From: Arjola Tafaj
Direct Public Procurement Increased at the Expense of Competing Bids, Annual Report Finds

The Albanian government has negotiated more contracts directly with companies instead of opening competing bids during the pandemic and earthquake aftermath, according to an annual report by the Public Procurement Agency (APP).

Direct negotiations of contracts are allowed by law under extraordinary circumstances but they negatively affect competition.

The annual report of the APP for 2020 shows that in total there were 416 contracts negotiated directly with companies without competition, with a limit fund of l €50 million.

For earthquake reconstruction, 74 contracts without competition with a limit fund of €17 million, while for COVID-19 there were 191 procedures with the same €17 million as a limit fund.

According to the APP, the largest percentage of procedures was conducted in the second half of 2020.

These figures for 2020 have also been affected by the Covid-19 pandemic period, where in the first and second quarters the needs were suspended or rescheduled.

Offers made by companies for their services were at higher values than in 2019. This means that authorities saved less money through last year’s bids compared to the previous year.