The importance of public procurement for the Croatian economy is reflected in the data that the share of the total value of public procurement excluding VAT in the GDP in 2022 was 20.59%. There is room for improvement in the system of public procurement in Croatia, and it needs to be regulated for the benefit of the contracting authority and bidder in order to make the best possible use of public funds.

AmCham prepared a position paper in which it proposes several areas of the 2016 PPA 2016 that could be improved. These are changes in the thresholds for the application of 2016 PPA, extension of the deadline for the submission of objections and proposals during prior consultations, amendments to the provisions regarding conflict of interest for better protection of market competition, changes to the simple procurement procedure, proposals for a better application of the criteria of the most economically advantageous tender, and a proposal for additional rules for the use of framework agreements.

Furthermore, position paper contains 3 concrete measures for the improvement of the public procurement contracts. It proposes a clearer specification of the type of contract and the beginning of the validity of the contract, introduction of the obligation to explain changes to the contract, and ensuring more effective supervision over the execution of the contract. AmCham also proposes equalizing the relationship between bidders who are in the VAT system and those who are exempt from paying the VAT.

AmCham's position paper is available here.