The NATO alliance budget is substantial, with 1.2 trillion euros allocated for the military budget of NATO’s current military structure, 200 million euros planned for the civilian sector of NATO headquarters in Brussels, and 650 million euros to be spent this year on investment projects supporting NATO’s objectives through the NSIP (NATO Security Investment Programme).
The budget underwent changes last year due to the recession and market situation, resulting in budget cuts across all items, except for investments in Afghanistan. The procurement system within NATO operates through agencies NAMSA, NC3A, NCSA, and NSIP, as well as through commands (ACO and ACT), and it is essential to know that the method of involvement in the procurement process with each of these agencies is entirely different, said Zoja Crnečki, director of the Industry Sector and head of the Offset and NATO Center at HGK during a meeting of the Economic Council of the County Chamber of Karlovac, presenting the opportunities and assumptions for cooperation between the Croatian economy and NATO.
In business circles, the agency most frequently mentioned is NAMSA, which organizes the procurement of various products: from the construction of accommodation facilities, various engine parts, helmets, and a multitude of specific items, to transportation and other services, while the specialty of the NC3A agency is the IT sector. The initiation of relations with NAMSA begins with the registration of the company in NAMSA’s database, which then sends inquiries, and if the company shows interest and capability, it can expect tender documentation. An agreement is signed with NC3A, allowing the company to enter their database, which is merely a prerequisite to receive inquiries related to activities and potential NATO needs. Given the mission of the Croatian Army in Afghanistan and the fact that Croatia is among six countries that have the opportunity to involve their economy in the construction of local infrastructure through NATO, including the construction of airports, military bases, water supply, and drainage systems, tenders for all these works go through NATO agencies. For financing capital projects through NSIP for the year 2010, 653.3 million euros were approved, of which as much as 460 million euros is for ISAF in Afghanistan.
HS Produkt seeks the realization of an offset program with Finnish Patria
The director of HS Produkt, Željko Pavlin, is dissatisfied that nothing is happening regarding the realization of a long-conceived offset program based on the procurement of armored vehicles from Patria in Finland, which would involve Croatian arms produced by HS Produkt on the Croatian export side to Finland, for which there has been interest in Finland for several years. Pavlin publicly appealed to Zoja Crnečki to assist HS Produkt in establishing direct contact with Finnish partners for the operationalization of this task assigned to them by the intergovernmental agreement. As a member of the state Offset Commission, Zoja Crnečki also expressed her dissatisfaction with the stagnation of this offset, stating that she does not know why this is the case. She added that she regrets that there are no other offset projects with which this one with Patria could be compared (?!), but also reminded that according to the contract, in the case of non-implementation of the offset, the Finnish partner should pay penalties amounting to 10 percent. She also mentioned that the Finns propose some projects, but they have not been assessed as favorable for Croatia, and that essentially, offset work should ensure that jobs that would occur between the two countries do not get included, “on their own.” Pavlin stated that HS Produkt finds Patria interesting not only because of the offset but also for potential joint ventures in third markets. (M. V.)
These jobs will mainly be awarded to large American or German companies, and this is an opportunity for Croatian companies to participate in these tenders either individually or in partnership as subcontractors. It is the 15th century there, and there is no infrastructure; everything needs to be built, and we consider this a great opportunity for our companies, as these are well-paid jobs, and our representation in Kabul is at their disposal, said Zoja Crnečki, adding that the jobs will commence with the assessment that the security aspect is acceptable. A business delegation from Afghanistan is expected in Croatia in November, during which meetings with Croatian companies will be organized by sectors, which should be an opportunity for domestic entrepreneurs that should not be missed. Given NATO’s strong mission in Kosovo, this opportunity for the engagement of Croatian companies for NATO was also highlighted.
HGK has created a national website www.natonatjecaji.hr that will serve entrepreneurs as an informant and guide through the demanding system of rules to be able to compete. If someone recognizes their opportunity for any requested product, it is advisable to send detailed information about it to the agency’s database, which then has the obligation to officially send an inquiry to the company about that product and the conditions of its delivery, and it is up to the company to assess its competitiveness. During negotiations with NATO, the surprise for the Croatian side, Crnečki added, was the food procurement sector, which has been directly entrusted to contractors for the nutrition of soldiers in a specific area, which directs food producers to direct navigation. Given the multitude of tenders published daily, HGK publishes those it has officially received on its pages, while providing links for all others as assistance.
There are specific tenders marked as confidential, and currently, the problem is that many Croatian companies do not have the necessary certificates to even be in a position to obtain such tenders. In this regard, each company will have to sign a statement with HGK regarding the handling and protection of data to obtain a certificate for receiving tenders marked as confidential. The jobs related to such tenders mainly concern the construction of military facilities and the IT sector. HGK emphasizes that many such tenders had to be retained and not forwarded to Croatian companies because they did not have the necessary certificates.
If a company finds any tender it is interested in, it contacts the Ministry of Economy to obtain a “certificate of suitability,” which is issued for a specific tender. To respond to tenders marked as confidential, one must obtain a so-called “security clearance,” which is a security approval issued by the Office of the National Security Council within a few months. At the same time, companies can view a list of companies that have received contracts with NATO, so they have the opportunity to enter into business with NATO through them if they are competitive. Crnečki also agreed with the remarks of those present that there is a rule in NATO that the amount a country contributes to NATO is the amount it can also draw from its companies’ jobs for NATO. (Mladen Volarić)
