The overall worth of public procurement rose by 172.38 million euros, increasing from 675.19 million euros in 2023 to 847.58 million euros last year. This surge is largely driven by inflation leading to higher prices of goods, services, and works. Additionally, the growth can be linked to the rise in the number of taxpayers governed by the Public Procurement Law.

The Ministry of Finance shared this update with “Vijesti,” commenting on the Government’s annual report on public procurement for 2024.

This report reveals an increase in both the quantity and value of public procurement contracts, with 1.3 thousand more contracts signed than in 2023. Furthermore, there was an expenditure of 172.38 million euros more on public procurement last year, and a total of 118.76 million euros more was paid compared to 2023. Public procurements are managed by state authorities through the Montenegrin Electronic Public Procurement (CeJN) system or directly.

The Ministry emphasizes that they regard this sector as a cornerstone for establishing stable public finances and fostering transparency in the allocation of state funds. CeJN is highlighted as a critical reform in procurement, which has simplified processes by reducing excessive paperwork while enhancing transparency and efficiency.

“The increase in total public procurement value during the reporting period is attributable to rising prices for procured goods, services, and works in the marketplace, coupled with inflation. This growth is also due to more individuals falling under the Law on Public Procurement, reflecting institutional shifts and the establishment of additional consumer units. The laws and regulations governing public procurement in Montenegro align with the EU’s acquis communautaire, ensuring fair competition and adherence to EU principles and standards,” noted the Ministry of Finance.

Recently, the European Commission (EC) assessed that Montenegro has fulfilled the criteria for closing the negotiating Chapter 5 (public procurement). The Ministry reiterated its commitment to the negotiation process, a sentiment echoed by the EC, while also enhancing oversight and control over this sector, particularly in combating corruption.

They assert that the necessary conditions for implementing regulations in this sector have been established. Emphasizing the importance of professional training and development for public procurement officers and bidders, they aim to ensure that personnel meet system requirements and stay aligned with European trends.

In response to inquiries about the EU threshold beyond which Montenegro reportedly completed public procurement valued at 381.07 million euros, the Ministry clarified this was an error, stating that the actual value above these thresholds was 434,709,505 euros.

“Value thresholds are established by EU Directives in public procurement, categorizing procurements based on their value. Given the size of its public procurement market, Montenegro has implemented its own Law on Public Procurement, establishing value classes below European thresholds to dictate procedures based on these values. As part of its legal obligation, Montenegro includes public procurements above the directives’ thresholds in the Annual Report on completed procedures,” the Ministry explained.

Pljevlja saw the most funds, “Glossary” tops the list

Last year, the Capital Projects Administration signed the largest public procurement contract with a consortium of “Termomont” and Podgorica’s “Fidija,” valued at 31.97 million euros excluding VAT, for the design and construction of the General Hospital in Pljevlja.

State-owned Montefarm secured the largest contracts with drugstore Glosarij, totaling 124 million euros across 14 contracts. The smallest of these contracts was worth 2.1 million euros, while the highest amounted to 27.64 million euros, with Glosarij being awarded 14 of the top 50 most valuable procurements in the country.

Public procurement accounted for 13.1 percent of the gross domestic product (GDP) last year, reflecting an increase of 1.3 percent from 2023, during which it constituted 11.84 percent. A total of 3,762 public procurements were canceled last year, approximately 1,200 more than in 2023.

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