Public Procurement Agency

Public Procurement System in Bosnia and Herzegovina

Harmonization of Legislation with EU Directives

• Bosnia and Herzegovina is the only country in the Western Balkans that did not incorporated Directives 2004/17EC, 2004/18EC, 2007/66EC and 2009/81EC;

• All Western Balkan countries gradually harmonized regulations;

• The requirements of the SAA are harmonization with the Utilities Directive and the Remedies Directive;

• The only obstacle for the adoption of harmonized regulations is the politics;

• Every observed weakness of the system, does provide opportunities for corruption.

Activities regarding the Legal framework

•Proposal of the new Draft Law on Public Procurement is in the Parliament for the adoption;•OECD-SIGMA is involved in the entire process of drafting of the new Public Procurement Law text, and it follows the process of an adoption and provides assistance to the Public Procurement Agency;•EU consultants made comments and recommentation regarding the text of the Law, although the NGO sector is not satisfied with the SIGMA’s comments;•The World Bank and the European Bank for Reconstruction and Development supported the proposal of the Law;

Activities regarding the Legal framework

• The Proposal of the Public Procurement Law introducing new procurement procedures, as follows:• The qualification system for contracting authorities from Utility

Directives;

• Competitive Dialogue;

• Dynamic purchasing system.

Activities regarding the Legal framework

• A large number of secondary legislation;

• Requires engagement and additional human resources;

• IPA project that should assist in the preparation of secondary legislation and organize training that shall be carried out by certified trainers;

• To prepare training for all user groups and to update training materials developed within the Regional Project ToT.

GO PROCURE & WISPPA• An electronic publication of procurement notices;

• Capacity to create different statistical reports about the execution of the public procurement procedures;

• At the moment, there is the system analysis for integrating the WISPPA system into the platform of Public Procurement Portal;

• At the moment there is on going testing phase of the e-tendering;

• It is necessary to prepare 5 new forms of notifications;

• Development of e-auction and procurement of the necessary equipment;

• Technical support from GIZ up to 2017 when it is essential to finalize the electronic procurement system.

Register for Contract authorities and Tenderers

• On 01.02.2013, Guidelines for the methods of entry into an Electronic Register for contracting authorities and tenderers in Bosnia and Herzegovina, entered into force;

• In terms of market research, the Register is an additional tool for contracting authorities;

• Presentation and promotion of activities, carried out by tenderers;

• An increasing number of tenderers are registering and thus database creates, and it shall be used by all actors in the Public Procurement system;

• Other institutions shall use it as well.

Other activites of PPA

• Additional training of the trainers from the List, organized along with recertification of existing trainers (with the support from GIZ), completed in October 2013;

• Promotion of new training materials, prepared by SIGMA and representatives of Institutions from the Region;

• Web platform for re-certification of Procurement officials functional;

• The implementation of the Project's an internal and an external communications together with the adopted PPA’s Communication Strategy - very important element for promoting not only PPA but its competence as well.

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Other activites of PPA

• The Public Procurement Agency adopted an Action Plan for the Fight Against Corruption in Public Procurement Agency;

• Other activities are Planned and these does not depend on the PPA, thus the implementation of these activities depends on the decision-making of higher levels;

• Sound recording of telephone consultations introduces, with introducing those who calls and those who gives the answer. These recordings shall be available to the PPA only and possibly to the court for proceedings (obtained approval from the Personal Data Protection Agency).

Annual Report 2012 - total number of awarded contracts Chapters II and III

Annual Report 2013 - total number of awarded contracts Chapters II and III

•The Public Procurement Agency prepares an Annual Report about the awarded contracts in public procurement procedures;

•Unofficial data about awarded contracts from Chapters II and III as follows:

•Institutions of BiH 100.484.016,54 KM or 5 %

•Federation of BiH 1.422.289.704,40 KM or 69 %

•Republic of Srpska 433.989.591,04 KM or 24 %

•Brcko District of BiH 35.904.329,63 KM or 2 %

Annual Report 2012 – participation per subject matter

Annual Report 2013 – participation per subject matter

Unofficial data:

Supplies 1.286.066.171,67 KM or 57,35 %

Services 564.635.326,69 KM or 25,17 %

Works 392.048.703,92 KM or 17,48 %

Annual report about awarded contracts for 2012- 20 largest awarded contracts

Annual report on awarded contracts – Chapter III

Annual Report about awarded contracts for 2013 – Chapter 2013

Unofficial data about awarded contracts from Chapter III as follows:

Institutions of BiH 21.394.743,47 KM or 6,19 %

Federation of BiH 198.706.266,39 KM or 57,51 %

Republic of Srpska 119.549.596,75 KM or 34,60 %

Brcko District BiH 5.848.498,60 KM or 1,70 %

2012 Monitoring

Conclusion

• The best option for improving the overall Public Procurement system is the adoption of the new text of the Law;

• Would solve most of the problems observed in the practice (including supply maintenance and installation of spare parts, airline tickets purchase, purchase of medicines and reagents in the health sector, etc.);

• It would implement the obligations from the SAA and the European Partnership;

• Would make the work of officials in public procurement easier, and thus they would be more focused on other segments that are not part of public procurement procedures itself, but they are an inseparable part of the business processes chain;

• To finally move it from rear of the regional harmonization process in the area of public procurement.

Đinita Fočo

Thank You for Your Attention!