ORDER OF THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA

of August 30, 2023 No. 625

About approval of the National development program of system of public procurements for 2023-2026

Based on Item and) Article 5 and Item h) article 6 of the Law No. 136/2017 on the Government (The official monitor of the Republic of Moldova, 2017, No. 252, the Art. 412), with subsequent changes, DECIDES: the Government

1. Approve the National development program of system of public procurements for 2023-2026 it (is applied).

2. Provide to the Ministry of Finance monitoring and coordinating of implementation process of the National development program of system of public procurements for 2023-2026.

3. To provide to the ministries and other central and local administrative authorities accomplishment of the National development program of system of public procurements for 2023-2026.

4. To impose control over the implementation of this resolution on the Ministry of Finance.

Approved by the Order of the Government of the Republic of Moldova of August 30, 2023 No. 625

The national development program of system of public procurements for 2023-2026

Chapter I Introduction

1. Public procurements are one of the priority activities of the state promoting development of economic and social infrastructure, rendering public services, increase in trust to public institutions. Well thought over process of public procurements directly promotes goal achievement of the country, such as improvement of road infrastructure, increase in energy efficiency, increase in quantity of workplaces, business development, high-quality services at schools, hospitals, settlements, etc.

2. The national development program of system of public procurements for 2023-2026 (further - the Program) is the medium-term document of state policy developed for establishment of priorities and measures in the field of public procurements and also for the strategy implementation of development of management of public finance approved by the Order of the Government No. 71/2023, with the purpose of the answer to challenges and supports of national policy and development strategies.

3. The program contains actions which shall be executed on the basis of obligations assumed within the Agreement on association between the Republic of Moldova, on the one hand, by both the European Union and European Atomic Energy Community and their state members, from other party (further - the Agreement on association), ratified by the Law No. 112/2014, and also following from the status of the candidate country on the accession to the European Union that is necessary for implementation of the remained obligations of the Republic of Moldova in the course of harmonization of the national legal system with the European Union law.

4. This Program answers the Agenda purpose in the field of sustainable development for the period till 2030 which in 2015 the Republic of Moldova undertook to realize. The agenda in the field of sustainable development for the period till 2030 represents the program of global actions in the field of, developments with universal nature and which promotes balance between three dimensions of sustainable development - economic, social and ecological.

5. For the purpose of realization of Sustainable development goals in the Republic of Moldova, ensuring monitoring and assessment of process of their realization, the Order of the Government No. 953/2022 approves the National framework programme of monitoring of implementation of the Agenda in the field of sustainable development for the period till 2030. The tasks directed, in particular, to public procurements: TsUR 9.1 - to Develop high-quality, reliable, steady and strong infrastructure in regions of the country for the purpose of support of economic development and growth in prosperity of the population with the emphasis on broad and equal access for all; TsUR 9.4 - By 2030 to modernize infrastructure and to rehabilitate industries, having made them steady due to increase in efficiency of use of resources and broader use of net and ecologically safe technologies and industrial processes according to their individual opportunities; TsUR 12.1 - to Integrate steady production and consumption in national politicians and to perform them; TsUR 12.7 - to Promote steady practice of public procurements according to national politicians and priorities; TsUR 16.5 - is considerable to reduce corruption and bribery in all of them forms and TsUR 16.6 - to Create effective, accountable and transparent organizations at all levels.

6. This Program will promote realization of the purposes of the National development strategy "European Moldova 2030" (further - NSR "European Moldova 2030") approved by the Law No. 315/2022, of the purchases concerning the sphere.

7. Thus this Program will promote goal achievement of NSR "European Moldova 2030", in particular, will promote realization of the Common goal 7. Ensuring effective, inclusive and transparent management. Also will exert indirect impact on realization of the following purposes: Common goal 1. Increase in the income from steady sources and reducing inequality, the Common goal 2. Improvement of housing conditions, Common goal 3. Providing proper and quality general education throughout all life, the Common goal 5. Improvement of physical and mental health of the population by active contribution of the modern and effective health care system meeting needs of each person, the Common goal 8. Creation of fair, incorruptible and independent justice system, Common goal 10. Providing the healthy and safe environment.

8. The priorities stated in Chapter "Finance" of the Program of activities of the Government "The prospering, safe, European Moldova" and the Common goal No. 7 will be considered. Ensuring effective, inclusive and transparent management from the National development plan for 2023-2025 approved by the Order of the Government No. 89/2023.

