GOVERNMENT OF GOVERNMENT OF MONTENEGROMONTENEGRO

Public Procurement Public Procurement DirectorateDirectorate

Speakers:Speakers:

Mersad Z. Mujević, Mersad Z. Mujević, Director of the Public Procurement DirectorateDirector of the Public Procurement DirectorateSandra Krstović, Sandra Krstović, Independent counselorIndependent counselor

M O N T E N E G R OM O N T E N E G R O

Montenegro is a state with a republican form of government, situated in the South-Eastern Europe.  Its independence was declared on 3 June 2006, by withdrawal from the state union with Serbia, therefore, it is one of the youngest European countries.

Montenegro is administratively divided into the Capital (Podgorica), composed of two urban municipalities (Golubovci and Tuzi), Old Royal Capital (Cetinje) and 19 municipalities.

Montenegro lies in the southwestern part of the Balkan Peninsula and out to the Adriatic Sea, so it is both Balkan and Adriatic-Mediterrranean country.

According to the Census of population, households and dwellings in 2011, there are 625 266 inhabitants living in Montenegro.

Real GDP growth in 2010. amounted to 2.5%. In this communication, there are published the results of calculation of the Gross Domestic Product (GDP) in Montenegro in 2010, according to the buying and production methods, at current and constant prices. Results of calculation for 2010 are based on the data sources that are comprehensive and fully comparable with the results of the calculation of GDP for 2009.

Gross domestic product of Montenegro in 2010 was 3 104 million euro, while in 2009 it was 2 981 million euro.

Gross domestic product per capita in 2010 amounted to 5006 euro, while in 2009 it amounted to 4 720 euro.

TOTAL PUBLIC PROCUREMENT IN 2010

• In the procedures of public procurement of goods, services and awarding work assignments in Montenegro, in 2010 there was contracted a total amount of EUR 376 260 499,89 or approximately 12,14% of total GDP (EUR 3,1 billion).

• In 2009, this share in the total GDP of Montenegro amounted to 14.43%.

• In 2008, the share in total GDP was 16.11%.

• In 2007, the share in total GDP was 18.92%.

• The number of registered contracts concluded in 2010 amounted to 5229, as compared to 2007, that shows a substantial increase in the number of the same.

PROCESS OF EUROPEAN INTEGRATION OF MONTENEGRO

• The Stabilization and Association Agreement (SAA) with Montenegro came into force on 1 May 2010.

• Entry into force of the SAA means entering a new phase of integration, which has now formally obliged Montenegro to align its legislation with the acquis, as well as to conduct the alignment of attitudes and policies in all areas of cooperation.

• Montenegro is now a candidate for EU membership.

PUBLIC PROCUREMENT LAW OF MONTENEGRO

• The current Public Procurement Law of Montenegro is harmonized with the Directive 2004/18/EC for classical procurement sector and Directives 89/665/EC and 92/13/EC in the rights protection area.

• Directive 2004/17 for the utilities sector was included in the Law under the same conditions in ternms of contract award that apply for the classical sector, which means that the contract award procedure for utilities is conducted under the same conditions as for the classical sector, that is, the Law does not make any distinction in terms of special features (simplification) of the procedure for utility services .

• This regime in Montenegro is stricter compared to the standards of the European Union.

PUBLIC PROCUREMENT LAW OF MONTENEGRO

• In accordance with Article 76 of the SAA, the Public Procurement Law provides the access to the award of contracts in Montenegro to the EU business organizations founded in Montenegro or abroad, under the same conditions applied to the Montenegrin business organizations, which is also in line with Article 35 of the CEFTA Agreement 2006 and Articles 34, 35 and 36 of the Agreement on changes and accession to the Central European Free Trade Agreement.

PUBLIC PROCUREMENT SYSTEM DEVELOPMENT STRATEGY 2011-2015

• MONTENEGRO HAS PREPARED AND SUBMITTED TO THE GOVERNMENT FOR CONSIDERATION A STRATEGY FOR DEVELOPMENT OF THE PUBLIC PROCUREMENT SYSTEM FOR THE PERIOD 2011 – 2015.

• THE STRATEGIC DOCUMENT CONTAINS THE FOLLOWING CHAPTERS:

1. Legislative framework2. Institutional framework and administrative capacities3. Professional training in the public procurement area4. Prevention of corruption in the public procurement area5. Development and enhancing of electronic communications in public

procurement

PUBLIC PROCUREMENT SYSTEM DEVELOPMENT STRATEGY

• Montenegro has, in accordance with the Government’s Action Plan and recommendations by the European Union, forwarded the Strategy to the Government, in which all the above mentioned components will be further strengthened from the aspect of dynamics of the public procurement system development as well as the commitments arising from the membership of Montenegro in the EU .

Preparation of the new Public Procurement Law

• The European Union consultants participated in preparation of the new Law within the IPA 2007 project ‘’Further Development and Strengthening of the Public Procurement System in Montenegro’’, which was completed in January 2011.

• The goal of a complete legislative regulation of public procurement system is to ensure the legality of spending public funds in accordance with clearly defined procedures aligned with the Directives and standards of the European Union.

Fulfillment of obligations of Montenegro in the process of EU accession

• Obligation of adoption of the new Public Procurement Law was derived from the Work Program of the Government of Montenegro for 2011, as well as from the commitments contained in the National Program of Inegration (NPI) of Montenegro into the EU.

• The Public Procurement Law has a preventive role against corruptive actions, as well as the repressive role through providing for authorization to impose sanctions.

• The new PPL allows the access to contract awards to the bidders from EU, founded in Montenegro or abroad, under the same conditions applied to the Montenegrin bidders – the principle of freedom of the open market (Article 76 SSA).

Harmonization of the Public Procurement Law with the EC Directives

• Directive 2004/17/EC for the utilities sector is fully incorporated in the new Public Procurement Law

• New PPL incorporates the Directive 2004/18/EC for classical sector even more consistently and more completely.

• Also, the new Directive 2007/66/EC in the rights protection area has been incorporated into the new PPL.

The improvements made by the new Public Procurement Law

• Definition of the parties covered by the application of the procurement regulations

• Exemptions to the application of the regulations• Clear distinction and positioning of institutions in charge of

performing tasks in the public procurement area• Clearer and more complete definition of specific procedures for

conducting the public procurement procedures• Establishing the obligation of all contracting authorities to adopt and

publish procurement plan• Clearer determination of the estimated value of public procurement• The introduction of a common procurement vocabulary (CPV),

which will be regularly updated and published on the Public Procurement Portal of the Public Procurement Directorate

• The institutionalization of professional training and education in public procurement area, certification and taking of professional examination in accordance with the special legal regulation

The improvements made by the new Public Procurement Law

• Performance of the inspection control in the area of public procurement by the authorized officials - Inspectors of the Public Procurement Directorate

• Taking appropriate concrete measures to eliminate irregularities and applying for a misdemeanor liability

• Introduction of fees to pay for legal costs and fees for the proceedings of rights protection, as well as

• Improving the clarity of legal provisions - the use of certain expressions and terms

THANK YOU FOR YOUR ATTENTION!