AmCham Macedonia Summer 2013 (issue 38) - Page 14

ANALYSIS Public Procurement in Macedonia: Opportunities and Challenges Recent analyses show significant participation of international companies in government procurement bids, though concerns remain about process transparency and fairness. International companies sold products and services to the Macedonian government worth more than $155 million in 2012. Today, international companies participate in public procurement bids in Macedonia for everything from waste management facilities to police vehicles. According to the annual reports of the Public Procurement Bureau, foreign companies won roughly 20% of all contracts in 2010 and 14% in 2009, 2011 and 2012. The largest procurement awarded to an international player last year was the roughly $16 million contract awarded to the Russian oil giant, Lukoil, for their sale of oil derivates to ELEM Macedonian Power Plants, a state owned enterprise. The largest U.S. company win last year was TCI International, a Fremont, California-based subsidiary of SPX Corporation, which signed a contract in December 2012 with Macedonia’s Agency for Electronic Communications. TCI is now supplying a national spectrum monitoring system in Macedonia, including its installation, integration, and testing. The company is also providing user training and a warranty for its operation. The total value of this procurement was $12.5 million which TCI was awarded after competing with two German companies, Rohde & Schwarz and LS Telecom, for the contract.1 1 Source: Companies from European Union (EU) member countries concluded contracts valued at more than $24 million. The following table shows the top 10 public institutions in terms of procurement contracts last year. From a regional perspective, Macedonia appears to be a leader in foreign participation in government tenders. Serbia has awarded just 1% of its total Public Institutions with the Largest Total Procurements - 2012 Organization AD ELEM – Macedonian Power Plants General Government Affairs Service Ministry of Health City of Skopje Ministry of the Interior Municipality of Center “Macedonian Forests” Public Enterprise AD MEPSO – energy State Roads Agency Agency for Electronic Communications Total value of 2012 procurement $194,256,591 $85,999,684 $82,495,201 $35,834,107 $27,048,335 $23,093,757 $22,008,596 $18,067,484 $17,424,455 $16,755,722 14 Emerging Macedonia Summer 2013 Issue 38