Olexandr Starodubtsev presentation, Moldova, June 21st 2016

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ProZorro: Ukraine’s Experience of eProcurement Reform

Transcript of Olexandr Starodubtsev presentation, Moldova, June 21st 2016

Page 1: Olexandr Starodubtsev presentation, Moldova, June 21st 2016

ProZorro:Ukraine’s Experience of eProcurement Reform

Page 2: Olexandr Starodubtsev presentation, Moldova, June 21st 2016

25B UAH (ca 1.1B USD) – conservative estimation of

“corruption tax”

25B UAH (ca 1.1B USD) – losses caused by limited

competition

10%

10%

At least 50B UAH (ca 2.2B USD) per annum – losses from corruption and limited

competition

250B UAH(ca 11B USD)

10%

10%

Estimation of losses in public procurement (PP)

PP was seen as synonym of corruption in Ukraine

Page 3: Olexandr Starodubtsev presentation, Moldova, June 21st 2016

eProcurement system ProZorro developed in a year

13

March 2014Volunteers’ team setup

April-May 2014First search & first concept

August, 2014Georgians & concept review

February, 2015MVP development & launch

September, 2014ePlatforms & final concept; first “seeding”

April, 2015Volunteers move into gov’t June, 2015

First donor support

May, 2015MinDefence & small procurements’ pilot

December, 2015New Law on eProcurement approval

April, 2016Law comes into force, system’s scale up

Page 4: Olexandr Starodubtsev presentation, Moldova, June 21st 2016

90k tenders

USD 714.5 mn planned

amount

4700 contracting authorities

15 638 suppliers

More than 12%

savings on completed procedures

2,86average number of bids

bi.prozorro.org

First year: results

Page 5: Olexandr Starodubtsev presentation, Moldova, June 21st 2016

• ProZorro considered by EBRD as a recommended model for eProcurement reform

• Ukraine shortlisted in 2 nominations for the World Procurement Award

• National Council of Reforms recognized PP reform as the most successful one

• ProZorro is a showcase & learning project of the Open Contracting Partnership

Prozorro recommended by EBRD as a reform model

Page 6: Olexandr Starodubtsev presentation, Moldova, June 21st 2016

“Golden triangle of partnership” in the core

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Commercial platforms

Civil Society: monitoring and

control of procurement

Government: “the rules”,

professionalization and data

storage

Commercial platforms:

suppliers acquiring and

service

Page 7: Olexandr Starodubtsev presentation, Moldova, June 21st 2016

What eProcurement system ProZorro is

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What are advantages of ProZorro? Law initial cost (open source) Law implementation and

maintenance cost (cost shared with platforms)

Better services, incl. training & legal support, due to competition among platform providers

Higher suppliers competition due to involvement of existing pools of suppliers registered on commercial platforms

Higher resistance to corruption due to distribution of risk among various actors

Additional statistical & risk-management tools

Application of Open Contracting Data Standard

Alignment with international legislation standards

Page 8: Olexandr Starodubtsev presentation, Moldova, June 21st 2016

ProZorro covers key procedures and functionalities

eProcurement Functionalities

Web portalePlanningeRegistrationeAuthentificationeNotificationeNoticeseAccesseSubmission/eTenderingeEvaluationeAuctioneAwardingePurchasing/eOrderingeInvoicingeContract ManagementePayments

Procurement ProceduresOpen Procedure (price & MEAT)Competitive DialogueNegotiated Procedure without Prior PublicationFramework AgreementsDynamic purchasing systemElectronic Catalogues

available

being developed now

to be developed later

Page 9: Olexandr Starodubtsev presentation, Moldova, June 21st 2016

Contacts

Oleksandr StarodubtsevHead of Department for Regulation of Public Procurement

Ministry of Economic Development and Trade of Ukraine Bulvarno-Kudryavska street, 22Kyiv, Ukraine

Mob: +380 (67) 209 62 50E-mail: [email protected]

[email protected]