€20.4 Million Contract for Podgorica’s Western Bypass Abandoned
The tender for constructing the western bypass around Podgorica, valued at 20.4 million euros, has been annulled following the finding that the Traffic Administration failed to grant “Briv Construction” necessary access to a portion of the tender documentation. Previously, the Administration had awarded this project to “Bemax” and their subcontractor “BB Solar” at a bid of 20.39 million euros, a decision contested by “Briv.”
The Commission for the Protection of Rights in Public Procurement Procedures reviewed the matter and subsequently annulled the tender, with a 20-day window for filing a lawsuit against this decision in the Administrative Court.
“The facts convincingly show that the contracting authority (Traffic Administration) did not allow the appellant (‘Briv Construction’) to review the documentation not submitted via EPPS upon their request on December 30, which is critical for assessing whether bidders provided all required documentation, including whether ‘Bemax’ submitted the original bid guarantee, inspection, and the envelope it was submitted in. This procedural violation, as outlined in Article 195, paragraph 1, item 7 of the Public Procurement Law, cannot be rectified through subsequent actions, thereby justifying the annulment of the entire public procurement procedure,” states the Commission’s decision.
The plan includes the construction of a three-kilometer bypass stretching from the Komanski Bridge to the roundabout near the “Grand” furniture showroom in Donja Gorica.
“BB Solar” is a firm co-founded by Blazo Djukanovic (the son of former president Milo Đukanović) and Ivan Burzanović.
Complaints, Re-evaluations, and Legal Actions
The Traffic Administration initiated a tender for the bypass construction at the end of September last year, closing on October 24, receiving bids from “Bemax” and “Briv Construction.” By the end of November, the Administration found both bids incorrect and consequently sought to cancel the tender.
“Bemax” contested this decision, leading the Commission to rule in mid-December that the Administration should re-evaluate the bids and select a contractor anew. Following this ruling, “Briv” filed an appeal in the Administrative Court against the Commission’s decision, seeking its annulment. Despite this ongoing contest, the Transport Administration awarded the contract to “Bemax” at the end of December based on their favorable bid, while “Briv” had proposed a bid of 17.96 million euros but was excluded from consideration.
On January 9, “Briv” filed an appeal against this decision, arguing that the Traffic Administration had misrepresented the factual situation, poorly applied the law, and violated tender regulations. They contended that the Traffic Administration should have classified the “Bemax” bid guarantee as confidential, in accordance with the Commission’s December 17 decision.
Moreover, they referenced that the bid from “Bemax” included foreign-language words and that although “BB Solar” submitted statements, the Administration failed to clarify how it determined they met the criteria laid out. They questioned the qualifications of the staff from both companies, asserting a lack of evidence for the workers’ expertise.
“The contracting authority failed to adhere to the principles of economy, efficiency, and effectiveness regarding public funds usage, especially given that as a bidder, we offered a price 2 million euros lower than that of ‘Bemax’. We urge the Commission to uphold our appeal, annul the disputed decision, and instruct the contracting authority to rectify the identified irregularities,” stated “Briv” in their appeal.
On December 30, “Briv” requested access to the full electronic tender documentation for a minimum of 24 hours and to documents not submitted via CeJN for at least two hours. The Administration initially granted access on the morning of December 31 but then revoked it the following morning.
The Commission noted that the Traffic Administration failed to permit “Briv Construction” to inspect crucial documentation, essential for evaluating whether bidders had submitted complete bids, including the original bid guarantee from “Bemax,” the inspection, and the envelope it was given in.
The Commission followed up with the Transport Administration on February 15 to confirm whether “Briv” had received access to the necessary documentation, but received no response. They established a violation of the procedural laws outlined in Article 195, paragraph 1, item 7 of the Public Procurement Law, noting non-compliance with Article 145.
“The contracting authority is mandated, after publishing decisions pursuant to Articles 143 and 144 in the EPP until the appeal period ends, to grant bidders access to the complete electronic procurement documents upon request within two days for at least 24 hours, along with direct access to other documentation for at least two hours,” stipulates the relevant article of the Law.
The Commission clarified that the tender was annulled on these grounds, negating the necessity to investigate other complaints.
Construction Timeline of a Year and a Half
Director of the Traffic Administration Radomir Vuksanovic announced at the end of September last year that the timeline for completing the bypass construction is set at 18 months from the contractor’s commencement of work.
This discussion took place during a meeting with Prime Minister Milojko Spajić, Monteput’s director Milan Ljiljanić, and former mayor of Podgorica Oliver Injac.
The boulevard is designed to include sidewalks on both sides, four lanes, three intersections, and one roundabout. It will be funded through a Co-financing Agreement, with the Administration covering the construction costs and the Capital City managing land expropriation and utility infrastructure development.
“Our responsibilities included preparing the project and technical documentation, land expropriation, and implementing utility infrastructure. Significant efforts have been made in the preceding months, and we expect progress to align with our plans, enabling work to commence soon to the satisfaction of Podgorica’s citizens,” emphasized Injac, highlighting the project’s priority status, aiming to enhance transit around Podgorica.
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