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 Ukrainian Politics, Economics
  2411

 Complete transition to ProZorro procurement system will annually save at least 30 billion hryvnia, Deputy Defense Minister says

Ukrainian lawmakers adopted the law "On public procurement" Thursday, Dec. 24. It completely changes the rules of the game on the public procurement market.

Censor.NET reports citing the article by Deputy Minister of Economic Development and Trade of Ukraine Maksym Nefiodov for Novoie Vremia.

According to him, this is not just another improvement of the system but the main document required for a fundamental reform of public procurement.

Nefiodov recalls that a number of amendments to the existing law "On public procurement" were adopted earlier this year, which, among other things, contained such crucial changes as the declarative principle in permission documentation, transparency of decisions taken by the tender commissions, etc. But, in his opinion, it was clear from the very beginning that "the system, which has become the synonym of corruption and inefficiency" could not be changed solely by some amendments to existing laws.

Read more: Abromavicius: Ukraine will have most advanced electronic procurement system in Europe before 2017

"The mere fact that the information on all tender bids is available for all citizens puts a bridle on the corrupt officials. The next step is introduction of more suppliers, who will also take part in the auction. The competition will follow. This means that a customer (and the state) will be able to purchase the goods and services of higher quality at a lower price," the deputy minister wrote.

According to Nefiodov, this approach has already allowed to save more than half a billion hryvnia at the stage of the pilot project taking into account the fact that only about two percent of all public tenders are now carried out through the system of electronic procurement ProZorro. "This means that if the level of savings remains the same and relying on the 250 billion hryvnia that were spent for public procurement in 2014, the full transition to ProZorro will save at least 30 billion hryvnia annually," he wrote.

According to deputy minister, the potential savings may actually be significantly higher. "It has been estimated that annual damage caused by corruption and inefficient use of public funds amounts to 50 billion hryvnia (in prices of 2014). We want to regain these funds from the corrupt officials and nonprofessional civil servants and return them to Ukrainians," he wrote.

Read more: 13,000 Soviet state standards abolished in Ukraine, - Deputy Economy Minister Nefiodov

"We will be preparing the system for deployment with tripled efforts after the adoption of the law on public procurement. There are 2,300 bidding process organizers (public purchasers) in ProZorro now while there are over 25,000 of them in Ukraine. The system must be able to support all the tenders in the country, operate 24/7 without a single failure. It's a hard technical assignment. On the other hand, we hold meetings with entrepreneurs urging them to join ProZorro. It is hard but necessary to break mistrust to the state. The success of the reform depends on it, as even the best system will change nothing if it is not be used by business," he concluded.

 
 
 
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