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© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Monika Dimitrova Ankara, Turkey – 5-6 February 2008 MINISTRY.

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Presentation on theme: "© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Monika Dimitrova Ankara, Turkey – 5-6 February 2008 MINISTRY."— Presentation transcript:

1 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Monika Dimitrova Ankara, Turkey – 5-6 February 2008 MINISTRY OF ECONOMY AND ENERGY PUBLIC PROCUREMENT AGENCY THE ACCESSION PROCESS TO EU IN THE FIELD OF PUBLIC CONTRACTS IN PUBLIC OF BULGARIA

2 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 ACCESSION PROCESS  1988 – Diplomatic relations with EC;  1990 - Convention on TBE relations signed (PHARE);  1993 – 1995 – European agreement for Association;  1995 – Request for membership;  2000 – 2004 – Accession negotiations;  2005 – Approval for accession by the EP;  25 April 2005 – EU Treaty of Accession endorsed and SIGNED.

3 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 EU REPORTS  1998  1999  2000  2001  2002  2003  2004  2005 Regular reports by the EC to the Council on further progress achieved by Bulgaria

4 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 1998 EU REPORT – public procurement “Bulgaria’s progress on the effective implementation of the public procurement concept has been limited. However, it has committed itself to becoming a contracting party to the WTO Agreement on Government Procurement”. “The scale of progress still required calls for considerable and sustained efforts, both in approximation of legislation and in the establishment of structures to implement it, particularly as regards public procurement structures to implement it, particularly as regards public procurement….”

5 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 1999 EU REPORT – public procurement “Concerning public procurement, a new law was adopted in August 1999 which takes on the basic principles of the Community acquis.”. “There is at present no central Public Procurement Office but…. Adequate structures need to be set up for the control of public procurement procedure” “ In many areas notably public procurement,……., significant efforts are now necessary in implementation and enforcement of laws”

6 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 2000 EU REPORT – public procurement “In the area of public procurement the legislation is partially in line with the acquis and a number of amendments will be required, including clear rules on legal remedies for unsuccessful bidders. Substantial work is required in order to ensure that legislation is fully and properly applied by the public authorities/utilities concerned throughout the country. The administrative capacity of the Directorate responsible for public procurement needs to be strengthened in order to ensure effective implementation”. fully and properly applied by the public authorities/utilities concerned throughout the country. The administrative capacity of the Directorate responsible for public procurement needs to be strengthened in order to ensure effective implementation. ”.

7 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 2002 EU REPORT – public procurement “An amended public procurement act is in force but some further changes are still required to ensure full compatibility with the acquis and a public procurement agency still needs to be established to ensure transparent public procurement procedures at central and regional level”. “An amended public procurement act is in force but some further changes are still required to ensure full compatibility with the acquis and a public procurement agency still needs to be established to ensure transparent public procurement procedures at central and regional level. ”. “In the area of public procurement, a significant step forward was taken by amending the Law on public procurement, with effect from May 2002”.

8 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 2003 EU REPORT – public procurement “In the field of public procurement, the situation is not yet satisfactory. The draft legislation that has been prepared still contains shortcomings that have to be dealt with in order to attain full alignment with the acquis A weak administrative structure exists at central level in the area of policy and law making, co- ordination and provision of operational support, monitoring and control. Further efforts are required to ensure full alignment on the acquis and to establish an independent body with clearly defined status, functions and qualified staff able to effectively apply the national procurement legislation through monitoring, review and help desk activities.”.

9 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 2004 EU REPORT – public procurement “In the field of public procurement, the adoption of a new Law on public procurement in March 2004 and its entry into force in October 2004 represent an important step towards alignment. ….. Another important feature of the Law is the introduction of changes in the appeal system, according to which a Court of Arbitration is established to streamline and improve the processing of complaints. The Law provides for the establishment of a Public Procurement Agency under the Ministry of Economy. ….The Agency is responsible for carrying out overall coordination in this sector and for implementing the public procurement system.”.

