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New law to simplify public procurement rules

The draft of a new public procurement law completed by the National Development Ministry would extend the range of cases exempt from the obligation to call public procurement tenders further and expand the possibilities for bidding negotiations, business daily Napi Gazdaság said on Wednesday.

The new legislation is aimed at cutting government costs and improving efficiency as well as to reduce corruption, the paper said.

According to the draft, it will be possible to avoid open public procurement procedures in all cases where the estimated value of the goods purchase or the service is less than HUF 25 million, or HUF 150 million in the case of construction investments.

In such cases, the Public Procurement Arbitration Committee does not need to be notified, at least three applicants must be invited to make offers, and "preference must be given to small- and medium-sized businesses".

Opinions regarding the document, published on the kormany.hu, can be submitted until June 1.

The main passages of the law are expected to come into effect on November 15.