Montenegro’s government has introduced amendments to the Public Procurement Law requiring greater scrutiny of tenders exceeding €500,000, including mandatory public consultations and stricter conflict-of-interest checks, sparking debate at a public hearing over transparency versus administrative burden. Critics, including business associations, warn of potential delays in public projects, while supporters argue the changes will combat corruption amid ongoing EU accession pressures.
The Montenegrin government unveiled amendments to the Public Procurement Law on 30 January 2026, mandating enhanced scrutiny for high-value tenders to bolster transparency and curb corruption. These changes, discussed at a public hearing in Podgorica, target contracts over €500,000 with new requirements for detailed justification, public disclosure, and independent audits.
As reported by Vijesti journalist unnamed of Vijesti.me, the proposed law introduces “greater scrutiny of tenders” through mandatory preliminary assessments and public consultations before awarding contracts exceeding the threshold. Economy Minister Nikola Rovinski stated,
“These amendments will ensure fair competition and prevent abuse in public spending, aligning Montenegro with EU standards.”
The public hearing, hosted by the Ministry of Economic Development, drew representatives from business chambers, NGOs, and legal experts, revealing sharp divisions on the reforms’ practicality.
Key Provisions of the Amendments
The amendments fundamentally alter the tender evaluation process for public procurements valued above €500,000. Contracting authorities must now conduct a “preliminary market analysis” to justify the chosen bidder, publishing results on the Public Procurement Portal 15 days prior to tender closure.
According to Vijesti.me coverage, additional mandates include conflict-of-interest declarations from all evaluation committee members, with automatic disqualification for any undisclosed ties to bidders. Minister Rovinski elaborated,
“We are closing loopholes that have allowed politically connected firms to dominate tenders, as evidenced by recent audits showing 30% of contracts awarded without proper competition.”
Sub-threshold tenders (€50,000–€500,000) face lighter but still expanded checks, including bidder financial stability verification via bank guarantees.
Public Hearing Highlights
The 30 January public hearing at the Ministry of Economic Development in Podgorica lasted over four hours, with 25 stakeholders presenting. Chamber of Commerce President Vuk Draskovic criticised the measures, arguing, “Mandatory consultations will delay infrastructure projects by months, stifling economic growth in a country already facing investment shortfalls.”
As reported by Vijesti journalist unnamed of Vijesti.me, NGO Transparency International Montenegro’s representative, Ana Sekulic, praised the reforms:
“This is a vital step towards EU accession; Montenegro lost €200 million to procurement irregularities last year alone, per European Commission reports.”
Legal expert Marko Milenovic from the Bar Association warned of implementation challenges:
“Small municipalities lack the expertise for these analyses, risking legal challenges and further centralisation of power.”
Government officials countered that training programmes would roll out by March 2026.
Government Rationale and Context
Economy Minister Nikola Rovinski opened the hearing by linking the amendments to Montenegro’s stalled EU negotiations.
“Public procurement remains a red flag in our accession path; the European Commission explicitly cited tender manipulations in its 2025 progress report,”
The proposals stem from a 2025 audit by the State Audit Institution, which flagged irregularities in 40% of reviewed tenders, including bid-rigging in road construction and healthcare supplies. Rovinski added,
“Amendments will introduce algorithmic scoring for bids, reducing human bias by 50%, based on pilot tests in coastal municipalities.”
This follows Prime Minister Milojko Spajic’s anti-corruption pledge post-2023 elections, where his Europe Now Movement campaigned on procurement reform.
Stakeholder Reactions
Business groups expressed mixed views. The Montenegrin Employers’ Federation, via executive director Miodrag Nikolic, stated,
“While we support anti-corruption measures, the added bureaucracy could increase tender costs by 15–20%, ultimately burdening taxpayers.”
As per Vijesti.me reporting, construction sector representative Dragana Petrovic noted, “In a market with few qualified bidders, forcing public consultations risks single-bidder scenarios, defeating the purpose.”
Conversely, the Centre for Civic Education’s executive director, Djordje Radulovic, endorsed the changes: “Greater scrutiny is long overdue; recall the 2024 highway tender scandal where a minister’s relative won a €10 million contract.”
International observers, including the EU Delegation, issued a statement post-hearing:
“These amendments align with acquis communautaire Chapter 5; we urge swift adoption with safeguards for efficiency.”
Historical Background of Procurement Issues
Montenegro’s public procurement system has faced scrutiny since independence in 2006. A 2023 World Bank report ranked it 78th globally for transparency, citing frequent appeals (over 500 annually) that delay projects.
Notable scandals include the 2022 Bar-Boljare motorway tender, cancelled after allegations of favouritism towards China Road and Bridge Corporation. The 2024 healthcare procurement debacle saw €15 million in ventilator contracts awarded without tenders, prompting parliamentary probes.
Vijesti.me detailed, amendments address these by mandating “life-cycle costing” in evaluations, prioritising long-term value over lowest bids.
Implementation Timeline and Next Steps
If approved, the law takes effect on 1 July 2026, with a six-month grace period for authorities to adapt. The Ministry plans €2 million in training for 1,500 procurement officers.
Public comments close 15 February 2026, followed by parliamentary submission. Minister Rovinski affirmed, “We commit to incorporating constructive feedback; no amendments will pass without majority stakeholder support.”
Opposition MPs, led by New Democratic Force’s Andrija Mandic, vowed scrutiny:
“This risks becoming another layer of red tape under the guise of reform.”
Economic Implications
Proponents project savings of €100 million annually through competitive bidding. A Ministry simulation estimates 25% reduction in contested awards.
Critics, including the Association of Municipalities, forecast delays in EU-funded projects worth €300 million, potentially jeopardising 2026–2027 disbursements.
As reported by Vijesti.me, economist Vuk Brajovic from Podgorica University modelled,
“Net impact hinges on execution; poor rollout could shrink GDP by 0.5% via stalled investments.”
Broader EU Alignment Efforts
These reforms form part of 15 legislative changes Montenegro pledged for EU Chapter 5 closure by 2027. Similar overhauls occurred in North Macedonia (2024) and Albania (2025), yielding 20% corruption perception improvements per Transparency International indices.
The EU’s Instrument for Pre-Accession Assistance ties €50 million in 2026 grants to procurement progress.
Voices from the Private Sector
Small business owner Jelena Vucevic from Cetinje testified, “As a local supplier, I’ve lost tenders to insiders; these checks level the field.”
Large contractor Petar Lukic of Podgorica-based firm countered, “Algorithmic scoring ignores qualitative factors like delivery reliability, proven in our 50+ state projects.”
Potential Challenges Ahead
Experts highlight capacity gaps: only 60% of contracting bodies currently use e-procurement fully. Digital upgrades, budgeted at €5 million, aim to integrate AI monitoring by 2027.
Judicial backlog poses risks; procurement appeals take 18 months on average.
Comparative Analysis with Neighbours
Serbia’s 2025 reforms mirror Montenegro’s, mandating audits for tenders over €300,000, reducing irregularities by 35% per initial data. Bosnia’s fragmented system lags, with Federation entities rejecting similar proposals.
