The municipality of Pristina will not be able to withdraw 1.2 million euros in case the winner of the 12-million-euro tender for the "city architect service" does not implement the terms of the contract. The document known as "Execution Security", which was issued by the bank, is almost similar in content to the "tender security", a document that is valid only at the stage before signing the contract.
The key document to assure the Municipality of Pristina that the consortium that won the tender "Service of the architect of the capital" will carry out the works for which about 12 million euros will be paid, is in violation of the law and procurement rules.
On the day when the contract was signed, the consortium composed of the companies "Anarch" and "Ardi Ç" deposited in the municipality a document issued by the Economic Bank, which they described as "Security of execution" of the contract.
It states that 1 million and 200 thousand euros of the consortium have been frozen, which constitute 10 percent of the value of the contract.
According to the law, in cases where "Security of execution" is required, as in the case of the tender of the Municipality of Pristina, the document would have to serve as a guarantee that the municipality would receive the money in case the consortium does not implement the terms of the contract.
"The contracting authority may require the economic operator who has been awarded a contract to deposit a performance security as a precondition for the signing and entry into force of such contract if: (i) such contract is a works contract; (ii) such contract is a service contract for the creation of computer programs, or; (iii) there is a risk that the breach of such contract will cause substantial damage to the contracting authority and/or may require the contracting authority to incur substantial costs for the termination of said contract”.
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The municipality of Pristina violated the law right from the opening of the 12-million tender
However, the content of the "Execution Security" issued by the bank is almost similar to the tender security, a document that is valid at the stage before signing the contract.
Consequently, the Municipality does not have the right to withdraw the 1.2 million, even if it is established that the consortium did not perform the works according to the contract.
Even on the basis of an interpretation that the Regulatory Commission of Public Procurement has given for TIME, it is confirmed that what is written in the document is contrary to what is actually the security of execution.
"Performance security may be required from the economic operator who has been awarded the contract to deposit a performance security as a precondition for the signing and entry into force of such contract, when there is a risk that the breach of such contract will cause damages substantial to the contracting authority and/or may require the contracting authority to incur large expenses for closing the contract in question", says the interpretation of the KRPP.
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Despite the 12-million contract, the Municipality allocated another 1.2 million for similar work
KOHA has also asked the Municipality of Pristina, the consortium and the Economic Bank about all these issues. None of them have responded.
This month KOHA reported that the owner of one of the companies in the consortium that won the 12-million contract is Astrit Nixha, who in the past had working relationships with a business of the mayor of Pristina, Përparim Rama.
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Rama aims for cooperation with the private sector, due to the limited budget
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The municipality does not indicate whether the mayor Rama had a working relationship with the shareholders of the "City Architect"
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Suspicions of illegal legalizations, Rama warns of measures against anyone found to have violated the law