RESTRICTED  
  
GPA/ACC/MKD/8  
 
17 September 2018  
(18-5753) Page: 1/7 
Committee on Government Procurement  Original: English  
 
ACCESSION OF THE FORMER YUGOSLAV REPU BLIC OF MACEDONIA TO THE AGR EEMENT 
ON GOVERNMENT PROCUR EMENT  
COMMUNICATION FROM T HE FORMER YUGOSLAV REPU BLIC OF MACEDONIA  
The following communication, dated 12 September 2018, is being circulated at the r equest of the 
Delegation of the former Yugoslav Republic of Macedonia . 
 
_______________  
REPLIES TO THE QUEST IONS AND COMMENTS FR OM THE UNITES STATES  
(GPA/ACC/MKD/6)  ON THE INITIAL COVE RAGE OFFER OF THE RE PUBLIC  
OF MACEDONIA (GPA/ACC/M KD/4)  
The Republic of  Macedonia would like to thank the United States for the interest towards Macedonia 's 
accession to the GPA and for its comments and questions pertaining to Macedonia 's initial coverage 
offer dated 18 June 2018. The Public Procurement Bureau together with t he Ministry of Economy of 
the Republic of Macedonia would like to communicate the following in respect to United States 
questions and is looking forward to further constructive dialog.  
 
Annex 1 - Central Government Entities  
 
1. Can the Republic of Macedonia p rovide information about how it developed its list 
of central government entities? Can the Republic of Macedonia provide information about 
the status of subordinate entities? For example, none of the Ministry bodies (subordinate 
entities) under the Ministr y of Transport and Communications are listed here. Could the 
Republic of Macedonia provide information on what, if any, subord inate entities are not 
covered?  
The list of central government entities was developed by using the Government Decision on 
Determin ing the List of Contracting Authorities (Official Gazette o f the Republic of Macedonia 
Nos 157/08 and 74/09) and cross -referencing it with the data on registered contracting entities in 
the Electronic System for Public Procurement (hereinafter: ESPP). The reason for this approach is 
the fact that this list from the above -mentioned Government Decision has not been updated since 
2009 and there are some contracting entities that may have changed their status or name, have 
been abolished or new ones have been e stablished in the meantime. Given the requirement that 
every contracting entity must be registered in the ESPP since it is a prerequisite to publish contract 
notices, the ESPP contains the updated list of contracting entities and that is why this combined 
approach in compiling the list was chosen in order to have a complete and updated list of central 
governmental entities under Annex 1.  
 
With respect to subordinate entities, they are bodies within different government ministries. There 
are two types of suc h bodies: those having status of a legal person, and those without this status. 
Subordinate entities that are legal entities are considered contracting entities and are subject to the 
Public Procurement Law. Examples of such bodies are the Public Procureme nt Bureau (within the 
Ministry of Finance), the Customs Administration (within the Ministry of Finance), the Education 
Development Bureau (within the Ministry of Education and Science), the Office for Execution of 
Sanctions (within the Ministry of Justice)  etc. Given the fact that these bodies are contracting entities 
themselves, they are separately listed in the list of contracting entities in Annex 1. On the other 
hand, subordinate bodies not having the legal personality are not considered to be contracti ng GPA/ACC/MKD/8  
 
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  authorities under the Public Procurement Law, but rather internal organizational units of line 
Ministries. Their procurement is covered under point 3 of Annex 1, i.e. their procurement is covered 
by the fact that line Ministries do procurement for their  needs. Specifically, the Ministry of Transport 
and Communications does not have any subordinate entity having status of a legal person. That is 
the reason why none is listed in Annex 1 separately.  
 
Consequently, all subordinate entities are covered under Annex 1, either as separate entities or as 
part of line Ministries.  
 
2. Can the Republic of Macedonia identify the Annex 1 entities procuring air traffic 
control equipment? Can the Republic of Macedonia provide information on the annual 
value of air traffic c ontrol equipment procurements by Annex 1 entities that would be 
covered by the Agreement? If possible, please identify the types of air traffic control 
equipment that have been recently procured by Annex 1 entities. Furthermore, please 
provide information on Macedonian manufacturers of  air traffic control equipment.  
There are no Annex 1 entities procuring air traffic control equipment. There are no Macedonian 
manufacturers of air traffic control equipment.  
 
