The total value of procurement in Montenegro last year was 982,06 million euros, of which 847.582.273 were public procurements and 134.481.562 euros were electricity and coal procurements. The most valuable public procurement contract was signed by the Municipality of Pljevlja, for 31,97 million excluding VAT, for the construction of a general hospital there, while the largest contracts, in total, went to the drugstore wholesaler "Glosarij" in the amount of more than 14 million euros.
Last year, 8.373 public procurement contracts were concluded, of which 404,95 million euros were for goods, 281,11 million for works, and 92,76 million euros for services.
This is stated, among other things, in the Government's annual report on public procurement for 2024.
Data shows that last year there was an increase in both the number and value of public procurement contracts, and that 1,3 thousand more were signed than in 2023. Thus, the value of these deals increased by 172,38 million euros, as last year they were signed for 847,58 million euros and the year before that for 675,19 million euros. When it comes to total procurement, 118,76 million euros more were spent last year than in 2023.
Procurement accounted for 13,1 percent of gross domestic product (GDP) last year, which is 1,3 percentage points more than in 2023, when it accounted for 11,84 percent. Public procurement accounted for 2024 percent in 11,3, which is also up from 9,8 percent two years earlier. In addition, 3.762 public procurements were canceled last year, which is about 1.200 more than in 2023.
Public procurement is carried out by state authorities through the Montenegrin Electronic Public Procurement (CeJN) system, and the data states that last year, 17,2 million euros were saved through the difference between the estimated and contracted value of procurement.
Millions for projects, fuel, medicines...
The largest single public procurement contract last year was signed by the Capital Projects Administration with a consortium consisting of the companies "Termomont" and Podgorica's "Fidija" with subcontractors, and is worth 31,97 million euros excluding VAT. The contract was signed for the design and construction of the General Hospital in Pljevlja.
The state-owned “Montefarm” signed the most valuable contracts with the pharmaceutical wholesaler “Glosarij”. Nine contracts worth a total of 103.504.212 euros were signed with this company. The least valuable of them was 2,1 million, while the most expensive was 27,64 million euros. Five more contracts worth 20.929.438 euros were signed with the company “Glosarij CD”. Thus, “Glosarij” received 14 of the 50 most valuable procurements in the country through two companies.
At the top of the largest public procurements is the contract that the Traffic Administration signed with the Nikšić-based company “Mehanizacija i programat”, worth 12,37 million euros. Similarly, the project for the reconstruction of Vojislavljevića Street in Podgorica, for which the Administration signed a contract worth 11,93 million euros with the company “Crnagoraput”.
Of the 50 largest, only seven procurements were worth more than 10 million euros. The Transport Administration had three more contracts in the range of 9,15 million to 9,89 million euros, and they were signed with the company “Putevi Bar” for the reconstruction of the Bar-Kamenicki most-Krute road, with “Bemax” for the reconstruction of the Petnjica-Bioče route, along with the work of preparing the main design and construction of the Veruša-Lopate road with the company “Koding”. Among these contracts is the one that the Pljevlja Coal Mine signed with “Jugopetrol”, and was worth 9,14 million euros.
The company "Farmega", which deals with trade, transport and services, has also signed several million-dollar deals with "Montefarma". This company signed six contracts with "Montefarma" with a total value of 22,23 million euros, the most valuable of which was 5,23 million euros.
Also on the list is the road reconstruction project in Martinići, for which the Municipality of Danilovgrad signed a contract with the company "Putevi Bar" worth 4,47 million euros. The Montenegrin Power Transmission System signed a contract with "Global Trade Solutions" and "Chint Electric" for a similar amount for the purchase of two autotransformers, and the job cost 4,34 million euros.
Among the more notable three-million-euro procurements are two worth 6,52 million euros, which the State Property Administration signed with the company "Jugopetrol", while the Agency for Construction and Development of Podgorica signed a deal worth 3,05 million with the company "Crnagoraput" for the reconstruction of Bulevar Veljko Vlahovića. The cheapest contract on this list was signed by the Capital Projects Administration with the companies "Civil engineer", "Paming" and "Briv Construction", and was worth around 1,78 million.
Are they linking CeJN with ASK?
During the past year, the Directorate for Public Investment Management and Public Procurement Policy of the Ministry of Finance, which prepared the Report, did not receive any reports of possible corruption, but they did receive two notifications of possible conflicts of interest. The document also states that in order to prevent corruption, it is planned to connect CeJN with the electronic system of the Agency for the Prevention of Corruption (ASK).
"Out of the total number of requests received, the ministry proposed to the contracting authority to correct irregularities, re-examine and evaluate 76 bids, gave a recommendation to cancel 12 procedures, forwarded 17 requests to the inspection for processing, while a notification was issued in 36 requests confirming the contracting authority's decision. The public procurement system is dominated by domestic bidders with 89 percent of the total number, while the participation of foreign bidders is at the level of the previous year, at 10,9 percent. The largest number of procedures was conducted through an open procedure, as the most transparent procedure that achieves the highest level of competition in the amount of 82,26 percent. The percentage of procedures conducted through a negotiated procedure without prior publication of a call for tenders was 8,2 percent, a restricted procedure was 0,3 percent, and simple procurements were conducted through the system was 6,13 percent. The intensity of competition, i.e. the average number of bids per public procurement procedure, was 3,03," the Report states.
The document also highlights that the value of public procurement above the European Union thresholds amounts to 381.075.088 euros. The European Commission recently assessed that Montenegro has met the conditions for closing the negotiating Chapter 5 - Public Procurement (public procurement), while the Report states that the conditions have been met for this to happen in June.
Some are late with their documents.
The Report for last year also highlights a list of those who have not published a public procurement plan, including educational institutions, ministries, customs and police institutions...
Specifically, the plans were not submitted by the Ministries of Maritime Affairs, Social Welfare, the Dental Chamber, the Police Directorate, the Revenue and Customs Directorate, as well as the Directorate for Sports and Youth.
This document was not submitted by the supervisor of the Directorate for Inspection and Protection of the EU's Financial Interests, the supervisor of the Commission for the Protection of Rights in Public Procurement Procedures, 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, the Bar "Parking Service", the Budva Museums and Galleries and the supervisor of the "State Audit Institution".
Several schools are also on the list, including the Cetinje Gymnasium, the "Jovan Ćorović" Elementary School from Gornja Bukovica, the "Šćepan Đukić" Elementary School from Lijeva Rijeka, the Berane Vocational High School...
Data shows that last year there was an increase in both the number and value of public procurement contracts, and that 1,3 thousand more were signed than in 2023.
Bonus video:
