Report of Public Signed Contracts During 2011

Report of Public Signed Contracts During 2011

Report of public signed contracts during 2011

C O N T E N T

INTRODUCTION

  1. Public Procurement Regulatory Commission...... 4
  1. Activities of Public Procurement Regulatory Commission during 2010...... 6
  1. Activities of Public Procurement Regulatory Commission during 2011...... 35
  1. Enclosement and recommendations ...... 44
  1. Annex: Budget expenditures of PPRC during 2011...... 46

I N T R O D U C T I O N

Based on article 87.2.13 of Public Procurement Law, No 04/L-042, Public Procurement Regulatory Commission (PPRC) annually has to prepare and deliver to the Government and Assembly an annual report that analyzes the activities of public procurement in Kosovo for the actual year, together with the recommendations for improvement of public procurement system and/or improvement of the law, and the report delivered not later than the end of February of the following year.

This report has been compiled conform requests that come up from the Public Procurement Law, presenting a quietly detailed analyses on all public procurement activities developed in Kosovo, according to the public signed contracts during 01 January 2011 – 31 December 2011.

The elaboration of this report also fulfills the request of Article 87.2.12 of Public Procurement Law, according to which PPRC has to gather, analyze and publish information on public procurement procedures and assigned public contracts.

This is the seven following year that PPRC prepares this kind of report, trying to advance and complete it in the most possible way, with the goal to provide the Government and Assembly of Kosovo a full review on all public procurement activities during 2011.

The report will also be welcomed for all international financial monetary institutions that operate in Kosovo, because they will have available such material in which are included public procurement activities in Kosovo according to the financial resources, values of theprocurement contracts, types of procurement activities and procurement procedures. Thereport will also be useful for the various donors that in the future intent to invest in Kosovo,since based on the data of Report it can be stated that 82.80% of the budget for publicprocurements in Kosovo during 2010 was spent through open procedures that are the mosttransparent of public procurement.

1. PUBLIC PROCUREMENT REGULATORY COMMISSION

According to the Law on Public Procurement in Kosovo, no. 04/L-042, Public Procurement Regulatory Commission has primary responsibility for overall development and functioning of public procurement rules and public procurement system in Kosovo through the exercise of authority, powers, functions and responsibilities which are expressly provided this law.
Public Procurement Regulatory Commission has the responsibility and authority for:
-to publish in the official web site all kinds of notices for contracts to send to the contracting authority;
- contracting authorities to offer opinions about their decisions, actions or loopholes in procurement activities and contract management;
- establish detailed rules to ensure proper implementation of this law by contracting authorities and rules for use and execution of each of the procedures set forth in Sections 33-37 of this Law, provided that such rules comply with the requirements and principles enshrined in this law and any applicable mandatory requirements of EU procurement;
-prepare and disseminate procurement manuals, guidelines, forms and standard models of the tender documents and contracts under this law in favor of contracting authorities and economic operators;
-enhance awareness among contracting authorities and economic operators to public procurement legislation and the objectives, procedures and methods;
-provide technical assistance and advice to contracting authorities and economic operators on the implementation and interpretation of the provisions of this law and any documents issued by the PPRC;
-provide and publish written interpretations of administrative decisions for both contracting authorities and economic operators on the implementation and interpretation of the provisions of this law and any document issued by the PPRC;
-create manual and electronic systems for monitoring the implementation of this law by the contracting authorities, including the preparation of reporting forms that must be met by all contracting authorities subject to this law;
-for each calendar year, prepare and submit to the Government and Assembly an annual report that analyzes public procurement activities in Kosovo for that calendar year, along with recommendations for improving the public procurement system and/or the present law, report that submitted no later than the end of February of the following calendar year;
-support KIPA and other public training and education to ensure the achievement and maintenance of a high level of competence among procurement officers and other procurement professionals to implement sound procurement practices and enforcement of this law;
- support the development of electronic procurement, electronic auctions and communication within the field of public procurement;
inter operate and collaborate with other organizations at home and abroad on issues related to public procurement.
- to develop and implement detailed rules regarding the sale of assets of the Contracting Authority.
Public Procurement Regulatory Commission consists of three members. PPRC members are appointed for a term of five (5) years, and are nominated by the Government and appointed by the Assembly.

