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Towards Municipalities with Open, Accountable And TOWARDS MUNICIPALITIES WITH OPEN, ACCOUNTABLE AND EFFICIENT PUBLIC PROCUREMENT Report on monitoring of procurement activities in the Municipalities of Prishtina/ Priština, Peja/Peć, Gjilan/ Gnjilane, Gjakova/Djakovica and Vushtrri/Vučitrn September, 2018 1 TOWARDS MUNICIPALITIES WITH OPEN, ACCOUNTABLE AND EFFICIENT PUBLIC PROCUREMENT Report on monitoring of procurement activities in the Municipalities of Prishtina/ Priština, Peja/Peć, Gjilan/ Gnjilane, Gjakova/Djakovica and Vushtrri/Vučitrn September, 2018 2 3 About Democracy Plus Democracy Plus (D+) is a non-governmental organization that gathers people who strongly believe in democratic values and a Kosovo with sustainable democracy. D+’s principal goal is to support democratic values and practices, as well as policies that promote civic activism. CONTENTS There are three programs within the scope of D+: Good Governance Program, Rule of Law Program, Elections Supply with a car for hemodialysis ........................ 40 and Political Parties Program. D+ supports government institutions, citizens and media in improving governance, ABBREVIATIONS ...............................6 Servicing and maintenance of vehicles of the advancement of public policies and strengthening of the rule of law. KEY FINDINGS...................................7 Municipality of Gjakova/Djakovica .......................... 41 Maintenance of Motorways .................................... 44 Our organization is focused on using information technology for the above-mentioned purposes, and it has consequently INTRODUCTION .................................8 Supply with medical and non-medical equipment . 50 developed two online platforms: ndreqe.com and qeverisjatani.info, which provide space for civic participation in Transport of pupils in various destinations ............. 51 decision-making and accountability of government institutions. Moreover, D+ is a member of ProOpen, a coalition of MUNICIPALITY OF PRISHTINA/PRIŠTINA ..9 NGOs that aims at increasing transparency in public procurement and preventing abuse of public money. Milk supply to school pupils –from I–V grades ....... 10 MUNICIPALITY OF GJILAN/GNJILANE ..52 Construction of several roads in the village Inventory supply for all requesting units in the of Trudë ................................................................... 13 Municipality of Gjilan/Gnjilane ................................ 52 Construction of roads in the neighborhoods Myrtaj, Hygienic-Sanitary Supply ........................................ 55 Bekaj, Bahtirovit and Nezirovit in the village of Busi and the construction of roads and pavements in the Supply with greenhouses for the needs of farmers in village of Drenovc ................................................... 17 the Municipality of Gjilan/Gnjilane .......................... 56 Construction of roads inside the village of Slivovë. 25 Supply of toners for all spending units in the Municipality of Gjilan/Gnjilane ................................ 56 Reconstruction, repair and expansion of some secondary roads in the territory of the Municipality of Supply with Scanners (Detectors) and equipment for Prishtina/Priština .................................................... 27 the needs of the new Municipal Assembly Hall ...... 57 Transport of pupils and teachers II ......................... 29 Supply and installation of central heating for the gym in the Elementary School “Musa Zajmi” ................. 58 Revitalization of the stairway and construction of overpass in Arberia neighborhood .......................... 29 Vehicle Insurance for the needs of M.A. Gjilan/Gnjilane ................................................. 59 Supply with technological equipment for municipal premises and premises of local community offices 30 Repairing and opening of third-order roads, cleaning of rivers and removal of illegal dump sites in the Info graphics and signalization in the municipal Municipality of Gjilan/Gnjilane ................................ 59 premises ................................................................. 32 Reconstruction of Gjilan/Gnjilane City Stadium ...... 61 MUNICIPALITY OF PEJA/PEĆ .............33 MUNICIPALITY OF VUSHTRRI /VUČITRN ...62 Supply with firewood for school facilities for phase II .................................................................... 33 Supply with information technology equipment for the needs of the Municipality of Vushtrri/Vučitrn ......... 62 Supply with diesel and diesel by-products to the Municipality of Peja/Peć ......................................... 35 Supply of Walnut Seedlings .................................... 63 Construction of public lighting in some neighborhoods Winter maintenance of local roads in Vushtrri/Vučitrn of the city of Peja/Peć,Phase II ............................... 