Decision D. 210/18/2025 by the Public Procurement Arbitration Board

In its decision based on the ex officio proceedings initiated by the Integrity Authority against the public procurement procedure of the Municipality of Baktakék, titled “Construction of Nursery in Baktakék”, the Arbitration Board has established infringements committed by both the contracting authority and the respondent winning contractor, resulting in the imposition of fines on both the contracting authority and the respondent.  

The Arbitration Board found that the contracting authority had failed to exercise sufficient diligence in the preparation of its public procurement procedure, and violated Section 28(1) of the PPA by not specifying adequately the relevant material quantities and the technical parameters of the equipment required for project implementation. Furthermore, the contracting authority had not possessed all of the required and valid permits. The Arbitration Board also found that the contracting authority had failed to comply with its obligation under Section 142(1) of the Public Procurement Act to monitor and document the performance of the public procurement contract.

The Arbitration Board concluded that the Respondent had failed to take out liability insurance in the required amount as both the annual aggregate policy limit and the minimum per-occurrence limit were below the required values, violating Section 26 of Government Decree No 322/2015 of 30 October 2015. The respondent had also committed an infringement by failing to comply with its reporting and declaration obligations regarding the subcontractor, violating Section 138(3) of the PPA.  

No request for judicial review has been submitted against Decision No D. 210/18/2025 of the Arbitration Board.