Tender for Sewage Sludge Recovery and Utilization Services at the Budapest Sewage Works Ltd. Wastewater Treatment Plant

Tender Reference: TED 103579-2026

EU Official Journal Reference: OJ S 30/2026

Procurement Internal Identifier: 47388d13-75ed-485e-b91b-9cf899b9138b

Procurement Internal Number: EKR000125512026

Lot Internal Number: EKR000125512026/1

Project Name: Sewage Sludge Recovery and Utilization Services

Project Description: Recovery and utilization services for municipal sewage sludge (waste identification code: 190805) originating from daily operations, treated by anaerobic digestion technology and dewatered, with a dry matter content ≥18%, total quantity 210,000 tons (approx. 70,000 tons annually on average). The service scope includes sludge reception, transportation to the recovery facility, and completion of the recovery process within the facility. During the contract period, the contracting authority reserves the right to increase the total agreed quantity by +25% (i.e., maximum annual processing capacity can reach 87,500 tons, maximum total quantity over 5 years 656,250 tons), but is not obligated to fully utilize this increase.

Subject of Procurement: Services

Main CPV Code: 90513800 – Sewage sludge treatment services

Procurement Procedure: Open tender

Contract Duration: 36 months (3 years)

Renewal Option: Yes

Maximum Number of Renewals: 1

Renewal Duration: 24 months (2 years)

Potential Maximum Total Contract Duration: 60 months (5 years)

Renewal Conditions: The contracting authority may initiate renewal by written notice to the successful tenderer at least 30 days before contract expiry, provided there is no material change in the contract's tasks and characteristics that would necessitate a new contract.

Place of Performance (NUTS): Anywhere in Hungary (Anywhere in the given country)

Tender Language: Hungarian (non-Hungarian documents must include Hungarian translation, accuracy is the tenderer's responsibility; bilingual documents are accepted)

Tender Security:

Amount:25,000,000 Hungarian Forints (HUF) (Twenty-five million Forints)

Payment Method (Tenderer chooses one of three):

Transfer to Contracting Authority's Account:10404072-00034568-00000000 (Reference: "EKR000125512026–Tender Security")

Unconditional and irrevocable bank or insurance guarantee payable on first demand within 5 banking days

Letter of commitment issued under an insurance policy including joint and several guarantee (unconditional, irrevocable, payable on first demand within 5 insurer working days)

Beneficiary: Budapest Sewage Works Ltd.

Submission Requirement: Must be submitted together with the tender documents, ensuring the contracting authority has disposal rights immediately after the tender deadline. Transfers must be accompanied by original or certified copy of the irrevocable payment order; guarantees/letters of commitment must be submitted in original.

Penalty: The security will be forfeited if the tender is withdrawn during its validity period or if the contract fails to be signed due to the tenderer's fault after award. Tenders not submitting the security on time or in full amount will be considered invalid.

Tender Validity Period: Minimum 30 days (calculated from the tender deadline)

Tender Opening:

Opening Date: 17 March 2026, 11:00 (CET)

Opening Location: Online via the Electronic Public Procurement System (EKR)

Legal Basis for Opening Procedure: PPA §68, Government Decree 424/2017. (XII.19.) §15 (2) and §16 (contingency handling)

Award Criteria: Best price-quality ratio (PPA §76 (2) point c)

Price (Net Tender Unit Price):70 points

Method: Inverse proportion method

Quality Sub-criterion 1 – Disposal Security (Total Idle Processing Capacity):15 points

Tenderer must commit to annual guaranteed idle processing capacity, minimum threshold is 437,500 tons/year (average for 5-year contract period). Tenders not reaching this value are invalid. Commitment ≥656,250 tons/5 years receives full 15 points.

Quality Sub-criterion 2 – Recovery Method Indicator (Tons):15 points

Tenderer commits to quantity (tons) of sludge recovered/utilized in line with RED III Directive. Commitment of 0 tons scores 0 points, higher commitments score higher points, using direct proportion method. Detailed calculation rules are in the procurement documents.

Qualification Requirements and Selection Criteria:

P1. Financial and Economic Capacity:

Exclusion Condition: Tenderer or its legal predecessor is deemed ineligible if its after-tax net profit was negative in two or more of the last three completed financial years.

