New EU thresholds and a new average exchange rate in public procurement

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On December 6, 2023, in the Official Journal of the Republic of Poland “Monitor Polski,” announcement No. 1344 was published regarding the notification of the President of the Public Procurement Office dated December 3, 2023, regarding the current EU thresholds, their equivalents in Polish zlotys, equivalents in Polish zlotys of amounts expressed in euros, and the average exchange rate of the zloty to the euro, constituting the basis for calculating the value of public procurement contracts or competitions.

According to the announcement, the new average euro exchange rate, which serves as the basis for calculating the value of orders in 2024 and 2025, will increase from the current level of 4.4536 PLN to 4.6371 PLN per euro.

Starting from January 1, 2024, the euro-denominated amount of EU thresholds for public procurement will also change. The threshold for construction works will increase from 5.382 million euros to 5.538 million euros – after conversion using the new average euro exchange rate, this threshold will amount to 25,680,260 PLN. The threshold for supplies and services ordered by local governments will increase from 215,000 euros to 221,000 euros (after conversion, 1,024,799 PLN). The amounts of other EU thresholds remain unchanged.

What changes in concession agreements?

On December 27, 2023, in the Official Journal of the Republic of Poland “Monitor Polski,” announcement No. 1466 was also published, regarding the notification of the Minister of Development and Technology dated December 22, 2023, regarding the current EU threshold, its equivalent in Polish zlotys, and the average exchange rate of the zloty to the euro, constituting the basis for calculating the value of concession contracts.

The current EU threshold, as referred to in Article 8(1) of Directive 2014/23/EU of the European Parliament and of the Council of February 26, 2014, on the award of concession contracts (Official Journal of the European Union L 94 of March 28, 2014, p. 1, as amended), established on the basis of the delegated regulation of the Commission (EU) 2023/2497 of November 15, 2023, amending Directive 2014/23/EU concerning the thresholds for concessions (Official Journal of the European Union L 2023/2497 of November 16, 2023), and the Commission’s Communication – The equivalence of the thresholds specified in Directive 2014/23/EU, 2014/24/EU, 2014/25/EU, and 2009/81/EC (Official Journal of the European Union C C/2023/902 of November 16, 2023), hereinafter referred to as the “Communication of the European Commission on the Equivalence of Thresholds” – amounts to 5,538,000 euros, which is the equivalent of 25,680,260 PLN.

The exchange rate of the zloty to the euro, constituting the basis for calculating the value of concession contracts, established based on the amount specified in the Communication of the European Commission on the Equivalence of Thresholds, is 4.6371 PLN.

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When do the new thresholds apply?

The new EU threshold and its equivalent in Polish zlotys, as well as the new average exchange rate of the zloty to the euro, are effective from January 1, 2024.