Subject: „Future cooperation between WB i PPA of Montenegro in the ares of mutual interest“

To the request of the WB representative the meeting between Ms. Kashmira H. Daruwalla, Team Leader to the Region of the East Europe and Mr Nikola Kerleta, Public Procurement Expert, and the Public Procurement Administration on behalf of which stood its Director DSc Mersad Mujevic and his associates Assistent Director Mara Bogavac, The Head of Department for professional development, training and international cooperation MSc Sandra Škatarić and the Senior Adviser Ljiljana Nikolić held on November 24, 2014.
Main reason for this meeting was the appointment of Ms Kashmira H. Daruwalla for the new Team Leader to the Region of the East Europe on projects financed by the World Bank as well as introducing guests to the solutions brought by the new Law on Public Procurement (PPL) and the public procurement procedures being implemented in Montenegro since January 01, 2012.
Director of the PPA reminded of the continuous and successful cooperation with the World Bank from the point of fruitful exchange of information.
With reference to the previous Law on Public Procurement dated from 2011, PPA Director pointed to the need for adoption of the new legislative which is to the highest extent possible harmonized with the EU legislation.
Motif to the further harmonization derived from the key decisions of the Agreement on Stabilization and Association to the European Community and its member states as well as from the regular reporting to the European Commission on the progress Montenegro achieved in this area for the period 2013 and 2014.
Public Procurement is one of the areas in which the Government of Montenegro makes significant progress, tending to create comprehensive new legislation and institutional framework. Reform in the public procurement sector is the integral part of the wider context to the process of further liberalization and internal market opening, public administration reform and the public finance management development.
Public Procurement is an important part in Montenegrin economy. Public Procurement total value in last 4 years was in average something around 15% of GDP.
During their discussion the PPA Director, Mr. Mersad Mujević highlighted as very significant the non-existence of the preferential treatment for foreign businesses to participate in tenders in Montenegro in relation to domestic bidders, which is in accordance with the Article 35 of the WTO Agreement.
New PPL offers a number of new solutions related to the following:
• Cost-effectiveness and efficiency in using public funds;
• Transparency of the procedures;
• Prevention of abuse in the use of public funds;
• Etc.
 
In addition to these essential improvements, new Law also designed tools for acquiring objectives to the other secondary policies as: protection and conservation of nature, respect for social and ethical point of view in society and nature, encouraging innovation and development of new products and technologies, as well as the development of small and medium-sized enterprises.
It is important to mention that in the current reporting period, the percentage of open procedures in public procurement is in average a little more than 90 %; Also, the intensity of competition in the proceedings is somewhat more than 4.5 bidders per tender and the average contract conclusion in Montenegro is around 5,000 contracts annually.
Public Procurement Administration stated that all statistics starting from 2007 could be found on its portal with the following web address: www.ujn.gov.me/izvjestaji.
World Bank representatives shared experiences out of their international practice and on the basis of the statements received from the PPA representatives they reached the conclusion on the good quality and harmonized Public Procurement Law as well as on highly advanced system of electronic publication of notices grounded on the new software solution. In the course of the visit, Officers in the PPA held presentation on the Portal to the WB representatives.
It is planned to continue the dialogue on specific projects through various forms of technical assistance.
At first place the assistance will include professional development and training for both contracting-authorities and the bidders especially from the point of the proper management of public contracts.
Secondly, necessary assistance related to the hardware equipment was concluded, and
As the third one, expert assistance on preparing the new Strategy for development of the public procurement system for the period 2015-2018.
WB representatives attentively listen to the proposed models of assistance expressing their willingness to be involved in its completion.
During the meeting, PPA Director introduced the WB representatives to the solution of the Strategic document on Public Procurement in Montenegro for the period 2011-2015 as well as to the process of the European Integration and the upcoming membership of our country to this association.
An unavoidable issue was the recent accession of Montenegro to the Agreement on Government Procurement in the WTO, 29 October 2014. Accession to the Agreement required the existence of a harmonized domestic legislation with EU Directives.
Representatives of the Public Procurement introduced our distinguished guests with the WB and PPA MNE Project from 2013 concerning the assessment of public expenditure and financial reliability (PEFA) in Montenegro, in terms of public procurement. On this occasion, Director Mujević presented the basic indicators of the mentioned Study that can be read on the Portal of the Public Procurement in MNE with the following web address: www.ujn.gov.me/publikacije, published in Montenegrin and the English language.
 
PR PPA MNE