • Experience working in bilateral donor, UN or EU funded projects and studies on environmental management
  • Experience advising federal and Serbian governmental agencies, notably MSE, on legal environmental issues
  • Fluency in spoken and written English

Local Environmental Specialist
  • An advanced degree, preferably Ph.D., in an environmental science.
  • Expertise in waste management, water, soil and air pollution, related public health issues.
  • Strong familiarity with current and draft environmental legislation, waste management strategy and standards on effluent discharges;
  • Experience advising industrial enterprises on environmental mitigation issues
  • Experience working in bilateral donor, UN, WB or EU funded projects and studies on environmental management
  • Professional experience working with Serbian governmental agencies, notably MSE
  • Fluency in spoken and written English

It is estimated that the assignment will commence immediately upon contract signing and last until the end of 2004.

Expressions of interest from eligible firms should specify the following minimum information in order to be considered for the assignment: (i) Short profile of the firm/consortium; (ii) short description of and curricula vitae of the proposed team members, evidencing the team member's compliance with the above specified profile. The best evaluated firm will be invited to submit combined technical and financial proposal.

The Consultant will be selected using SBCQ method that is in accordance with procedures set out in the World Bank's Guidelines: Selection and Employment of Consultants by World Bank Borrowers January 1997 (revised September 1997, January 1999 and May 2002).Interested and eligible firms who wish to participate should submit their expressions of interest by August 31st, 2004.

Ms. Ankica Ljubisavljevic
Procurement Officer
Privatization Agency
Republic of Serbia, Terazije 23
11 000 Belgrade
Tel.: (381 11) 3029 942
Fax: (381 11) 3020 828
E -Mail: aljubisavljevic@priv.yu


Ms. Snezana Tosic
Procurement Officer
Privatization Agency
Republic of Serbia, Terazije 23
11 000 Belgrade
Tel.: (381 11) 3020 815
Fax: (381 11) 3020 828
E - Mail: or stosic@priv.yu

Companies in Privatization


Public invitation


Companies in Control


Companies in the Fund