3. Can the Republic of Macedonia explain how Note 1.b . will be applied in its 
procurement system? Can the Republic of Macedonia provide information on the annual 
value of procurements subject to Note 1.b. ? 
In Annex 1 of the Republic of Macedonia 's market access offer, market access is provided for central 
government contracting authorities of GPA P arties. Note 1 .b. excludes from this procurement by 
procuring entities covered under this Annex of good or service components of procurement which 
are n ot themselves covered by this Agreement in regard of suppliers and services providers from 
the United States and Canada until such time as the Republic of Macedonia has accepted that the 
Parties concerned provide satisfactory reciprocal access for the Repu blic of Macedonia 's goods, 
suppliers, services and service providers to their own procurement markets. This procurement will 
not be covered by the Republic of Macedonia 's market access offer.  
 
There is no information about the annual value of procurement s ubject to Note 1.b.  
 
4. Can Macedonia provide information about the "relevant provisions of Macedonian 
law" referred to in Note 2.? Can the Republic of Macedonia provide information on how 
this note will be applied in its procurement system?  
The "relevant provisions of Macedonian law " referred to in Note 2 . are the provisions in the Company 
Law that define small and medium enterprises, specifically Article 470 thereof. Below is unofficial 
translation of Article 470 of the Company Law:  
 
"Classification of th e commercial entities  
Article 470  
(1) The commercial  entities  shall be classified  as large,  medium,  small  or micro -size 
commercial entities, depending on the number of employees, the annual revenues and 
the average value of the total assets on the basis of  the annual statements in the last 
two years (accounting years).  
(2) In the first year of the operation, the commercial entity shall be classified in 
accordance with the assessed  volume  of its operation  and, in the second  year,  in 
accordance  with the data from the previous year of operation.  
(3) The change from one to other classification of a commercial entity in accordance 
with paragraph (1) of this Article, cannot be performed during the year.  
(4) A micro size commercial entity shall be a commercial enti ty that, in each of the last 
two accounting years that is  in the first year of  its operations, has  met the following two 
criteria:  GPA/ACC/MKD/8  
 
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  1) the average  number  of employees,  based  on working  hours,  is up to 10 
employees,  and 
2) the gross  annual  income  of the comm ercial  entity  acquired  from any source  
does not to exceed Euro 50, 000 in Denar counter -value.  
(5) Small size commercial entity shall be a commercial entity that, in the last two 
accounting years, that  is in the first year of its operation,  has met at least two of the 
possible  criteria,  as following:  
1) the average  number  of employees,  based  on working  hours,  is up to 
50 employees,  
2) the annual  income  is less than Euro 2,000, 000 in Denar  counter -value, or  
3) the average value (at the beginning and at the en d of the accounting year of 
the total a ssets is less than Euro 2,000, 000 in Denar counter value.  
(6) Medium  size commercial  entity  shall be a commercial  entity  that, in each of the last 
two accounting  years,  that in the first year of operations,  has met at least two of possible  
criteria,  as following:  
1) the average  number  of employees,  based  on working  hours,  is up to 
250 employees,  
2) the annual  income  is less than Euro 10,000, 000 in Denar  counter  value,  or 
3) the average value (at the beginning and at the end of the accounting  year) of 
the to tal assets is less than Euro 11, 000,000 in Denar counter value.  
(7) Commercial entities not classified as micro, small or medium -size commercial 
entities shall acquire the status of large commercial entities. In cas e of inability to 
classify the commercial entities referred to in paragraph (5) and (6) of this Article, that 
is when all three criteria are different, the commercial entity shall be classified as middle 
sized commercial entity. In case of inability to cla ssify the commercial entities referred 
to in paragraph (2) of this Article, that is when the two criteria are different shall be 
classified as a small commercial entity.  
(8) If, in the last two accounting years, different data is determined with respect to  the 
classification of the commercial entity, the commercial entity shall retain the 
classification from the last year.  
(9) The Registry of the Annual Accounts within the Central Registry, to which the annual 
accounts and financial reports are submitted an d which performs supervision, shall 
within a time period of 60 days as of the time period prescribed for submission of the 
last annual account on the basis of which the commercial entity is classified, in 
accordance with the provisions referred to in parag raph (1) of this Article, inform the 
commercial entity on the classification thereof.  
(10) The banks, insurance companies and other financial institutions and commercial 
entities that compile consolidated annual accounts and consolidated financial reports 
shall be classified in accordance with provisions of this Article referring to the large 
commercial entities. " 
Note 2 of Annex 1 will be applied accordingly to the above stated legal provision of the Company 
Law (Official Gazett e of the Republic of Macedon ia Nos 28/2004, 25/2007  ... 64/2018).  
 
