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Sixth Regional Public Procurement Forum DEVELOPMENTS AND REFORMS IN PUBLIC PROCUREMENT SYSTEM IN KOSOVO: THE FIRST DECA

Sixth Regional Public Procurement Forum DEVELOPMENTS AND REFORMS IN PUBLIC PROCUREMENT SYSTEM IN KOSOVO: THE FIRST DECADE April 2010 Istanbul - Turkey. Public Procurement in Kosovo.

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Sixth Regional Public Procurement Forum DEVELOPMENTS AND REFORMS IN PUBLIC PROCUREMENT SYSTEM IN KOSOVO: THE FIRST DECA

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  1. Sixth Regional Public Procurement Forum DEVELOPMENTS AND REFORMS IN PUBLIC PROCUREMENT SYSTEM IN KOSOVO: THE FIRST DECADE April 2010 Istanbul - Turkey Mr.Sc.Ilaz Duli,President of PPRC

  2. Mr.Sc.Ilaz Duli,President of PPRC

  3. Public Procurement in Kosovo • Public procurement origin in Kosovo dates since December 1999 (Financial Administration Instruction in Kosovo, No. 2/1999) • Two factors have influenced on its achievements: • International experts who have worked in Kosovo b) Trainings of the Kosovar procurement officers outside and inside the Kosovo Mr.Sc.Ilaz Duli,President of PPRC

  4. The Law on Public Procurement in Kosovo ( No. 2003/17 ) • IAF No. 2/1999 that has established public procurement system in Kosovo has been in force since December 1999 until June 2004 • The LPP No.2003/17 has entered into force on July 9th , 2004 • The Law in a great amount intends decentralization • With this Law, procurement institutions in a great amount get independent • Two Central Procurement Institutions are established : - Public Procurement Regulatory Commission (PPRC) - Public Procurement Agency (PPA) • Procurement departments are established through all municipalities, ministries, reserved Institutions as well as public utilities companies Mr.Sc.Ilaz Duli,President of PPRC

  5. The amendment of LPP • Working group established by the Prime Minister’s Office during 2006 has accomplished the amendment of LPP • The Assembly of Kosovo has finally approved 100 amendments in PP, on February 8th, 2007 • SRSG has signed and promulgated the amended LPP on June 6th, 2007 and has entered into force on this date known as the Law No.02/L-099 Mr.Sc.Ilaz Duli,President of PPRC

  6. The intent of LPP amendment • The reform of public procurement institutional structure in Kosovo based on the requirements that come from the EC Procurement Directive No. 17/2004 and 18/2004; • A new independent procurement Body is established known as Procurement Review Body (PRB), • Number of the PPRC Board Members are reduced from five to three members; • Number of the PPA Board Members are reduced from three to one member; • Tendering deadlines are reduced for 25% in order to efficiently accomplish the procurement activities; Mr.Sc.Ilaz Duli,President of PPRC

  7. The intent of LPP amendment • PPRC has the competence to prepare and promulgate all secondary legislation on public procurement • Training and certification of the kosovar procurement officers are transfered to the Kosovo Institution for Public Administration supported by the PPRC; • Number of the procurement procedures are reduced from seven to six procedures • Within the PPRC the official electronic web-site for public procurement in Kosovo has been established (www.ks-gov.net/krpp). In this web-site shall be published all information on public procurement in Kosovo. Mr.Sc.Ilaz Duli,President of PPRC

  8. ORGANISATION OF PUBLIC PROCUREMENT SYSTEM IN KOSOVO According to the amended LPP of Kosovo are established three central procurement institutions: - PUBLIC PROCUREMENT REGULATORY COMMISSION(PPRC) - PUBLIC PROCUREMENT AGENCY ( PPA ) - PROCUREMENT REVIEW BODY (PRB) Within all contracting authorities of Kosovo are established the procurement departments Mr.Sc.Ilaz Duli,President of PPRC

