Astana, 2014

Electronic government procurement, ensuring fairness and transparency of

trade: experience and prospects of Eurasian integration

Member of the Board – Minister in charge of Competition and Antitrust regulation

Nurlan Aldabergenov

2010 2011 2012 2013

47 135

63 10167 829

64 136+33,9%**

The volume of mutual trade of Republic of Belarus,

Republic of Kazakhstan and Russian Federation *

mln

. U

SD

+43,9%**

*the total volume of mutual export between the Member States of the Customs Union ** growth to 2010

Before the joining CU After the joining CU

+36%**

| 2

The volume of mutual trade of EU countries * (28)

2010 2011 2012 2013

2557

28222841 2839

*the total volume of mutual export between the Member States of the European Union ** growth to 2010

bil

l. e

uro

+10,4%**+11,1%** +11%**

| 3

Main directions of competition

policy

Competition advocacy

Antitrust regulation

Government (municipal) procurements

| 4

| 5

1,141.61,639.7

2,535.1

mln

. U

SD

After the establishment of the SESBefore the establishment of SES

2011 2012 2013

The volume of electronic public procurement in the Republic of Kazakhstan

* growth to 2011**The Single Economic Space on the territory of Kazakhstan, Belarus, Russia

+ 43,6 %

+ in 2,2 times

| 5

| 6

mln

. U

SD

Before the establishment of SES After the establishment of the SES**

79,617.7

104,031.495,709.2

2011 2012 2013

The volume of electronic public procurement in the Russian Federation

+ 30% + 20%

* growth to 2011**The Single Economic Space on the territory of Kazakhstan, Belarus, Russia

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2011 г. 2012 г. 2013 г.

11.1 67.0

863.8

+ in 6 times

+ in 77 times

mln

. U

SD

After the establishment of the SES**Before the establishment of SES

The volume of electronic public procurement in the Republic of Belarus

*growth to 2011**The Single Economic Space on the territory of Kazakhstan, Belarus, Russia

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*Estimated cost of procurement

Estimation for the 2015:

~ 60,0%

Percentage of e-procurement*

42%

58%

e-procurement

other procurement

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Advantages of e-procurement in the CU and SES

For economic entities:

- Access to procurement information, including regulatory and reference documents, simplify information search

- Procurement proceedings transparency

- Reducing the costs of preparing and filing

- Rapid results obtaining

For public procurement authorities:

- Savings growth

- Decrease in corruption risks

- Reducing the time of procurement proceedings

- Data bases creation possibility

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Agreement on government (municipal) procurement of December 9, 2010*:

Unified requirements to public

procurement for all Member States of

CU and SES, legislation harmonization

Duty to publish procurement

information publicly on information

portals

Provision of national treatment in

government procurement for CU and

SES member states* entered into force on January 1, 2012

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State and (or) municipal

procurement

Monitoring of national legislation

Harmonization of legislation

Supervisory functions: the

abolition of exemptions from

national treatment

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- Law of the Republic of Belarus of 13 July 2012 № 419 «On public procurement of goods, work, services» in full compliance with the Agreement (entered into force on 1 January 2013) - open access to the web portal, e-procurement practices adopted - national treatment introduced

- amendments to the Federal Law of 21 July 2005 № 94-FZ "On placement of orders for delivery of goods, works and services for state and municipal

needs ", ensuring compliance with the Agreement - improvement of the web portal and practice of electronic auctions

- national treatment with exceptions introduced

1 stage

• bringing the legislation into conformity with the Agreement• implementation of information systems (web portal, ETP, EDS)• introduction of a national regime for Belarus and Russia

1 stage (Belarus and Russia)

before 1 January 2012 .:

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2 stage

- amendments to the Law of the Republic

of Kazakhstan of 21.07.2007 № 303-3

«On public procurement»,ensuring compliance with the

agreement: - improving the web portal; - expansion of electronic

procurement (request for bids, open competition, electronic auctions)

• bringing the legislation into conformity with the Agreement• implementation of information systems (web portal, ETP, EDS)

2 stage(Kazakhstan)

before 1 July 2012 .:

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ensuring equal conditions for business entities of three countries

under the national treatment

development of mutual trade of the three countries

• introduction of national regime for Belarus, Kazakhstan and Russia

3 stage (Belarus, Kazakhstan, Russia) 

before January 1, 2014:

3 stage | 14

Provision of information transparency

National web portals in the field of public procurement:

The Republic of Belarus - http://www.icetrade.by The Republic of Kazakhstan - http://www.goszakup.gov.kz

The Russian Federation - http://www.zakupki.gov.ru

Open access is ensured to: legislation in the field of public procurement procurement Notice documentation, including procurement contract drafts protocols drawn up in the procurement process information on the procurement contract register of unfair suppliersIn the future, following data is to be published:

