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How Much Will New Year Decorations Cost Us?

It is expected for local governments in the country to spend 720 thousand EUR for decorations in the wake of 2016 New Year. The highest amount of funds for that purpose will be spent by the City of Skopje and other Skopje-based municipalities. City Trade Centre in Skopje will alone spend funds in an amount equal to those of 4 municipalities together

In 2015, public procurements for New Year decorations were organized by the City of Skopje and 25 from total of 80 municipalities, as well as JSC City Trade Centre. Eight of these 25 municipalities are part of the City of Skopje (Centar, Karpos, Cair, Kisela Voda, Gazi Baba, Gjorce Petrov, Saraj and Suto Orizaro), while other municipalities are Kumanovo, Bitola, Prilep, Strumica, Tetovo, Ohrid, Struga, Kicevo, Resen, Veles, Stip, Probistip, Novaci, Kavadarci, Radovis, Valandovo and Gevgelija.

In total, municipalities will spend around 720 thousand EUR on decorations in the wake of 2016 New Year. According to contracts signed and estimated values of announced tender procedures, it can be concluded that New Year decorations in Skopje (430 thousand EUR) will cost by 50% more than the amount spent by all remaining municipalities in the country (290 thousand EUR).

The actual value of some contracts will be known by the end of January 2016, when municipalities publish relevant data in the Electronic Public Procurement System. Nevertheless, judging from previous experiences, these contracts are mainly signed within estimated values, and therefore the estimated value could be rightfully used as relevant indicator of funds that will be spent for this purpose.

According to the value, the biggest contract for New Year decorations was signed by the City of Skopje with the company LINK MEDIA PLUS LLP export-import Skopje and concerns design and implementation of decorating project for the City of Skopje on the occasion of 2016 new year celebration, in the value of more than 10.4 million MKD, i.e. around 170 thousand EUR (rank list of municipalities according to value of New Year decorations).

Analysis of technical specifications defined in the tender procedure organized by the City of Skopje shows that overall New Year decorations are concentrated in the downtown area, over the period 15th December 2015 – 15th January 2016.

Municipality of Karpos is next on the rank list on the basis of the estimated value of the contract planned. For this purpose, this municipality is prepared to spend more than 80 thousand EUR.

Third-ranked is Municipality of Centar, whose contract for New Year decorations was signed on 24.11.2015 with LINK MEDIA PLUS LLC export-import Skopje, in the value of 3.4 million MKD, i.e. 55 thousand EUR.

Following is Municipality of Bitola, which has organized three tender procedures on New Year decorations, as follows: one for decoration and lighting supplies; second for activities related to implementation of New Year decorating; and third for working materials needed for technical performance of New Year decorating. Estimated value of all three tender procedures amounts to 2.8 million MKD, i.e. 45 thousand EUR.

Fifth position on the list of biggest contracts for New Year decorations is held by Municipality of Strumica. Its contract on implementation of the project for New Year decorations and lights on various locations across the municipal territory is already signed with LINK MEDIA PLUS LLC export-import Skopje, in the value of 2.2 million MKD, i.e. 36 thousand EUR. Next contract on New Year decorations according to its value is also signed with LINK MEDIA PLUS LLC export-import Skopje, by the Skopje-based municipality Kisela Voda, in the amount of around 2 million MKD, i.e. 32 thousand EUR.

Tender procedure on New Year decorations in Municipality of Kumanovo was organized by PE Kumanovo Parking, in estimated value of around 1.8 million MKD, i.e. around 29 thousand EUR.

Eighth position on the rank list according to the value of New Year decorations is held by Municipality of Gjorce Petrov. This contract was signed with the company for production, trade, services and engineering DORA LLC import-export, in the value of around 1.5 million MKD, i.e. 24 thousand EUR.

Ninth and tenth positions on the list are shared by Municipality of Tetovo and JSC City Trade Centre. It turns out that the City Trade Centre, which is state owned company, will spend the same amount of money for decorations as Municipality of Tetovo, i.e. 1.4 million MKD or 23 thousand EUR. JSC City Trade Centre has allocated more funds than 17 municipalities ranked below on this list according to the value of New Year decorating services.

At the bottom of this list, with funds for New Year decorations in amount less than 10,000 EUR, are municipalities Prilep, Stip, Resen, Kicevo, Novaci, Suto Orizari, Saraj, Sveti Nikole, and Veles, whose estimated procurement values range from 5 to 10 thousand EUR.

Compared against last year, same number of municipalities will procure decorations for New Year celebration, but will spend more money for that purpose. In particular, last year a total of 25 municipalities organized public procurements for New Year decorations and together with the City of Skopje and JSC City Trade Centre have spent 684 thousand EUR, i.e. by 34 thousand EUR less than the amount spent this year.

In terms of per capita cost, on average, New Year decorations will cost citizens from individual municipalities from 5.5 MKD (Veles) to 111 MKD (Novaci). Municipalities ranked on the list of more expensive per capita cost for New Year decorations include Karpos (82 MKD per capita), Centar (75 MKD per capita), Valandovo (70 MKD per capita) and Gevgelija (62 MKD per capita). In the case of Skopje citizens, they will pay additional 20 MKD per capita, as spent by the City of Skopje.

Methodology approach
Baseline for calculation of municipalities’ spending on New Year decorations are data obtained from the Electronic Public Procurement System (EPPS). More specifically, data for the City of Skopje and some municipalities were obtained from notifications on contracts signed for this type of procurements, while data for most municipalities were taken from estimated values as enlisted in their procurement notices.
The research included all contracting authorities in the Republic of Macedonia that have organized this type of procurements in 2015.
The calculation of per capita cost used data population numbers per municipality from the publication “Population Estimates on 30.06.2014 and 31.12.2014, According to Gender and Age, Per Municipality and Per Statistical Region” of the State Statistical Office, published in July 2015. Nevertheless, having in mind that this publication does not include data for all Skopje-based municipalities (Butel, Kisela Voda, Centar, Cair and Suto Orizari), population data for them were taken from the last census in 2002.
All data presented in Excel format are available here.