Improvement of the procurement procedures for national oil product safety reserves


In order to increase the efficiency of the tender for the creation of oil security reserves and to ensure that oil reserves are created by merchants who have successfully passed the security inspections, the Cabinet of Ministers at the meeting of May 3, 2018 approved the changes in the procedure for the provision of security reserves by merchants, stating that the tender for the creation of oil reserves can be arranged by applying the Law on Procurement in the Areas of Defence and Security.

Over the past few years, the Ministry of Economics has faced a number of difficulties in establishing national oil product safety reserves related to the requirements of the Public Procurement Law and frequent amendments thereto, as well as the overall procurement deadline, which impedes a safe and timely establishment of security reserves.

The Law on Procurement in the Areas of Defence and Security allows for the possibility to exclude a candidate or tenderer from further participation in the procurement procedure if the contracting authority has received the opinion of the national safety authority that the conclusion of a procurement contract with the said candidate or tenderer may pose a threat to national security. In this way, it is possible to dispel public concerns regarding the suitability of individual tenderers and to prevent potential risks in the event of an energy crisis or a national threat.

At the same time, such a solution will ensure that all procedures in the tender can be carried out more quickly and candidates are selected considering national energy security interests, for example, by imposing restrictions on the geographic location of service provision, requirements for candidates' reputation, and other aspects.

Last update:    01-02-2019