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Public Procurement – Institutional framework

Bonifacio Garcia Porras, DG GROW.G2

06/12/2018

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Challenges

Stable legal framework through alignment with the EU Directives

Develop a functioning institutional framework

Fight against corruption

Introducing greater efficiency in public procurement

Stable legal framework – good quality legislation that it is not and does not requires several amendments per year

Institutional framework – institutions having the appropriate attributions, properly train staff and appropriate budget

According to a stud, the costs of corruption was estimated at around 3.7 % of procurement expenditures. Using this as a conservative ballpark estimate, this indicates that just out of the EUR 420 billion advertised at EU-level annually around EUR 16 billion are wasted on corruption.

Another study indicates that corruption is responsible for 17 % of waste in spending, as compared to 83 % which can be attributed to too low professionalization. Using again a back-of-the-envelope calculation based on the above estimates, this means that the potential economic gains from solving problems of professionalisation are more than EUR 80 billion. Hence the importance of professional staff in order to introduce greater efficiency in procurement.

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Legislative procurement ecosystem

Public Contracts

Remedies

Utilities

Concessions

Defence

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How to build a functional institutional framework?

Adequate institutional set-up

Professional staff

Independent remedies system

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Fighting corruption: detect and redress

to detect corruption

an efficient monitoring system and a solid national database on irregularities in PP
Protection of whistle-blowers

to redress corruption

Effective review procedures
Effective sanctioning of corruption in procurement

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Closing benchmarks Chapter 5 – legal component

The country fully aligns its national legal framework with the EU acquis with regard to all areas of public procurement;

Serbia fully aligns its national legal framework with the EU acquis with regard to all areas of public procurement, including its legislation on concessions and international agreements exempting certain works from public procurement rules. - Serbia puts in place adequate administrative and institutional capacity at all levels and takes appropriate measures to ensure the proper implementation and enforcement of national legislation in this area in good time before accession. This includes, in particular: a) the implementation of Serbia's public procurement development strategy 2014-2018 to improve its administrative capacity, in particular by reinforcing the public procurement Office's staff and by ensuring proper training at all levels for all stakeholders; b) the preparation of practical implementing and monitoring tools (including administrative rules, instruction manuals and standard contract documents); c) the strengthening of control mechanisms, including close monitoring and enhanced transparency of the execution phase of public contracts and systematic risk assessments with prioritisation of controls in vulnerable sectors and procedures; d) the effective functioning of the remedies system; e) measures related to the prevention of and fight against corruption and conflicts of interests in the area of public procurement at both central and local level. - Serbia demonstrates a track record of a fair and transparent public procurement system, which provides value for money, competition, and strong safeguards against corruption.

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Closing benchmarks – administrative component

the implementation of a public procurement strategy to improve the administrative capacity;
the preparation of practical implementing and monitoring tools;
the strengthening of control mechanisms;
the effective functioning of the remedies system;
measures related to the prevention of and fight against corruption and conflicts of interests in the area of public procurement

Serbia fully aligns its national legal framework with the EU acquis with regard to all areas of public procurement, including its legislation on concessions and international agreements exempting certain works from public procurement rules. - Serbia puts in place adequate administrative and institutional capacity at all levels and takes appropriate measures to ensure the proper implementation and enforcement of national legislation in this area in good time before accession. This includes, in particular: a) the implementation of Serbia's public procurement development strategy 2014-2018 to improve its administrative capacity, in particular by reinforcing the public procurement Office's staff and by ensuring proper training at all levels for all stakeholders; b) the preparation of practical implementing and monitoring tools (including administrative rules, instruction manuals and standard contract documents); c) the strengthening of control mechanisms, including close monitoring and enhanced transparency of the execution phase of public contracts and systematic risk assessments with prioritisation of controls in vulnerable sectors and procedures; d) the effective functioning of the remedies system; e) measures related to the prevention of and fight against corruption and conflicts of interests in the area of public procurement at both central and local level. - Serbia demonstrates a track record of a fair and transparent public procurement system, which provides value for money, competition, and strong safeguards against corruption.

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Closing benchmarks – implementation component

The country demonstrates a track record of a fair and transparent public procurement system, which provides value for money, competition, and strong safeguards against corruption.

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Alignment Enforcement

New opportunities

New markets