Public Property Agency starts process of taking over Bus Terminals of Moldova in state's administration

Chisinau, 19 August /MOLDPRES/ - The Public Property Agency (APP) has started the process of taking over the Bus Terminals from Moldova in state’s administration. APP today announced a decision to this end, taken in the context of the ‘’non-fulfilment of the contractual obligations by the private partner.’’    

„Following the finding out of the non-fulfillment of the contractual obligations by the private partner, Modern Bus Terminals Ltd Company, the state started the process of unilateral taking over of the assets managed within the public-private partnership initiated in 2018,’’ APP said.    

According to the institution, the contract signed between APP and Modern Bus Terminals Ltd Company envisaged the modernization and optimization of the work of the branches of the state enterprise, Bus Terminals. ‘’Nevertheless, the private partnership did not observe the obligations assumed as to the performance bond, which implied guarantees worth by 5 million lei for each investment year, guarantee non-submitted starting from the third year of contract, which served as a ground for the cancellation of the contract. Following the issuance of the notification on cancellation from 2022, the private partner appealed the decision on cancelation of the contract, asking the law court to suspend its fulfillment – a request turned down both by the court of first instance and the review court. Therefore, at present, there is no legal obstacle for the taking over of the assets. Thus, despite the repeated requests on behalf of APP, the Modern Bus Terminals Ltd Company refused to cooperate voluntarily, forcing the authorities to initiate the procedure of unilateral takeover,’’  APP noted.             

APP gave assurances that all measures taken were ‘’in public interest’’ and regarded ’’the reestablishment of a legal management’’ of those 30 bus terminals from Moldova. The institution instructed the immediate starting the work by a specialized commission, which initiates the transfer of the single Complex of Bus Terminals to the management of the state enterprise, Department for Exploitation of Real Estate. ‘’This decision is aimed at maintaining the continuity of the transport services for the residents and any temporary disturbances will be settled quickly,’’ APP also said.     

APP noted that it ‘’will ensure a transition without problems, so that citizens benefit from reliable and efficient public transport services.’’   

The agreement on bus terminals’ concession was signed with the Modern Bus Terminals Ltd Company on 17 December 2018 for a term of 25 years. Under the agreement, the private partner committed to modernize 30 bus terminals from Moldova.    

In August 2022, APP informed about the cancellation of the public-private partnership on modernization of bus terminals, for reasons ‘’of non-submission of the performance bond and failure to fulfill the investments plan assumed.’’