Art. 7. Contracts and concessions awarded to an affiliated undertaking

1. Notwithstanding Article 5 and provided that the conditions in paragraph 2 are met, this Code shall not apply to concessions and contracts awarded in the special sectors by a contracting entity to an affiliated undertaking or to a joint venture, formed exclusively by a number of contracting entities for the performance of activities described in Articles from 115 to 121 and in Annex II to an undertaking that is affiliated to one of those contracting entities.

2. Paragraph 1 shall apply to services and works contracts and concessions, as well as to supplies contracts, provided that at least 80% of the average total turnover of the affiliated undertaking over the preceding three years, taking into account all the services, works and supplies provided by that undertaking, derives from provisions to the contracting entity or to other undertakings to which it is affiliated.

3. Where, because of the date on which an affiliated undertaking was created or commenced activities, the turnover is not available for the preceding three years, it shall show by means of business projections that the turnover referred to in of paragraph 2 is credible.

4. Where more than one undertaking affiliated with the contracting entity with which they form an economic group provides the same or similar services, supplies or works, the percentages shall be calculated taking into account the total turnover deriving respectively from the provision of services, supplies or works by each of those affiliated undertakings.
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