10 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 BODY RESPONSIBLE FOR PUBLIC PROCUREMENT 1998 – 2004 DIRECTORATE WITHIN THE COUNCIL OF MINISTERS 2004 TILL PRESENT MOMENT PUBLIC PROCUREMNT AGENCY WITHIN THE MINISTRY OF ECONOMY AND ENERGY

11 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 PUBLIC PROCUREMENT AGENCY CHALLENGES  LEGISLATION IN COMPLIANCE WITH THE EUROPEAN IN THE FIELD OF PP  STRENGTHENING OF THE ADMINISTRATIVE CAPACITY  PUBLICITY AND TRANSPARENCY IN ACTION

12 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU ROLE AND FUNCTIONS OF THE PP AGENCY Ankara, Turkey – 5-6 February 2008

13 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU ROLE AND FUNCTIONS OF THE PP AGENCY EXECUTIVE DIRECTOR SECRETARY GENERAL “FEALA” DIRECTORATE “MAMPP” DIRECTORATE “ML” UNIT “MS” UNIT “EDB” DIRECTORATE “CNCTS” UNIT “ISPPR” UNIT INFORMATION SECURITY OFFICER STRUCTURE OF THE PPA     Ankara, Turkey – 5-6 February 2008      

14 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 ROLE AND FUNCTIONS OF THE PP AGENCY Main powers of the Executive Director of the PPA  Issue methodological guidelines on the application of PPL  Maintain a Public Procurement Register  Elaborate drafts of the acts in the field of public procurements  Coordinate the activities relating to the training of all participants in the public procurement process

15 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 PUBLIC PROCUREMENT AGENCY PAPERS AND EFFORTS SUPPORTING THE IMPROVEMENT OF THE PUBLIC PROCUREMNT SYSTEM  2004 - INSTITUTIONAL DEVELOPMENT PLAN /SIGMA/;  2004 - TWINNING LIGHT PROJECT /PHARE/;  2005 - ACTION PLAN;  2005 – 2007 - NATIONAL STATEGY;

16 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 NATIOANAL STRATEGY Adopted by the Council of Ministers on November 10, 2005. FOR DEVELOPMENT OF PUBLIC PROCUREMENT AND CONCESSIONS SECTORS FOR 2005-2007 Put in line the Bulgarian legislation in the field of public contracts in compliance with the European Strengthening and development of the administrative capacity Insurance of publicity, transparency, fair competition, equal treatment, non- discrimination NATIONAL STARTEGY

17 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU PUBLIC PROCUREMENT LEGISLATION LAWS  1997 – LAW ON AWARD OF STATE AND MUNICIPALITY PROCUREMNT;  1999 – PUBLIC PROCUREMNT LAW;  2004 – PUBLIC PROCUREMNT LAW; AMENDMENTS OF LAW  2002 – AMENDMENTS ON PUBLIC PROCUREMNT LAW;  2006 - AMENDMENTS ON PUBLIC PROCUREMNT LAW Ankara, Turkey – 5-6 February 2008

18 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU EUROPEAN LEGISLATION IN THE FIELD OF PUBLIC CONTRACTS Directive 2004/18/ЕC Directive 2004/17/ЕC Ankara, Turkey – 5-6 February 2008

19 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Directive 89/665/ЕEC Directive 92/13/ЕEC Ankara, Turkey – 5-6 February 2008 DIRECIVES 89/665/ECC AND 92/13/ECC

20 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 EUROPEAN LEGISLATION IN THE FIELD OF PUBLIC CONTRACTS  open, fair and transparent manner of awarding  equal treatment for all firms  improving the quality  lowering the price PRINCIPLES to be adopted  open, fair and transparent manner of awarding  equal treatment for all firms  improving the quality  lowering the price

21 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 DIRECTIVES 2004/18/EC AND 2004/17/EC Adoption and publishing  March, April 2004 Key words for the legislative package  Updating  Simplification  Flexibility

22 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 DIRECTIVES 89/665/EEC AND 93/12/EEC SCOPE Public contracts and works concessions covered by the Public Procurement Directives

