Decision on mandatory application of preferential treatment for domestic goods enters into force

SARAJEVO, (Patria) - From today until June 1, 2021, the Decision on mandatory application of preferential treatment for domestic goods at a rate of 30 percent is being implemented 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 helped in obtaining contracts in public procurement procedures and, as Prime Minister Novalić emphasized, domestic economy is stimulated and significant assistance is ensured in saving a large number of jobs, as well as ensuring the rescue and maintenance of the economy in Bosnia and Herzegovina. It also mitigates adverse consequences for the domestic economy and motivates domestic bidders to offer their goods, services and works on the market, encouraged by the fact that in these times they have preferential status.

According to the decision, when calculating bid prices, the contracting authority is obliged to reduce the prices of domestic bids by a preferential factor of 30 percent in public procurement procedures for the next year. This significant 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 President of the Government of Republika Srpska.

The decision was adopted even though the Public Procurement Agency of BiH had previously taken the position that "there are no grounds for acting on the submitted initiative," the Office of the Prime Minister of FBiH announced.