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Using the e-procurement system
data to measure transparency and
efficiency of public expenditures
Speakers:
Nazarov S., Chief Specialist, Treasury, Ministry of Finance, Republic of Uzbekistan.
Aliyev T., Head of Treasury, Ministry of Finance, Republic of Uzbekistan.
AGENDA
General Provisions
Electronic public procurement
Achieving transparency and efficiency of
public expenditures
Public procurement development
prospects
1
2
3
4
Location: Central Asia; Territory: 447.4 thousand km²Borders: Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Afghanistan.
Administrative division: The Republic of Karakalpakstan, 12 regions (oblasts), 156
districts (rayons), 123 towns and cities.
Capital city: Tashkent.
Population: over 31 million.
I. GENERAL INFORMATION ABOUT THE COUNTRY
Core regulations:
The Budget Code of the Republic of Uzbekistan (#3RU-360 dated 26.12.2013);
Resolution #PP-1475 dated 07.02.2011 by the President of the Republic of
Uzbekistan: “On optimization of the public procurement system and on expanded
engagement of small business into public procurement”;
Resolution #302 dated 03.07.2003 by the Cabinet of Ministers of the Republic of
Uzbekistan: “On measures to improve the competitive bidding system applied in
capital construction”;
Resolution #69 dated 26.03.2015 by the Cabinet of Ministers of the Republic of
Uzbekistan: “On approving the procedure of public electronic procurement of
essential goods (works, services) from business entities through the special
information portal of the Uzbek National Commodity Exchange”;
Resolution #166 dated 11.06.2013 by the Cabinet of Ministers of the Republic of
Uzbekistan: “On additional measures to improve the process of public and corporate
procurement”;
Resolution #456 dated 21.11.2000 by the Cabinet of Ministers of the Republic of
Uzbekistan: “On measures to improve a competitive bidding process”.
Determines the quota allocated for small businesses as every type of goods (works,
services) is concerned
Initiates drafting of the regulatory documents on the public procurement process
Controls the public procurement process and allocation of quotas
Reviews reports on implementation of the Committee’s decisions
The Treasury of the Ministry of Finance is a working
body of the Government Committee
The Government Public Procurement Committee
Direct procurement
Procurement without competitive procedures
Selection of the best proposals
A supplier is chosen by a special committee established by the customer (employer)
e-Bidding
An electronic Dutch auction. The electronic system automatically chooses the lowest bidder
e-CataloguePublic procurement of essential goods (works, services) from business entities through a special information portal
Competitive Bidding
The Bid Committee compares the bids based on the requirements of the bid documentation, and awards a contract
up to 300 USD + cases referred to in PKM #456
300 to 100,000 USD
Over 100,000 USD
Up to 100,000 USD
Electronic public procurement
Public procurement procedures
II. Electronic public procurement
e-Catalogue
e-Bidding
e-Bidding
Suppliers
Application
Agent
State Budget
organizations
ANNOUNCEMENT
(APPLICATION)
2.1. Electronic auctions
Automated selection of the
auction winner (supplier)
at the close of the Dutch e-
auction at the Uzbek
National Commodity
Exchange (the contract is
awarded and its
conditions are drafted at
the close of trading)
Registration at the MoF
Treasury
Contract
Customer
1. Planning
2. Placement of an ad
Supplier
3. Searching for procurement ads
4. Matching procurement terms and conditions, and taking a decision on participation in bidding
5. Bidding
7. Contract finalization
8. Contract implementation
Main phases of the e-auction process
6. Auction
Example of choosing a supplier
in the process of e-auction
The Dutch auction lowers the starting price within 10 days from the date
of posting the ad on the portal;
At the close of trading, the lowest bidder (supplier) among all
participating bidders is awarded with the contract automatically
e-Catalogue is a way to organize procurement when
the customer selects goods in a systematized e-catalogue
where suppliers post their proposals in advance.
2.2. e-Catalogue
Commodity groups in the e-catalogue(the list of items is defined by the Government Committee)
Spare parts for vehicles
Components and spare parts for computer and office equipment
Construction materials
Miscellaneous equipment
e-Catalogue
Supplier posts its offer (data on its products)
Customer (a state budget organization) chooses the required goods
The system automaticallycompares the prices of suppliers,chooses the lowest bidder, draftsand awards the contract, andnotifies the accounts of both theCustomer and the Supplier.
