Public Expenditure Bishkek 2015 PUBLIC PROCUREMENT IN KYRGYZ - - PowerPoint PPT Presentation

Public Procurement Department under the Ministry of Finance

• f the Kyrgyz Republic

Application of E-Procurement Data to Measure Transparency and Efficiency of Public Expenditure

Bishkek 2015

PUBLIC PROCUREMENT IN KYRGYZ REPUBLIC

• Ensuring openness;
• Transparency;
• Fairness.

PUBLIC PROCUREMENT IN KYRGYZ REPUBLIC Priority Initiatives of Kyrgyz Government:

• 1. Public Procurement Agency within Kyrgyz Government – est. in

1997

• 2. Material Reserves and Public Procurement Fund
• 3. Public Procurement Methodology Department within Kyrgyz

Ministry of Finance

• 4. Public Procurement Department within Kyrgyz Ministry of Finance

(est. by Government Resolution #68 dated February 3, 2014) PUBLIC PROCUREMENT IN IN KYRGYZ RE REPUBLIC

Public Procurement System in Kyrgyz Republic:

• The new Public Procurement Law based on international best practices was adopted on April 2015;
• For the purposes of harmonizing the existing public procurement regulations with the above

mentioned Public Procurement Law, the following regulations were developed and approved by Ministry of Finance Order No. 175-П “On Approval of Public Procurement Regulations” dated October 14, 2015:

• Statute on Electronic Public Procurement;
• Methodology for Granting Privileges to Domestic Suppliers (Contractors);
• Bid Evaluation Methodology;
• Statute on Use of Framework Agreement;
• Working Procedures for the Independent Inter-Agency Complaint Review Commission Regarding

Actions or Inaction of Procuring Entities and Inclusion in the Black List during Public Procurement Process;

• Standard Bidding Documentation for Procurement of Goods Through Single-State, Two-Stage,

Simplified, and Least-Cost-Selection Procurement Methods;

• Standard Bidding Documentation for Procurement of Works Through Single-State, Two-Stage, and

Simplified Procurement Methods;

• Standard Bidding Documentation for Procurement of Services Through Single-State, Two-Stage,

Simplified, and Least-Cost-Selection Procurement Methods.

PUBLIC PROCUREMENT IN IN KYRGYZ RE REPUBLIC

Legislation and Regulations:

PUBLIC PROCUREMENT IN IN KYRGYZ RE REPUBLIC

• Revise the approach to public procurement process implementation through

the use of Internet by digitalizing the key stages of procurement process. The key outcome – ultimately open and effective public procurement;

• Establish interconnection between all processes: starting from procurement

budget planning, advertisement drafting, bidding, contract award, and data exchange with other systems;

• Capacity building for procurement specialists and business community;
• Integrity and honesty displayed towards organization of procurement process

and responsible fulfillment of contractual obligations;

• Provide new opportunities and innovations for users of Public Procurement

Portal.

Transition to E-Procurement: Goals and Objectives

PUBLIC PROCUREMENT IN IN KYRGYZ RE REPUBLIC Key Stages of E-Procurement Design and Implementation

• 1. 2012 – Start of E-Procurement introduction.
• 2. June 4, 2014 – Online launch of E-Procurement System.

After the new Public Procurement Law was enacted, the number of the Portal users grew to 1,634 procuring entities and 5,722 suppliers.

• 3. April 10, 2015 – launch of reverse auction.

PUBLIC PROCUREMENT IN IN KYRGYZ RE REPUBLIC

Procurement management indicators to measure transparency and efficiency of public expenditure in Kyrgyz Republic

• 1. The competitive bidding amount should

make up > 80% of all procurement in the country;

• 2. Consequently, the direct contracting amount

should be less than 20% of all procurement;

• 3. Number of bidders per tender
• 4. Funds saved as a result of procurement of

goods, works, and consulting services (amount allocated for procurement – amount

• f

awarded contract = saved funds)

The Official E-Procurement Portal of f th the Kyrgyz Republic

The number of organizations registered as of October 1, 2015

1634 5722 500 1000 1500 2000 2500 3000 3500 4000 4500

Procuring entities Vendors

Kyrgyz Official l Public lic Procurement Portal

Published Ads Statistics:

0.026069 0.05736 0.01475 0.04165 0.08076 0.167671 0.573891 0.739601 1.155805 2.759197 8.271915 4.359477 6.243417 7.428332 6.103218 12.285937 1 2 3 4 5 6 7 8 9 10 11 12 13 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Total Bidding Amount, thousand KGS

