Perfecting the procurement legislation
At what stage are the current amendments to the Polish Procurement Law?
The first reading of the government amendment project took place at a common session by the Economy Commission and the Commission of Administration and Internal Affairs on December 22, 2005. Now intensive works of the subcommission, appointed by the Commissions, are in progress. The talks are held with the participation of representatives from the social partners and business groups.
Which of the latest changes is the most controversial?
The main objective of the amendment is to adjust Polish law to the recently changed EU regulations. This is why there should not be many controversies. So far it has been the proposition to raise the threshold of procurements for which the bill has to be applied to EUR 60,000 [zł.231,770].
To what extent will the new changes meet the expectations of both bidders and offerers?
Many of the alterations will clearly affect the efficiency of the procedures, and they are beneficial for both the offerers and the bidders. Take the new mode of procurements that will appear in the Polish system, which is the 'competition dialogue'. This procedure, especially in the case of complicated technical procurements of, for example, complex IT systems, allows for a dialogue with potential contractors in order to reach a solution that would satisfy both sides. An online auction will also be launched, which in the final stage of proceedings will allow for a real-time online showdown. This auction, however, will not eliminate the existing auction as an independent mode of granting procurements.
How will these proceedings be supervised?
No other forms of control apart from those functioning at the moment are planned, because neither the new EU directives nor the existing practice require this.
Even after the current changes are implemented, there will still remain a few controversial aspects that need improvement.
After this amendment is implemented we should have some time to observe how it works. If no other important issues appear, we would like to change the regulations concerning the means of legal protection, and more specifically, launch professional arbitrage. Considering the size of the present public-procurement sector and the fierce competition, the existing model of settling conflicts is not sufficient. It's high time to introduce total professionalism in this area. We cannot have a situation in which conflicts concerning procurements worth hundreds of millions of złoty are settled by unprofessional arbiters, appointed to pronounce judgment in a given case from a list containing hundreds of names.
Is Polish procurement law friendly to foreign investors?
It is friendly for all bidders. EU law does not allow for any preferences, concerning either the country or the bidder. The offerer has to treat all entrepreneurs competing for procurements equally. Polish law is fully in line with European norms.
How is the Polish procurement sector different from other countries in the CEE region?
Poland publishes the highest number of procurement announcements from the 10 new EU member states in the EU's official daily tender publication. Poland's announcements constitute 60 percent of all the announcements published by the 10 countries, which means that it is the most open and competitive country among the EU newcomers. We were one of the first countries in this part of Europe that launched a modern public procurement system as early as 1995. International institutions perceive Poland's position positively. What confirms this fact is that the Polish Procurement Office together with the Italian Ministry of Economy and Finance won a tender to support strengthening the public procurement system in Bulgaria.
What is the value of the Polish procurement market?
I estimate that in 2005 the Polish procurement market was worth zł.70 billion. In 2004 it was zł.50 billion. I am especially glad about the growth of the construction sector, which last year recorded a considerable growth of contracted investments. We expect that in 2006 the growth will be even bigger.
What are your main reflections on the 10-year history of Polish procurement law?
The greatest value is the fact that the system was actually created and that it was permanently inscribed in the functioning of the Polish economy and the sector of public finance. Undoubtedly, it brought about a rationalization of budget expenditures, fuelled savings and limited corruption. However, the most important factor was the change in society's awareness. Clear, clarified rules, out in the open proceedings, equal treatment of all tender participants, and finally a true free competitiveness, have all been widely accepted. Before that, in communism times, it was unthinkable. At that time every single 'tender' could have been cancelled without any reason being provided. I do not want to say that all the demons of the past have been overcome, but there are very few of them today.
What about corruption in the procurement sector today?
This problem is as old as money. The role of the State is to limit the potential range of corrupt activities. This bill, despite being considered as complicated and bureaucratic, is a crucial barrier against corruptive threats. In any case where we have to deal with any suspicion of corruption, a law infringement takes place. It is not a major consolation, but it shows that, with respect to public procurement, it is about the fight against criminal practices, rather than a need for further changes in the regulations.
