Improvement of the Public Procurement System in the Republic of - - PowerPoint PPT Presentation

Improvement of the Public Procurement System in the Republic of Uzbekistan

Current Legal Framework

REGULATIONS

Government Decree 1475 of 07.02.2011 (electronic public procurement), Government Decree 1948 of 05.04.2013 (electronic corporate procurement) Order of Cabinet Ministers

• No. 456 of 21.11.2000

(traditional tenders — equipment, goods) Order of Cabinet Ministers

• No. 302 of 03.07.2003

(traditional tenders in capital construction) PKM № 166 of 11.07.2013 (reverse auction) Decree of Cabinet Ministers

• No. 69 of 26.03.2015

(purchases using electronic catalog) Order of Cabinet Ministers

• No. 242 of 27.07.2016

(special information portal)

No Law on Public Procurement

Current System of Public Procurement

Procurement in electronic form

Electronic reverse auction ($ 300–100,000 according to the list) Electronic catalog (up to $ 100,000 according to the list)

Purchase in the traditional form

Tender (competition) (over $ 100,000) Direct contracts (up to $ 100,000, not on the list) Selection of bids (up to $ 100,000, not on the list)

2011

Amoun Amount o t of Pub Publi lic c Pr Proc

• cur

ureme ement nt us using ing eA eAuc uction tion an and d Ca Catalo talog g (bln (bln UZS UZS)

2011 2012 2013 2014 2015 2016

Turnover Savings

Numbe Number of r of Sup Supplier pliers P s Par artici ticipa pating ting in eT in eTrad ading ing

2011 2012 2013 2014 2015 2016

Le Level el of

• f Compet

Competition in ition in eT eTrading ading (numbe (number of r of su supplie ppliers s appl pplyin ying g per per lot) lot)

2011 2012 2013 2014 2015 2016

Main Directions of Public Procurement System Improvement

Development of Public Procurement Infrastructure Further Introduction of ICT Improvement of Legal Framework

Improvement of Legal Framework

Adoption of the Law “On Public Procurement”

• The draft law has been prepared, approved by the

ministries and departments, underwent public discussions after posting on the single interactive public services portal.

• Several dozen proposals received from

representatives of budgetary organizations and business structures.

• It will be considered by the Legislative Chamber and

the Senate in the second half of this year.

• BASIC PROVISIONS:
• Approval of the procurement principles.
• Expansion of electronic forms of procurement.
• Anti-corruption measures.
• Independent and effective appeal mechanism.

Adoption of By-laws

• Draft Resolution of the Cabinet Ministers

“On Approving the Concept of Improving Public Procurement in the Republic of Uzbekistan for 2017– 2021”.

• NAP projects, regulating the implementation of new

electronic methods of procurement.

• Improvement of the system of appeal (Draft Order of

the Cabinet Ministers “On Improving the System for Appealing Against Illegal Actions (Inaction) of Officials in the Public Procurement System”).

• Draft Order of the Cabinet Ministers “On Measures to

Further Improve the Public Procurement System and Counteract Corruption in their Implementation” (automated monitoring of settlements and performance of contractual obligations, organization

• f internal control of customers).

Further Introduction of ICT

Improvement of existing electronic platforms

Improvement of platforms of electronic reverse auction, electronic catalog (simplification of registration processes, introduction of EDSs, integration with the clearing and settlement platforms).

Introduction of new electronic platforms

Implementation of electronic tender platforms, electronic price requests, electronic requests for proposals, registration of direct contracts in the state procurement information system. Interaction of electronic databases of ministries, departments and

• rganizations.

Organization of interaction with “single-window” databases, tax, customs authorities, MOF Treasury, State Committee for Competition,

• ther ministries and departments, banks and insurance organizations to

simplify and speed up the registration processes, organize purchases and make payments.

Registration of Direct Contracts in the State Procurement Information System

The customer and the supplier enter into a transaction for the supply of goods under the cancellation clause. Registration of the contract (48 hours). The information system sends out an offer to all suppliers with the request to propose the lowest price possible. Suppliers offer lowest prices possible. Rights and obligations under the direct contract are terminated. The contract is concluded with the supplier offering the lowest price. Suppliers do not offer prices. The information system registers the transaction, the price of the contract is recognized as market price, and the contract with the

• riginal supplier comes into

force.

The introduction of a transaction registration system will simplify and accelerate the process of concluding contracts, preserve the traditional ties between the customers and suppliers, and at the same time ensure market pricing and prevent price manipulations.

Development

• f Public Procurement Infrastructure

Establishment of the State Procurement Agency

• Methodological support of procurement.
• Training and professional development of personnel.
• Centralized purchase.

Improvement of the Specialized Information Portal

• Expansion of the portal functionality for users

(statistics and analytics, notification of purchases of certain goods, etc.).

Improving of the System of Appeal

• Establishment of an Appeals Commission (including

representatives of the public, media, customers, suppliers, NGOs).

• Establishment of a Specialized Arbitration Court

(consideration of disputes and disagreements in the execution of contractual obligations).

Implementation of an Automated Settlement System

• Transfer of the practice of using clearing and

settlement mechanisms to the public procurement system (creation of an electronic system for automated monitoring of performance of contractual

• bligations, electronic payments and remote

management of personal accounts).

Improvement

• f the Specialized Information Portal

Legal and Methodological Module Regulatory Legal Module Online Learning Module Appeal Module Information Module Placement of announcements, time schedules and results

• f purchases

Statistical Analysis Price Module Trading Module Electronic Auction Electronic Requests for Proposals Digital Catalogue Electronic Competition Electronic Requests for Proposals Registration of transactions in the state procurement information system Registration and Settlement Module Registration in cooperation with databases of ministries Obligations Monitoring Module (delivery versus payment) Personal Accounts Management Module

What has been Done in the Past 12 Months

• 1. The issues of combating corruption in public procurement are reflected

in Art. 23 of the Law “On Combating Corruption”.

• 2. The Government Decision (No. 242 of 27.07.2016) regulating the

functioning of a special information portal providing access to the information on public procurement (schedules, announcements, procurement results, information on prices) was adopted. The portal functions successfully.

• 3. The Draft Law of the Republic of Uzbekistan “On Public Procurement”

has been prepared and practically agreed.

THANK YOU!