SYSTEM OF STATE PROCUREMENT IN KAZAKHSTAN ASTANA 2017 - PowerPoint PPT Presentation

Ministry of Finance of the Republic of Kazakhstan SYSTEM OF STATE PROCUREMENT IN KAZAKHSTAN ASTANA 2017

Institutional Structure of the Public Procurement System of the Republic of Kazakhstan Ministry of Finance of the Republic of Kazakhstan Technical Support Methodology Monitoring Single Organizer Web Portal Department of Public Procurement Public Procurement Committee for Internal State Audit LLP “Center of Electronic Commerce” Committee Legislation Customers Suppliers Web portal www.goszakup.gov.kz State Institutions Legal Entities State-owned Enterprises Individual Entrepreneurs JSCs, LLPs at Central State and Local Exec. bodies Total: about 110 thousand Total: over 20 thousand Auditing Prosecution authorities, state Accounting Committee Internal Audit Services Commissions bureaus, etc. Other Controlling Bodies LEGAL FRAMEWORK HISTORY GENERAL FIGURES The Eurasian Economic Union (EAEU) Treaty (Article 88 and 1. Law on Public Procurement of 1997. Annex 25) Annual Volume (average): 2.5 – 3.2 trln tenge 2. Law on Public Procurement of 2002. WTO Commitments Number of customers: over 20 thousand 3. Law on Public Procurement of 2007. Law “On Public Procurement” and by -laws of the Republic of Number of potential suppliers: about 110 thousand 4. Law on Public Procurement of 2015. Kazakhstan 1

Progressive Norms of the Law 1.Preliminary Annual Plan 2.Preliminary Discussion of Technical This allows customers to initiate procurement Specifications procedures based on the positive conclusion Preliminary Discussion is a prerequisite for by the budgeting commission without waiting approval of the technical specification. This for the approval of the budget. allows the suppliers to familiarize themselves with the project in advance and, if there are any comments, appeal against it. 3.Preliminary Clearance Protocol 4.Mutual Review of Applications This allows suppliers to finalize the tender Mutual review of applications ensures application within 3 days. transparency and allows evaluating feasibility of the decisions made by the customer. 5.Contract Conclusion Waiting Period 6. Exceptionally Electronic Format of Public (5 working days) Procurement If complaint is received within this period, the concluding of the contract is suspended for All public procurement processes from the period of consideration (10 working days). planning to payments are carried out in electronic format only. 2

Advantages of the New Platform High resistance to loads Low computing requirements (no need to purchase powerful servers) Import substitution Annual saving of over $ 1 mln on tenders only Easy integration with data recipient systems Open source technologies Risk Management System + Remote Desk Review Adaptability of business processes to Availability of national staff for further Simplified use of EDSs any changes in the PPL support and development of the system + Vendor price encryption 3

Automation of procurement processes In the Past Now — paper format — electronic format 4

PREVENTIVITY of Desk Review DESK REVIEW COVERS 100 % OF TENDERS Камеральным контролем The review is carried out online, 201,000 without visiting the site. 3 times more 2015 NUMBER OF DEFENDATNTS 5 times 70,000 more TOTAL COST OF VIOLATIONS 9,200 40,000 KZT 232 BLN 8,500 2016 — violations detected POST FACTUM 986 2015 2016 2015г. 2016г. 0 Number of tenders covered by the review Кол - во конкурсов, охваченных контролем Number of violations detected Кол - во выявленных нарушений NUMBER OF EXEMPT OF LIABILITY Over — violations detected at EARLY STAGES 10,000 For the purposes of quality desk review, from July 2016, the review is applied to the tenders Number of entities having with the cost over KZT 5 mln (about 90 % of eliminated violations following the total amount of procurement under the desk review reports tenders). TOTAL COST OF PREVENTED VIOLATIONS KZT 370 BLN 5

Number of Complaints Results of Preliminary Discussion of Tender Documents 8 359 Number of 2016 complaints increased Every other 40% 2 times! tender 4 377 document undergoes 3396 7174 3778 Not confirmed changes! Не подтвержденные 60% TDs 60% TDs жалобы complaints Ts 40% Confirmed Измененные КД Changed TDs Подтвержденные complaints жалобы Unchanged TDs 2015 2016 Без изменений 2015г. 2016г. 130 BLN Accepted Tender Applications Conditional Savings 446 438 3 times 4 times more 30% more! 43 BLN отклоненные Rejected 102 083 70% заявки applications 60% Accepted 40% 2015 2016 допущенные 2015г. 2016г. applications заявки 2015 2016 2015г. 2016г. 6