23 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 DIRECTIVES 89/665/EEC AND 93/12/EEC OBJECTIVES to be adopted  increase the guarantees for transparency and nondiscrimination  allowing effective and rapid action to be taken when there is an alleged breach of the Public Procurement Directives  providing economic operators with the assurance that all tender applications will be treated equally

24 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 STEP BY STEP TO THE HARMONIZATION NATIONAL TEAM - WG 20042005-2006 Ministry of Economy Council of Ministers Legal advisers Public procurement agency Ministry of Economy and Energy Public procurement agency Secondary legislation to be developed and acts for the Arbitration within the PPA Legislation (primary and secondary) in the field of public contracts

25 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 STEP BY STEP TO THE HARMONIZATION HANDBOOK ON PUBLIC PROCUREMENT – ELABORATED MARCH 2005 /assist the participants in the procurement process/  try for interpretation of the PP legislation  step-by-step guidelines for organizing award procedures  templates of documents administrative documents

26 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 STEP BY STEP TO THE HARMONIZATION PEER REVIEWS FIRST - EARLY 2005, a peer review realized by SIGMA, requested by the European Commission to conduct a comprehensive assessment of the public procurement system in Bulgaria; LAST ONE – FEBRUARY 2006 organized by the European commission with participation of MS’s experts

27 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 STEP BY STEP TO THE HARMONIZATION MEETINGS WITH DG INTERNAL MARKET/EC  Advisory committee  Working groups within the EC  PPN  Bilateral meetings – Brussels - Sofia

28 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 STEP BY STEP TO THE HARMONIZATION MEETINGS WITH DG INTERNAL MARKET/EC /2004- 2006/ The most important tool for successful fulfillment of the requirements for compliance of the national legislation with the Acquis communautaire  Bilateral meetings – Brussels - Sofia Participants at the meetings: representatives of PPA, CM, MEE, MF, MT, MSAAR, CPC, MFA, Mission of Bulgarian, DEC, SFIA, BNAO and etc.

29 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 LAW FOR AMENDMENTS OF THE PPL LAW FOR AMENDMENTS OF THE PUBLIC PROCUREMENT LAW (LAPPL) DIRECTIVES OF THE EUROPEAN UNION

30 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU LAW FOR AMENDMENTS OF THE PPL Objectives of the Law  Compliance of the Bulgarian legislation in the field of public contract with the European  Passing of the public contracts to the so called “green zone”  Avoiding the possibility of imposing preventive clause, envisage in the Pre-accession agreement Ankara, Turkey – 5-6 February 2008

31 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 SECONDARY LEGISLATION  Rules for the implementation of the Public procurement law /RIPPL/  Ordinance for awarding small public contracts /OASPC/  Ordinance for conditions and order for award of special public contracts /OCOASPC/

32 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 NEW STANDARD FORMS What enforced the changes What enforced the changes  Regulation №1564/2005  Reflection of the new changes in the legislation framework Documents  Notices – different types regarding the value of the contract and publication of the information  Other contracts, related to the awarding of the public contracts

33 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 NEW LEGAL FRAMEWORK IN BULGARIA 1 JULY 2006 SECONDARY LEGISLATION LEGISLATION NEW STANDARD FORMS FORMS PUBLIC PROCUREMENT LAW

34 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 ROLE AND FUNCTIONS OF THE PP AGENCY Powers of the Executive Director  In case of violation of the PPL  alert the competent authorities  reviewing before the CPC acts of the contracting authorities/entities violating Art. 25, Par. 5  file claims in court for declaring public contracts ineffectiveness  Collect and summarize the case law on application of PPL

35 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 REVIEW OF AWARD PROCEDURES New moments  Acts of the contracting authorities/entities – individual administrative acts  Competent authorities – CPC and SAC Consequences  Closure of the Arbitration court within the PPA

