Chatham House, Ukrainian Forum

1. Transforming Ukraine:
Prozorro
Chatham House,
09 June 2016,
Nakhod Oleksandr

2. Everything started here

3. approx. 1.1B USD –
conservative estimation of
“corruption tax”
approx. 1.1B USD –
losses caused by limited
competition
10%
10%
At least 2.2B USD per annum – losses from
corruption and limited competition
approx.
11B USD
10%
10%
Estimation of losses in public procurement (PP)
PP was seen as a synonym of corruption

4. 2 years of the reform: from concept to system
13
March 2014
Volunteers’
team setup
April-May 2014
First search & first
concept
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

5. What is Prozorro?
1. Hybrid IT system
with extended
functionality and
own eco-system
2. New philosophy of
open code and data
availability
everybody
sees
everything!

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:
CAs & suppliers
acquiring and
service

7. Trust and desire build the team

8. 90k tenders
USD 1.3B
planned
amount
4980
contracting
authorities
16 325
suppliers
More than 12%
savings on
completed
procedures
2,84
average
number of
bids
bi.prozorro.org
First year of pilot: results

9. • ProZorro considered by EBRD
as a recommended model for
eProcurement reform
• ProZorro is a showcase &
learning project of the Open
Contracting Partnership
• Ukraine won the World
Procurement Award in the
Public Sector nomination
• National Council of Reforms
recognized PP reform as the
most successful one
Prozorro: awards and recognition

10. Obstacles
• Conservatism of users
• Active resistance of local authorities
• Wide distribution of CA (geo, size, industries…)
• Mistrust of business
• Lack of finance to hire and motivate the team
• Complicated and sluggish procedures within
state apparatus

11. A strategy and detailed plan is developed
• Stabilization and sustainable development
• Professionalization of CA
• Prozorro as an example of reform
• Prozorro goes global

12. Thank you!
Web-portal
prozorro.gov.ua
Analytics Module
bi.prozorro.org
CA Support
infobox.prozorro.org

13. Appendices

14. What are advantages of ProZorro
13
• Low initial cost
• Low implementation and
maintenance cost
• 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

15. 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
Negotiation Procedure
Framework Agreements
Dynamic purchasing system
Electronic Catalogues
available
being developed now
to be developed later

16. All information is available for everyone
bi.prozorro.org provides all available information in
a user-friendly format

17. Professional risk-management system developed
Automatic screening of a number of factors allows
to identify corruption-prone tenders

18. New official web-portal with “Google”-like search

19. A variety of Partners makes the reform possible

20. All finance distributed through the Steering Committee
Total amount of
donations 764 800 USD
Business
donations
WNISEF
GIZ/DFID
+ 2 commercial
platforms
Steering Committee

21. eLibrary of typical specifications

22. 2. Unstable legislation
Online knowledge database infobox.prozorro.org
- all legislation in one place
- publications “for dummies”
- course for self-attestation

23. All legislation in one place

24. Online course started