Croatian Employers’ Association & AmCham Lobby for Public Procurement Reform

Gordana Deranja, President of HUP modifiedLPJ Issue 175, 4 April 2016

The government is currently in the process of preparing new legislation to revamp the Public Procurement Act, in order to implement relevant EU directives aimed at reforming and modernising the public procurement system in the EU. The Croatian Employers’ Association (HUP) and the American Chamber of Commerce (AmCham) in Croatia both announced last week that they have provided their suggestions for the pending changes to the Public Procurement Act.

In 2014, the estimated aggregate contract value of public procurement (public procurement contracts and framework agreements) in Croatia was €4.37 billion, while procurement of lesser value (so-called “petty purchases”) totalled €1.23 billion (source: Economy Ministry). According to the “Cost of non-Europe Corruption” study (LINK) commissioned by the European Parliament and prepared by the non-profit RAND Europe Institute, Croatia is an EU member state with the highest level of corruption in public procurement, along with Romania and Bulgaria. The report identifies Croatia as having the highest Corruption Risk Index (CRI), meaning the highest risk for corruption among public procurement contracts, followed by Cyprus, Lithuania and Romania. The report estimates that corruption in public procurement results in Croatia is losing approximately 15% of its GDP per year…

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