The new Law on Public Procurement has been in effect since January 2023. The law seeks to modernize the public procurement system in Montenegro and harmonizes it with international obligations to spur economic growth and improved service. The law prescribes policies for the public procurement of goods and services; introduces greater transparency and integrity into the process; establishes entities to administer the system efficiently; and offers equitable access to government contracts for the private sector. The law applies to all investments financed by the state budget, payments guaranteed by the government, or funds secured by loans taken by the government. According to the law, such purchases are made via public tenders published in the Official Gazette. The law defines the “best offer” as the offer with the lowest price which also complies with the tender’s specifications. Any other criteria must be prescribed in the bidding documents.
Public procurement is conducted jointly by the Public Procurement Directorate of the Ministry of Finance (as the main line ministry for the procurement area), and the State Commission for Control of Public Procurement Procedures. The Public Procurement Directorate began operations in 2007, while the State Commission for the Control of Public Procurement Procedures Control was established in 2011. The State Commission makes decisions in the form of written orders and conclusions made at its meetings. The decisions are made by a majority of present members. The State Commission’s Rules of Procedure specify the method for this work. The Administrative Court oversees cases involving public procurement procedures.
While there is a full legal and regulatory infrastructure in place to conduct public procurement, U.S. companies have complained in numerous cases about irregularities in the procurement process at the national level and many maintain that there is an inability to meaningfully challenge decisions they believe were erroneously taken through the procurement apparatus. Even successful disputes can be complex and time-consuming.
U.S. companies bidding on government tenders may also qualify for U.S. Government advocacy. Within the U.S. Commerce Department’s International Trade Administration, the Advocacy Center coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters in competition with foreign firms in foreign government projects or procurement opportunities. The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts. Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agency officials expressing support for the U.S. exporters directly to the foreign government. Consult the Advocacy Center’s program web page on trade.gov for additional information. The U.S. restored Normal Trade Relations (most-favored nation status) with Montenegro in 2003. This status provides improved access to the U.S. market for goods exported from Montenegro. Montenegro became the 156th member of World Trade Organization (WTO) in 2011.
Financing of Projects
Price, payment terms, and financing can be a significant factor in winning a government contract. Many governments finance public works projects through borrowing from the Multilateral Development Banks (MDB). A helpful guide for working with the MDBs is the Trade Finance Guide. The U.S. Department of Commerce’s (USDOC) International Trade Administration (ITA) has a Foreign Commercial Service Officer stationed at each of the five different Multilateral Development Banks (MDBs): the African Development Bank; the Asian Development Bank; the European Bank for Reconstruction and Development; the Inter-American Development Bank; and the World Bank. Learn more by contacting the: Commercial Liaison Office to the European Bank for Reconstruction and Development
Multilateral Development Banks and Financing Government Sales
Price, payment terms, and financing can all be significant factors in winning a government contract in Montenegro. Many governments finance public works projects with loans from the Multilateral Development Banks (MDB). The Guide to Doing Business with Multilateral Development Banks summarizes how to work with MDBs. The International Trade Administration (ITA) has a Foreign Commercial Service Officer stationed at each of the five different Multilateral Development Banks (MDBs): the African Development Bank; the Asian Development Bank; the European Bank for Reconstruction and Development; the Inter-American Development Bank; and the World Bank.
The Commercial Service maintains Commercial Liaison Offices in each of the main Multilateral Development Banks, including the European Bank for Reconstruction and Development and the World Bank. These institutions lend billions of dollars to developing countries on projects aimed at accelerating economic growth and social development by reducing poverty and inequality, improving health and education, and advancing infrastructure development. The Commercial Liaison Offices help American businesses learn how to get involved in bank-funded projects and advocate on behalf of American bidders. Learn more by contacting the Commercial Liaison Offices to the European Bank for Reconstruction and Development and the World Bank.