Minister`s Çitaku in the Assembly for the Draft-Law on Public Procurement

I address you today, regarding the adoption of the Draft-Law for amending and supplementing the Law on Public Procurement and its linkage to the negotiation of the Stabilisation and Association Agreement process.

During 2012, National Council for Economic Development taking into consideration the financial and economic impact  which the public procurement activities have within entrepreneurship of private sector in Kosovo, has initiated the debate on the provision of incentives and support of business community within public procurement activities.

After a comprehensive debate, with the business community, the National Council for Economic Development on 18 December 2012 has decided to create incentives for local enterprises through creation of favouritism within the public procurement activities.

Such decision is based on the need to support local products and to create temporary incentives for stimulating economic growth.

Such an issue has required amending and supplementing of the Law on Public Procurement and after 18 December 2012 the technical work in amending and supplementing the Law on Public Procurement has started.

On the other hand, during 2013, negotiations on the Stabilisation and Association Agreement have started. According to the legislation of the European Union, favouring domestic products based on the origin of the product are not allowed. This is the foundation of the European Union`s internal market.

However, taking into account the need to stimulate economic growth in Kosovo, creating the incentives for domestic manufacturers and prior precedents of other countries within the negotiation process of the Stabilisation and Association Agreement – on which case such favouring have been allowed, our institutions have decided to negotiate a transitional period for applying the favouring of domestic enterprises within public procurements activities.

In this context, during the negotiation process of the Stabilisation and Association Agreement, we have agreed on the transitional period for favouring domestic enterprises within the public procurement activities.

Such favouritism is limited to the favouring based on the most economically favourable offer criteria and lowest price offered, respectively, favouring of 10 points in the most favourable offer and 15% in favouring the price offered by the local manufacturers.

Recently, I was informed that the Assembly received a letter from the Head of EULEX who informed the Assembly that the Draft Law for amending and supplementing the Law on Public Procurement is not in line with the European Union legislation.

Honoured President of the Assembly,
Honoured Deputies,

From the beginning of this process we have been fully aware that the amendment of the Law on Public Procurement is not in line with European Union legislation.

However, allow me to make one thing very clear in my capacity as Chief Negotiator for the Stabilization and Association Agreement.

It is my obligation to make sure not only whether it is in harmony with the European Union legislation or not, but to negotiate an agreement which is more favourable to our country, our economy and our enterprises.

Also, we should clearly highlight that from the beginning of this process we have insisted that this is only a temporary measure which aims to stimulate economic growth and in this regard we have negotiated a transitional period with the European Union.

Honoured President of the Assembly,
Honoured Deputies,

In this context, I invite you to proceed for approval the Draft-Law on Amending and Supplementing the Law on Public Procurement, as soon as possible.

This would be a strong support for our economy and enterprises.

Thank you for your attention.