Former Yugoslav Republic of Macedonia : Country Procurement Assessment Report
The emergency nature of many of the measures taken to meet the challenges which Macedonia has faced in recent years, including the Kosovo crisis and the recent threat to the country's security, has contributed to a general laxity in the enforc...
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| Format: | Country Procurement Assessment (CPAR) |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2002/06/3357252/former-yugoslav-republic-macedonia-country-procurement-assessment-report http://hdl.handle.net/10986/15307 |
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okr-10986-15307 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
PROCUREMENT LAWS PROCUREMENT RESPONSIBILITY PUBLIC PROCUREMENT OVERSIGHT EMERGENCY MANAGEMENT ENFORCEMENT MECHANISMS STAFF TRAINING PROCUREMENT CONTRACTS POLITICAL INSTABILITY POLITICAL INTERFERENCE STANDARD BIDDING DOCUMENTS BIDDING & SELECTION BIDDING PROCEDURES PRICE FIXING BID NOTIFICATION BID EVALUATION CRITERION REGALATORY REFORM INFORMATION DISSEMINATION LEGAL REFORM CONTRACT CONDITIONS ARBITRATION BUILD OPERATE TRANSFER ARRANGEMENTS CRIMINAL OFFENSES ACCOUNTABILITY ANTI-CORRUPTION AUTHORITY BUDGETARY ALLOCATIONS BUDGETARY FUNDS BUDGETARY RESOURCES BUDGETING COLLUSION COMPETITIVE BIDDING COMPLAINTS CONFLICTS OF INTEREST CORRUPTION LAW CRIMINAL LAW DECREE DISCLOSURE ENACTMENT FINANCIAL ASSISTANCE FISCAL FOREIGN TRADE FOREIGN TRADE LAW FRAUD GOVERNMENT AGENCIES GOVERNMENT OFFICIALS INSTITUTIONAL CAPACITY INSTITUTIONAL FRAMEWORK INTERNATIONAL TRADE LAW LACK OF CLARITY LAWS LEGAL DEVELOPMENT LEGAL FRAMEWORK LEGISLATION LEGISLATIVE DEVELOPMENT LEGISLATIVE FRAMEWORK LOCAL GOVERNMENT LOCAL GOVERNMENTS MEDIA MINISTERS MINISTRY OF FINANCE NATIONS PENALTIES POLITICAL INTERFERENCE PRESIDENCY PROCUREMENT SYSTEMS PROJECT IMPLEMENTATION PROSECUTION PUBLIC ADMINISTRATION PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC INFORMATION PUBLIC INSTITUTIONS PUBLIC OFFICIALS PUBLIC PROCUREMENT PUBLIC PROCUREMENT PROCEEDINGS PUBLIC PROCUREMENT SYSTEM PUBLIC SECTOR PUBLIC SECTOR MANAGEMENT PUBLIC SERVICE PUBLIC SPENDING REGULATORY FRAMEWORK REPRESENTATIVES SOLICITATION TENDERING TRANSPARENCY VOTING |
| spellingShingle |
PROCUREMENT LAWS PROCUREMENT RESPONSIBILITY PUBLIC PROCUREMENT OVERSIGHT EMERGENCY MANAGEMENT ENFORCEMENT MECHANISMS STAFF TRAINING PROCUREMENT CONTRACTS POLITICAL INSTABILITY POLITICAL INTERFERENCE STANDARD BIDDING DOCUMENTS BIDDING & SELECTION BIDDING PROCEDURES PRICE FIXING BID NOTIFICATION BID EVALUATION CRITERION REGALATORY REFORM INFORMATION DISSEMINATION LEGAL REFORM CONTRACT CONDITIONS ARBITRATION BUILD OPERATE TRANSFER ARRANGEMENTS CRIMINAL OFFENSES ACCOUNTABILITY ANTI-CORRUPTION AUTHORITY BUDGETARY ALLOCATIONS BUDGETARY FUNDS BUDGETARY RESOURCES BUDGETING COLLUSION COMPETITIVE BIDDING COMPLAINTS CONFLICTS OF INTEREST CORRUPTION LAW CRIMINAL LAW DECREE DISCLOSURE ENACTMENT FINANCIAL ASSISTANCE FISCAL FOREIGN TRADE FOREIGN TRADE LAW FRAUD GOVERNMENT AGENCIES GOVERNMENT OFFICIALS INSTITUTIONAL CAPACITY INSTITUTIONAL FRAMEWORK INTERNATIONAL TRADE LAW LACK OF CLARITY LAWS LEGAL DEVELOPMENT LEGAL FRAMEWORK LEGISLATION LEGISLATIVE DEVELOPMENT LEGISLATIVE FRAMEWORK LOCAL GOVERNMENT LOCAL GOVERNMENTS MEDIA MINISTERS MINISTRY OF FINANCE NATIONS PENALTIES POLITICAL INTERFERENCE PRESIDENCY PROCUREMENT SYSTEMS PROJECT IMPLEMENTATION PROSECUTION PUBLIC ADMINISTRATION PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC INFORMATION PUBLIC INSTITUTIONS PUBLIC OFFICIALS PUBLIC PROCUREMENT PUBLIC PROCUREMENT PROCEEDINGS PUBLIC PROCUREMENT SYSTEM PUBLIC SECTOR PUBLIC SECTOR MANAGEMENT PUBLIC SERVICE PUBLIC SPENDING REGULATORY FRAMEWORK REPRESENTATIVES SOLICITATION TENDERING TRANSPARENCY VOTING World Bank Former Yugoslav Republic of Macedonia : Country Procurement Assessment Report |
| geographic_facet |
Europe and Central Asia Macedonia, former Yugoslav Republic of North Macedonia (Formerly the Former Yugoslav Republic of Macedonia) |
| description |
The emergency nature of many of the
measures taken to meet the challenges which Macedonia has
faced in recent years, including the Kosovo crisis and the
recent threat to the country's security, has
contributed to a general laxity in the enforcement of the
country's laws, including the LPP. Compliance with the
procurement law has been further undermined by the absence
of the institutional machinery necessary to support
implementation, particularly an authoritative body to
oversee enforcement and provide institutions operating
under the law with guidance on its application. Whilst the
Ministry of Finance (MOF) is formally charged with authority
