Agro Perspectiva

Yatseniuk: ProZorro e-procurement system to save at least UAH5 milliard of Budget funds this year

19.01.2016 10:14 "Agro Perspectiva" (Kyiv) — "The transition of all public procurement to an electronic format will boost the Budget savings significantly. Even at a conservative estimate, this year’s budget savings will total UAH5 milliard, while next year the economic effect of the full transition to the electronic system will be several times higher," Government Portal reports quoting the Ukrainian Prime Minister Arseniy Yatseniuk as speaking within the Ten Minutes TV program on last week Sun. As to the report, Yatseniuk noted that Ukrainian public procurement for many years was the largest source for corruption schemes. «As to our estimates, losses from the direct corruption and poor management made up around 20% of the total volume of public procurement. And this is about UAH50 milliard annually. It’s almost as much as Budget expenses for the Ukrainian Armed Forces,» he said. Yatseniuk stressed that the ProZorro e-procurement system will return tens of milliards of hryvnias to the Budget. «We are transferring all the State tenders into the online format. All procedures, every step, every decision becomes public.» As to the report, Yatseniuk noted that ProZorro allows each company or entrepreneur to register on the bidding platform, find an auction and apply for participation. «Then the anonymous bidding takes place.The name of the company will be revealed only after selection of a winner following the results of the auction. Thus, it becomes almost impossible to appoint your own supplier. And the winners will become only honest suppliers,» he stressed. «Thus, anyone can visit the site and find out what a particular state enterprise procured and at what price,» he said. It is to be admitted, ProZorro was launched as a pilot project in Feb 2015. As of now, the Ukrainian Ministry of Infrastructure and companies that are under its authority have conducted tenders via the ProZorro system worth over UAH1.3 milliard. Total savings exceeded UAH75 million. «The Ministry of Defense has fully moved to electronic procurement, which led to nearly 1000 tenders and savings worth UAH200 million,» Yatseniuk admitted. As to him, all large Ukrainian procurers (ministries, departments, the largest state-owned enterprises) will need to join the ProZorro system starting from this year Apr 1, while the rest — from this year Aug. As to the report, Yatseniuk urged businessmen to join the state e-procurement system: «We work openly and transparently with you and we are your reliable partner.» Reportedly, the PM also addressed volunteers and journalists: «Monitor procurement data, look for possible violations. Talk and write about it. Public control is the most effective mechanism to combat corruption.» «Together we can defeat corruption in procurement and return the funds for the needs of Ukrainian people,» Yatseniuk stressed.