New Public Procurement Law to enter into effect in 3 months

The recently adopted Law on Public Procurement is to enter into force 3 months after its publication in the Official Gazette of Moldova. Within 6 months, the Government shall submit to the Parliament proposals for aligning the national legislation with the respective law. The law applies to the public procurement contracts whose estimated value, without the value added tax, equals or exceeds the following thresholds: MDL 20,000 for public supply contracts; MDL 25,000 for public works contracts; and 25,000 for public service contracts. The law also applies to the public procurement contracts which are directly financed at more than 50% by the contracting authorities. The law also defines particularities for the application of public procurement contracts whose estimated value equals or exceeds specific thresholds: MDL 2.5 million for public supply and service contracts, and MDL 99 million for public works contracts. The calculation of the estimated value of a public procurement contract is based on the amount payable, without VAT, estimated by the contracting authority. The calculation of the amount payable includes all forms of remuneration, including bonuses, charges, commissions, profit, other payments, in view all options available and potential term extensions. The calculation method is to be established by governmental regulation. The Agency for Material Reserves, Public Procurement and Humanitarian Aid as the competent public authority in the field is empowered to verify the way the contracting authorities observe the procedure for public procurements and grant public procurement contracts. In addition, the Agency establishes, updates and maintains the list of qualified contractors and the specific blacklist. The law stipulates that the contracting authority shall publish in the Public Procurement Bulletin an announcement of intent for the planned tender within 30 days after the date of approval of the contracting authority’s budget. The public procurement agreement shall be concluded following open or restricted auctions; frame agreements; negotiations; single-source procurement; on-line auctions; public sector purchases for social dwelling programmes; purchases via the Universal Commodity Exchange of Moldova, etc.