over public procurement, it is only recently that MOF has
dedicated resources to perform key oversight functions. That
said, the MOF unit charged with this onerous obligation, the
Public Procurement Division of the Ministry's Legal
Department, lacks the stature and capacity to discharge its
functions effectively. Furthermore, the institutions which
should play an indispensable role in performing oversight of
public procurement, including the State Auditor's
Office, have not yet been operating effectively. Weak
enforcement is further exacerbated by a low level of
awareness of the law's provisions, the roots of which
lie partly in inadequate dissemination, and by the absence
of sufficient numbers of public officials trained in
procurement, a shortcoming which is particularly acute in
self-governing units of local government. Most public
officials who carry out procurement are inexperienced and
lack the procurement-specific training necessary to apply
the law accurately. There is also a severe problem of
excessive political interference in contract award decisions
in Macedonia. This is not only invited by the absence of an
effective oversight institution but is, in fact, formalized
by the common practice, enshrined in the LPP, of assigning
to high-ranking political officials, in particular
Ministers, the authority to award procurement contracts. The
assessment also found evidence of many bad practices which
are routinely applied to procurement in Macedonia. Principal
among these is that, instead of providing bidders with
formal, written bidding documents, public purchasers often
only advertise an invitation to bid in a local newspaper as
the sole means for soliciting bids. Such advertisements
regularly include the cost estimate for the contract being
tendered, the publication of which may facilitate collusion
and price-fixing among bidders. Other practices which
obstruct transparency include failing to disclose bid
evaluation criteria to bidders in advance, the widespread
use of subjective methods of evaluating bids and over-use of
an "accelerated procedure" provision in the LPP,
by which the period allowed to bidders to prepare their bids
may be reduced from 36 days to 15 days or less. This is
clearly open to manipulation by purchasers who want to give
an unfair advantage to a favored bidder. Several more
examples of bad practices identified by the assessment are
provided in Section 2 of this report, with detailed
recommendations to address them presented in Section 2.3.
In order to address these weaknesses, this report recommends
a number of short- term measures, designed to plug the most
pressing gaps in Macedonia's national public
procurement system, combined with longer-term
recommendations aimed at more wide-reaching reform and
development of the legal and institutional framework for procurement. |
| format |
Economic & Sector Work :: Country Procurement Assessment (CPAR) |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Former Yugoslav Republic of Macedonia : Country Procurement Assessment Report |
| title_short |
Former Yugoslav Republic of Macedonia : Country Procurement Assessment Report |
| title_full |
Former Yugoslav Republic of Macedonia : Country Procurement Assessment Report |
| title_fullStr |
Former Yugoslav Republic of Macedonia : Country Procurement Assessment Report |
| title_full_unstemmed |
Former Yugoslav Republic of Macedonia : Country Procurement Assessment Report |
| title_sort |
former yugoslav republic of macedonia : country procurement assessment report |
| publisher |
Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2002/06/3357252/former-yugoslav-republic-macedonia-country-procurement-assessment-report http://hdl.handle.net/10986/15307 |
| _version_ |
1764427427011887104 |
| spelling |
okr-10986-153072021-04-23T14:03:15Z Former Yugoslav Republic of Macedonia : Country Procurement Assessment Report World Bank PROCUREMENT LAWS PROCUREMENT RESPONSIBILITY PUBLIC PROCUREMENT OVERSIGHT EMERGENCY MANAGEMENT ENFORCEMENT MECHANISMS STAFF TRAINING PROCUREMENT CONTRACTS POLITICAL INSTABILITY POLITICAL INTERFERENCE STANDARD BIDDING DOCUMENTS BIDDING & SELECTION BIDDING PROCEDURES PRICE FIXING BID NOTIFICATION BID EVALUATION CRITERION REGALATORY REFORM INFORMATION DISSEMINATION LEGAL REFORM CONTRACT CONDITIONS ARBITRATION BUILD OPERATE TRANSFER ARRANGEMENTS CRIMINAL OFFENSES ACCOUNTABILITY ANTI-CORRUPTION AUTHORITY BUDGETARY ALLOCATIONS BUDGETARY FUNDS BUDGETARY RESOURCES BUDGETING COLLUSION COMPETITIVE BIDDING COMPLAINTS CONFLICTS OF INTEREST CORRUPTION LAW CRIMINAL LAW DECREE DISCLOSURE ENACTMENT FINANCIAL ASSISTANCE FISCAL FOREIGN TRADE FOREIGN TRADE LAW FRAUD GOVERNMENT AGENCIES