Overview

The European Commission has failed in its case against Spain which claimed that the award of Integrated Action Programmes (IAPs) in Valencia are public works contracts.

The decision is a positive step in the run of cases around development transactions identifying that there is need to specifically identify any contractual delivery to the public sector.

There can be no presumption that purely because a contract deals with development and contains a public sector body that the whole transaction must be classified as a public works contract and therefore require compliance with the public procurement Directive obligations. Each transaction must still be considered on its own facts and assessed for procurement risk accordingly.

Eversheds discusses the impact of this decision.

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