Annex 2 – Sub-Central Government Entities  
 
5. The United States notes that there are at least a dozen entities listed in Annex 2 that 
appear to be central government bodies. Can the Republic of Macedonia provide GPA/ACC/MKD/8  
 
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  information confirming that all of the entities listed as sub -central entities do, in fact, 
operate at the sub -central level? For example: The National Bank of the Republic of 
Macedonia is listed under Annex 2 but would appear to be a central government bo dy.  
As mentioned in reply to question 1, we used the Decision on Determining the List of Contracting 
Authorities with cross -reference to the registered contracting entities on ESPP as basis for preparing 
the respective indicative lists of contracting auth orities. We would like to note that Annex 2 of our 
initial coverage offer also covers bodies governed by public law that are not necessarily operating 
on a local level, but which are not considered as central government entities. The National Bank of 
the R epublic of Macedonia is therefore considered to be a body governed by public law, which is the 
reason why it was listed under Annex 2.  
 
6. The United States requests information on the annual value of procurements that 
would be covered under the Agreement and  affected by Notes 1.a., 1.b., and 1. d. 
Official data from ESPP shows that the total annual value of procurements of contracting entities 
covered under Annex 2 and above the thresholds proposed in Annex 21 amounted to DENAR 
4,818,641,7852 or EUR 78,358,2703 in 2017.  
 
With respect to Note 1.b ., as reported by M -NAV AD Skopje, which is the contracting entity under 
item 37 of Annex 2, no contracts for procurement of air -traffic control equipment were awarded in 
the period 2016 -2018. M -NAV AD Skopje reports tha t it has procured VRRS system in the respective 
period in the amount of EUR 700,000. The Republic of Macedonia is willing to consider placing M -
NAV AD as a separate item in Annex 2 if the Parties require it for the sake of clarity.  
 
No data is available on  the annual value of procurements affected by Note 1.d.  
 
7. Can the Republic of Macedonia identify the Annex 2 entities procuring air traffic 
control equipment? If possible, please identify the types of air traffic control equipment 
that have been recently pr ocured by Annex 2 entities. Furthermore, please provide 
information on Macedonian manufacturers of air traffic control equipment and 
Macedonian air traffic contr ol equipment service providers.  
M-NAV AD Skopje is the contracting entity under Annex 2 that is  in charge of providing air traffic 
control services thus procures air -traffic control equipment in Macedonia. This contracting entity is 
covered under item 37 of the Indicative list in Annex 2. Item 37 provides generic description of 
bodies governed by pu blic law that covers all such entities that are not explicitly mentioned in the 
above points. Therefore, it is in line with our commitment for comprehensive and fair approach to 
the coverage.  
 
M-NAV AD Skopje reports that no air traffic control equipment w as procured in the period 2016 -
2018. It has procured VRRS system in the respective period in the amount of EUR 700,000. It also 
reports that there are no producers of air traffic control equipment in the Republic of Macedonia.  
 
8. Can Macedonia provide inform ation about the "relevant provisions of Macedonian 
law" referred to in Note 2.? Can the Republic of Macedonia provide information on how 
this note will be applied in its procurement system?  
Please refer to the reply on Question 4.  
 
