Open Data Albania has done a short analysis on Public Procurement Procedures held in 2020 and 2021 without competition or open procedures. As such, we have taken into consideration tenders that were conducted with Restricted, local or international, procedures and Negotiated procurement procedures without prior publication of a contract notice.In this analysis, we have not considered Negotiated procurement procedures with prior announcement or Requests for proposal.The data were obtained from the Database of the Public Procurement Agency under the section Open Data for 2020 and 2021.In the analysis, the canceled procedures are excluded.
In 2020, the contracting authorities conducted 18,540 tendering procedures, with a limit fund of 267,765,243,763 ALL, VAT excluded (over ALL 267 billion). From this fund, 76 132 463 546 ALL or 28.4 percent of the total, have been tendered through Restricted Procedures or Negotiated procurement procedures without prior publication of a contract notice. Both kinds of procedures do not guarantee open, free and fair competition through electronic bidding. The Restricted Procedures for 2020 are mainly for the purpose of selecting operators and contracting for the Reconstruction Program due to the Earthquake of November 26, 2019.
Source: App
Edited by: Open Data Albania
In 2020, the contracting authorities have conducted 108 tenders with Restricted procedure, all part of the Reconstruction Program, amounting to a total value of the limit fund of 69 164 367 246 ALL VAT excluded (over 69 billion ALL). 92 of these procedures were Local Restricted Procedures, while the other 16 were International Restricted Procedures.
As it can be seen from the administered data, it turns out that during 2020, 25.8 percent of the total value tendered during the year, were tendered through Restricted Procedures.
Source: App
Edited by: Open Data Albania
Source: App
Edited by: Open Data Albania
Source: App
Edited by: Open Data Albania
Simply put, in 2020, the government and its institutions have tendered a quarter of the limit fund of the whole year through Restricted Procedures tenders, avoiding open, free and fair competition in the electronic system. The decisions for this type of procedures were made based on the Normative Act no. 9, dated 16.12.2019 “On coping with the consequences of natural disaster”, that was given by the Government the force of law. This Normative Act has been challenged by a lawsuit in the Constitutional Court by the AIS organization and further by a group of Opposition MPs, a lawsuit for which the Court is awaiting review.
Also, in 2020, 504 tenders were conducted through Negotiated procurement procedure without prior publication of a contract notice, or shortly Negotiation without Announcement.
According to the Law on Public Procurement, the negotiated procedure without prior publication allows the contracting authority to select the economic operators and negotiate the terms of the contract with one or more of them, again avoiding open and free competition between operators.
It is worth stressing out that out of 504 tenders negotiated without announcement, only 4 of them were conducted as part of the Reconstruction Program. The Contracting Authority for the four tenders was the Municipality of Tirana and the total limit fund for these 4 tenders was 24 429 146 ALL, VAT excluded (over $240.000). The total value of the Limit Fund for 504 tenders with Negotiation without Announcement is 6 968 096 300 ALL,VAT excluded (over 6.9 billion ALL).
Negotiations without announcement occupy 2.6 percent of the total limit fund.
In 2021, the contracting authorities conducted 17,400 tendering procedures, with a limit fund of 147,774,069,034 ALL, VAT excluded (over ALL 147 billion). Of this fund, 24 215 135 878 ALL (over ALL 24 billion), or 16.4 percent, have been tendered through Restricted Procedures or Negotiation without Announcement. Both of these procedures, as we noted earlier, restrict competition between operators and do not allow open competition, leaving room for suspicion of corruption. Similar to 2020, Restricted Procedure tenders for 2021 are mainly part of the Reconstruction Program due to the Earthquake of November 26, 2019. In 2021, the contracting authorities have conducted 137 tenders with Restricted Procedures for the Reconstruction Program, with a total fund value limit 19 333 466 996 ALL, VAT excluded (over ALL 19 billion). These Restricted Procedures contracts account for 13.1 percent of the total limit fund. Of these, 134 were tenders with Local Restricted Procedure, while only 3 were with International Restricted Procedure.
Source: App
Edited by: Open Data Albania
Source: App
Edited by: Open Data Albania
Source: App
Edited by: Open Data Albania
In 2021, 244 tenders were conducted through Negotiations without Announcement, with a total limit fund of 4 881 668 882 ALL, VAT excluded (over 4.8 billion ALL). These negotiated contracts without announcement occupy 3.6 percent of the total limit fund.
Source: App
Edited by: Open Data Albania
Comparing the data for 2020 and 2021, it is noticeable that in 2020 the total limit fund for public procurement is significantly higher than that of 2021. Simply put, in 2020 there were 80 percent more funds tendered than in 2021.
Source: App
Edited by: Open Data Albania
Also, the limit fund given through restricted procedures and negotiation without announcement, in 2020 was about 3 times higher than that of 2021. The total value of the limit fund tendered through restricted procedures for the Reconstruction Program, in 2020 has been about 3.5 times higher compared to 2021.
Source: App
Edited by: Open Data Albania
Source: App
Edited by: Open Data Albania
The total value of the limit fund tendered through negotiation without announcement in 2020 has been about 1.5 times higher than in 2021. The year 2020 is characterized by Reconstruction Program procedures; Tenders necessary to cope with the situation created by Covid Pandemic -19. Another characteristic of the year 2020 is the fact that this year precedes the electoral campaign for General Parliamentary Elections held on April 25, 2021.
AIS through the OpenProcurement Albania database has monitored and published tenders for the Reconstruction Program held by Local Government Municipalities and the Central Government through the Albanian Development Fund. Tenders of Public Health and Emergency Institutions conducted to cope with the effects of the Covid-19 Pandemic were also monitored by AIS.
Download excel: Public Procurement Procedures without competition in 2020 and 2021Comments and Analysis: Open Data Albania