Annual Report of the Procurement Complaints Activity and the Procurement Complaints Committee of the European Investment Bank 2023

This report, prepared by the Secretariat of the Procurement Complaints Committee (“PCC”, or “the Committee”) of the European Investment Bank (EIB or the Bank), provides an overview of the procurement complaints received and handled in the course of 2023, and of the work of the Committee and its Secretariat. It is the fifth annual report compiled and published on the Committee’s activity since its establishment in late 2018 ^[1].

In line with good practices of other international financial institutions, project-related procurement complaints submitted to the EIB are handled by the Committee, a specialised, independent and impartial committee mandated to handle procurement complaints that challenge the Bank’s decisions on project procurement procedures under an EIB-financed project outside the European Union. This system ensures that the EIB handles project procurement complaints regarding EIB-financed projects effectively and independently. If a complainant is not satisfied with the Bank’s outcome or response, they are entitled to escalate their complaint to the European Ombudsman alleging maladministration by the Bank.

a. Observations for 2023

As per Table 1, 12 out of 15 procurement complaints were submitted prior to the Bank’s decision (non-objection). This proportion is consistent with 2022 data (13 out of 18 procurement complaints). The number of complaints that were received after the Bank’s decision (three complaints) is similar to 2022 (five complaints).

In terms of sectors, a majority of complaints continues to concern projects related to transport and storage, which account for 67% (44% of complaints in 2022, 26% in 2021 and 38.7% in 2020), and water supply, sewerage, waste management and remediation activities, which account for 27% (consistent with 28% in 2022 and 31% in 2021). The breakdown of procurement complaints by sector does not raise concerns for any given sector.

In terms of regions of operation, most procurement complaints concerned projects in the EU Eastern Neighbourhood (six complaints or 40% of the complaints). This is consistent with 2021 data when most complaints were also related to projects in the EU Eastern Neighbourhood (seven complaints or 30%) while the number of complaints for projects in this region dropped to two procurement complaints in 2022. This change can be partly explained by fewer complaints from Ukraine in 2022 due to the outbreak of the war there. There were three complaints from Asia and Latin America or 20% of the complaints (four complaints or 22% in 2022), and three from the EU Southern Neighbourhood (two complaints or 11% in 2022) while procurement complaints from Enlargement Countries dropped from seven complaints in 2022 to two in 2023.

In terms of subject matter, no specific issue stood out. However, the most common allegations were related to discriminatory and/or flawed technical requirements.

Of the three complaints submitted to the Committee following the Bank’s non-objection to contract award, none of the complainants was based in the countries where the projects were located.

The PCC Secretariat also received two complaints regarding projects in an EU Member State (not registered by the Secretariat). In line with the EIB’s Guide to Procurement, projects in the European Union are implemented by the relevant contracting authorities and monitored by the Member States’ competent controlling bodies as they are subject to EU law. Therefore, in those cases, the Secretariat referred the complainant to the competent national remedy mechanism(s) and/or judicial bodies.

The response time for procurement complaints lodged after the Bank’s non-objection to contract award and prior to the signature of contracts was mostly in line with the Bank’s policy (Annex 8 to the Guide to Procurement for projects financed by the EIB providing for 30 days, with the possibility of that period being extended to 60 days). In one case, the reply was submitted after 57 days and, in the second case, after 75 days due to its complexity.

The PCC Secretariat always informs complainants that if they are not satisfied with the Bank’s response, they are entitled to escalate their complaint to the European Ombudsman alleging maladministration by the Bank. No complaints were escalated to the European Ombudsman in 2023.

Most complaints were submitted via the dedicated mailbox (procurementcomplaints@eib.org). The Committee appears to have become more widely known as the main entry point for potential procurement complainants via its website. The Committee’s privacy statement providing information on the handling of personal data in the context of its activities is also available on this website. This statement was developed in close cooperation with the Bank’s Data Protection Officer.

As in previous years, the PCC Secretariat received emails that were not necessarily related to project procurement at the EIB but may present issues falling within the mandates of the Inspectorate General’s Investigations Division (IG/IN) or the Complaints Mechanism (IG/CM). The Secretariat’s position within the Inspectorate General facilitates communication, cooperation, and the transfer of complaints to the Investigations Division concerning allegations of prohibited conduct and to the Complaints Mechanism for non-procurement-related complaints.

Building on lessons learned, the PCC Secretariat also continuously revisits the Committee’s internal process to ensure that all procurement complaints are administered in an efficient manner throughout the process life cycle and that complainants receive timely answers from the PCC. The Secretariat also monitors whether the EIB services concerned take the necessary follow-up action in the case of procurement complaints lodged prior to the Bank’s decision.

b. Observations on the five first years of the Committee’s operation (2019–2023 period)

The Committee was established in late 2018; this 2023 annual report therefore provides an opportunity to present a review of its five years of operation. Since its establishment, the PCC has received and registered a total of 99 complaints; it has reviewed 25 of these 99 complaints and its responses were sent to the complainants within 58 days, on average (the time limit set by the Guide to Procurement is 30 days, with the possibility of that being extended to 60 days). While the time limit applies to each individual PCC response, the 2019–2023 average is in line with the time limit set by the Bank’s policy.