Cost estimation in public procurement, especially for works contracts, is often a problem in Azerbaijan. Based on examples from the European Union and a review of the current situation, the SIGMA workshop will examine how this situation can be improved.

1. 2 Rue André Pascal
75775 Paris Cedex 16
France
mailto:sigmaweb@oecd.org
Tel: +33 (0) 1 45 24 82 00
Fax: +33 (0) 1 45 24 13 05
www.sigmaweb.org
This document has been produced withthe financial assistanceof the European Union. It should not be reported as
representing the official views of the EU, the OECD or its member countries, or of benef iciaries participating in the
SIGMA Programme. The opinions expressed and arguments employ ed are those of the authors.
This document and any mapincluded herein are without prejudice to the status of or sovereignty overany territory, to
the delimitation of international f rontiers and boundaries and to the name of any territory , city or area.
Workshop on Cost Estimates in
Public Procurement
16 June 2015
Baku, Azerbaijan
Programme

2. 2
Cost Estimates in Public Procurement – the Case of Works Contracts
Participants: senior representatives of the State Procurement Agency, the Chamber of
Accounts, the Ministry of Economy and Industry, leading contracting authorities and other
authorities concerned.
Speakers: Edvins Parups, Deputy Head of Investment and Project Division, Ministry of
Culture, Latvia
Daniel Ivarsson, Senior Adviser, SIGMA
09.30-10.00 Coffee and registration
10.00-10.15 Welcome and introduction
10.15-11-20 Regulations and daily practice in Azerbaijan
 Provisions of the public procurement law
 Provisions of the laws on cost estimates in construction
 Roles and responsibilities of the competent institutions
 Observations by the Chamber of Accounts
 Practical issues in estimating construction costs today
11.20-11.40 Coffee break
11.40-13.00 Latvian experience after 1991
 development of the public procurement system
 development of the construction market
 regulations on price estimates for works
 certification systemfor construction specialists
 links with budget regulations and practices
 relevant EU regulations
13.00-14.00 Lunch
14.00-15.20 Daily practice in Latvia
 regulatory and institutional framework
 needs assessments and feasibility studies
 technical specifications and cost estimates
 requirements for financial proposals
 financial proposal
 award criteria and tender evaluation
 abnormally low tenders
15.20-15.40 Coffee break

3. 3
15.40-17.00 Cost estimates in Azerbaijan – discussion of ways forward
 Regulations
 Institutions
 Practices
 Reform objectives
 Possible measures