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
2 years of the reform: from concept to system
13
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, system’s scale up
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!
“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
2,84average number of bids
bi.prozorro.org
First year of pilot: results
• 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
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
A strategy and detailed plan is developed
• Stabilization and sustainable development• Professionalization of CA• Prozorro as an example of reform• Prozorro goes global
Thank you!
Web-portalprozorro.gov.ua
Analytics Modulebi.prozorro.org
CA Support infobox.prozorro.org
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
ProZorro covers key procedures and functionalities
eProcurement Functionalities
Web portalePlanningeRegistrationeAuthentificationeNotificationeNoticeseAccesseSubmission/eTenderingeEvaluationeAuctioneAwardingePurchasing/eOrderingeInvoicingeContract ManagementePayments
Procurement ProceduresOpen Procedure (price & MEAT)Competitive DialogueNegotiation ProcedureFramework AgreementsDynamic purchasing systemElectronic 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 do-nations 764 800 USD
Business donationsWNISEFGIZ/DFID
+ 2 commercial platforms
Steering Committee
2. Unstable legislation
Online knowledge database infobox.prozorro.org - all legislation in one place- publications “for dummies”- course for self-attestation