RESTRICTED
WORLD TRADE WT/ACC/HRV/27/Add.1
28July1997
ORGANIZATION(97-3166)
Working Party ontheAccession ofCroatia Original: English
ACCESSION OFCROATIA
Additional Questions andReplies
totheMemorandum ontheForeign Trade Régime
(L/7466)
Addendum
Asindicated indocument WT/ACC/HRV/27 replies toadditional questions 12,and27-46
concerning government procurement havebeenreceived fromthePermanent Mission oftheRepublic
ofCroatia.
_______________
Question 12.
IsCroatia prepared toreconsider Article 3.7oftheDecree onPublic Procurement, which allow
forthepossibility toshow "national preference"?
Answer:
The"national preference" isveryrarely usedandonlyinthespecific event when domestic
purchaser haspreference forcertain goods produced intheRepublic ofCroatia, when compared to
offers ofgoods from elsewhere.
Croatia intents tokeepthisprovision andpractice itinlinewhich iscustomary withtheIBRD and
EBRD rulesandasapplied inmany countries, especially inthose countries which areatasimilar level
ofdevelopment asCroatia (countries intransition).
Question 37.
Hasalawonpublic procurement already beenadopted? Ifso,isanEnglish translation available?
Answer:
Allbeneficiaries oftheGovernment budget andlocalgovernmental budget including utilities
andpublic enterprises mustperform procurement activities according totheDecree onProcurement
ofGoods, Works andServices which isinforce fromApril 1997. AnewLawonPublic Procurement
iscurrently inParliamentary procedure, andthefirstreading hasbeenfinished. TheLawisexpected
tobepassed bytheendof1997 orbeginning of1998 andwillbeforwarded totheWTO Secretariat
aftertheEnglish translation iscompleted.WT/ACC/HRV/27/Add.1
Page2
Question 38.
Howisprocurement managed byutilities, companies granted amonopoly andprivate companies
controlled bypublic authorities?
Answer:
Please refertotheprevious answer.
Question 39.
Apart from interests ofamilitary orstrategic nature, could examples ofother "national interests"
mentioned inArticle 3(4)oftheDecree onProcedures forProcurement ofGoods begiven? What
arethe"special purposes resources" and"special laws" referred toinArticle 3(5)towhich the
Decree isnotapplied?
Answer:
Regarding theterm"national interest" which isdescribed inArticle 3.paragraphs 4.and5.,
theDecree refers tothestrategic interests general andsectoral, e.g.development ofunderpopulated
areas forwhich there arenoeconomic interest fromother investors intheareas suchasdevelopment
ofinfrastructure, buttheGovernment hasinterest tocarry outsocial orotherpolicies. "Special purposes
resources" and"special laws" refertolawsenforced asaresult ofnatural disasters andinflicted damages,
which arefinanced fromemergency budgetary reserves orinternational loans (confirmed purpose and
procedure forapplication).
Question 40.
How often isthe"national preference" referred toinArticle 3(7)oftheDecree used?
Answer:
The"national preference" isveryrarely usedintheevent thedemand andinterest ofdomestic
consumption aregreater thennormal.
Question 41.
Why areservice contracts onlyconcluded bylimited orrestrictive bidding?
Answer:
Withregard totheprocurement ofservices, theDecree stipulates thatpublic bidding isprimary
andusual forprocurement ofbothgoods andworks andservices. Butthere isapossibility stipulated
inthedecree which provides forsome procurement ofservices which maybecarried outthrough limited
bidding.
Question 42.
Doplans existtoenlarge access tothegovernment service market forforeign bidders?WT/ACC/HRV/27/Add.1
Page3
Answer:
Croatia plans toenlarge access tothegovernment service market forforeign bidders.
Question 43.
Does anyCroatian lawmake provisions foroffset requirements?
Answer:
TheDecree onProcurement ofGoods, Works andServices doesnothaveprovisions foroffset
requirements, however interested parties mayinclude thisintheiragreement.
Question 44.
Isstatistical information available showing e.g.:
- thesizeofthepublic procurement market asaproportion oftotaleconomy;
- thebreakdown ofmethod used(open bidding, pre-qualification, LIB, price quotation or
shopping anddirect contracting) andtheir respective values;
- thenumber oftender invitations published;
- theshare offoreign competitors participating intenders andthenumber/percentage
contracts awarded tothem;
- thenumber ofcomplaints?
Answer:
Unfortunately, nostatistical dataisavailable ontheeconomic effects oftheGovernment
Procurement.
Question 45.
Does Croatia plantosetupasystem ofelectronic tendering? When?
Answer:
Croatia plans tosetupasystem ofelectronic tendering inthenearfuture, for,thisprovision
isforeseen inthenewDraft LawonProcurement ofGoods, Works andServices.
Question 46.
Does Croatia have anyexisting purchasing agreements withthird countries?
Answer:
Croatia doesnothavepurchasing agreements withthirdcountries.