2. PUBLIC PROCURTEMENT ACTIVITIES IN KOSOVA DURING 2011

Based on Section 87.2.18 of the Public Procurement Law No. 04/L-042, Public Procurement Regulatory Commission should prepare and maintain a comprehensive list of all contracting authorities in Kosovo that are obliged to implement the Law on Public Procurement. On January 1st, 2011 in Kosovo were 161 contracting authorities, while on

On December 31st, 2010 the number of these contracting authorities has increased to 161. Through annual reports for public signed contracts, which the contractingauthorities have sent to the PPRC electronically during January 2010, the IT department hasprepared the summarized annual report for all public procurements conducted in Kosovo during 2011.From altogether 161 contracting authorities that have existed in Kosovo at the end of2010, 158 contracting authorities have submitted on time the annual reports, whereas 3 contracting authorities that have not sent the annual report at all. The contracting authorities that have not sent the annual reports are only the three municipalities from the northern part of Kosovo - the municipalities of Zvecan, ZubinPotok and Leposavic.

Based on all reports received from the contracting authorities, it is noticed that during 2011 all over Kosovo were signed 12 310 public contracts conducted according to the Public Procurement Law of Kosovo including all types of procurement values.

Further to this report we will present public procurements in Kosovo according to the contracts that were signed during 2011. Taking as a base the report of the previous year’sprepared by PPRC, according to the PPL requirement, this report shall present procurementactivities, respectively all signed contracts by the contracting authority by analyzing the signed contracts according to the financial resources, type of contracting authorities, type of contracts, the value of the contracts, procurement procedures, annex contracts, the economicoperators awarded with the contract, deadlines of publication and contract award criteria. Therefore, this report reflects the ongoing activities of all public procurement conducted during 2011 in Kosovo, analyzing and comparing with the previous years, so we see the trendof development of the procurement activities conducted in Kosovo.

2.1. NUMBER OF CONTRACTS SIGNED DURING 2011

Number of signed contracts
Contracting Authorities: / During 2009 / During 2010 / During 2011[1]
Governmental / 10955 / 9947 / 9305
Public companies / 3786 / 3484 / 3001
Other / 79 / 68 / 4
Total: / 14820 / 13499 / 12310
Frame Contracts[2] / 201

Table 1

Based on Public Procurement Law of Kosovo, contractin authorities are obligated to present all signed contracts, including those with minimal amount.

We start the analyze of signed contracts with separation of contracting authorities in budget organizations- Governmental, Public companies and other-NGO. We know that this separation does not present a real review of financing, since a considerable number of public companies in Kosovo are still financed by CBK. Anyway, we will attempt, based on this separation, to reflect the number of signed contracts in table 1 and graphic 1 during three last years from mentioned contracting authorities.

Also, during 2011 for the first time are evident Frame Contracts from contracting authorities. So now these kind of contracts are eventually lately used especially from contracting authorities as Kosovo Energy Corporation J.S., Post and Telecommunication of Kosovo J.S., Ministry of Finance, Ministry of Health, Prishtina Municipality, Constitutional Court of Kosovo, Iber-Lepenc J.S.C., Ministry of Europian Integration, Ministry of Foreign Affairs. In table 1 is the approximate number of these contracts reported by contracting authorities since this kind of contracts has been used very much just during 2011, since just in 2011 the secondary legislation for this kind of contracts has been completed. It is impossible to specify the amount of these contracts since they have been signed with price per unit, but we can state that their amount was high because we deal mostly with supplies as fuels and services as object security, maintenance of objects etc., what gives us a considerable amount in procurement activities developed in Kosovo.
Graphicon 1

