Enhancing competitiveness through more effective public procurement and sustainable supply chains

Donor: Swedish International Development Cooperation Agency (Sida)

Beneficiaries: Public Procurement Office; Republic Commission for the Protection of Rights in Public Procurement Procedures; Competition Protection Commission; public procurement officers – contracting authorities; suppliers; Judicial Academy; judges and prosecutors; Administrative Court; Ministry of Environmental Protection; Ministry of Finance; Budget Inspection; Office for IT and e-Government; micro, small, and medium-sized enterprises (SMEs); Ministry of State Administration and Local Self-Government; units of local self-government (ULSG); companies; academic community and research institutes; banking sector; Ministry of Labour, Employment, Veterans, and Social Affairs; Ministry of Economy; Business Registers Agency (BRA); Standing Conference of Towns and Municipalities (SCTM); social enterprises; line ministries; Ministry of Construction, Transport, and Infrastructure; Ministry of Information and Telecommunications; Republic Geodetic Authority; Statistical Office; Republic Directorate for Property; Agricultural Land Administration; RATEL; civil society organizations; media, and others.

Period of realization: June 1, 2024 – May 31, 2027

„The Effective Public Procurement for Economic Growth Project” is a three-year project supported by Swedish Government and implemented by NALED. The value of the project is 4.2 million euros. This project builds on the results achieved from the “Public Procurement and Good Governance for Greater Competitiveness” project, which NALED implemented from December 1, 2022, to May 31, 2024.

Public procurement should serve as a tool for achieving public policy goals in areas such as environmental protection and social inclusion, while simultaneously contributing to the competitiveness and growth of small and medium-sized enterprises. The project includes activities aimed at encouraging the greater application of horizontal (green and social) criteria in public procurement processes, continuing the enhancement of procurers' capacities in the domain of innovative public procurement, and continuing to provide support to suppliers in specific sectors to stimulate increased participation in public procurement procedures. Additionally, the project addresses activities related to strengthening competition in this area by working with procurers to gain knowledge for applying specific instruments and mechanisms in public procurement processes, as well as enhancing the capacities and knowledge of employees in the Commission for Protection of Competition to strengthen the role of this institution in public procurement. The project also plans to continue strengthening the capacities of key institutions in the field of public procurement, primarily the Public Procurement Office and the Republic Commission for the Protection of Rights in Public Procurement Procedures, as well as the Budget Inspectorate, the Judicial Academy, and the Administrative Court. Furthermore, NALED recognizes the importance of media and non-governmental organizations in the field of public procurement, particularly regarding the monitoring of the implementation of laws, bylaws, and tracking expenditure, and thus has planned activities for representatives of these two categories.

The project also includes a continuation of efforts in the application of ESG criteria, i.e., creating the prerequisites for effective supply chain management. The planned activities include promoting and implementing the recommendations contained in the Analysis prepared under the previous project, as well as analyzing the sustainability of supply chains with high potential for ESG criteria application, which would generally be significant for competitiveness and economic development. The project involves providing support through consultations and strengthening the capacities of key stakeholders to enhance the application and fulfillment of ESG standards. This includes establishing a hub in this area, serving as a knowledge base. Additionally, NALED will continue to work on strengthening the specific ecosystem for empowering social enterprises, which encompasses comprehensive support for reforms in this area, through finalizing the Social Entrepreneurship Development Program with an accompanying action plan, organizing consultations, establishing a training center for social entrepreneurship, and more.

Objectives and Results

General Objectives:

• Promote the sustainability of supply chains and compliance with EU standards for environmental, social, and governance (ESG) factors as a driver of competitiveness for Serbian companies,
• Strengthen social inclusion, gender equality, anti-discrimination, and poverty reduction by integrating social criteria and ethical principles into public procurement, supply chains, and social enterprise development,
• Enhance efficiency, transparency, and accountability in public procurement, leading to better competition, market development, and responsible public spending (value for money),
• Further strengthen social dialogue (public-private dialogue) and evidence-based policy-making.

Specific Objectives:

• Increase the efficiency and quality of public procurement processes,
• Improve the sustainability performance of strategically relevant supply chains and groups of key stakeholders by enhancing their capacities and knowledge, and improving the offer quality, and access to ESG-related services,
• Improve the quality of dialogue and the capacity of relevant actors to make evidence-based policy decisions.