News in English     | 01.06.2020. 14:16 |

Novalić: Preferential domestic treatment stimulates domestic economy

FENA Press release

SARAJEVO, June 1 (FENA) - The Decision on mandatory application of preferential domestic treatment in the percentage of 30 percent is applied as of today until June 1, 2021, in order to combat the consequences of the coronavirus pandemic on the economy of Bosnia and Herzegovina.

The decision was initiated by the Prime Minister of the Federation of BiH, Fadil Novalić, and adopted by the Council of Ministers of Bosnia and Herzegovina on May 29 this year.

In this way, domestic companies are assisted in obtaining jobs in public procurement procedures and, as Prime Minister Novalić emphasized, it encourages the domestic economy and provides significant assistance in saving a large number of jobs, as well as rescuing and maintaining the economy in Bosnia and Herzegovina.

It also mitigates the unintended consequences for the domestic economy and motivates domestic bidders to offer their goods, services and works on the market encouraged by the fact that they have a privileged status in these times.

According to the decision, when calculating the bid prices, the contracting authority is obliged to reduce the prices of domestic bids by a preferential domestic factor of 30 percent in public procurement procedures in the coming year.

This important measure for the domestic economy was previously agreed upon by the Chairman of the Council of Ministers of BiH, the Prime Minister of the Federation of BiH and the Prime Minister of the Republika Srpska.

The decision was made even though the Public Procurement Agency of BiH previously had the position that "there is no basis for acting on the submitted initiative", the Office of the Prime Minister of the Federation of BiH announced.

(FENA) A. B.

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