2.2. THE VALUE OF SIGNED CONTRACTS DURING 2011

VALUE OF SIGNED CONTRACTS (€)
Contracting authorities: / Value of contracts 2009 / Value of contracts 2010 / Value of contracts 2011[3]
Governmentale / 529,849,302.73 / 286,739,192.67 / 284,714,229.60
Public Companies / 245,382,175.36 / 194,579,794.27 / 267.260.689,03
Other / 2,922,036.94 / 749,861.62 / 175.849,56
Total : / 778,153,515.03 / 482,068,848.56 / 552,150,768.20
Note:The contract for construction of Morinë-Merdare Highway from Ministry of Infrastructure [4] / 106.883.295,92 / 236.165.999,52

Table 2As we see from table 2, we have reflected the value of contracts signed during three last years. Contract for construction of Morine-Merdare Highway, Sector 7, signed during 2010 in the value of 659,813,399.88€ it has been introduced as special because the mentioned contract is a high amount contract and according to the Ministry of Infrastructure this contract is a long term contract and the predicted amount for 2010 was 106,883,295.92€, while the amount for 2011 is 236.165.999,52€ which is reflected in graphic 2.Graphic 2

Graphic 3Based on contracting authority’s classification, as above in table No.2 and graphic No 3 we are presenting the value of signed contracts, during the last three years

Graphic No 4 presents the structure, or participation of the value of signed contracts during 2011. Budget organizations-governmental participate with 51,57%, public companies with 48,40% as for the other authorities-NGOs with just 0,03% in total amount of signed contracts.

Graphicon 4

Value of Signed contracts according to financing source (€)
Financing source: / Value of contracts 2009 / Value of contracts 2010 / Value of contracts 2011
Self incomes[5] / 178,936,718.11 / 149,546,783.32 / 222.248.360,71
Kosovo Consolitadated Budget / 586,539,985.28 / 326,250,504.21 / 323,841,023.84
Donation / 12,676,811.64 / 6,271,561.03 / 6.061.383,65
Total : / 778,153,515.03 / 482,068,848.56 / 552,150,768.20
Note:The part of contract of Morinë-Merdarehighway from Ministry of Infrastructure / 106.883.295,92 / 236.165.999,52

2.3. VALUE OF SIGNED CONTRACTS DURING 2011ACCORDING TO

THE FINANCING SOURCE

Table 3In table 3 and graphic No 4 is presented the value of signed contracts, based on financing source. From self incomes the value of signed contracts during 2011 is 222.248.360,71€. From Kosovo Consolidated Budget the value of signed contracts appears to be 323,841,023.84€, as far as the value of donations of signed contracts appears 6.061.383,65€.

Graphic 4Structure of value of signed contracts based on financing source is reflected on graphic No5, where Self incomes of companies participate with 40.25%, Consolidated Budget of Kosovo with 58.66%, and donations with 1.09%.

Graphic 5

2.4. VALUE OF CONTRACTS SIGNED DURING 2011 ACCORDING TO THE PROCUREMENTTYPE

Value of contracts signed according to the procurement type (€)
Llojiiprokurimit: / Value of contracts 2009 / Value of contracts 2010 / Value of contracts 2011
Supplies / 289,392,796.00 / 220,318,579.03 / 308,709,092.99
Services[6] / 62,266,651.91 / 59,572,746.08 / 64,305,010.99
Design Contest / 1,667,506.79 / 1,075,246.37 / 2,158,906.03
Works / 424,806,560.33 / 201,102,277.08 / 176,977,758.19
Total : / 778,133,515.03 / 482,068,848.56 / 552,150,768.20
Note: The part of the contract fot the construction ofMorinë-MerdareHighway from the Ministry of Infrastructure / 106.883.295,92 / 236.165.999,52

Table 4

According to the kind of procurement, where contracts has as its object, in table No4 and graphic No.6, the value of contracts signed for supplies during 2011 reached 308,709,092.99€. Value of signed contracts for services reached 64,305,010.99€, while compared with last year we have an slight increase which shows the same trend with the last years, since the need for different professional services in our country increases day by day, depending on the trends of general economic development. Value of contracts signed for design contest is 2,158,906.03€.