Ads Statistics by Bidding Status # Bidding Status Tenders, total Lots, total 1 Published 759 7774 2 Cancelled 551 3309 3 Extended 31 53 4 Completed (Bid Opening Minutes) 11 994 117 397

961 841 808,88 1 367 987 860,23 13 702 842 522,38 1 163 716,02

Ads by Procurement Method (based on the new Law)

PUBLIC PROCUREMENT IN IN THE KYRGYZ RE REPUBLIC

Simplified Single-stage Direct contracting Least-cost selection

Procurement Methods Number Amount

Single-Stage 2745 13 702 842 522.38 Two-Stage

• Simplified

1458 961 841 808.88 Least-Cost Selection 1 1 163 716.02 Direct Contracting 717 1 367 987 860.23 Total 4958 16 073 440 802.51

PUBLIC PROCUREMENT IN IN KYRGYZ RE REPUBLIC

Analysis of Tenders Conducted over 2013-2014 and by October 1, 2015

As of 2013 (thousand KGS) Procuring Entities: Number of Tenders Procurement Amount % Goods Services Works Total 4 302 18 142 686 100 11 675 550 1 315 611 5 151 525 Unrestricted Bidding 2 399 16 032 435 56 9 882 042 1 061 587 5 088 806 Restricted Bidding 31 23 579 1 17 345 1 300 4 934 Two-Stage Bidding 3 14 906 14 906 Consulting Services 8 19 495 19 495 Request for Quotation 1 678 1 519 832 39 1 519 832 Single-Source 183 532 439 4 241 425 233 228 57 786 As of 2014 (Latest Update) Procuring Entities Number Total amount of conducted tenders (KGS) % Goods Services Works Total 4 815 18 706 996 100 12 995 731 1 175 979 4 535 286 Unrestricted Bidding 3 275 14 737 734 9 241 720 635 749 4 435 806 Restricted Bidding 116 110 993 55 534 22 747 32 712 Two-Stage Bidding 9 211 344 210 800 544 Consulting Services 1 5 007 5 007 Request for Quotation 1 342 1 160 836 1 160 836 E-Procurement 24 218 798 218 798 Single-Source 144 2 262 283 2 108 043 87 472 66 768 As of October 1, 2015 (Latest Update) Procuring Entities Number Total amount of conducted tenders (KGS) % Goods Services Works Total funds saved Total 4958 16 073 440 802,51 9 113 262 811,24 400 662 227,21 5 191 527 903,83 2 153 391 939,70 Unrestricted Bidding (Single-Stage) 2745 13 702 842 522,38 8 248 684 343,58 367 044 489,18 5 087 113 689,62 1 928 819 397,70 Restricted Bidding 37 39 604 895 12 457 867 14 398 442 12 748 586,00 2 197 956,0 Two-Stage Bidding Consulting Services Request for Quotation (Simplified) 1458 961 841 808,88 850 956 884,64 19 219 296,03 91 665 628,21 222 261 201,93 E-Procurement Single-Source (Direct Contracting) 717 1 367 987 860,23

PUBLIC PROCUREMENT IN IN KYRGYZ RE REPUBLIC

Comparison of Public Procurement over 2014 and Public Procurement

• ver first 9 months of 2015
• Unrestricted Bidding over 2014 – KGS 14,737,733,800 (79.8%);
• Total public procurement over 9 months of 2014 – KGS 18,706,996,000
• Unrestricted

Bidding/Single-Stage

• ver

9 months

• f

2015 – KGS 13,702,842,500 (85,2%);

• Total public procurement over 9 months of 2015 – KGS 16,073,440,800
• Single-Source/ Direct Contracting public procurement during the period

before the reforms were implemented (2014) – KGS 2,175,796,900.

• Direct Contracting public procurement after the reforms were implemented

(9 months of 2015) – KGS 1,367,987,800.

• Average number of bidders in 2014 - 3 bidders;
• Average number of bidders in 2015 - 5 bidders.

• Drafting and adoption of the 2016-2020 Public Procurement

Development Strategy envisaging step-by-step and systematic public procurement reforms;

• Establishment of the E-Procurement Support Fund;
• Establishing connections with other public systems;
• Fine-tuning of the software:
• Portal statistics and analytics;
• Updating of the General Public Procurement Classifier

PUBLIC PROCUREMENT IN IN KYRGYZ RE REPUBLIC Recommendations and Future Plans

Thank you!

PUBLIC PROCUREMENT IN IN KYRGYZ RE REPUBLIC