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
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
“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
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: results
• ProZorro considered by
EBRD as a recommended
model for eProcurement
reform
• Ukraine won the World
Procurement Award in the
Public Sector nomination
• 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
What are advantages of ProZorro
13
• Law initial cost
• Law 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
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
All information is available for everyone
bi.prozorro.org provides all available
information in a user-friendly format
Professional risk-management system developed
Automatic screening of a number of factors
allows to identify corruption-prone tenders
All finance distributed through the Steering Committee
Total amount of
donations 764 800 USD
Business
donations
WNISEF
GIZ/DFID
+ 2 commercial
platforms
Steering Committee
Professionalization seen as a step-by-step process
Platforms
support
eLibrary of
typical
specifications Knowledge
database
Online
course
ToT for consultants &
civic activists
CPB
Center of
excellence
Certification
Regional
presentations
No financial motivation
No specialized
training centers
Unstable
legislation
Procurer is an unpopular profession
1. No financial motivation
Review of procurers remuneration
In the meantime, simplification and automatization of
processes:
- customer-friendly platforms’ interfaces
- service support from platforms
- library of typical
specificationsinfobox.prozorro.org/specifications
2. Unstable legislation
Online knowledge database infobox.prozorro.org
- all legislation in one place
- publications “for dummies”
- course for self-attestation
3. No specialized training centers
Market stimulation:
- Negotiations with business schools and potential
international partners
- ToT, involving regional consultants & civic activists
- Piloting CPBs