|Public Procurement - 2011|
The Public Procurement System in Armenia is governed by the Law on Procurement, enacted in July 2004 and enforced on 1 January, 2005 (PPL). In the EBRD Assessment, PPL scored medium compliance in the region.
The Public Procurement Body (PPA) in Armenia, responsible for procurement policies and monitoring of compliance, is not fully independent.
PPL scored 73 per cent compliance rate in the assessment of the legal framework, placing Armenian PPL in the medium compliance range in the EBRD region. PPL scored exceptionally well in the accountability indicators, where it achieved a 92.5 per cent compliance rated. In other legal indicators, PPL scored consistently well but slightly lower.
However, analysis of the institutional framework regulation revealed that there are areas with significant regulatory gaps (25-27 per cent in Enforceability and Uniformity measures and 37.5-47.5 per cent in Flexibility and Stability indicators) to be improved. Similarly, not all recommended integrity safeguards and efficiency instruments have been adopted in PPL.
Some implementation gaps were identified; assessment of the accountability and economy indicatorsrevealed a 20 per cent implementation gap between Armenian law and practice. The general conclusion is that Armenian contracting entities supplement PP regulation in order to achieve good value for money and this positively influences local PP practice. However, there is a shortfall in the implementation of the law. In particular, improvements in integrity and accountability of PP are needed.
Finally, local PP practice in Armenia scored 47 per cent compliance rate in the PP sustainability survey. These marks stand for low compliance with the benchmark, but are higher than the scores of some other countries in the EBRD region.