PUBLIC PROCUREMENT REFORM IN UKRAINE

Everything started here

UAH 30bn (ca $1,2 bn) – conservative estimation of

“corruption tax”

UAH 30bn (ca $1,2 bn) – losses caused by limited

competition

10%

10%

At least $2,4 bn per annum – losses from corruption and limited competition

UAH 300bn($12bn)

10%

10%

PP was seen as synonym of corruption in Ukraine

“Golden triangle of partnership” in the core

Commercial platforms

Civil Society: monitoring and

control of procurement

Government: “the rules”,

professionalization and data

storage

Commercial platforms:

CAs & suppliers acquisition and

service

Our core values

• Transparency (everyone sees everything)• Maximum engagement of suppliers• Competition of platforms• Compulsory auction for price reduction• Open-source code available for audit• Teamwork(Agile groups)

ProZorro – state central database that enables transactions and stores all public data +

private platforms that provide access to tenders and service sellers/buyers

2 years of the reform: from concept to system

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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 for big buyers

August 2016Law comes into force for all buyers

A strategy and detailed plan is developed

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

Come & Check: https://goo.gl/DmiEYn

All information available to everyone

Public BI module (bi.prozorro.org) provides all information in a best-in-class format (Qlik software)

bi.prozorro.org

790 variables are available

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

eLibrary of typical specifications

All legislation in one place

Online course started

First ever PP marketing campaign in Ukraine

400+ boards in 25 cities, online banners, SMM

+2 new suppliers per board, x2 times traffic,

• Ukraine received World Procurement Award 2016 (public sector nomination)

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

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

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

Prozorro – a world-renowned success story

• New functions for Prozorro

• Risk Management System

• Big Data: unique behavior patterns

• ProZorro Goes Global: export of architecture & IT developers teem

• Security & Sustainability

• A great company to Work for

State Owned Company “Prozorro”: from Startup to Enterprise

A variety of Partners makes the reform possible

GPAinUA – supporting project officeGPAinUA Office - a professional independent institution that ensures the

creation of an ecosystem for effective participation of Ukraine in GPA markets; acts as a trusted advisor to MEDT in matters of strategy and

international trade policy in the field of public procurement

GPAinUA Office:• Support of Ukrainian exporters on their access to the public

procurement markets of GPA member countries• Support of importers from GPA member countries on their participation in

public procurement in Ukraine• Provides development of consulting services market to support the

participation of Ukrainian exporters in the public procurement of GPA member countries

• Supports MEDT regarding international trade strategy and policy in the field of public procurement

• Collaborating with MEDT and Ministry of Foreign Affairs on cooperation issues with governments of GPA member countries.

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Web-portal:https://prozorro.gov.ua/

Analytics Module:http://bi.prozorro.org/

Reform Concept: https://goo.gl/DmiEYn

GPAinUA Support Office:http://GPAinUA.org/

Thank You!