Information on the result of the purchaseInformation on complaintsProcurement plans (at the discretion of the Member State)

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1 | 16

45%

26%

52%51%

The share of public procurement, on which information is posted at the web portals (data assessment of 2013)

Belarus Kazakhstan Russia CU and SES

from 2015 100 %

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Electronic trading platforms

http://www.goszakup.gov.kz

Web Portal of Kazakhstan/ETP

http://zakupki.butb.by

(ETF JSC «BYTB»)

http://www.rts-tender.ru

(ETF LLC «RTS-tender») http://www.zakazrf.ru

(ETF Tatarstan)

http://www.etp-micex.ru

(ETF LC «MICEX-IT»)

http://sberbank-ast.ru

(ETF LC «Sberbank-АСТ»))

http://etp.roseltorg.ru

(ETF JSC «SETF»)

http://www.icetrade.by

Web portal of Belarus/ETP

17

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Kazakhstan - one

Belarus - two

Russia - five

unimpeded access to digital signature

Cross-border use of electronic signatures

19

plans of actions approvedadjustment of national legislation and regulations of the electronic trading platformsmutual transfer by Member States of national cryptographic systems and software on

the electronic trading platforms

Correction of software and hardware systems of electronic trading platforms

between Belarus and Russia was implemented in late 2012

between Belarus, Kazakhstan and Russia on the stage of completion

Participation of economic entity in the electronic procurement of CU and SES withdigital signature on the national territory of its registration

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1

"Electronic form (format) procurement" - procurement procedures carried out by using Internet, web portal and (or) electronic trading platform (e-platform), as well as software and hardware

submission of applications for participation in the auction in the form of an

electronic document

Stages of e-procurement

publishing information about purchasing on the

web portal

conclusion of an agreement in the form of an electronic

document

price decrease resulting from by auction using the

software and hardware

Processing proposals using

software and hardware

- Partially implemented in Kazakhstan,- In general, planned in 2016

Purchase Process

- Partially implemented in 2012

- Complete implementation planned for 2015

implemented in 2012 implemented in 2012 - Partially implemented in Kazakhstan,- In general, planned in 2016

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Harmonize national legislation in the field of public procurement and ensure its practical application

Eurasian Economic Commission permanently monitors legislation and practice of public procurement

Work has been done to ensure national treatment in the field of public procurement, including the mutual recognition of the digital signature, the abolition of exemptions from national treatment

The main provisions of the Agreement on the state (municipal) procurement of 9 December 2010 with the best international practices transferred to the Treaty on the Eurasian Economic Union of 29 May 2014

Results 2012 - 2014 | 20

1

Russian supplier Number of lots of procurement procedures (e-procurement)

Subject of procurement

The total value of contracts

participants winners

2013 (according to official statistics, Belarus)

Russian suppliers 1039 (376) 630 (112) - 54,9 (22,2) Mln. USD

2013-2014(most active according to electronic trading platform of "BUCE" and "NCMPS", Belarus)

LLC «Industrial Union KIT» (Smolensk)

57 4 process equipment 0,8 Mln. USD

LLC«TEHNOMED»(St. Petersburg)

24 6 medical products 2,04 Mln. USD

JSC«Metrovagonmash»(Mytishchi, Moscow region)

2 2 wagonage 22,5Mln. USD

Russian suppliers in Belarus | 21

Belarusian suppliers in Russia

in electronic auctionsAssociation of electronic trading platforms, Russia

Supplier Cost of contracts,Mln. USD

Number of contracts

RUE «Belarusian aircraft repair plant» 5,5 22

LLC «Assomedika» 4,6 430

PE «Belgiprodor» 1,2 9

JSC «Minskmetroproekt» 0,9 3

NE RUE «KBTEM-OMO» 0,9 1

RUE «Belarusian Broadcasting Center» 0,4 5

MEI «Institute of Retraining and Development» Emergency Situations Ministry, RB

0,3 8

RNTUP«KRIPTOTEH» 0,2 4

Belarusian-Japanese joint venture «LOTIS TII» 0,1 4

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1

Kazakhstani supplier’s name

Number of lots of procurement procedures in

which

Subject of procurement

Total value of purchases(contracts)

participated won

2013-2014(according to the web portal of public procurement, Belarus)

Kazakhstani suppliers, including:

