The Public Procurement Agency of Bosnia and Herzegovina (BiH)conducted the first comprehensive analysis of the application of exemptions from the Public Procurement Law (Article 10a) for the period 2023-2025. The results are worrying: over two billion BAM of public money was spent without applying the basic principles of transparency, competition, and equal treatment.
This analysis represents a key step in preparing a new Public Procurement Law, which should introduce stronger control mechanisms and greater accountability in the spending of public funds.
Key findings of the analysis: In 2023, nearly 19.000 exemptions were recorded, with a total value of around 660 million BAM; in 2024, the number of exemptions decreased to 14.399, but the value rose to 1.14 billion BAM; in the first five months of 2025, an additional 160 million BAM was realized through exemptions; the largest amounts were related to loans, concessions, legal services, and certain infrastructure areas; a significant portion of exemptions involves large entities and sectoral contracting authorities, indicating systemic practices.
What do these data tell us?
This trend indicates regulatory gaps that create room for corruption risks, weaken market competition, and call into question the efficient management of public funds.
“The public has the right to know how every BAM from the budget is spent,” the Agency emphasized.
Measures proposed by the Agency in the new Law: Obligation to publish a separate Procurement Exemption Plan alongside the regular public procurement plan; obligation to publish a Report on the implementation of exemptions for full transparency; special control mechanisms for high-value exemptions; clearer distinction between public procurements and contracts under special regimes (concessions, PPPs), with greater oversight.
This is the first time that exemptions have been analyzed in such a comprehensive manner. Based on the findings, the Agency will incorporate concrete measures into the new law to ensure that no segment of public spending remains non-transparent.
“It is time to end the practice of excessive reliance on exemptions. Public funds must be spent clearly, responsibly, and in the interest of all citizens of BiH,” the Agency stated.
