Friday, February 19, 2016

Public Procurement Law signed by the President of Ukraine

The President of Ukraine signed the Law "On Public Procurement", which approves the full transition of public procurement to electronic system ProZorro. The transition will take place during 2016 in two stages: from April 1, all purchases will be transferred to the electronic mode in the central authorities and state-owned enterprises, while from August 1 – the rest of those interested in public procurement.
A public procurement reform is one of the most effective reforms carried out by the Ministry of Economic Development and Trade. It includes several directions, including training of buyers, simplification of access forbusiness to trading procedures and introduction of tenders in electronic format. 

The system of electronic public procurement ProZorro is running in a pilot mode since February 2015, but the system already contains over 50 thousand tenders worth UAH 12 billion from over 2.9 thousand customers. Overall budget savings have already exceeded UAH 680 million and continues to grow.


Maxim Nefiodov, Deputy Minister of Economic Development and Trade of Ukraine reminded that the Prime Minister of Ukraine Arseniy Yatsenyuk and the President of Ukraine Petro Poroshenko repeatedly emphasized the need to switch to an electronic system of state procurement. Only a full transition to ProZorro, without any exceptions, will afford to achieve the main objectives of the reform: to increase transparency of tenders, provide better access for business, to make bidding more competitive and reduce corruption risks. The full-scale launch of the system will allow the State to save up to UAH 50 bln annually, as the Ministry’s experts estimate losses in public procurement through inefficiency and corruption schemes. In 2016 the calculated saving is planned at the level of UAH 5 billion.

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