Annex 3 – Other Entities  
 
9. Can Macedonia provide additional information about number 17 on the indicative list 
of contracting authorities? Specifically what are the other public utility enterprises 
performing activities in the area of water supply? What are the other joint -stock 
                                              
1 This includes all contracts of contracting entities in Annex 2 and above the proposed thresholds in Annex 
2. However, we are unable to extract those contracts that would not be covered under the Agreement on the 
basis of proposed coverage in Annexes 4, 5 a nd 6 since data is not structured in that way in ESPP. Therefore, 
this is the total amount of all contracts above the respective thresholds.  
2 The amount is based on data entered by the contracting entities in ESPP.  
3 EUR 1 = DENAR 61.4950.  GPA/ACC/MKD/8  
 
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  companies and limited liability companies in the area of energy, transport and postal 
services?  
Number 17 on the indicative list is generic description of all contracting entities that are utilities 
under the definition of the Public Procurement Law. Its g oal is to cover all entities that may have 
been mistakenly omitted, or which may be established, abolished or may have changed their name 
or status afterwards. We believe the indicative list is as exhaustively and accurately compiled as 
possible at this mo ment, but the generic description at the end of the list acts as a safeguard. 
Therefore, it is in line with our commitment for comprehensive and fair approach to the coverage.  
 
10. Can the Republic of Macedonia identify the Annex 3 entities that would be affec ted 
by Notes 6.b., 6.c., 6.d., 6.e., 6.f., 6.h. and 6.j.? The United States requests information on 
the annual value of procurements that would be covered under the Agreement and 
affected by these notes.  
• Annex 3 entities that would be affected by Note 6.b . are those under item 9 of the Indicative 
list, i.e. Public enterprise „Vodovod i kanalizacija " – Skopje, and other public enterprises in 
the area of water supply and/or sewage management. This item explicitly mentions "Vodovod 
i kanalizacija " Skopje as th e largest utility in the field of water supply in Macedonia established 
by the City of Skopje, but it also covers all other water supply public enterprises in other 
municipalities. Official data from ESPP shows that PE "Vodovod i kanalizacija " Skopje 
concl uded public procurement contracts above the thresholds proposed in Annex 3 in the 
amount of DENAR 141,6 00,000 or EUR  2,302,262 in 2017 .4 We are unable to extract 
aggregated data on other contracting entities covered under item 9 of Annex 3 due to different  
data structure in ESPP.  
• Currently, there is no procuring entity in Annex 3 that would be affected by Note 6.c.  
• Currently, there is no procuring entity in Annex 3 that would be affected by Note 6.d.  
• Annex 3 entity that would be affected by Note 6.e . is the one under item 15 of the Indicative 
list, public enterprise for airport services „Makedonija ". Official data from ESPP shows that this 
contracting entity does not have any contracts in 2017 above t he thresholds foreseen in 
Annex  3. 
• Annex 3 entity t hat would be affected by Note 6.f . is the one under item 12 of the Indicative 
list, public traffic enterprise "JSP Skopje ". Official data from ESPP shows that this contracting 
entity concluded public procurement contracts above the thresholds foreseen in A nnex 3 in 
the amount of DENAR 149,1 50,000 or EUR 2,425,400 in 2017 .5 
• Annex 3 entities that would be affected by Note 6.h . is the one under item 13 of the Indicative 
list, public enterprise "MZ Transport " as well as the Public Enterprise "MZ Infarstruktura " that 
is covered under item 17. The Republic of Macedonia is willing to consider placing the latter 
as a separate item in Annex 3 if the Parties require it for the sake of clarity. Official data from 
ESPP shows that both contracting entities concluded publ ic procurement contracts above the 
thresholds proposed in Annex 3 in the amount of DENAR 356,5 66,612 or EUR 5,798,302 in 
2017.6 
• We do not have information about entities that would be affected by Note 6.j.  
                                              
4 This includes  all contracts above the proposed thresholds in Annex 3. However, we are unable to extract 
those contracts that would not be covered under the Agreement on the basis of proposed coverage in Annexes 
4, 5 and 6 since data is not structured in that way in ESP P. Therefore, this is the total amount of all contracts 
above the respective thresholds.  
5 This includes all contracts above the proposed thresholds in Annex 3. However, we are unable to extract 
those contracts that would not be covered under the Agreement  on the basis of proposed coverage in Annexes 
4, 5 and 6 since data is not structured in that way in ESPP. Therefore, this is the total amount of all contracts 
above the respective thresholds.  
6 This includes all contracts above the proposed thresholds in Annex 3. However, we are unable to extract 
those contracts that would not be covered under the Agreement on the basis of proposed coverage in Annexes 
4, 5 and 6 since data is not structured in that way in ESPP. Therefore, this is the total amount of all co ntracts 
above the respective thresholds.  GPA/ACC/MKD/8  
 
