Minister: Progress made in management of public funds in post-quake reconstruction

(Hina) - Construction Minister Branko Bačić said on Tuesday that significant progress has been made in the post-earthquake reconstruction in terms of the quality of management of public funds, but that the pace of works is mostly affected by labour shortages.

"With legislative changes we want to make sure that in future bidders are chosen that can respond to the requirements of modern projects and that public procurement procedures are transparent, good and effective," Bačić said at a conference on the challenges of public procurement in the construction sector, organised by the Croatian Chamber of Civil Engineers.

"Over the past year, there were no bidders in 10% of public procurement procedures while some of the bids were much above the estimated value, which caused unforeseen costs," he said.

Speaking of the current challenges, Bačić said that close to a half of all employees in the construction sector were foreigners.

"The construction industry employs around 150,000 workers, including 70,000 foreigners. They often lack the necessary qualifications or the knowledge of the local situation, which additionally complicates project implementation," he said.

Labour shortages affect the pace of work, particularly on post-earthquake reconstruction projects, he said.

The minister said that the value of public procurement procedures is estimated at €13 billion annually, which accounts for a significant portion of the country's GDP, totalling €76 billion. That is a clear indicator of the importance of a transparent and efficient system of public procurement, Bačić said.

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