While the value of contracts signed for works reaches 176.977.758, 19€, and if this value and if this value we add the value ofMorinë- Merdar highway in amount planned for 2011, of 236.165.999, 52€, the value of contracts for works during 2011 reaches 413.143.757,71€.

Graphic 6

Graphic 7

Graphic No. 7,represents the structure or participation of contract signed according the value in total contract signed during 2011. Supply contracts participate with 55,90%.Contract for services with 11.63%, contracts for design contest with 0.39 %, while the contract for work participate with 32.08%.

In the graphic No 8 is presented the structure or the participation of signed contracts, according to their total signed contracts value during 2011, where the value of the contracts for work we add the value of Morine-Merdare Highway predicted for 2011 in 236.165.99, 52€ and the total value of contracts for work during 2011 reaches 413.143.757, 71€ or 52.43% in total value of signed contracts.

Graphic 8

2.5. VALUE OF SIGNED CONTRACTS DURING 2011 ACCORDING TO PROCUREMENT VALUE

Value of signed contracts according to the procurement value (€)
Type of the procurement value: / Value of contracts
2009 / Value of contracts 2010 / Value of contracts 2011
Large value / 575,602,784.31 / 298,457,903.83 / 362,942,453.16
Medium value / 171,592,255.32 / 156,188,246.69 / 163,603,179.07
Small value / 27,080,232.79 / 24,490,421.94 / 23,111,720.20
Minimal value / 3,878,242.61 / 2,932,276.10 / 2,493,415.77
Total : / 778,153,515.03 / 482,068,848.56 / 552,150,768.20
Note: The part of the contract fot the construction ofMorinë-MerdareHighway from the Ministry of Infrastructure / 106.883.295,92 / 236.165.999,52

Table 5

Signed contracts divided according to the type of contract value in table no.5 and graphic no.9, present that according to the large value, the value of contract signed during 2011 is 362.942.453,16€.

Graphic 9

Contracts signed with medium value reached the price of 163,603,179.07€, contracts signed with small value are 23,111,720.20€. Contracts signed with minimal value are 2.493.415, 77€.

Graphic 10

Based on graphic No.10, we see that participation of contracts with large values, in the total value of signed contracts during 2011, is 65.73%. Contracts with medium value participate with 29.63%. Contracts with small value participate in the total value of signed contracts with 4.19%, while contracts with minimal value participate with 0.45%.

2.6. VALUE OF SIGNED CONTRACTS DURING 2009, 2010 AND 2011 ACCORDING TO PROCUREMENT PROCEDURES

VALUE OF SIGNED CONTRACTS ACCORDING TO PROCUREMENT PROCEDURES (€)
Procedure type: / Value of contracts 2009 / Value of contracts 2010 / Value of contracts 2011
Open procedure / 660,305,834.65 / 412,030,313.41 / 457,187,278.28
Restricted procedure / 0.00 / 0.00 / 7,450,000.80
Design contest / 1,687,506.79 / 1,075,246.37 / 2,158,906.02
Negotiated procedures after publication of contracts notice / 3,027,620.00 / 9,791,913.24 / 26,600,075.83
Negotiated procedures without publication of contract notice / 84,235,456.82 / 33,837,639.27 / 34,295,214.22
Price Quotation / 25,078,675.39 / 22,403,715.17 / 21,971,811.73
Minimal value procedures / 3,818,421.38 / 2,930,021.10 / 2,487,481.32
Total : / 778,153,515.03 / 482,068,848.56 / 552,150,768.20
Note: The contract for construction of Morine-Merdare Highway, Sector 7 / 106.883.295,92 / 236.165.999,52

Table 6

Analyses of contract signed divided according to the type of procedures in table 6, and graphic 11, represent that value of contracts signed under the open procedure during 2011 is 457,187,278.28€. During 2011 we have 7.450.00, 80 € procurements presented.