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  Annex 4  - Goods  
 
11. Can the Republic of Macedonia pro vide information on how the Macedonian 
procurement system determines country of origin for goods?  
The Macedonian procurement system does not contain any specific provisions pertaining to the 
country of origin for goods. There are regulations that regulate this issue in the customs area, more 
specifically Articles 21 through 25 of the Customs Law7, as well as Articles 11 through 30 of the 
Custo ms Law Implementing Regulation.8 
 
Annex 5  - Services  
 
12. The US request that the Republic of Macedonia utili ze a negative list of services.  
The Republic of Macedonia has opted for an approach in line with EU approach and deriving from 
Macedonia 's status of EU candidate country. This approach has already been used by other GPA 
Parties with similar relations with the E U. 
 
13. Can the Republic of Macedonia confirm that footnote 1 in Annex 5 refers to Article 
10 in draft version of the consolidated text of the Law on Public Procurement 
(GPA/ACC/MDK/1)? If yes, can the Republic of Macedonia explain the difference, if any, 
betw een footnote 1 and draft Article 10?  
Footnote 1 in Annex 5 refers to Article 10 of the Public Procurement Law. There is no difference in 
substance between footnote 1 and Article 10 of the Public Procurement Law.  
 
Annex 6  – Construction Services  
 
14. Does the R epublic of Macedonia consider work concessions to be a type of 
construction service? Can the Republic of Macedonia explain how it is different from the 
construction services identified in Division 51, CPC Prov.?  
The approach regarding construction service s and work concessions is in line with EU approach and 
deriving from Macedonia 's status of EU candidate country. This approach has already been used by 
other GPA Parties with similar relations with the EU.  
 
15. Can the Republic of Macedonia provide information  on how work concessions are 
treated in its procurement system? Can the Republic of Macedonia clarify whether "public 
private partnerships" as identified in the draft procurement law (GPA/ACC/MKD/1), are 
considered work concessions for purposes of this exc lusion?  
With respect to the procedure for awarding works concessions contract, Article 15 of the Law on 
Concessions and PPPs stipulates that the provisions from the Law on Public Procurement concerning 
award procedures for public works contracts and public  service contracts shall be adequately applied 
to the award procedures for contracts establishing a public private partnership, unless otherwise 
provided by this Law. When awarding a contract establishing a public private partnership, the public 
partner sh all apply the open procedure, the restricted procedure, the negotiated procedure with prior 
publication of a notice or the competitive dialogue in accordance with the conditions and in a manner 
as set out in the Law on Public Procurement.  
 
16. Can the Republic  of Macedonia provide information on the annual value o f work 
concession procurements?  
Pursuant to the Law on Concessions and Public Private Partnership, the public partners are obliged 
to submit a separate prescribed data form for each concluded contract for establishment of a public 
private partnership, which are entered in the Register of awarded contracts for establishment of a 
public private partnership, managed by the Ministry economy in paper and electronic form. The 
                                              
7 Unofficial cons olidated version in English on 
http://www.customs.gov.mk/images/documents/zakoni/CUSTOMSLAWConsolidatedversionmay2018.pdf . 
8 Unofficial version in English on http://www.customs.gov. mk/images/documents/zakoni/CUSTOMS -LAW-
IMPLEMENTING -REGULATION.pdf . GPA/ACC/MKD/8  
 
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  Register contains total value of contracts, following PPP link on the website of the Ministry of 
Economy. ( http://www.economy.gov.mk/page/javno -privatno -partnerstvo ).  
 
According to the available data, the total amo unt of concluded PPP contracts for the period 2010 -
2018 is EUR 202,756,231.  
 
Annex 7 – General Notes  
 
17. The United States requests information on the annual value of procurements that 
would be covered by Note 1.b. of the General Notes.  
No data is available o n the annual value of procurement that would be covered by Note 1.b . of the 
General Notes.  
 
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