17 9 - 4,5 mln. USD

«KazMetizProm» LLC,Ust-Kamenogorsk

3 2 ceramic products

1,5 mln. USD

«Combine Of Bakeries N.a. Grigorovich'» LLC,Kostanay

2 2 wheat 1,3 mln. USD

ТОО «Kazzink» LLC,Ust-Kamenogorsk

1 1 zinc in ingots 1,0 mln. USD

Kazakhstan’s Suppliers’ Activity in Belarus | 23

1

Kazakhstani supplier’s name

Number of lots of procurement procedures

in which

Subject of procurement

Total value of purchases(contracts)

participated won

2013-2014(according to the web portal of public procurement, Belarus)

Kazakhstani suppliers, including:

- 25 - 2,6 mln. USD

«Nefteproduct-Sever» LLC, Petropavlovsk

- 1 heating oil 2,4

mln. USD

«Cheese mediya» LLC,Kyzylorda

- 2 printed editions

0,02 mln. USD

Kazakhstan’s Suppliers’ Activity in Belarus | 24

25

National treatment in CU and SES

 exemptions from national treatment:• can be set unilaterally for a period not exceeding 2

years• may be canceled by EEC within one year

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introduced on 1 January 2014

Example 1. Abolition of EEC’s exemptions from national

treatment

The elimination of this exemption provided to suppliers of products of JSC "Kamvol" (Belarus) an access to the placement of orders for worsted fabrics for sewing uniforms for the Russia’s federal executive bodies.

in the manufacture of uniforms use worsted fabric of Russian originGovernment Decree of the Russian Federation dated March 30, 2012 № 269

Belarus proposed to eliminate this exemption

EEC QUASHED THIS EXEMPTIONS FROM THE NATIONAL REGIME the Decision EEC Collegium dated September 18, 2012 № 160

Russia has eliminated this exemption for BelarusGovernment Resolution of the Russian Federation

December 24, 2012 № 1389

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Example 2. Abolition of EEC’s exemptions from national treatment

Eliminating of this exemption will provide access of wide range of Belarusian and Kazakh goods (works, services), along with Russia, to the placement of state orders for defense and security of Russia (in terms of procurement, the details of which do not constitute state secrets (secrets)

The prohibition of the purchase of foreign goods (works, services)for defense and security of Russia

Government Resolution of the Russian Federation of December 24, 2013 № 1224

Belarus has offered to hold consultations in EEC(in particular, of "Kursk TD" Belshina "- tires)

The letter from the Ministry of Trade of Belarus 16.07.2014 № 14-05 / 524

RUSSIA acknowledged the fact of exemptions from the national

regime for Belarusian and Kazakh goods (works, services) notified of the intention to remove them until the end of 2014

The Protocols of consultation in EEC from 27.08.2014 № 1-kon and 03.10.2014 № 23-16 / prThe letter from the Economic Development of Russia from 30.10.2014 № 26777-EE / D28i in connection with the

request of Government

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Example 3. Elimination of violations when establishing exemptions from national regime

Result - elimination of violations

JSC "BTK groups" (St. Petersburg) - the only provider of clothing equipment for the Armed Forces of Russia for an indefinite period

The regulation of the Government of the Russian Federation from September 5, 2012 № 1612-rFor reference: The Agreement on the public (municipal) procurement - not more than 2 years

Member of the Board N.SH. Aldabergenov - the letter to the Russian Government about adopting measures on elimination of infringements of international obligations

Russia restricts the validity of the order until 09/05/2014the regulation from May 13, 2013 №762-r

extension of a 2-year exemption (JSC "BTK groups" - the only supplier)

use of tissue from LLC "Bryansk Worsted»The regulation of the Government of the Russian Federation from June 11, 2014 № 1035-r

Member of the Board N.SH. Aldabergenov - the letter to the Russian Government about adopting measures on elimination of infringements of international obligations

In case of violations the Government of the Russian Federation entrusts authorized state agencies to take measures to eliminate themLetter from the Government Office of Russia from October 29, 2014 № P-4-52371

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International cooperation in the field of procurement| 29

Negotiation and drafting of agreements on free trade areas (in terms of public procurement) Vietnam, New Zealand, Egypt, India, Israel

Memorandums and agreements:

Memorandum of Cooperation with the ICAP

Agreement on cooperation with the Austrian

Federal Competition Authority

Participation in conferences and seminars:

CEFACT, UNCITRAL, WTO Committee on Public Procurement, the Executive Committee of the CIS, OECD, UNCTAD, the International Competition Network, the International Bar Association, the US, EU, Japan, Korea, Morocco, Brazil and others.

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Expanding public procurement market within CU and SES accession of the Republic of Armenia (1 January 2015) accession of the Kyrgyz Republic (after the implementation of the "roadmap")

Maximum use of IT- technologies

Continued work on removing possible barriers and other restrictions on access to public procurement markets mutual CU and SES

Prospects of development

Harmonizing statistical monitoring (reporting)

Thank you!

www.eurasiancommission.org