9. The purpose of this Program is concentrated on establishment of activities for development of the highly effective system of public procurements capable to provide "price relation and qualities" when using public funds. The program provides the system approach based on accurately certain logical scheme of intervention for development of system of public procurements.

Chapter II Analysis of situation

10. To public sector for realization of the approved strategy, programs and action plans it is necessary to use set of skills, opportunities (including financial resources), tools and the corresponding infrastructure. They are presented as the functional subjects belonging to this sector and other subjects belonging to private sector or the non-commercial sector. The means used for access to goods, works or services which supplement is supported, created and develop the skills, opportunities, tools and infrastructure of public sector necessary both for provision of services to citizens, and for realization of provisions of documents on planning and state policy, it is process of public procurements.

11. The processes of public procurements conducted by the buying bodies have significant effect on economic development that is confirmed, on the one hand, by the World Trade Organization (further - the WTO) which specifies that public procurements average 10-15% of gross domestic product (further - GDP) economies, and also the European commission which specifies that at the European Union level more than 250 000 bodies of the public power annually use about 14% of GDP for purchase of services, works and goods.

12. According to the data provided by the Agency of public procurements for the last 4 years public procurements in relation to GDP represented the following values:

1) 2019: 8, one billion lei of 4,25 of % of GDP

2) 2020: 9, one billion lei of 4,38 of % of GDP

3) 2021: 8, one billion lei of 3,49 of % of GDP

4) 2022: 13, one billion lei of 5,02 of % of GDP

13. Evolution of share of public procurements in GDP of Moldova on the temporary horizon shows more than 10 years directly pro rata communication between rates of economic growth and cost of purchases, as shown in the figure 1.

Figure 1. Amount and share of public procurements in relation to GDP (one billion lei)

Source: The report of the Agency of public procurements about the activities in the field of public procurements conducted during 2022 (it is available according to the reference https://tender.gov.md/sites/default/files/document/attachments/raport_aap_2022.pdf)

14. Information on share of public procurements in GDP given above reflects the transactions performed according to provisions of the Law No. 131/2015 on public procurements. The Audit Chamber reports that in 2020 the estimated value of invaluable purchases (9,01 of one billion lei) was made even to total cost of public procurements (9,04 of one billion lei), at the same time having registered growth tendency. This information removes share of public procurements (% 8,74) in GDP of Moldova for the level similar to the specified WTO, and is much closer to the level of their share at the European Union level (further - the EU). This figure reflects influence of public procurements on assistance to sustainable economic development and, respectively, on receipt of social and economic benefits.

15. In the same context we will note that in 2020 the share of public procurements (which amount made 18,05 of one billion lei) in expenses and non-financial assets of the national public budget constituted % 24,63. Also the Government allocated financial resources in the amount of 1,68 of one billion lei for servicing of public debt, and staff expenses of the Government constituted 17,21 of one billion lei. Data are reflected in the figure 2.

Figure 2. Amount of public procurements in comparison with other expenses

Source: The catalog of open data of the Ministry of Finance for 2020 (it is available according to the reference https://mf.gov.md/ro/content/catalogul-de-date-deschise-al-mf-pentru-anul-2020).

16. Capability use the available financial resources by means of public procurements is one of elements which substantially promotes success of realization of state policy for the purpose of improvement of quality of life, for the goods receipt, services and works necessary for increase in level of living, following from:

a) regulations of public procurements;

b) powers of concerned parties (the organizations or persons) participating in effective management and implementation of purchases.

17. As for contents of rules of rather public procurements, the method of their application and the infrastructure used for implementation of purchases exert direct and significant impact as on capability of the public sector to service the citizens, and on efficiency of economy.

18. It is impossible to approach public procurements only from the point of view of observance of rules. The policy of public procurements at the level of the EU belongs to use of purchases as "the tool intended for strategic, effective and steady use of public funds". At the level of the EU "public sector can use purchases for increase in number of workplaces, increases in investments and creation of economy which more innovative and effective from the point of view of resources and power, and more inclusive from the social point of view. High-quality state services depend on the modern, well managed and effective purchases". Thus, public procurements assume achievement of results in the conditions of compliance, respectively, and implementation of public procurements in the conditions of cost and social efficiency.

19. Now in the Republic of Moldova there is wide range of state policies which require use of public procurements for achievement of effective objectives due to increase in cost efficiency of the public expenditures connected with all these politicians.

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