Decision No D. 456/19/2025 by the Public Procurement Arbitration Board

Based on an ex officio initiative submitted by the Integrity Authority, the Public Procurement Arbitration Board (hereinafter: PPAB) found that the Municipality of Csepel District XXI of Budapest and the blocks of flats located at Budapest District XXI Merkúr u. 4-6 and at Budapest District XXI Nap utca 6-8., acting as joint contracting authorities, had infringed Section 115(2) of Act CXLIII of 2015 on public procurement (hereinafter: PPA) in both parts of the public procurement procedure titled “Energy renovation of residential buildings”. Consequently, the PPAB imposed fines on the parties. 

The PPAB maintains that the joint contracting authorities unlawfully applied the public procurement procedure under Section 115 of the PPA, involving the direct invitation of five tenderers.

Despite the availability of a broad and suitable market, the contracting authorities conducted closed and repetitive invitation practices, with minimal rotation between economic operators. The low number of tenders received and the recurring circle of the same successful tenderers resulted in the absence of genuine competition, thereby generating an effect contrary to the principle of equal treatment.

No judicial review has been submitted against Decision No D. 456/18/2025 of the PPAB.

The PPAB combined case No D.455/2025, launched upon the initiative of the Integrity Authority, with case No D.456/2025. In both cases, a decision was adopted as described above.