Applicability of Competition law and Principles in Ethiopia's Public Procurement Law and Practice

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2021-12

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Addis Ababa University

Abstract

The objective of PP is value for money which is procuring quality goods and services at a lower price at the right time. Thus, this study aims to examine the competitiveness of Ethiopian public procurement and contribute some recommendations. The study uses the ideal Perfectly Competitive Market structure of Economics and International Competition and Public Procurement Models to scrutinize the applicability of competition principles and laws on the Ethiopian public procurement; particularly, focused on Bidders' entry, number of Bidders, dominance, collusion, and the organization of authorities. Moreover, the findings reveal a lack of awareness of PP and competition principles and laws, even though Ethiopia developed standard competition and procurement laws from effective International Models. Furthermore, it exposes the preparations of ambiguous specifications, inappropriate selection of pp method, bid-rigging, lengthy PP, corruption, weak institutional framework, lack of coordination between relevant public bodies, dependency of the authorities or political influence, and other challenges and anticompetition practices. Furthermore, it is recommended; creating competitive Public Procurement by widening the participation of bidders, implementation of performance audit, awareness of bidrigging indications, Coordination, and cooperation between relevant public authorities, enhancing workforce capacity, improving the salary scale, developing independence, political, and budgetary free authority, developing a fast procurement payment system and including E-procurement, Facilitation of self-regulation mechanism, the participation of different stakeholders including media and other relevant recommendations.

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