Public procurement in Kosovo is regulated by Law No. 04 /L–042 on Public Procurement in Republic of Kosovo, as amended (“PPL”). This law must be observed by persons, economic operators, undertakings, contracting authorities, works concessionaires and public bodies conducting, or involved, participating or interested in, a procurement activity involving or relating to the use of such funds or resources.
Unless otherwise determined with special provisions of the PPL for using different procurement procedures, a contracting authority shall select and use open or restricted procedure when conducting procurement activities leading to the award of a public contract. Pursuant to relevant legislation the award criteria are the following: that the contract shall be awarded to the economic operator submitting the lowest-priced tender; or that the contract shall be awarded to the economic operator submitting the most economically advantageous tender. The following procedures are used by Contracting Authorities for awarding contracts: open procedure, restricted procedure, design contest, negotiated procedure after publication of a contract notice, negotiated procedure without publication of a contract notice, procedure for price quotations, and minimal value procedure.
According to the PPL, the tender for privatization of publicly owned enterprises procedure shall be opened in accordance with the Public Procurement Law.
The Privatization Agency of Kosovo (“Agency”) is an independent public institution of the Republic of Kosovo exercising its functions and responsibilities with full autonomy in compliance to the Law on Agency, Operational Policies of the Agency, Rules of Tender and other applicable legal and sub normative acts in the Republic of Kosovo. The Agency has the mandate to administer Enterprises and assets as stipulated by the Law on Agency including the right to sell, transform and/or their liquidation. The Agency enjoys full juridical personality and may sue or be sued in a court procedure any other similar procedure.
Sale structure and bid statement
The Agency shall establish the subsidiary on behalf of the SOE and shall keep it in trust for the SOE, subsidiary’s issued share capital. As an integral part of the tender, the Agency shall perform the sale of subsidiary’ issued share capital, on behalf of the SOE whilst tendered items shall be transferred to the subsidiary for a definite time. The Subsidiary or tendered item shall be tendered for sale through public auction in compliance to procedures set out in Rules of Tender. There shall be one bidding round and these rules stipulate procedures that govern the tender including method whereby potential bidder may be registered as eligible bidder, information and documents to be included in the bid, highest bid identification and method to proceed with the sale of subsidiary or tendered item to the potential winning bidder. In order to consider a bid, the bidder must be in accordance to Rules of Tender. Bidders’ participation at any moment of the tender or through submitting the bid, the bidder complies and undertakes in compliance with these rules of tender. Upon submitting a bid, the bidder must emphasize what subsidiary or tendered item he is competing and must submit the bid price.
Sale is performed in accordance to the highest bid price
The Agency shall sell the subsidiary or tendered items only with highest bid price. Highest bidder shall have the right to buy the subsidiary or tendered items only by highest bid price. If for any reason the sale does not proceed with the highest bidder, the second highest bidder by complying to these rules of tender shall have the opportunity, but is not obliged to purchase the subsidiary or tendered items with highest bid price. If for any reason the sale does not proceed with the second highest bidder, the third highest bidder by complying to these rules of tender shall have the opportunity, but is not obliged to purchase the subsidiary or tendered items with highest bid price.
The Agency shall designate the tender schedule. Bidders must consult the tender schedule and obtain information regarding terms and dates set by it and comply with them during the tender process.