Alternative Condition (only for entities operating less than three years): If the tenderer's cumulative net turnover from the subject matter (recovery/utilization of dewatered sewage sludge with dry matter >18%, code 190805) during its operational period reaches HUF 1 billion, it is considered financially qualified.

Pre-evidence Method (at tender submission): Filling in a declaration in Part IV "α" of the ESPD is sufficient.

Post-award Evidence (upon request per PPA §69 (4), (6)):

Submit simple copies of legally prepared financial reports for the last three financial years (excluding supplementary annexes and audit reports).

Entities operating less than three years submit a declaration regarding net turnover related to the subject matter.

M1. Technical and Professional Capacity (Reference Projects):

Exclusion Condition: Tenderer is excluded if, within the 36 months preceding the publication date of this tender notice (contracts completed within this period, or commenced at latest 6 years ago are accepted), it does not have at least 1 completed (or completed part of an ongoing contract) contract experience involving the reception, transportation, and recovery/utilization of dewatered sewage sludge (dry matter >18%, EWC 190805), with a cumulative total quantity ≥155,000 tons.

Pre-evidence Method (at tender submission): Filling in a declaration in Part IV "α" of the ESPD is sufficient.

Post-award Evidence (upon request per PPA §69 (4), (6)):

Submit a list of the most important service performances from the last 36 months as per Government Decree 321/2015. (X.30.) §21 (3) a) and §22 (1), containing: contract start and end dates (year, month, day), name of the other contracting party and contact person/referee with contact details, exact subject of service (dewatered sludge, dry matter content, EWC code), quantity (tons), whether performed according to contract and specifications.

If performance date is only one day, both start and end dates are that day.

If performance was by a consortium, the proof must indicate the tenderer's share proportion.

The contracting authority accepts subcontracting performances, but relevant proof must be provided.

The contracting authority accepts performances of completed parts of contracts, but the completed part must meet the minimum threshold requirement (≥155,000 tons).

Reliance on Capacities of Other Entities:

Tenderers are allowed to rely on the financial, technical capacities of other organizations (or individuals) to meet qualification requirements, regardless of the legal relationship.

Must submit a commitment document (contract/pre-contract/other form) from the capacity provider, proving resources are available for the contract duration.

Must submit a power of attorney from the capacity provider authorizing the tenderer to make declarations on its behalf in the EKR system.

The capacity provider must be already registered in the EKR system, or the tenderer must have entered its information in the EKR in advance for this tender (per Government Decree 424/2017. (XII.19.) §6 (6a)).

Mandatory Content List for Tender Documents:

Cover Page (Felolvasólap): Fully completed

Declaration documents (PPA §66 (2) and (6), §65 (7), §67 (4))

European Single Procurement Document (ESPD)

Trade Secret Declaration (indicating which parts of the document are trade secrets)

Acceptance of Disclosure Rules Declaration

Consortium Agreement and Authorization Document (if bidding as a consortium)

Signature Sample / Power of Attorney (proof of signing authority)

Statement on Company Registration Change Status (if proceedings are ongoing, proof of submission and court receipt must be attached)

Sanctions Compliance Declaration regarding Council Regulation (EU) No 833/2014 Article 5k(1) (related to Russia sanctions)

Technical Proposal: Must include recovery concept plan, sludge logistics plan, technical commitment table for award sub-criteria (see technical specifications)

Licence Declaration (commitment to possess by contract signing at the latest):

National or regional waste management authority license for transport of non-hazardous waste EWC 190805

Waste treatment facility's license for collection and recovery/utilization of non-hazardous waste EWC 190805

Local government license for waste treatment activity site per Government Decree 57/2013. (II.27.)

(If any of the above licenses are not obtained by then, the contracting authority reserves the right to abandon contract signing)

Liability Insurance Commitment Declaration: Commitment to have environmental liability insurance of at least HUF 20 million/year by contract signing at the latest (each consortium member must hold separately)

Proof of Tender Security Payment (transfer confirmation/guarantee/letter of commitment original or certified copy)

Other declarations, documents required by the invitation to tender and procurement documents

Key Contract Terms:

Non-subcontractable Tasks: Sludge logistics (iszaplogisztika) tasks must be performed by the successful tenderer itself, cannot be subcontracted (PPA §65 (10)).

