CMC rejects contract signed between Chisinau City Hall and “EPA MEDIA”

The Chisinau Municipal Council (CMC) did not approve at Tuesday’s sitting the contract signed between the Chisinau City Hall and the Austria-based “EPA MEDIA” Company under a public-private partnership designated to build and illuminate omnibus stops, with the right for the contractor to post outdoor advertising. The project was rejected by the majority of municipal councillors, both communist and those from the factions “Moldova Noastra” Alliance (AMN) and Social Action Bloc. The councillors considered that former interim mayor Vasile Ursu exceeded his authority when signing this contract. CMC decided on November 28, 2006, to announce an investment tender for construction of bus stops, designating a tender commission, which was to present to councillors the Regulations on visual advertising in Chisinau and consider EPA MEDIA’s bid. According to AMN councillor Oleg Cernei, ignoring the deadline set for the tender, as well as CMC’s decision, Ursu concluded the contract with “EPA MEDIA” and offered the firm the right to set up 1500 large billboards, 600 smaller billboards and signboards throughout Chisinau municipality, the quoted source said. Also, the councillors mentioned that Ursu had no right to sign this contract without the CMC’s consent, as the allotment of the land for building bus stops are reserved to the competence of the CMC and not of the City Hall. Moreover, they say, the councillors did not entrust Ursu to sign this contract. Oleg Cernei also claims that “EPA MEDIA” won the bid due to a lobby from councillors Mihai Severovan and Victor Odobescu, the presidential advisor Sergiu Mocanu being involved as well. In retort, Mihai Severovan stated that he was not part of the tender commission and he was just invited by Vasile Ursu to share his opinion on the opportunity to conclude the contract, as an expert in investments. As he states, investment tenders were announced twice but in both cases only this company participated, committing itself to invest about EUR 3 mln in Chisinau municipality. Councillor Mihai Roscovan said that the contract’s cancellation may damage Chisinau’s image, however it can not be signed without the CMC’s acceptance. Vice mayor Alexandru Corduneanu mentioned that the municipality could reach an agreement with “EPA MEDIA” to avoid the contract’s cancellation, by amending it to eliminate some clauses unaccepted by CMC. Earlier, the Association of Advertising Agents in Moldova requested Chisinau City Hall to annul the contract with “EPA MEDIA”, stating that this contract might corner the entire outdoor advertisement industry in the capital. The advertising agencies were indignant that they did not receive any invitation to the investment tender, except a formal one that reached them on the last day of the tender.