36 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 REVIEW SYSTEM IN BULGARIA PPL- 2004 г.AMENDED PPL – 2006 What is subject to review The decisions of the contracting authorities/entities stated in Art.120 Each decision, action or lack of action of the CA/CE Who can be a party Candidate in the procedure Each interested person Competent body District courts Regional courts Arbitration court CPC SAC

37 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU  FIRST INSTANCE COMMISSION FOR PROTECTION OF COMPETITION SECOND INSTANCE SUPRIME ADMINISTRATIVE COURT  FIRST INSTANCE COMMISSION FOR PROTECTION OF COMPETITION  SECOND INSTANCE SUPRIME ADMINISTRATIVE COURT Ankara, Turkey – 5-6 February 2008 REVIEW SYSTEM IN BULGARIA REVIEW BODIES IN THE FIELD OF PUBLIC CONTRACTS REVIEW BODIES IN THE FIELD OF PUBLIC CONTRACTS

38 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Purpose of amendments Advantages Purpose of amendments  Achievement of rapidity and an efficiency of the review proceeding Advantages  Possibility for setting aside an infringement in the public award procedure prior to the conclusion of the public contract Ankara, Turkey – 5-6 February 2008 REVIEW SYSTEM IN BULGARIA

39 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU CHANGES CHANGES PROCEDURES BEFORE CPC  The claim may be submitted by any person having or having had an interest to the conclusion of the public contract or the framework agreement  The submission of the claim shall not suspend the contract award procedure  Impose of the interim measures with decision  Review of the decision before the SAC – 7 day period for proceeding  Pass the decision – in two months after the claim REVIEW OF THE DECISION - 14 day period before the SAC Ankara, Turkey – 5-6 February 2008 REVIEW SYSTEM IN BULGARIA

40 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 REVIEW STATISTICS OF THE CPC PERIOD 1 JULY 2006 – 31 MARCH 2007 288 claims 196 proceedings(73 pending) 123 concluded with decision/ruling 41 terminated 17 inadmissibility 24 withdrawn claims 82 considered at issue 37 violations found

41 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 CONTROL AUTORITIES  Public procurement agency  State financial inspection agency  National Audit office TRIPARTITE AGREEMENT

42 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 COOPERATION WITH OTHER AUTHORITIES AND ORGANIZATIONS  State gazette  Medias  USAID – Open Initiative government SIGMA and others.  SIGMA and others.

43 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 PPA ACTIVITIES TO ASSIST ALL PARTICIPANTS IN THE AWARDING PROCESS Statements in writings Statements in writings Instructions at the PPA website Instructions at the PPA website “Hot” (telephone) line Public contracts handbook

44 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 PUBLICITY AND TRANSPARANCY Public procurement register  Possibility for on-line filling up of notices  Free of charge registration for extended search under the pattern chose by the user  Free of charge subscription to receiving of defined information

45 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 PUBLICITY AND TRANSPARANCY  E - Notification  E - Tendering  Е - awarding with the possibility for using Е - auction  E - management of the contract – E- Ordering, Е-Invoicing E-procurement – step ahead to the uniform European market

46 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 PRACTICE PUBLIC PROCUREMENT REISTER FOR 2006  8 763 public contracts (procurement)  6 500 contracted  11 823 751 781 BGN without VAT

47 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 PRACTICE Awarding procedures depending on the legal act

48 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 PRACTICE Awarding procedures depending on the object of the public contract

49 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 PRACTICE Types of procedures under the PPL

50 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 PRACTICE Types of procedures under OASPC

51 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 PRACTICE Public contracts depending on the contracting authority/entity

52 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 THE PPA WEB SITE

53 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 LESSONS LEARNED  Follow strictly the recommendations of the EC;  Use the assistance of EU instruments – PHARE, SIGMA, TAIEX, etc.  Take into account the opinion of as much participants in the public contracts as you can;  Be prepared for rapid and concrete actions;  Make a good and professional team;  Convince the government of the great importance of the issues in the field of PC;  Etc.

54 © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ankara, Turkey – 5-6 February 2008 THANK YOU FOR YOUR ATTENTION!


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