The digitalisation of public procurement has the potential to improve transparency, reduce costs and corruption risks, streamline processes, and enhance the efficiency of tender procedures.
This was the conclusion of the roundtable discussion “Digitalisation and Transparency in Public Procurement at the Local Self-Government Level in Bosnia and Herzegovina”, held in Sarajevo and organised by the Centre for Investigative Reporting (CIN), Futura, and the Centre for Research and Studies GEA.
Panellist Ognjen Erić from the School of Economics in Banja Luka emphasised that adopting digital tools and artificial intelligence (AI) will be an inevitable step in reforming the public procurement system, as Bosnia and Herzegovina must align with EU regulations on its path to European Union (EU) accession.
“Bosnia and Herzegovina has taken the first steps towards digitalisation by introducing the Public Procurement Portal. However, the system remains only partially digitalised, meaning it still relies on manual data processing,” Erić noted, highlighting that this leaves room for subjective decision-making and potential irregularities.
Roundtable participants also pointed to existing digital solutions worldwide, such as electronic bid evaluation systems, where software tools automatically assess bids based on predefined criteria. AI tools can analyse historical procurement data to identify potential irregularities, including conflicts of interest and suspicious contract award patterns. Also, by evaluating past contracts, AI can suggest realistic market prices, thus reducing the risk of overpayment and fraud.
Alongside AI, the so-called Blockchain technology offers a tamper-proof platform where procurement data, once entered, cannot be altered. Bids remain encrypted and inaccessible until the submission deadline passes. This platform monitors every stage of contract execution, including delivery timelines and price adjustments, while enabling automated payments upon contract fulfilment.
“The implementation of AI in Spain last year cost €4.5 million in a province half the size of Bosnia and Herzegovina, yet the savings achieved through increased transparency far exceeded the investment,” noted Erić.
Goran Rakić, from the Association of Municipalities and Cities of Republika Srpska, agreed that centralising public procurement leads to significant cost reductions: “In Belgrade, all public procurement processes for state-owned enterprises are managed through a single platform, resulting in savings of over 10 million BAM.”
The proposed systemic solutions require legislative and financial support, as their implementation is costly and requires specialised expertise.
Some roundtable participants—including representatives from municipalities, ministries, and NGOs—expressed concerns that these challenges could hinder reform implementation but emphasised that introducing individual digital tools should not be ruled out.
The need for improvements in public procurement transparency was highlighted by a study conducted by the Banja Luka Centre for Research and Studies GEA in December 2024 on a sample of 143 local self-government units.
The research found that budget transparency is alarmingly low, with citizens in nearly half of Bosnia and Herzegovina’s municipalities lacking access to public spending data.
These activities were organised under the LENS project – Strengthening the Capacity of Civil Society Organisations for Public Budget Monitoring, funded by the European Union. The project aims to combat corruption by improving oversight of budget spending and the use of public funds at the local level, with active participation from civil society.