Request for proposal mechanism
1.The system automatically notifies other bidders of similar products about their participation in the request for proposal;
2. Suppliers offer their prices for similar products within 48 hours
Functional mechanism of the e-Catalogue system
Customer
Request
for tires
Supplier #3
Req
uest
for
pro
po
sal
mech
an
ism
Supplier #2
200,000
UZS
270,000
UZS
Supplier #1
250,000
UZS
The s
yste
m s
ele
cts
a s
upplie
r w
ith
the low
est price
Supplier #2
200,000
UZS
Example of procuring goods through the e-Catalogue
ParametersProcurement through the e-
Auction
Procurement through the e-
Catalogue
The value threshold of the goods
(works, services) category$300 to $100,000 $0.00 to $100,000
The number of goods (works,
services) according to the list122 18
Timelines:
bidding —
signing and registration of the
contract —
11 to 18 days
10 days
1 to 8 days
4 to 7 days
48 hours (2 days)
2 to 5 days
Posting info on the product
specificationsState Budget organization (agent) Supplier (agent)
Advance Customers and suppliers Customers and suppliers (other
than guaranteeing suppliers)
Lowering the starting price Incremental price reduction
during bidding
Depending on
the supplier proposals
Comparative table of the public e-procurement methods
Transparency
EffectivenessBidding, contract awarding to bid-winners (suppliers), drafting
and registration of contracts is done by the software
application of the e-system.
There is a requirement to post the ad in advance (10 days
prior to bidding) (the public procurement system withstands
non-natural limitation of the number of potential suppliers).
The bid-winner is chosen automatically by the IT system
eliminating biased attitude of the customer’s (employer’s)
officers.
III. Achieving transparency and efficiency of public expenditures by
introducing e-Auctions
Anticorruption
mechanism
Speeding up the procurement process
Facilitating the procurement process
Easy to search
Achieving transparency and efficiency of public expenditures by
introducing e-catalogue procurement
# Indicators
Units
of
measure
2011 2012 2013 2014
2015
for 9
months *
1Held
transactions
number
of
transactio
ns
350,189 278,639 249,793 262,293 205,784
2Total of those held
transactions
billion
UZS166.9 347.9 416.8 470.6 347.7
3 Savingsbillion
UZS21.9 81.4 83.0 117.4 101.4
4Average value of a
transaction
thousand
UZS476.5 1,197.3 1,668.6 1,794.0 1,689.6
Information on the results of the e-auctions held in 2011-2015.
(www.mf.uz)
* USD-UZS official exchange rate as of October 1, 2015 (1 USD = 2621.0 UZS)
166,856
347,887.6
416,807.7
470,565.1
347,699.0 350,189
278,639
249,793262,293
205,784
21,918.2
81,432.9 83,013.6
117,367.8 101,448.5
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
2011 год апрель- декабрь 2012 год 2013 год 2014 год 2015 год за 9 м-ц
Сумма состоявшихся сделок (млн.сум) Состоявшиеся сделки Экономия средств по результатам торгов (млн.сум)
A diagram on the results of the e-auctions held in 2011-2015.
# Indicators Units of
measure
July-September
2015 September
1 Held transactions
number
of
transactions
33,129 5,151
2 Total transactionsbillion
UZS31.2 5.8
3Money saved through
bidding
billion
UZS7.7 1.7
4Average value of a
transaction
thousand
UZS941.5 1,120.4
Information on the results of public procurement through the
e-catalogue in June-September 2015
IV. Public procurement development prospects
Adoption of the Law of the Republic of Uzbekistan “On public procurement of goods (works, services)” and other regulations related to its implementation
The concept of further development and improvement of public procurement in the
Republic of Uzbekistan for 2015-2025.
Development of the unified e-procurement information system (the UzEPS system)
Training and qualification upgrades of the employees engaged in public procurement
International cooperation in the field of
e-procurement
Korea Memorandum of Understanding
(MoU) concluded with the Public
Procurement Service (PPS)
Cooperation in the field of
electronic procurement in 2009 with
the Korean International
Procurement Agency in line with the
MoU
UNDP and WB
The Concept Note for further
development and improvement
of public procurement in the
Republic of Uzbekistan for
2015-2025.
Drafting the law “On public
procurement of goods (works,
services)”
France
Collaboration in the field
of public finance
development
Thanks for your attention!