  9. Public Procurement Regulatory Commission • PPRC is managed by the Board which is comprised of 5 members (3 in the future) which are nominated by the Government and appointed by the Assembly of Kosovo, for a mandate of five years • PPRC is responsible for overall development, operation and supervision of public procurement system in Kosovo • Prepare and promulgate all secondary legislation on public procurement • Establish and maintain the electronic web-site on public procurement in Kosovo • Cooperate with other organizations at home and abroad on public procurement field • Prepare and submit to the Government and the Assembly an annual report on public procurement activities and recommendations for the improvement of the public procurement system Mr.Sc.Ilaz Duli,President of PPRC

  10. Public Procurement Agency (PPA) • PPA is established within the Government of Kosovo • From June 30th, 2009, PPA is administered only by the Executive Director • Leads and accomplishes long-term contracts, that are used by two or more contracting authorities (if authorized by the Government) • Carries out procurements activities on behalf of contracting authorities when dealing with complex cases (according to the requirement of the CA) • Approves the use of negotiated procedures without the publication of the contract notice, based on the CA request • Approves Waive of section 30A.4 of the LPP, when CA receives less than three responsive tenders Mr.Sc.Ilaz Duli,President of PPRC

  11. PROCUREMENT REVIEW BODY (PRB) • PRB is managed by the Board of five members that are nominated by the Government and appointed by the Assembly of Kosovo for a mandate of five years • PRB has these functions and competences: • Reviews all complaints addressedto the PRB in public procurement field regarding the eventual violations of the LPP • Conducts investigations by self initiative or by the request of any party involved in the procurement process regarding any irregularity during the conduction of the procurement activities • For each year reports to the Assembly of Kosovo on the operation of the procedures of complaints review. • Against the PRB decisions can be filed a complaint to the Supreme Court of Kosovo Mr.Sc.Ilaz Duli,President of PPRC

  12. Procurement departments of the contracting authorities • According to the LPP through all municipalities, ministries of the Government of Kosovo and public utilities companies should be established the procurement department of the CA • In December 31st, 2009 in Kosovo have existed 152 CA with about 424 procurement officers • According to the LPP the procurement department of the CA is completely independent in the conduction of the procurement activities. • Almost from all procurement laws of the European countries, LPP of Kosovo, gives most competences to the procurement manager. • Only the procurement manager has the competence and is authorized to sign the procurement contract regardless the value. • The procurement manager must posses validprocurement professional certificate issued by the KIPA and PPRC. Mr.Sc.Ilaz Duli,President of PPRC

  13. Secondary Legislation on procurement • Secondary legislation on procurement in accordance with the amended law No. 02-L/99 has been entirely completed • At the end of 2007 by the PPRC were approved 16 sublegal acts that deal with all types of contract notices, Procurement Code of Ethics and Declaration under oath, whereas has entered into force on January 1st, 2008. • During July 2008 were promulgated all tender dossiers for all procurement procedures that have entered into force on August 1st, 2008. • During 2009, 9 procurement manuals are finalized and had entered into force on August 01st, 2009. Mr.Sc.Ilaz Duli,President of PPRC

  14. Training of the procurement officers • Training of the procurement officers during 2009 was organized by KIPA in cooperation with the PPRC, • By the Law all procurement officers should attend 10 days training within a year. • During 2009 were trained 424 procurement officers that work in 152 contracting authorities in Kosovo. • It is required to raise the number of the procurement officers trained in the CA in the future and to look at the training possibility of the procurement officers in the private sector. Mr.Sc.Ilaz Duli,President of PPRC

  15. The establishment of the procurement official web-site • PPRC in 2007 with the support of the EAR has established the official electronic web-site for public procurement in Kosovo: www.ks-gov.net/krpp • In this web-site shall be published all informations regarding the public procurement in Kosovo. • Within a day are published about 60 notices of all types Mr.Sc.Ilaz Duli,President of PPRC

  16. Public procurement activities in Kosovo for 2009 • Number of signed contracts in Kosovo conducted according to the LPP during 2009 is 14.820, • The budgetary value is 778.153.515,oo € , • The budgetary value for the procurement in relation to GDP = 19.86 % Mr.Sc.Ilaz Duli,President of PPRC