Contractual Penalties: The contracting authority sets penalties for delay, defective performance, non-performance; details are in the draft contract.

Legal Compliance Obligations: The successful tenderer must strictly comply with the following main regulations (including but not limited to):

Act CLXXXV of 2012 on Waste

Decree 11/1996. (VII.4.) KTM (qualifications for environmental representative)

Government Decree 50/2001. (IV.3.) (agricultural use of sewage and sludge)

Decree 23/2003. (XII.29.) KvVM (technical requirements for biowaste treatment and composting)

Decree 20/2006. (IV.5.) KvVM (rules related to landfills)

Decree 72/2013. (VIII.27.) VM (Waste List)

Government Decree 93/1996. (VII.4.) (definition of activities requiring environmental representative)

Government Decree 314/2005. (XII.25.) (environmental impact assessment and unified environmental use permit procedure)

Invoicing and Payment:

Currency: Hungarian Forint (HUF)

Payment Term: Bank transfer within 30 days of receiving compliant invoice

Payment Condition: Must be accompanied by performance proof countersigned by the contracting authority

Electronic Invoice: Mandatory

Electronic Payment: Mandatory

Electronic Ordering: Not required

Exclusion Grounds (PPA §62): Covers criminal offenses, corruption, fraud, terrorism, money laundering, child labor/human trafficking, outstanding taxes/social security contributions, conflict of interest, bankruptcy/liquidation, business activity suspension, bid rigging, provision of false information, etc. See tender documents and ESPD for details.

Legal Basis:

EU Directive 2014/24/EU

Hungarian Act CXLIII of 2015 on Public Procurement (PPA)

Government Decree 424/2017. (XII.19.) (Electronic Procurement System)

Government Decree 321/2015. (X.30.) (Rules on Qualification and Evidence)

Review and Appeal Bodies:

First-Instance Review Body: Public Procurement Arbitration Board

Address: 1026 Budapest, Riadó utca 5, Hungary

Email: dontobizottsag@kt.hu

Phone: +36 1 882 8592

Fax: +36 1 882 8593

Appeal Deadline: As per PPA §148

Other Important Information:

No Division into Lots: The contracting authority deems procuring the service as a single contract package economically and technically justified, achieving economies of scale, price advantages, and logistical coordination flexibility, ensuring supply security.

No framework agreement, no dynamic purchasing system, no electronic reverse auction.

Post-award establishment of a project company (projekttársaság) to perform the contract is not allowed (PPA §35 (8)-(9)).

Questions regarding EKR system operation should not be directed to the contracting authority; such questions must be addressed directly to the system operator Új Világ Nonprofit Kft.

Applicable to SMEs (Small and Medium-sized Enterprises), no reserved share but participation allowed.

Subject to the WTO Government Procurement Agreement (GPA).

No EU funds used.

Remarks:

This notice is the official standard contract notice published on the EU TED platform, possessing full legal effect.

Annual sludge production is an estimate; actual delivery quantity depends on the actual amount generated in the contracting authority's daily operations, no minimum purchase quantity is guaranteed.

The contracting authority has set stricter financial (net profit requirement) and technical (155,000-ton threshold) qualification criteria than the "Official List of Qualified Tenderers" bronze level standards of the Public Procurement Authority; tenderers must pay close attention.

Disposal Security (idle capacity) and Recovery Method Indicator both carry 15 points weight, and idle capacity has a rigid threshold of 437,500 tons/year; technical commitments must be precise and verifiable.

Potential tenderers are advised to complete EKR system registration early and finalize electronic preparation of all tender documents by early March 2026.

As sludge logistics tasks are prohibited from subcontracting, tenderers must possess or arrange through group internal resources the necessary transport and equipment capacity.

Liability insurance must be effective upon contract signing; it is recommended to confirm extension clauses with insurers in advance.

It is strongly recommended to study the technical specifications and draft contract in the procurement documents in detail before tendering, especially key clauses such as pricing mechanism, price adjustment possibilities, sludge quality standards (dry matter ≥18%), reception and measurement procedures, allocation of environmental compliance responsibilities, etc.