EFFECTS AND BENEFITS OF THE OBLIGATORY IMPLEMENTATION OF ELECTRONIC PUBLIC PROCUREMENT SYSTEM

Abstract

The digital transformation of the process of the public procurement, assisted by the development of information communication technology and the Internet, enables the use of electronic means of communication and the implementation of public contract award procedures. Public procurement has a major impact on the national economies, bearing in mind that a significant percentage of the state’s budget is spent on the purchase of goods, services and works by the private sector to meet public needs. It is therefore important that procurement be carried out by providing the best quality at a lower price, and the process itself to be implemented quickly, simply and cost effectively. This paper examines the success and advantages of electronic public procurement in the Republic of Macedonia, but taking into account the challenges faced by contracting authorities (contracting authorities – public and state institutions) and economic operators (private firms) in order to determine the effects of their use. In the first part, a brief theoretical review of public procurements and existing legislation in the EU and the Republic of Macedonia is given, while electronic public procurement is further elaborated by presenting the electronic procurement system and the sole platform in Macedonia for digital purchases, comparing the Macedonian solution with the systems of the Western Balkan countries and Europe, and lastly, an empirical market research on public procurement was made. E-procurement in Macedonia since 2018 is mandatory for use, and the aim of this paper is to verify that the effects and benefits of the use level are large and positively affect contracting authorities, economic operators and the general public.