Guarantee

The winning company will provide Ecoembes an economic guarantee, in the form of a bank guarantee (or another equivalent bank guarantee), a guarantee deposit or a credit and surety insurance policy, for the fulfillment of its obligations pursuant to the Contracts that are published on the Ecoembes website.

The bank guarantee delivered by the winning company to Ecoembes must be issued in Spain, meaning the bank must operate as such in Spain.

In the case of a security deposit, the amount will be delivered to Ecoembes as a guarantee of the payments resulting from the contracts.

The nature of these deposits will exclusively be to provide a guarantee if the winning company fails to satisfy its payment obligations to Ecoembes, as reflected in the Contracts. They may not be considered in any case as an advance payment for the delivery of goods or provision of future services.

Ecoembes will not be able to claim or access the amounts deposited as collateral, unless the winning company is in breach of its payment obligations. In any other case, ECOEMBES must fully refund them upon completion of the payments associated with the Contracts.

ECOEMBES will reduce the amount of the bank guarantees, credit and surety insurance or deposits that recyclers must provide as a guarantee of compliance with their obligations pursuant to the contracts they sign with ECOEMBES. Specifically, recyclers may choose between: (i) issuing a bank guarantee or deposit equivalent to 100% of the turnover expected from the corresponding contract; (ii) issuing a bank guarantee or deposit equivalent to 90% of the turnover expected from the corresponding contract; (iii) purchasing credit and surety insurance from an insurance company registered with the General Directorate of Insurance for 100% of the turnover expected from the corresponding contract; or (iv) purchasing credit and surety insurance from an insurance company registered with the General Directorate of Insurance for 90% of the turnover expected from the corresponding contract. In cases where the guarantee/deposit or the credit and surety insurance covers 90%, the recycler must first have been positively evaluated by an independent third-party credit insurance company with a valuation rating higher than BBB+, as per the main risk rating agencies on the market (i.e., A.M Best, Moody's, EthiFinance Ratings and Standard & Poor's). The financial  solvency assessment indicated will be valid for one (1) year.

Modification/Cancellation/Withdrawal of bid

The bids submitted may not be modified or withdrawn either in the Initial Period or in the Second Period.

However, if a Bidder requests to Ecoembes to cancel or withdraw the bid it submitted, after the end of the Second Period, it will be cancelled.

If the cancellation or withdrawal request is made by the Bidding Company to which the Final Award is granted, but before the Award Certificate is issued:

• The Final Award will be made at the next best price.
• The penalty indicated in the penalty table for each award declined will be applied as compensation.

If a winning company declines an award after the publication of the Award Certificate (but before entering into the corresponding contract), or is unable to secure the appropriate financial guarantee (bank guarantee or deposit), as specified in the Rules of the Call, in keeping with the established procedure:

• A new call for tenders will be issued.
• The economic penalty specified in the penalty table will be applied.

In any of these cases, no bids from said company will be accepted, either for material from light packaging, or for material from residual waste, until the penalty for the material declined is paid. This measure shall not apply to calls for tenders for other materials for which said company may apply.
 

Penalty

For declining or cancelling an award

If a winning company declines an award once it is notified, or is unable to secure the appropriate economic guarantee (bank guarantee or deposit), in keeping with the established procedure, a new call for tenders will be issued.

In any case, a penalty in the form of compensation will be applied. The following table shows the compensation stipulated for each award that is declined.

These amounts may be reviewed before each call for tenders and will be specified in each call for tenders document.

No bids from said company will be accepted, either for material from light packaging, or for material from residual waste, until it pays the penalty for the material declined. This measure will also apply to the approved company if the bidding company is a trader. This measure shall not apply to calls for tenders for other materials for which said company may apply.

For terminating a contract

The penalty established in each call for tenders document will be applied as compensation, both whether the winning company requests to rescind a contract, or if a contract is terminated, due to any of the circumstances referred to in sections a, b, c, d, e, f and g of Clause 8 of the standard contracts.

No bids from said company will be accepted, either for material from light packaging, or for material from residual waste, until it pays the penalty for the material declined. This measure will also apply to the approved company if the winning company is a trader. This measure shall not apply to calls for tenders for other materials for which said company may apply.

Penalty Regime for Infringement in Identification Documents

The winning company must sign an identification document that accompanies each shipment. To this end, the Ecoembes award contracts include in Clause Three, Section 3.2, the obligations of recyclers/recovery operators in relation to the completion of said identification documents.

If any infringement is detected due to the non-formalization of the identification document, or to its inadequate completion by the winning companies, the following penalty regime has been established:

• 1st occurrence: Notification of the incident detected.
• 2nd occurrence: Financial penalty (10,000 euros). Rejection of bids for the material involved in the violation, whether light packaging or SUW, until the penalty is paid.
• 3rd occurrence: Financial penalty (20,000 euros). Rejection of bids in the next call for the material involved in the violation, whether light packaging or SUW. For following calls, rejection of bids for the material involved in the violation, whether light packaging or SUW, until the penalty is paid.
• 4th occurrence: Termination of the contract(s) affected (Plant/Area).
• 5th occurrence: Withdrawal of the approval for the affected material for 6 months, and termination of all affected contracts.

Incidents will be cumulative for each material, regardless of the contract they affect.

Register of penalties

The updated register containing the list of penalties in force older than 12 months is available by clicking here (spanish version).