NewsMontenegro meets EU criteria for closing Chapter 5 on Public Procurement

Montenegro meets EU criteria for closing Chapter 5 on Public Procurement

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Montenegro has met the criteria to close Chapter 5 – Public Procurement, the European Commission (EC) has assessed.

According to a draft joint position reviewed by the RTCG correspondent in Brussels, the Commission concluded that the closure criteria set in the joint position have been fulfilled and that no further negotiations are required at this stage.

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The negotiating position is currently under consideration by the EU Council working bodies, with EU member states to give the final approval on Montenegro’s readiness to temporarily close Chapter 5.

The document highlights Montenegro’s significant progress since 2021 in all areas of Chapter 5, including the adoption of laws aligned with EU acquis and strengthening administrative structures and capacities for implementation. Key improvements include the establishment of an e-procurement system and progress towards a fair and transparent public procurement system that ensures value for money, competition, and strong anti-corruption measures.

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Although the anti-corruption framework specific to public procurement still requires strengthening, there is a clear plan to address remaining vulnerabilities, expected to be implemented by early next year.

The EU stresses that all international agreements Montenegro enters into must comply with EU public procurement legislation and the Stabilisation and Association Agreement (SAA) between Montenegro and the EU. It also notes that a recent cooperation agreement on tourism and real estate development between Montenegro and the United Arab Emirates (UAE) exempts UAE investors from procurement legislation in both countries, which must be carefully monitored to avoid conflict with EU procurement rules.

Montenegro is aligned with EU rules on classical procurement, utility services, concessions, public-private partnerships, defense and security procurement, and remedies.

Further progress has been made in revising the framework against corruption, conflicts of interest, and fraud in public procurement, though additional steps are needed. Montenegro plans to amend the Public Procurement Law and the Anti-Corruption Law by the second quarter of next year, enhancing corrective mechanisms, sanctions, budget inspection controls, and definitions of corrupt practices related to procurement.

Additionally, Montenegro has committed to introducing a “red flag” system within its electronic procurement platform to detect irregularities.

The European Commission will closely monitor the implementation of these obligations.

Once all EU countries give their approval, Chapter 5 is expected to be formally closed at the Intergovernmental Conference planned for the end of June.

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