PRESENTATION OF MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 5 – Public Procurement Bilateral screening: Chapter 5 PRESENTATION OF MONTENEGRO Brussels, 19 November 2012

Classical sector Katarina Radović Chapter 5: Public Procurement Classical sector Katarina Radović Member of State Commission for the control of public procurement procedure kradovic@t-com.me M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 5: Public Procurement

Relevant acquis (partially alligned) Chapter 5: Public Procurement Relevant acquis (partially alligned) ClLASICAL PROCUREMENT RULES Directive 2004/18/EC of the European Parliament and of the Council of 31 March 2004 on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts ; 2008/963/EC: Commission Decision of 9 December 2008 amending the Annexes to Directives; 2004/17/EC and 2004/18/EC of the European Parliament and of the Council on public procurement procedures, as regards their lists of contracting entities and contracting authorities (notified under document number C(2008) 7871) (Text with EEA relevance) ; THRESHOLDS Commission Regulation (EU) No 1251/2011 of 30 November 2011 amending Directives 2004/17/EC, 2004/18/EC and 2009/81/EC of the European Parliament and of the Council in respect of their application thresholds for the procedures for the awards of contract Text with EEA relevance; Communication from the Commission - Corresponding values of the thresholds of Directives 2004/17/EC and 2004/18/EC of the European Parliament and of the Council as amended by Commission Regulation (EC) No 1874/2004; 2004/703/EC:Guideline of the European Central Bank of 16 September 2004 on the procurement of euro banknotes (ECB/2004/18); MORE: http://ec.europa.eu/internal_market/publicprocurement/rules/index_en.htm M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 5: Public Procurement

Relevant acquis Chapter 5: Public Procurement REMEDIES Directive 2007/66/EC of the European Parliament and of the Council of 11 December 2007 amending Council Directives 89/665/EEC and 92/13/EEC with regard to improving the effectiveness of review procedures concerning the award of public contracts; Directive 92/13/EEC of 25 February 1992 coordinating the laws, regulations and administrative provisions relating to the application of Community rules on the procurement procedures of entities operating in the water, energy, transport and telecommunications sectors ; STANDARD FORMS Commission Implementing Regulation (EU) 842/2011 of 19 August 2011 establishing standard forms for the publication of notices in the field of public procurement and repealing Regulation (EC) No 1564/2005; MORE: http://ec.europa.eu/internal_market/publicprocurement/rules/index_en.htm M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 5: Public Procurement

Legal framework Chapter 5: Public Procurement Constitution of Montenegro (“Official Gazette of Montenegro” no. 1/07); Law on Public Procurement (“Official Gazette of Montenegro” no. 42/11); Regulation on the forms in the public procurement procedure (“Official Gazette of Montenegro” no. 62/2011); Rulebook on the methodology of expression of sub-criteria in the corresponding scores, grades, and comparison of bids (“Official Gazette of Montenegro” no. 63/2011); Rulebook on the manner of keeping and the contents of the records on the violation of anti-corruption rules (“Official Gazette of Montenegro” no. 63/2011); Rulebook on the records of public procurement procedures (“Official Gazette of Montenegro” no. 63/2011); Law on general administrative procedure (“Official Gazette of the Republic of Montenegro” no. 60/03, “Official Gazette of Montenegro” no. 32/11); Other laws depending on subject of public procurement; MORE: www.gov.me M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 5: Public Procurement

Institutional framework Chapter 5: Public Procurement Institutional framework Ministry of Finance – approval to the public procurement plan; Public Procurement Administration: -Compliance of regulation with the EU legislation; -Preparation and publishing the list of contracting authorities; -Prior approval to certain public procurement procedure; -Monitoring. State Commission for the control of public procurement procedure: -deciding upon appeals lodged in public procurement procedures; -control of public procurement procedures. MORE: www.gov.me M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 5: Public Procurement

Improvements of the PPL (“OG of MNE”, no. 42/11) Chapter 5: Public Procurement Improvements of the PPL (“OG of MNE”, no. 42/11) Strengthening institutional framework; Publishing of public procurement plan; CPV; Professional development and advanced training; Inspection control; Misdemeanour liability; Control of public procurement procedure exceeding 500.000 EUR; Reimbursement for the procedure costs; Publishing public procurement contracts. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 5: Public Procurement

Parties obliged to adhere to the PPL Chapter 5: Public Procurement Parties obliged to adhere to the PPL PPL and Implementing Acts CONTRACTING AUTHORITIES state administration bodies, local self-government units, public services and other beneficiaries of the Budget of MNE (performing tasks of public interest) BODIES GOVERNED BY PUBLIC LAW Business organisations &legal entities performing tasks of public interest CONTRACTING ENTITIES performing activities in areas of water management, energy, mining, telecommunications, postal services and transport (Holders of special and exclusive rights) SUBSIDIZED CONTRACTS business organizations, legal entities, and entrepreneurs when procuring works, supply or services contracts that are funded by more than 50% from the Budget of Montenegro, local self-government or other public funds M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 5: Public Procurement

Public Procurement Procedure Chapter 5: Public Procurement 1. Types of procedures (9) 2. Principles: - cost effective and efficient use of public funds; - ensuring competition among the bidders; - transparency; - equality of bidders. 3. Time limits - open procedure 37-22 days; - restricted procedure (I stage 37 days, II stage 22); - negotiated procedure 22 days. 4. Tresholds Value scale I ≤ 5.000 € (goods, services, works) Direct agreement Value scale II 5.000 – 25.000 € (goods, services) 5.000 – 50.000 € (works) Shopping Value scale III ≥ 25.000 € (goods, services) ≥ 50.000 € (works) Open, restricted, negotiated, framework agreement, consulting service, contest M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 5: Public Procurement

Process of the public procurement procedure Chapter 5: Public Procurement Process of the public procurement procedure 1. Initiation of procedure Conditions: Decision on initiating the procedure -Allocated funds Appointment of commission for the opening and evaluation of bids -Plan 2. Invitation for public tender - Estimated value of public procurement - Conditions - Criteria for selection of the most favourable bid 3. Public opening of bids -Minutes 4. Review, assessment and evaluation of bids -Rejecting invalid bids -Report on public procurement procedure 5. Decision on selection of the most favorable bid Decision on cancellation of public procurement procedure 6. Public Procurement Contract M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 5: Public Procurement

Exemptions from the law (Art. 3 PPL) Chapter 5: Public Procurement Exemptions from the law (Art. 3 PPL) International rules; Confidential procurement; Defense of Montenegro; Services of public interest; State of emergency; Broadcasting program material; Arbitration; Financial services; Labour relations and employment; Election material; Concession and privatization of the economy, sale and renting ; M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 5: Public Procurement

Public procurement records and reporting Chapter 5: Public Procurement Public procurement records and reporting Records of contracting authorities: -conducted procedures -concluded contracts Reporting: Contracting authorities shall submit to Public Procurement Administration not later than 29th Feb reports on: -conducted procedures -public procurement contracts concluded in the previous year Public Procurement Administration Annual report: -submits to the Government (31/05) -publishes on the Public Procurement Portal MORE: www.ujn.gov.me M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 5: Public Procurement

Further harmonization Chapter 5: Public Procurement Further harmonization Cost-effective and rational use of public funds BEST VALUE FOR MONEY M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 5: Public Procurement

Thank you for your attention! QUESTIONS