In Montenegro, the total procurement value for the previous year reached 982.06 million euros. Of this amount, 847,582,273 euros were allocated for public procurements, while 134,481,562 euros were dedicated to electricity and coal purchases. The largest public procurement contract was awarded to the Municipality of Pljevlja, amounting to 31.97 million euros (excluding VAT), for the construction of a general hospital. Additionally, the most substantial contracts overall were given to the pharmacy wholesaler “Glosarij,” totaling over 14 million euros.

Throughout the year, 8,373 public procurement contracts were finalized, encompassing 404.95 million euros for goods, 281.11 million euros for works, and 92.76 million euros for services.

This information is highlighted in the Government’s annual report on public procurement for 2024.

According to the data, there was an increase in both the number and value of public procurement contracts last year, with 1,300 more signed compared to 2023. Consequently, the total value of these contracts rose by 172.38 million euros, shifting from 675.19 million euros the previous year to 847.58 million euros last year. In total procurement, spending increased by 118.76 million euros compared to 2023.

Public procurement represented 13.1 percent of the gross domestic product (GDP) last year, up by 1.3 percentage points from 2023, when it accounted for 11.84 percent. Public procurement in 2024 constituted 11.3 percent, an increase from 9.8 percent two years prior. Moreover, 3,762 public procurements were terminated last year, approximately 1,200 more than in 2023.

The Montenegrin Electronic Public Procurement (CeJN) system is used by state authorities to conduct procurement, and savings of 17.2 million euros were realized last year due to the difference between the estimated and contracted procurement values.

Funding for Projects, Fuels, and Medicines…

The largest public procurement contract for the previous year was signed by the Capital Projects Administration with a consortium of “Termomont” and “Fidija” from Podgorica, along with their subcontractors, valued at 31.97 million euros (excluding VAT). This contract was for the design and construction of the General Hospital in Pljevlja.

The state-owned “Montefarm” secured its most significant contracts with the pharmaceutical wholesaler “Glosarij,” totaling nine contracts worth 103,504,212 euros. The least valuable contract was for 2.1 million euros, while the highest was 27.64 million euros. Additionally, five contracts worth 20,929,438 euros were signed with “Glosarij CD,” allowing “Glosarij” to capture 14 out of the 50 most valuable procurements nationally through these two entities.

Leading the public procurement list is the contract signed by the Traffic Administration with “Mehanizacija i programat” from Nikšić, valued at 12.37 million euros. Similarly, a contract for the reconstruction of Vojislavljevića Street in Podgorica, worth 11.93 million euros, was awarded to “Crnagoraput.”

Out of the 50 largest procurements, only seven were valued over 10 million euros. The Transport Administration also had contracts ranging from 9.15 million to 9.89 million euros with “Putevi Bar” for the reconstruction of the Bar-Kamenicki most-Krute road, another with “Bemax” for the Petnjica-Bioče route, along with constructing the main design and works on the Veruša-Lopate road with “Koding.” Additionally, an important contract was signed by the Pljevlja Coal Mine with “Jugopetrol” for 9.14 million euros.

The trading and services company “Farmega” also entered into several significant agreements with “Montefarma,” signing six contracts totaling 22.23 million euros, with the most valuable being 5.23 million euros.

The Municipality of Danilovgrad signed a contract worth 4.47 million euros with “Putevi Bar” for a road reconstruction project in Martinići. Similarly, the Montenegrin Power Transmission System entered into an agreement with “Global Trade Solutions” and “Chint Electric” for 4.34 million euros for the purchase of two autotransformers.

Among the noteworthy procurements worth three million euros, there are two valued at 6.52 million euros, which the State Property Administration signed with “Jugopetrol.” The Agency for Construction and Development of Podgorica signed a 3.05 million euro deal for the reconstruction of Bulevar Veljko Vlahovića with “Crnagoraput.” The least expensive contract on this list was around 1.78 million euros, awarded by the Capital Projects Administration to “Civil engineer,” “Paming,” and “Briv Construction.”

Connecting CeJN with ASK?

Last year, the Directorate for Public Investment Management and Public Procurement Policy of the Ministry of Finance, which prepared the Report, did not receive any corruption allegations but noted two notifications concerning potential conflicts of interest. The report also mentions plans to connect CeJN with the electronic system of the Agency for the Prevention of Corruption (ASK) to combat corruption.

“Of all received requests, the ministry suggested the contracting authority rectify irregularities, re-evaluate 76 bids, recommended canceling 12 procedures, and forwarded 17 requests for inspection review, affirming the contracting authority’s decisions in 36 instances. Domestic bidders dominated the public procurement system, making up 89 percent of total bids, with foreign bidders maintaining a participation level of 10.9 percent, similar to the previous year. Most procedures were conducted through open bidding, achieving 82.26 percent transparency and competition. Negotiated procedures without prior publication amounted to 8.2 percent, restricted ones at 0.3 percent, while simple procurement processes accounted for 6.13 percent. The average number of bids received per public procurement procedure was 3.03,” the report indicates.

The document also underscores that the value of public procurement exceeding European Union thresholds stands at 381,075,088 euros. The European Commission has recently stated that Montenegro meets the criteria for concluding negotiations under Chapter 5 – Public Procurement, with expectations for this to occur in June.

Delays in Document Submission

The report from the last year also outlines a list of entities that failed to publish a public procurement plan, including educational institutions, ministries, customs, and police organizations.

Specifically, the plans were not submitted by the Ministries of Maritime Affairs, Social Welfare, the Dental Chamber, the Police Directorate, and the Revenue and Customs Directorate, among others.

The report also points to various institutions, including the Zeta Tourist Organization, the Rožaje Design and Development Agency, the Tivat “Business Info Center,” “Castello Montenegro,” the Kotor Directorate for Planning and Construction, the Budget Directorate, Bar’s “Parking Service,” Budva’s Museums and Galleries, and the supervisor of the “State Audit Institution.”

Several schools, such as the Cetinje Gymnasium, “Jovan Ćorović” Elementary School in Gornja Bukovica, and the “Šćepan Đukić” Elementary School in Lijeva Rijeka, are also included on this list.

Data shows that last year saw an increase in both the number and value of public procurement contracts, with 1,300 more signed than in 2023.

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