Improving and strengthening the institutional and legal framework in the field of public procurement and state aid

The results of the EU Project "Improving and strengthening the institutional and legal framework in the field of public procurement and state aid" were presented on November 30, 2022 in Europe House.

The Project consisted of two components designed to support the state aid system and the public procurement system in Montenegro. The goal of the Project was to increase the efficiency, effectiveness and transparency of Montenegrin public finances management, in accordance with the European Union’s standards. This was achieved through the improvement of the legal and operational environment of public procurement and state aid in Montenegro.

Mr Aleksandar Marković from the Directorate for Finance and Contracting of the EU Assistance Funds of the Ministry of Finance said that the Project significantly contributed to the overall strengthening of the capacity of state institutions and the harmonization of legislation in these areas with the European Union Acquis, which significantly contributed to the opening of Chapter 8 – Competition.

Mr Dragan Damjanović, President of the Council of the Agency for Protection of Competition, said that the past four years were crucial for the Agency to position itself as an important state institution. The Project also brought new state aid registers.

Ms Sanja Mujović, Head of the Directorate for Public Procurement Policy of the Ministry of Finance, pointed out that the Project makes only a part of the fruitful cooperation that the Directorate has had with the EU Delegation to Montenegro for many years, and that joint efforts to reform and improve the public procurement system have been recognized in the last two EU’s reports on Montenegro, where this negotiation chapter was rated as “good progress achieved” and the level of preparedness for closing Chapter 5, Public Procurement, has been increased.  

 Mr Marco Sebastiani, the Project Director, said that the Project was being implemented in the challenging times of the COVID-19 pandemic. He said that in the past 15 years that his company has been in Montenegro, providing assistance to the state institutions, he has witnessed the progress and development of the state system.  At the moment, Sebastiani believes, the state aid system and the public procurement system in Montenegro are well developed, rely on modern legislation, articulated institutions and good implementation practice.

“Negotiations in the domain of Chapters 5 (Public Procurement) and 8 (Competition) are on the right track, thanks to the implementation of this Project. The objectives of public procurement and state aid are systems that are constantly changing following the development of the system. That is why it is necessary for the State to maintain its focus on the further implementation of European practices," said Sebastiani.

Support activities for state institutions focused on expert advice on policies, legislation and institutional structures and operations, along with a range of trainings and awareness-raising and communication initiatives with citizens. Ms Andrijana Ćurčić, competition expert and Project Leader, considers the opening of the negotiation process for Chapter 8 (Competition) to be the biggest result of the Project.

 “We have achieved tangible results. This was not a project that resulted in analyses and recommendations, but provided concrete results. We trained 240 civil servants, all of whom are employed by the Agency for Protection of Competition." 

Ms Katarina Radović, an expert in public procurement, said that through the Project, support was provided in the drafting of the Law on Public Procurement and accompanying secondary legislation, in order to harmonize them with EU directives. She pointed out that over 400 public procurement officers and bidders were trained, and operational manuals with special materials for guidance to users in the field of public procurement and public-private partnership were prepared.

The Project created a good basis for Montenegrin institutions to regulate and improve the field of competition and public procurement in accordance with the European practices and legislation.   

This four-year project was financed by the European Union with a grant in the amount of 1,138,000 EUR, and it was implemented by an international consortium led by the Italian company Eurosupport for the needs of the Ministry of Finance.