Public Procurement in Kosovo

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a publication of THE AMERICAN CHAMBER OF COMMERCE IN KOSOVO

Public Procurement in Kosovo
Challenges of the Business Community

This project has been implemented with the support of

Published by the American Chamber of Commerce in Kosovo © American Chamber of Commerce in Kosovo, 2012 All rights reserved. All the written and visual materials contained herein are the exclusive property of the American Chamber of Commerce in Kosovo. This material may be reproduced and otherwise utilized for non-commercial purposes related to public procurement if this publication is correctly and clearly identified as the source. This publication has been produced with the financial support of the Kosovo Foundation for Open Society. The contents of this publication are the sole responsibility of American Chamber of Commerce and not necessarily reflect the position of the Kosovo Foundation for Open Society.

Publication authors: Visar Hapçiu, Policy Department Ardi Shita, ADR Center

Table of Contents
Table of Contents Preface and Acknowledgments I. Introduction II. Methodology III. Analysis of Results i. Respondents' Satisfaction with Procurement Procedures 2 4 5 6 7 10

Preface and Acknowledgments
Public procurement has proven to be a dedicated follower of political fashion not only in Kosovo but throughout the world. Historically, we see consistent attempts to link public procurement with the government policy in areas as diverse as economic development policies, reducing unemployment, improving employment conditions, support for businesses, local development and decreasing the level of unemployment, to mention only a few. The study analyses the public procurement practices which are implemented in Kosovo in terms of transparency and accountability of procuring bodies. Furthermore, the effects of these practices will be analyzed in terms of their effects on the business community. This study also examines the level of harmonization of Kosovo's legal framework on public procurement and the policies implemented by procuring bodies with the EU Acquis Communautaire. The American Chamber of Commerce in Kosovo would like to express its gratitude to the Kosovo Foundation for Open Society for financing this study, to the business community in Kosovo for their patience and willingness to respond in the survey and to Mr. Abdyl Limani from the Public Procurement Regulatory Commission and Mr. Ardian Behra from the Procurement Review Body for their contribution during the research phase of this project.

Preface and Acknowledgments

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I. Introduction
Public Procurement in Kosovo is a very problematic area that triggers many complaints from the business community. Problems related to procurement practices are plenty. In addition to the damages which businesses themselves suffer because of irregularities faced in this regard, the budget of Kosovo suffers as well. The prevalence of corruption in procurement activities in Kosovo is also thought to be high, while favoritism seems to have become an accepted phenomenon among the society when applying for public tenders. These are only few of the perceptions that exist regarding public procurement in Kosovo. Understanding the importance which public procurement has in the economy and to private businesses, the need for improvements and structural reforms is evident. In order to understand and quantify businesses' satisfaction and overall perception regarding procurement activities, AmCham conducted a survey, which was distributed to a large pool of businesses. Results of the survey have been included in later parts of this study. Furthermore, this study contains an analysis and comparison of the procurement practices used in Kosovo by public institutions with those used in European Union and the region. The law of public procurement has also been analyzed in terms of harmonization with the EU Acquis Communataire.

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Introduction

II. Methodology
For compiling a comprehensive...
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