Bosnia and Herzegovina - Country Procurement Assessment Report : Social Protection

Abstract

This first Country Procurement Assessment Report (CPAR) for Bosnia and Herzegovina (BiH), looks at public procurement operations, in consultation with counterparts from the ministeries of Finance, of the Federation of BiH, of the Republic of Srpska, and of the cantons of Sarajevo, Travnik, Mostar, and Banja Luka. It focuses on the following key themes: ensuring reduced, and more efficient public spending; increasing transparency, by improving access to information on bidding opportunities, and public contract spending; improving the ability of public institutions on appropriate spending of public procurement funds, and institutional regulation of procurement; fighting the risks of corruption; and promoting access to the World Trade Organization, and European Union. Key findings suggest that procurement is a neglected function, where the absence of a State law on procurement is a serious omission, assessing the public procurement environment is high-risk. There are many weaknesses in the current legal system, though current frameworks are reasonably aligned, and governments are willing to harmonize them further. Nonetheless, gaps in the legislation breed abusive practices in public procurement, fostered by poor enforcement, though the benefits of competitive bidding are becoming known, and some large purchasers are using standard bidding documents for all procurement. Recommendations include the need for procurement laws at the State, and entity levels, supported by implementing regulations, while organizational reform is needed to improve enforcement.