36 Municipality ............................................................. 64 Construction of a Memorial in the Village of Gllavotin (I Construction of the Secondary Art School “Odhise Phase) ..................................................................... 65 Paskali” - Rough works. .......................................... 36 Construction of the Cultural Centre “Hasan Prishtina” September 2018 Mobile telephony services for the needs of municipal in Vushtrri/Vučitrn .................................................. 65 institutions .............................................................. 38 Project Title: Exposing corruption through active monitoring and comparison of five municipalities Submission Date: Construction of streets with cobblestones (IV phase) ................................................................ 66 20 August 2018 MUNICIPALITY OF GJAKOVA/DJAKOVICA .39 Re-asphalting of the local road Vushtrri/Vučitrn- Inventory supply to schools .................................... 39 Sllatinë .................................................................... 68 This report was prepared by Democracy Plus (D+) and supported by USAID through Transparent, Effective and Supply with diesel for heating and with Arrangement of the Cemetery ................................ 68 Accountable Municipalities (USAID TEAM) activity. Author’s view expressed in this report does not necessarily reflect by-products ............................................................. 40 Widening, Deepening and Cleaning of the Llap the views of the United States Agency for International Development (USAID) or the United States Government. Riverbed .................................................................. 69 4 5 BBREVIATIONS KEY FINDINGS Public procurement is one of the main economic activities of municipalities, and as such it also carries one of the main risks AMD Advanced Micro Devices in terms of providing quality services to citizens. In order to identify violations in public procurement activities and to provide substantiated data on violations occurring in procurement, losses and budget damages, D+ monitored nine procurement CA Contracting Authority activities in five different municipalities.1 However, in the Municipality of Peja/Peć, only five procurement activities were mon- itored, since at the time of commencement of the monitoring phase, the municipality had limited projects under development. DIN German Institute of Standardization Previously, D+ published “Public Procurement Meter”, which aimed to identify good practices in public procurement in these EO Economic Operator five municipalities. The purpose of this report was to assess and share with other contracting authorities the good practices identified in these five municipalities. In this report, D+ focused on identifying breaches in public procurement, especially EU European Union in cases which resulted in losses or damages to the municipal budget. As a result of the work of D+ in monitoring public procurement at the municipal level, at least EUR 36,684 of taxpayers’ money was saved. The monitoring highlighted errors GUIDELINES Public Procurement Guidelines and Rules in billing by one contractor, which previously were not identified by the Municipality of Prishtina/Priština. Following this, the Municipality plans to take corrective measures, by amending the contract to arrange the price adjustment and reimbursement ISO International Standards Organization of lost taxpayer money to the Municipality. This is just an example of how monitoring by civil society can be used as a tool by municipalities in addressing weaknesses of their internal systems. JUS U.N2.060 Jugoslav Quality Standard From this monitoring, D+ identified a number of findings that are common to all five municipalities, but also noted violations KFVA Kosovo Food and Veterinary Agency that are characteristic for one particular municipality. Some of the key findings of this report relate to the following: • Drafting of bill of quantities and project estimates, especially related to road construction contracts, contains inflated volumes of LGAP Law on General Administrative Procedure work. Companies that have the information about the inflated volume of work bid with abnormally low prices, knowing in advance that they have to carry out less work in reality. Companies who do not have access to this information bid with real prices, assuming LPP Law on Public Procurement the municipality planned properly the volume of works. Consequently, companies with lower bids win contracts. For example, the tender of Municipality of Gjilan/Gnjilane for repairing and opening of tertiary roads stated that the quantity of different materials should PPRC Public
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