Public Procurement Contract Value Halved in H1

Figures

The value of public procurements in Hungary fell 54% year-on-year to HUF 1.304 trillion in the first half, news agency MTI writes citing a report by the Public Procurement Authority.

The number of public procurement procedures fell 11% to 3,478.

Presenting the report at a press conference, Public Procurement Authority head László Kovács attributed the decline to the global crisis, the impact of the war, and the "drastic" rise in construction industry prices. He noted that the value of construction procurements had dropped to HUF 411 bln from HUF 1.954 tln in the base period.

Public procurement value and volume will rise with the transfer of Hungary's European Union funding from Brussels, he added.

Microbusinesses and SMEs won 68% of contracts in terms of value and 83% in terms of numbers, the report shows.

Construction contracts accounted for close to 32% of the value of public procurements and goods for 34pc. Services made up 34% of the total.

The share of single-bid procedures was 6pc for contracts with values under the threshold for inclusion in the EU's tender system and 21pc for contracts with values over the threshold. Those ratios were higher, 8pc and 31pc, respectively, applying the EU's methodology which takes into account a narrower range of contracts.

Kovács said Hungary aims to reduce the number of single-bid procurement procedures for contracts with values over the EU tender threshold from 35% of the total to under the EU average or around 20%. 

The number of negotiated procedures edged down to 113 in H1 from 119 in the same period a year earlier.

The number of bids in public procurement procedures averaged 7.9 in H1.

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