The value of contract signed for design contests during 2011, is 2,158,906.02€, whereas the value of contracts signed according to the negotiated procedures after publication of contracts notice during 2011, is 26.600.075, 83€. Whereas the value of contracts signed according to the negotiated procedure without publication of contract notice during 2011 is 34.295.214, 22€ and the value of contracts signed according to price quotation procedure during 2011, is 21,971,811.73€.

Meanwhile, the value of contracts signed according by minimal value procedures, during 2011 is 2.487.481, 31€.

Graphic 11

Graphic 12

Analyses of structure or participation of implemented procedures during 2011 in graphic No. 12, which represent the participation of the open procedures in general signed contracts is 82.80%, which is one of the most used procedures and known as the most transparent procedures.

During 2011 restricted procedure has also been used and the value participation of signed contracts is 1.35%. Also participation of negotiated procedures after publication of contract notice is 4.82%, and participation of negotiated procedures without publication of contract notice during 2011 is 6.21%, which that is a specific decrease comparing with previous years.

Whereas during 2008 this participation was 16.07%, during 2009 was 10.83%, during 2010 this participation was decreased in 7.02% and during 2011 was 6.21%. It is very obvious that participation of negotiated procedures without publication of contract notice is in continuing decrease, so it shows a very positive trend of using the procurement procedures.

While the participation of the price quotation procedure is 3.98% and according the minimal value procedures is 0, 45 %, while the design contest participates with 0, 39 % in general value of signed contracts during 2011.

So we ascertain that using of open procedure and continually decrement of using the negotiated procedure without publication of contract notice are very hopeful indicators for public procurement, for the economy in Kosovo and its future movement towards the EU.

Graphic 13

Graphic no.13, represent the usage using of procurement procedures at budgetary organization or government. Graphic 14 reflects the use of the procurement procedures at Public Companies and graphic 15 represents the use of procurement procedures at otherorganizations-NGOs.

Graphic 14

Graphic 15

2.7. VALUE OF SIGNED CONTRACTS DURING 2011 ACCORDING TO THE TYPE OF PROCUREMENT

Table 7

Value of signed contracts according to the type and procurement procedures 2011 (€)
Procurement
type / Procurement procedures
Open / Restricted / Design contest / Negotiated after publication of contract notice / Negotiated without publication of contract notice / Price quotation / Minimal value procedure / Total:
Supplies / 244,547,607.83 / - / - / 26,194,015.68 / 21,947,263.73 / 14,082,769.48 / 1,937,436.28 / 308,709,093.00
Services / 44,581,249.88 / 7,450,000.80 / - / 374,400.00 / 5,536,475.11 / 5,825,564.30 / 537,320.90 / 64,305,010.99
Design contest / - / - / 2,158,906.02 / - / - / - / 2,158,906.02
Works / 168,058,420.57 / - / - / 31,660.15 / 6,811,475.38 / 2,063,477.95 / 12,724.14 / 176,977,758.19
Total / 457,187,278.28 / 7,450,000.80 / 2,158,906.02 / 26,600,075.83 / 34,295,214.22 / 21,971,811.73 / 2,487,481.32 / 552,150,768.20
Note: The part of the contract for construction of Morine-Merdare highway, sector 7, from the Ministry of Infrastructure / 236.165.999,52

In table no. 7 and graphic 16 we have represented the value of signed contracts according to the type and combination of contract value according the procurement procedures during 2011. So here is represented each type of procurement by the type of procurement procedure used.

Graphic 16

2.8. SIGNED CONTRACTS AND ANNEX CONTRACTS

Value of signed contracts and annex contracts during 2010 dhe 2011 (€ )
Contracts: / Contracts value 2010 (€ ) / Participation 2010 % / Contracts value
2011 (€ ) / Participation 2011 %
Signed contracts / 474,462,253.89 / 98.42 / 546,667,767.41 / 99,01
Annex contracts / 7,606,594.67 / 1.58 / 5,483,000.79 / 0,99
Total: / 482,068,848.56 / 100.00 / 552,150,768.20 / 100,00
Note: The part of contract for construction of Morine-Merdare Highway, from the Ministry of Infrastructure / 236.165.999,52

Table 8