21st October 2013

Competitiveness: Senate passed amendments to Public Procurement Act

The Senate passed a legal measurement that was proposed by the Government. The Bill on Public Procurement (zákon o veřejných zakázkách) should amend the currently effective Act. Since January 2014, the Act stipulates that lower value of public tender that should be treated according to the Act. As a consequence, more public tenders should be treated according to the Act. In fact, as proposer of the Bill claimed, that would increase administrative burden for the Office for protection of competition. The aim of the Bill was to keep the value on the same level. However, senators proposed an amendment that further increases the level of value of public procurement. Therefore, the Act should be applicable in case that the public tender is of value of 2 million of CZK (in case of acquisition), or 6 million of CZK (in case of building operations). The main argument was that the higher value would even decrease the administrative burden of public procurement process and enable easier public competitions.
According to opponents, the Senate passed a version of the Bill that goes against the logic of transparent public tenders.
The Bill is heading to the president. The Bill should be approved (or declined) by the Chamber of Deputies once it assembles after the early election.
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Members of the American Chamber of Commerce in the Czech Republic