FAS will conduct a large-scale analysis of the state of competition on the market of road construction
The relevant requests are already sent to the Ministry of Transport, Rosavtodor [the Federal Road Agency], “Avtodor” State Corporation and the regions
FAS started analyzing the state of competition on the market of road construction, reconstruction and capital repair in 2015-2016.
This year the survey for the first time will cover the construction market for not only federal roads by also municipal and local roads. To this purpose, FAS Central Office drafted and forwarded special guidelines to the regional Offices of the Antimonopoly Service. Relevant requests also were sent to the Ministry of Transport of the Russian Federation, Rosavtodor [the Federal Road Agency], “Avtodor” State Corporation. The first obtained data are already being processed.
In 2015 FAS carried out a detailed analysis of the market of construction (reconstruction) of federal roads in 2013-2014. A trend was exposed towards increasing the share of the largest players on the market. The three biggest contractors - “MOSTOTREST” PJSC, “VAD” CJSC and “Transstroimekhanizatsia” Ltd.) - controlled 47% of the market in 2014 against 34% in 2013.
FAS also found that in 21.7% tenders for road construction (reconstruction) with limited participation only 1 bid was allowed to participate. One of the most frequent reasons for rejecting other participants was that their equipment did not meet the customer’s requirements.
Deputy Head of FAS Rachik Petrosyan commented: “Setting excessive requirements on materials resources and equipment that may not even be related to or be insignificant for construction, customers form a possibility to reject applications and keep exclusively the “needed” procurement participant. It shows that tenders for road construction are nontransparent, so it’s no a coincidence that the same companies remain the winners”.
Analyzing the capital road repair market, FAS will study data not only on procurement under Nos. 44-FZ and 223-FZ Federal Laws, concessions and state-public partnership in road construction but also the number of public (municipal) buildings, works carried out directly by general contractors and their sub-contractors, as well as information for how much the construction price reduced after expert examination of project documentation and summing up tender results.
Now only information about the works that had been actually carried out and paid will be registered, which will eliminate a margin error caused by double accounting.
The findings of the analysis of the state of competition on the market of road construction, reconstruction and capital repair in 2015-2016 will be summed up in Q4 2017.