Olexandr Starodubtsev presentation, Moldova, June 21st 2016

1. ProZorro:
Ukraine’s Experience of
eProcurement Reform

2. 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

3. eProcurement system ProZorro developed in a year
13
March 2014
Volunteers’ team
setup
April-May 2014
First search & first
concept
August, 2014
Georgians &
concept
review
February, 2015
MVP
development &
launch
September,
2014
ePlatforms &
final concept;
first “seeding”
April, 2015
Volunteers
move into gov’t
June, 2015
First donor
support
May, 2015
MinDefence &
small
procurements’
pilot
December,
2015
New Law on
eProcurement
approval
April, 2016
Law comes
into force,
system’s
scale up

4. 90k tenders
USD 714.5 mn
planned
amount
4700
contracting
authorities
15 638
suppliers
More than 12%
savings on
completed
procedures
2,86
average
number of
bids
bi.prozorro.org
First year: results

5. • 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

6. “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

7. 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

8. ProZorro covers key procedures and functionalities
eProcurement
Functionalities
Web portal
ePlanning
eRegistration
eAuthentification
eNotification
eNotices
eAccess
eSubmission/eTendering
eEvaluation
eAuction
eAwarding
ePurchasing/eOrdering
eInvoicing
eContract Management
ePayments
Procurement Procedures
Open Procedure (price & MEAT)
Competitive Dialogue
Negotiated Procedure without Prior Publication
Framework Agreements
Dynamic purchasing system
Electronic Catalogues
available
being developed now
to be developed later

9. Contacts
Oleksandr Starodubtsev
Head of Department for Regulation of Public
Procurement
Ministry of Economic Development and Trade
of Ukraine
Bulvarno-Kudryavska street, 22
Kyiv, Ukraine
Mob: +380 (67) 209 62 50
E-mail: olexandr.starodubtsev@gmail.com
starodubtsev@me.gov.ua