Government procurement, many businesses are disqualified from the bidding process

By Erdi Ibro Posted on: 18-03-2019, 08:46
Government procurement, many businesses are disqualified from the bidding process
Many companies who bid for government procurement are disqualified from the bidding process. This is confirmed by the Public Procurement Agency. In its annual analysis, experts say that during 2018, “there have been 55 proposals to disqualify companies from the bidding process”.  According to this agency,  these companies have been disqualified for providing false information. On the other hand, a part of these companies  also submit false documents in order to be qualified for the contracts. According to the agency, out of the 55 companies that were proposed for disqualification from the bidding process, the cause for 33 of these proposals had to do with misinformation. 

Meanwhile, in another 20 cases, businesses had failed to deliver their contractual obligations. At the end of the process, the number of bidding companies is reduced to a handful. “Last year, there were four more companies who were disqualified from the bidding process than in 2017”, Public Procurement Agency says in its annual analysis.

Meanwhile, this body also says that the number of businesses bidding for government procurements last year was higher than a year ago. “For 2018, the number of new economic operators who were registered was 18.629, 217 more than in 2017”, experts of public procurement say, adding that 83 of them are foreign economic operators. On the other hand, according to them, 2353 public procurement procedures were annulled last year and this number was bigger than in 2017.  According to experts, this has happened for technical reasons, but also for legal reasons. As far as legal reasons are concerned, they mention the lack of fair competition during the procedures. Meanwhile, tenders are also cancelled as a result of changes made in budget funds.

Funds for tenders in Albania account for 8% of GDP

The budget funds that countries of the region allocate for tenders in a year ranges from 7% to 12% of Gross Domestic Product. Albania ranks alongside Serbia and Kosovo with 8% of GDP. Meanwhile, funds allocated for tenders in Montenegro account for 10% of GDP and this is also true about North Macedonia. However, the funds allocated for tenders in these two countries have seen a fall over the years.

 

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