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Sunday 28.05.2017 | Name days: Vilhelms, Vilis
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FM: gradual transfer to electronic procurements is planned

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU«The procurement field has changed significantly over the past several years. And it is not just because of the new directive announced by the European Parliament and European Council for procurements. One other factor to consider is the aiming for better management, reduction of the administrative burden and more efficient use of public resources,» – reports Finance Ministry’s Legal Department expert Liga Neilande.

On 15 December 2016, the Saeima approved the new Public Procurements Law in the final reading. It is expected the new law will come into force in March 2018.

Neilande explains that these changes are not possible without mutual trust between public administration and businessmen. The fact that mutual trust needs to be improved is also proven by hot discussions that took place between suppliers and businessmen during talks regarding the new public procurement law.

She adds that it is planned to raise the threshold for application of the Public Procurement Law in order to simplify the process of smaller procurements. It will be applicable for services and goods starting from EUR 10,000 and construction services – from EUR 20,000.

The ministry reports that the new law provides for a gradual transfer to electronic procurements. This is meant to improve the efficiency of the process itself and reduce the administrative burden for suppliers. From 1 January 2019 onward offers and applications will be processed only in electronic format. The transition period is formed in a way to allow parties to adapt to the new system.

Nilande says that realization of EU co-financing is an especially sensitive matter for unjustified complaints, as they only delay the signing of procurement contracts and realization of projects. «Review of complaints demands considerable resources. This especially applies to applications regarding results of procurement procedures. It is planned to use the deposit method to reduce the number of attempts to abuse the system. The deposit is intended as a bank guarantee, an insurance policy or payment of 0.5% of the contract price. It must not exceed EUR 15,000 for construction work and EUR 840 for goods and services,» – said the expert.

The ministry reports that transparent, fair and competitive public procurements will ensure opportunities for business development, creation of new jobs and economic growth.

Ref: 224.109.109.9772


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