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Ukraine : The draft law On Public Procurement to lay the foundations for a new stage of reform

Publish Date : 12-Oct-2015

The Ministry of Economic Development and Trade has elaborated a draft law On Public Procurement. This is a fundamental document, which would become the basis for the next phase of a public procurement reform - the extension of ProZorro e-procurement system to the national level, as well as would cardinally change the rules of work in public procurement area. Deputy Minister of Economic Development and Trade Maxym Nefiodov announced.

The draft law On Public Procurement describes the basics of activities in the e-procurement system ProZorro, which is operating in a pilot mode - on before-threshold tenders (up to UAH 200 thousand for goods and services and up to UAH 1.5 million for activities). Total savings of the budget funds exceeded UAH 300 million in September and prolongs its growing tendency. The extending of the system at the national level should prepare it for peak traffic of several thousand concurrent users, as in Ukraine there are enumerated 15 thousand public purchasers and 25 thousand tender committees.

After adoption of the law, the change will affect an order of e-document exchange, there would be approved a regulation on information disclosure following an auction, entered an appeal of trading results and much more.

One of the innovations of the aforesaid legislation act is the ability to include professional purchasing agents into the composition of tender commissions. Another important step is the introduction of a concept of Central Purchasing Organization (CPO) that can be created for the purchase purposes for several customers. This is the first step towards reduction of the number of customers, and consequently, of a gradual professionalization. The creation of the CPO is also a point included into the Road map to ensure implementation of the agreement between the EU and Ukraine.

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