The updated methodological recommendations from the Ministry of Economy establish a framework for high-quality and impartial selection of contractors, thereby reducing opportunities for unfair competition.
As an association of businesses, entrepreneurs, and employers consistently advocating for economic development, transparent rules of engagement, and effective state-business dialogue, the Federation of Employers of Ukraine (FRU) welcomes the decision by the Ministry of Economy, Environment, and Agriculture of Ukraine to amend the Methodological Recommendations on the specifics of procuring services for the operational maintenance of public roads of state and local importance. This is stated in a FRU announcement on their Facebook page.
The Federation of Employers of Ukraine explained that previously, the qualification criteria in this sector did not consider the actual needs of the state, international practices, or the specifics of critical infrastructure. This created a situation where unscrupulous bidders lacking adequate experience, material and technical resources, and financial capacity could participate in the market. The primary determining factor for winning often became the price offer, achieved through dumping – below the actual cost of services. This not only pushed out honest businesses that invest in equipment, personnel, and transparent payroll but also undermined the quality of road maintenance.
“The consequence was a deterioration of road infrastructure, the termination or suspension of a significant number of contracts, additional budget expenditure on emergency repairs, and the obstruction of critically important military logistics – the movement of equipment, personnel, ammunition, and the evacuation of the wounded,” the FRU reported.
International experts, representatives from the World Bank and financial organizations, relevant ministries and agencies, the State Audit Service, the Antimonopoly Committee of Ukraine, the FRU, and public organizations and businesses were involved in developing the updated approaches implemented in the revised Methodological Recommendations for the procurement of operational road maintenance services.
Therefore, as explained by the FRU, the updated Methodological Recommendations incorporate international experience, procurement practices of international financial institutions, as well as provisions of European approaches to road infrastructure safety management and public procurement.
“Key changes allow contracting authorities more flexibility in forming lots without artificially lowering qualification requirements; clearly define criteria for participants’ relevant experience, considering international practice; and align approaches to assessing financial capacity with Ukrainian legislation and European standards,” the Federation’s statement reads.
They elaborated that the Ministry of Economy’s methodological recommendations with the relevant amendments create a foundation for the high-quality and objective selection of contractors capable of ensuring the long-term reliability of road infrastructure, and reduce the scope for unfair competition.
It was previously reported that the Ministry of Economy, Environment, and Agriculture of Ukraine continues to work on improving procurement approaches, including the procurement of operational road maintenance services. The changes are intended to ensure a balance between open competition, the proper quality of work execution, and the effective use of budget funds.
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