Transforming Ukraine: Prozorro

Chatham House,09 June 2016,Nakhod Oleksandr

Everything started here

approx. 1.1B USD – conservative estimation of

“corruption tax”

approx. 1.1B USD – losses caused by limited

competition

10%

10%

At least 2.2B USD per annum – losses from corruption and limited competition

approx.11B USD

10%

10%

Estimation of losses in public procurement (PP)

PP was seen as a synonym of corruption

2 years of the reform: from concept to system

13

March 2014Volunteers’ team setup

April-May 2014First search & first concept

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

What is Prozorro?

1. Hybrid IT system with extended functionality and own eco-system

2. New philosophy of open code and data availability

everybody sees

everything!

“Golden triangle of partnership” in the core

13

Commercial platforms

Civil Society: monitoring and

control of procurement

Government: “the rules”,

professionalization and data

storage

Commercial platforms:

CAs & suppliers acquiring and

service

Trust and desire build the team

90k tenders

USD 1.3B planned amount

4980 contracting authorities

16 325 suppliers

More than 12%

savings on completed procedures

2,84average number of bids

bi.prozorro.org

First year of pilot: results

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

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

• Ukraine won the World Procurement Award in the Public Sector nomination

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

Prozorro: awards and recognition

Obstacles

• Conservatism of users• Active resistance of local authorities• Wide distribution of CA (geo, size, industries…)• Mistrust of business• Lack of finance to hire and motivate the team• Complicated and sluggish procedures within

state apparatus

A strategy and detailed plan is developed

• Stabilization and sustainable development• Professionalization of CA• Prozorro as an example of reform• Prozorro goes global

Thank you!

Web-portalprozorro.gov.ua

Analytics Modulebi.prozorro.org

CA Support infobox.prozorro.org

Appendices

What are advantages of ProZorro

13

• Low initial cost• Low implementation and

maintenance cost• 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

ProZorro covers key procedures and functionalities

eProcurement Functionalities

Web portalePlanningeRegistrationeAuthentificationeNotificationeNoticeseAccesseSubmission/eTenderingeEvaluationeAuctioneAwardingePurchasing/eOrderingeInvoicingeContract ManagementePayments

Procurement ProceduresOpen Procedure (price & MEAT)Competitive DialogueNegotiation ProcedureFramework AgreementsDynamic purchasing systemElectronic Catalogues

available

being developed now

to be developed later

All information is available for everyone

bi.prozorro.org provides all available information in a user-friendly format

Professional risk-management system developed

Automatic screening of a number of factors allows to identify corruption-prone tenders

New official web-portal with “Google”-like search

A variety of Partners makes the reform possible

All finance distributed through the Steering Committee

Total amount of do-nations 764 800 USD

Business donationsWNISEFGIZ/DFID

+ 2 commercial platforms

Steering Committee

eLibrary of typical specifications

2. Unstable legislation

Online knowledge database infobox.prozorro.org - all legislation in one place- publications “for dummies”- course for self-attestation

All legislation in one place

Online course started