  17. Procurement procedures used during 2009 • Open procedures = 84.86 % • Restricted procedures = 0.00 % • Negotiated procedures = 11.21 % • Price quotation = 3.22 % • Minimal value procedures = 0.49 % • Design contest = 0.22 % It is required that Contracting Authority in future use the restricted procedure most of the time. Mr.Sc.Ilaz Duli,President of PPRC

  18. Budgetary savings • Number of contracts = 14.820 • Planned amount = 804.131.958,oo€ • Contracted amount = 778.153.515,oo € • Savings = 25.978.443,oo € • Savings in percentage = 3.34 % Mr.Sc.Ilaz Duli,President of PPRC

  19. Signed contracts according to the local and foreign EO according to the budget • Local economic operators = 665.339.300.oo(85.5%) • Foreign economic operators = 112.814.214.oo (14.5%) ===================================== • Total:= 778.1583.515.oo(100 % ) Mr.Sc.Ilaz Duli,President of PPRC

  20. Complaints in public procurement during 2009 • Number of received and reviewed complaints in the PRB’s Review Panel is = 457 • From all reviewed complaints were taken these decisions : • Approved decisions = 219 ( 48 % ) • Decision for re-evaluation = 73 ( 16 % ) • Rejected decissions = 55 ( 12 % ) • Uncopmleted complaints = 96 ( 21 % ) • Withdrawn complaints = 14 ( 3 % ) • The percentage of the complaints in comparison to the number of procurement activities conducted in Kosovo for the contracts with low,medium and large values during 2009 is 5.03 %. Mr.Sc.Ilaz Duli,President of PPRC

  21. University studies in Kosovo in public procurement field • University studies in Kosovo in public procurement field in master degree have started in December 2005, in University for Business and Technology in Pristina in cooperation with University of Technology in Vienna • The first generation has completed their studies in June 2007, whereas six students have successfully completed their Master Thesis • Now the second and third generation are continuing to study in public procurement in master degree • For the Bachelor degree, the studies for public procurement will continue in October this year in the same University. Mr.Sc.Ilaz Duli,President of PPRC

  22. Book on public procurement in Kosovo • The title is “Public Procurement in Kosovo” • This book is prepared in Albanian and English languages (1000 copies per language), • Treats the establishment and development of public procurement system in Kosovo since the beginning -1999 until December 2007 • The book is published on December 2008 Mr.Sc.Ilaz Duli,President of PPRC

  23. Reforms on Public Procurement System in Kosovo • The government of Kosovo with technical assistance of ECLO in Prishtina, in February 2010 appointed a working group to rewrite or amend the Law on Public Procurement No.02/L-99. • This working group, received in total 177 proposals LPP improvement, from central and local contracting authorities, public utilities companies, Kosovo Economic Chamber, NGO’s etc. Mr.Sc.Ilaz Duli,President of PPRC

  24. Amendment characteristics are related to: • Reforming of public procurement system in Kosovo. • Amendment of LPP in part that covers the procurement activities of public utilities sector, based on procurement Directive EC No. 2004/17; • Review of complaints on public procurement to be matched with the EC Procurement Directive no. 2007/66; • To regulate the contract implementation phase of the procurement process by LPP; • Changing the Article 23, no. 02/L-99 of the LPP is related to training of procurement officers; • Further promotion of the official electronic web site of public procurement in Kosovo; •  The working group foresees that by the end of June 2010, to finish the draft of LPP. Mr.Sc.Ilaz Duli,President of PPRC

  25. The challenges in public procurement system in Kosovo • Pressure upon the procurement officers during the performance of procurement activities, especially in the award of contracts. • The high turnover of procurement officers in the contracting authorities. • A low number of licensed procurement officer in Kosovo, compared with available budget for procurement • The continuing nomination of persons without procurement experience into main positions of the procurement departments , that make many difficulties in implementation of the LPP • Far too much use of the negotiated procedures without publication for contract notice for single source procurements. Mr.Sc.Ilaz Duli,President of PPRC

  26. Faleminderit Mr.Sc.Ilaz Duli,President of PPRC

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