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WB shares recommendations for improvement of Azerbaijan's public procurement system

Economy Materials 11 August 2022 13:55 (UTC +04:00)
WB shares recommendations for improvement of Azerbaijan's public procurement system
Maryana Ahmadova
Maryana Ahmadova
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BAKU, Azerbaijan, August 11. There is a need to increase the number of public procurement experts in Azerbaijan, Trend reports via World Bank’s Systematic Country Diagnostic (SCD).

As the WB suggests, there is also a need to decrease the number of direct contracts from one source, as well as the number of failing bidders during the evaluation of open tenders.

Among other issues Azerbaijan needs to focus on the WB names “the lack of adequate public oversight and access to procurement-related information”.

“According to official figures, 6.6 billion manat [$3.8 billion] in public funds were spent on public procurement contracts in Azerbaijan in 2020, which represents almost 25 percent of state expenditures, while the approved state budget in 2020 was 26.4 billion manat [$15.5 billion],” the report said.

As the WB reminded, in 2018, the Public Procurement Act was amended in Azerbaijan in order to strengthen the link between procurement planning and budgeting, as well as to introduce e-procurement and a code of conduct for procurement staff. The Public Procurement Agency tasked with implementing the law was abolished in January 2016 and its implementation has since been monitored by the Public Service for Antimonopoly Policy and Consumer Market Control under the Ministry of Economy.

Meanwhile, as the WB report noted, the COVID-19 outbreak has led to an increase in the number of direct contracts. The new law “On Public Procurement” has been developed and is awaiting consideration and approval by the Cabinet of Ministers of Azerbaijan.

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