ProZorro:

Professionalization of

Procurement Function

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

90k

tenders

USD 714.5 mn

planned

amount

4700

contracting

authorities

15 638

suppliers

More than 12%

savings on

completed

procedures

2,86

average

number

of bids

bi.prozorro.org

First year: results

• ProZorro considered by

EBRD as a recommended

model for eProcurement

reform

• Ukraine shortlisted in 2

nominations for the World

Procurement Award

• 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

“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: suppliers

acquiring and

service

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

eLibrary of typical specifications

2. Unstable legislation

Online knowledge database infobox.prozorro.org

- all legislation in one place

- publications “for dummies”

- course for self-attestation

All legislation in one place

Advanced online course to be started soon

3. No specialized training centers

Market stimulation:

- Negotiations with business schools and potential

international partners

- ToT, involving regional consultants & civic activists

- Piloting CPBs