We successfully represented the bus transport service provider SEBE in a dispute with Pärnumaa Ühistranspordikeskus over the lawfulness of the public procurement terms used to select a public transport service provider for the city of Pärnu.

The dispute involved a challenge to 15 different terms of procurement, of which eight were successfully amended by agreement with the contracting authority. Under the amended terms, the client submitted a successful tender and was awarded a 10-year contract valued at approximately EUR 47 million.

This was a good example of how bidders can successfully secure amendments to procurement terms through dispute. In addition, this case gave the Public Procurement Dispute Committee and the courts the opportunity to clarify important issues in the application of EU Regulation No. 1370/2007, which regulates the provision of public passenger transport services by rail and road, to public procurement, including the payment and indexation of fees payable to the carriers.

Among other things, this dispute involved a thorough discussion of the prohibition on over- and under-compensation of carriers under the EU Regulation in light of the EU State aid framework.

Our services and client team

We advised the client before the Public Procurement Disputes Committee, the Administrative Court and the Circuit Court, as well as on other legal issues related to the procurement.

The client was represented and advised by senior associate Kätlin Sehver, who was supported by partner Kadri Härginen, associate Kärt Saar, and assistant lawyer Carolin Simona Laurits.