GOVERNMENT OFFICIALS INSTITUTIONAL CAPACITY INSTITUTIONAL FRAMEWORK INTERNATIONAL TRADE LAW LACK OF CLARITY LAWS LEGAL DEVELOPMENT LEGAL FRAMEWORK LEGISLATION LEGISLATIVE DEVELOPMENT LEGISLATIVE FRAMEWORK LOCAL GOVERNMENT LOCAL GOVERNMENTS MEDIA MINISTERS MINISTRY OF FINANCE NATIONS PENALTIES POLITICAL INTERFERENCE PRESIDENCY PROCUREMENT SYSTEMS PROJECT IMPLEMENTATION PROSECUTION PUBLIC ADMINISTRATION PUBLIC EXPENDITURE PUBLIC EXPENDITURE MANAGEMENT PUBLIC INFORMATION PUBLIC INSTITUTIONS PUBLIC OFFICIALS PUBLIC PROCUREMENT PUBLIC PROCUREMENT PROCEEDINGS PUBLIC PROCUREMENT SYSTEM PUBLIC SECTOR PUBLIC SECTOR MANAGEMENT PUBLIC SERVICE PUBLIC SPENDING REGULATORY FRAMEWORK REPRESENTATIVES SOLICITATION TENDERING TRANSPARENCY VOTING The emergency nature of many of the measures taken to meet the challenges which Macedonia has faced in recent years, including the Kosovo crisis and the recent threat to the country's security, has contributed to a general laxity in the enforcement of the country's laws, including the LPP. Compliance with the procurement law has been further undermined by the absence of the institutional machinery necessary to support implementation, particularly an authoritative body to oversee enforcement and provide institutions operating under the law with guidance on its application. Whilst the Ministry of Finance (MOF) is formally charged with authority over public procurement, it is only recently that MOF has dedicated resources to perform key oversight functions. That said, the MOF unit charged with this onerous obligation, the Public Procurement Division of the Ministry's Legal Department, lacks the stature and capacity to discharge its functions effectively. Furthermore, the institutions which should play an indispensable role in performing oversight of public procurement, including the State Auditor's Office, have not yet been operating effectively. Weak enforcement is further exacerbated by a low level of awareness of the law's provisions, the roots of which lie partly in inadequate dissemination, and by the absence of sufficient numbers of public officials trained in procurement, a shortcoming which is particularly acute in self-governing units of local government. Most public officials who carry out procurement are inexperienced and lack the procurement-specific training necessary to apply the law accurately. There is also a severe problem of excessive political interference in contract award decisions in Macedonia. This is not only invited by the absence of an effective oversight institution but is, in fact, formalized by the common practice, enshrined in the LPP, of assigning to high-ranking political officials, in particular Ministers, the authority to award procurement contracts. The assessment also found evidence of many bad practices which are routinely applied to procurement in Macedonia. Principal among these is that, instead of providing bidders with formal, written bidding documents, public purchasers often only advertise an invitation to bid in a local newspaper as the sole means for soliciting bids. Such advertisements regularly include the cost estimate for the contract being tendered, the publication of which may facilitate collusion and price-fixing among bidders. Other practices which obstruct transparency include failing to disclose bid evaluation criteria to bidders in advance, the widespread use of subjective methods of evaluating bids and over-use of an "accelerated procedure" provision in the LPP, by which the period allowed to bidders to prepare their bids may be reduced from 36 days to 15 days or less. This is clearly open to manipulation by purchasers who want to give an unfair advantage to a favored bidder. Several more examples of bad practices identified by the assessment are provided in Section 2 of this report, with detailed recommendations to address them presented in Section 2.3. In order to address these weaknesses, this report recommends a number of short- term measures, designed to plug the most pressing gaps in Macedonia's national public procurement system, combined with longer-term recommendations aimed at more wide-reaching reform and development of the legal and institutional framework for procurement. 2013-08-22T21:15:00Z 2013-08-22T21:15:00Z 2002-06 http://documents.worldbank.org/curated/en/2002/06/3357252/former-yugoslav-republic-macedonia-country-procurement-assessment-report http://hdl.handle.net/10986/15307 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Country Procurement Assessment (CPAR) Economic & Sector Work Europe and Central Asia Macedonia, former Yugoslav Republic of North Macedonia (Formerly the Former Yugoslav Republic of Macedonia) |