ProZorro:Ukraine’s Experience of eProcurement Reform
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
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
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
• 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
“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:
suppliers acquiring and
service
What eProcurement system ProZorro is
13
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
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
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]
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