In late July 2026, a draft law on the implementation of the project "Skopje, European Capital of Culture 2028" (ECoC 2028) was submitted to the Assembly under a fast-track procedure. Its most debated provision, Article 21, provides that procurement of goods, services and works by the foundation established to implement the project would not be conducted under the Public Procurement Law (PPL), but according to the principles of transparency, economy, efficiency, equal treatment and non-discrimination, and according to internal guidelines adopted by the foundation's board. The project involves around 21 million euros planned from the state budget and the budget of the City of Skopje. The proposal has triggered public reactions, including from the State Commission for Prevention of Corruption. Beyond the political debate, the question is legal and practical: when is an exemption from the PPL lawful, and what does it mean for companies that want to bid?
What does an exemption from the Public Procurement Law mean?
An exemption means that for a specific entity or project, the procedures, criteria, deadlines and appeal protection of the PPL do not apply; instead, procurement is conducted under separate rules set by another law or by internal acts. The PPL is the general law (lex generalis) governing the spending of public funds through procurement contracts: mandatory publication on the Electronic Public Procurement System, equal conditions for all bidders, and appeal protection before the State Appeals Commission (SAC). Through a special law (lex specialis), the Assembly may depart from those rules for a specific project. That is a legitimate legislative tool, but every exemption narrows the scope of the public procurement system and reduces the formal protection of bidders.
When is an exemption lawful?
The PPL itself already recognizes a limited circle of exceptions, and the Assembly may exempt a specific project by special law, but within the limits of the Constitution and the country's international obligations. In practice, exemptions appear in several forms:
- exceptions set directly in the PPL, for example defence and security procurement conducted under special rules or excluded from the law;
- procurement for which special procedures derive from international treaties or from the rules of international financial institutions and donors;
- contracts between public entities (so-called in-house relations) under the conditions set by the PPL;
- procurement below the thresholds for a mandatory procedure, where the procedure is simplified by the very design of the law;
- special laws for projects of national or strategic interest, such as the ECoC 2028 proposal.
The limits are legal, not only political. The Constitution guarantees the equality of citizens before the law and the freedom of the market, and as a candidate country for EU membership, North Macedonia aligns its legislation with the European public procurement directives. Systemic or frequent exemption from the PPL would signal backsliding in alignment and is regularly monitored in the European Commission's reports.
What changes for companies that want to bid?
The most important difference is protection: in a procurement under the PPL, a bidder has the right to appeal to the SAC, which as a rule postpones the conclusion of the contract; in a procurement exempted by a special law, that mechanism does not apply, unless the special law provides its own appeal procedure. A comparison of the main differences under the ECoC 2028 proposal looks like this:
| Element | Procurement under the PPL | Exempted procurement |
|---|---|---|
| Publication of the notice | Mandatory on the electronic system | Depends on the special law and internal guidelines |
| Evaluation rules | Set by the PPL and the tender documentation | Internal guidelines of the procuring body |
| Appeal protection | Appeal to the SAC, with postponement of the contract | As a rule not provided |
| Supervision | Public Procurement Bureau and other bodies | Mainly internal, under the body's own acts |
Note: the comparison refers to the draft text published in the media; the provisions may change before adoption.
For companies that want to participate in such procurement, the practical steps are:
- monitor the announcements of the body itself (for example the foundation's website), since notices will likely not appear on the Electronic Public Procurement System;
- request the procurement documentation and the internal guidelines under which it is conducted;
- check whether the specific procurement is actually covered by the exemption or still subject to the PPL;
- keep written records of all communication with the body;
- in case of a dispute, protection may potentially be sought before a court (administrative dispute or civil litigation), which is slower and less predictable than an appeal to the SAC.
Could the precedent spread, and what would that mean for the market?
Yes, and that is the main systemic risk: if exemption becomes a common practice for larger projects, the general public procurement system loses its purpose, and companies face less predictable rules from project to project. Less transparent procedures usually mean a narrower circle of bidders, higher prices for public spending, and smaller chances for companies outside established networks. Experience in the region shows that such exemptions are also followed in European reports. It is useful for companies to actively participate in public debates and, through the chambers of commerce, give opinions on draft laws that affect them, because the text can still be changed during the parliamentary procedure.
Do you participate in public procurement or plan to bid on publicly funded projects?
Before submitting a bid, it is worth establishing under which legal regime the procurement is conducted: under the PPL with full appeal protection, or under a special law with limited mechanisms. The regime also determines the strategy: from reviewing the tender documentation and timely challenging of the conditions, to choosing the appropriate legal remedy in case of a dispute.
For companies that regularly work with public contracting authorities, we offer continuous legal support in bid preparation and protection throughout the procedures.
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Source: Public Procurement Law, Official Gazette of the Republic of Macedonia no. 24/2019, as amended; eMagazin: The Public Procurement Law will not apply to tenders worth 21 million euros for "Skopje, ECoC 2028" (29 July 2026).
This text is general legal information and does not constitute legal advice for a specific case. For advice tailored to your situation, consult an attorney.