In 2016, municipalities and the City of Skopje have spent 8.7 billion MKD, i.e. 142 million EUR on public procurements, which represents an increase by around 13% compared to the previous year.
The biggest number of public procurement contracts was signed by Municipality of Karpos, i.e. 259, while Municipality of Gradsko reported that it has awarded only one contract on public procurement. In terms of contract value, for the second year in a row the City of Skopje is at the top of this list, with around 16 million EUR, although marked by significant decrease compared to 2015 accounting for 38%. Nevertheless, it could be concluded that one from every 10 EUR spent on municipal tender procedures was spent by the City of Skopje.
Dominance of small number of companies in tenders on local level continued in 2016 and is best represented by the fact that top 10 companies with highest shares in tenders have been awarded as much as 30% of the total value of public procurements organized by all 80 municipalities and the City of Skopje, i.e. 42.2 million EUR.
Around three quarters of funds were spent on construction works, 18% on services and only 8.5% on procurement of goods.
In average, the value of one municipal contract on public procurement in the last year amounted to 35,718 EUR, which is by 14% more than in 2015.
These conclusions are inferred from the database on public procurements organized by municipalities in 2016 developed by the Center for Civil Communications, which includes total of 3,973 contracts signed by municipalities with 1,255 companies.
Public procurements costs of municipalities in the Republic of Macedonia
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City of Skopje spent three times more funds than Kumanovo
Database on public procurements of all municipalities provides the conclusion that the City of Skopje has the leading position in terms of the amount of funds spent on public procurements in 2016, having spent 16 million EUR, which represents 11.2% of the total value of municipal tenders.
Second-ranked according to the value of public procurement contracts signed last year is the Skopje-based municipality Centar, which has spent something over 13 million EUR or 9.3% of the value of all municipal tenders, followed by Karpos with almost 11 million EUR, i.e. share of 7.6% in the total amount of funds spent for this purpose by all municipalities.
Fourth on the list is Bitola, with 10.4 million EUR, i.e. 7.3% of the total amount, followed by Kumanovo with 5.5 million EUR or 3.9% of the total amount. Top 10 municipalities on this list also include: Tetovo – with tenders in the value of 5.1 million EUR, Gazi Baba – with 4.3 million EUR, Aerodrom – with 4.1 million EUR, Gostivar – with 3.9 million EUR, and Ilinden – with 3.7 million EUR.
At the bottom according to the number of contracts signed and according to their value is Municipality of Gradsko, whose single tender procedure amounted to around 13 thousand EUR. Ranked just above Gradsko is Municipality of Lozovo with total value of tender procedures of 17 thousand EUR and Rankovce with around 30 thousand EUR spent on public procurements.
9 from 10 companies with highest share in municipal tenders work in the construction business
At the top according to the value of contracts signed in 2016 is the construction company Vardargradba Skopje, with total value of tenders in the amount of 588 million MKD, i.e. 9.5 million EUR / Photo credit: Vardargradba
As many as 9 from top 10 companies that have been awarded the most funds by means of municipal tenders last year work in the construction industry.
At the top according to the value of contracts signed in 2016 is the construction company Vardargradba Skopje, with tender procedures in the value of 588 million MKD, i.e. 9.5 million EUR. This company was awarded 22 tender procedures by the municipalities, seven of which were with Municipality of Centar for construction and reconstruction of sewage networks, streets and primary school, all signed in high amounts. Contracts signed between Vardargradba and Municipality of Centar amount to around 7.5 million EUR.
Second-ranked is the leader from 2015, i.e. BAUER BG Skopje. Although it slipped from the leader position, this Skopje-based construction company was awarded 33 tender procedures in total value of 452 million MKD (7.3 million EUR), which is more than last year when it signed 25 tender procedures in the value of 402 million MKD. The highest number of tender procedures for this company (as many as 17) are signed with the City of Skopje, in total amount of 2.4 million EUR, but the highest individual contract was signed with Municipality of Sopiste in the amount of 2.3 million EUR for construction of drinking water supply system.
Third on the list according to their share in municipalities’ public procurements is the company GRANIT JSC Skopje, which was awarded 6 tender procedures in total value of 399 million MKD, i.e. around 6.5 million EUR. GRANIT secured its high position with the tender procedure for construction of north gallery at the football stadium in Bitola, in the amount of around 5.4 million EUR. Fourth position is held by ZIKOL Strumica, with 31 tender procedures in total value of 319 million MKD, i.e. around 5.2 million EUR. The highest individual contract of this company in 2016 was signed with the City of Skopje for construction of the Entertainment Park in Skopje.
Next is PELAGONIJA JSC Gostivar with 16 tender procedures, in the value of 165.5 million MKD, i.e. around 2.7 million EUR. Half of these tender procedures were awarded by the City of Skopje, and the contract in the highest amount of 1.1 million EUR concerns reconstruction of facades on existing buildings in downtown area, while this company has also signed five annex contracts.
The group of 10 companies with highest shares in municipalities’ tender procedures includes EXAVATORY MK Skopje (2.4 million EUR), IZOLACIJA Skopje (2.3 million EUR), YU-BAY 2 Amet Skopje (2.2 million EUR), NB-COMPANY Tetovo (2.1 million EUR) and BETON Skopje (1.9 million EUR).
Analysed according to the number of public procurement contracts signed, Geing Krebs und Kiefer International and others Skopje is at the top with as many as 52 contracts, followed by Techno-Shop Gevgelija with 40 contracts and Exavatory MK Skopje with 38 public procurement contracts.
For more details, database on public procurements of municipalities allows browsing per individual company.
Sopiste as record-breaker in terms of per capita cost
When analysed against the population number, it can be concluded that last year municipalities have spent an average of 69 EUR per capita, representing an increase by 7 EUR on annual level.
Analysis of the value of municipalities’ tenders against the population number shows that the highest per capita amount in 2016 was spent by Municipality of Sopiste, i.e. 475 EUR.
Next is Municipality of Centar with almost 292 EUR per capita. Third-ranked is Demir Kapija which has spent around 256 EUR per capita.
In that, last year only 12 municipalities have spent more than 100 EUR per capita.
At the bottom of this list is Gradsko with around 3.8 EUR per capita, Aracinovo – with almost 4 EUR, and Lozovo –with 6.6 EUR.
This comparison provides the most relevant image about how much do individual municipalities spend on tender procedures, as it is logical for bigger municipalities to have bigger budgets in absolute amount and consequently spend more funds on public procurements.
Database on public procurements of municipalities is developed on the basis of data taken from the Electronic Public Procurement System (EPPS). By the end of February, when this database was compiled, total of 12 municipalities, including Brvenica, Valandovo, Gradsko, Debarca, Zelino, Karbinci, Lipkovo, Pehcevo, Plasnica and Suto Orizari, have not submitted records on contracts signed by means of bid-collection procedures (tender procedures in the value from 500 to 20,000 EUR) in the second half of 2016, which they should have provided within the law-stipulated deadline 31st January 2017.
