prozorro giss presentation 14.03.16 - max nefyodov
TRANSCRIPT
Reforms in Ukraine – long road to success
Key facts • 18 priority reforms • Reform efforts are coordinated by National
Reforms Council "(consisting of the President, the Prime Minister, the Speaker of the Parliament, Ministers, Chairmen of parliamentary committees and civil society representatives)
• The Council approved "Ukraine 2020“ "(A strategy for Ukraine's sustainable development, which defines goals, priorities and KPIs for the reforming process)
*Information by National Reforms Council, Ukraine Crisis Media Centre, Reanimation Package of Reforms, VoxUkraine
Economic Reforms • State property (SOEs) • Tax reform • Agriculture • Public procurement • Banking system • Deregulation and supporting SMEs • Energy sector
Reforming Governance • Anti-corruption • Judicial • Law enforcement agencies • Public administration • Election legislation • Decentralization and the local "
self-government
Other Reforms • Constitutional • Security and defense • Promoting Ukraine’s interests abroad • Education • Healthcare
"Reforms Progress"
12 out 18 reforms are on schedule"
Facts and Figures • Fastest progress in public procurement and public finance,
rehabilitation of banking system, deregulation and energy sector • Most legislative progress – anti-corruption"
(National Anti-Corruption Bureau, patrol police, open state registers, etc) "
Index for Monitoring Reforms (iMoRe) 03.03.16
Key Achievements • MACROECONOMIC STABILIZATION "
"- growth of foreign currency reserves" from $5,6 bln to $13 bln"- regaining investors’ trust – $3.1bln FDI in 2015 "- IMF program strictly followed "- debt restructuring deal of $12 bln"- Standard & Poor’s upgraded Ukraine’s rating to “B-” and “B”
"
Key Achievements • CREATING BUSINESS-FRIENDLY
ENVIRONMENT""- registering a business online" and in just 1 day"- number of controlling and regulatory" functions cut by half (from 1032 to 681)"- Better Regulation Delivery Office "- DCFTA fully implemented on 1. January
Key Achievements • ENERGY REFORM"
"- diversification of natural gas imports " (not imported from Russia any more) "- direct subsides only for those in need"- Naftogaz became profitable
Key Achievements • COMBATING CORRUPTION ""- new corruption-free police"- National Anticorruption Bureau"- e-procurement – annual savings" up to $2 bln"- around 800 civil servants dismissed" under lustration law "- removal of intermediaries from gas market
"
Ministry of Economic Development and Trade
• Reforming SOEs "(277 CEOs selected by transparent procedure, financial reports published)
• Public procurement "(Launched e-procurement system, $58 mln saved)
• Deregulation and supporting SMEs "(41% of permission documents canceled, 100 regulatory barriers dismissed, registering business in 1 day)
• Export promotion " (The WTO Agreement on Trade Facilitation ratified, negotiations on FTAs with Canada and Turkey, DCFTA implemented on 01.01.2016)
• Reforming the ministry "(80% of leadership is new, 50% of staff made redundant)
Public Procurement in Ukraine • In 2015 Ukraine ranked
#130 by Transparency International for corruption perception (in a group with Cameroon, Iran, Nepal, Nicaragua, Paraguay, Nigeria, Guinea, Kenya, Laos, Papua New Guinea, Uganda)
Losses in the Public Procurement
UAH25bn (ca $1.1bn) – conservative estimation of
“corruption tax”
UAH25bn (ca $1.1bn) – losses caused by limited competition
UAH250bn (ca $11bn)
10%
10%
At least UAH50bn (ca $2.2bn) per annum – losses from corruption and limited competition
Trusttowardinstitutes
-80
-60
-40
-20
0
20
40
60
VolunteersstartedworkingonPPreform
• Just after the Revolution of Dignity, "a group of volunteers decided to start a reform in public procurement
• eProcurement system ProZorro seen as the key element of the reform
• At times a team of up to 300 people worked on ProZorro
“Goldentriangleofpartnership”inthecore
Commercial platforms
Civil Society: monitoring and
control of procurement
Government: "“the rules”,
professionalization and data storage
Commercial platforms: suppliers
acquiring and service
What is ProZorro?
Our Principles • Open code, always available for audit, control,
& scalability • Compulsory auction for effective price reduction • Competition among platforms to improve
services • Transparency (everyone sees everything) • Teamwork (Agile groups)
HistoryofProZorro
March2014Volunteers’ team setup
April-May2014First search & first concept
August,2014Georgians & concept review
February,2015MVP development & launch
September,2014ePlatforms & final concept; first “seeding”
April,2015Volunteers move into gov’t
June,2015First donor support
May,2015MinDefence & small procurements’ pilot
December,2015New Law on eProcurement approval
April,2016Law comes into force, system’s scale up
Results of the pilot up-to-date 8 commercial platforms & 3 joining
3,500 + contracting authorities
10,000+ suppliers
63k+ tenders for $512m
Savings come to
$58m
bi.prozorro.org
BI modules are owned by Transparency International Ukraine
The law of diffusion of innovation
Concept & MVP Pilot Scale Up & Implementation
Gov’t Low Medium High
NGO High High Low
Business Medium High Medium