Public Procurement Department under the Ministry of Finance of the Kyrgyz Republic Application of E-Procurement Data to Measure Transparency and Efficiency of Public Expenditure Bishkek 2015
PUBLIC PROCUREMENT IN KYRGYZ REPUBLIC
PUBLIC PROCUREMENT IN KYRGYZ REPUBLIC Priority Initiatives of Kyrgyz Government: • Ensuring openness; • Transparency; • Fairness .
PUBLIC PROCUREMENT IN IN KYRGYZ RE REPUBLIC Public Procurement System in Kyrgyz Republic: 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 Legislation and Regulations : • 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 Transition to E-Procurement: Goals and Objectives • 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.
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 of 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 4500 5722 4000 3500 3000 2500 2000 1500 1634 1000 500 0 Procuring entities Vendors
Kyrgyz Official l Public lic Procurement Portal Published Ads Statistics: Sep-15 12.285937 Aug-15 6.103218 Jul-15 7.428332 Jun-15 6.243417 May-15 4.359477 Apr-15 8.271915 Mar-15 2.759197 Feb-15 1.155805 Jan-15 0.739601 Dec-14 0.573891 Nov-14 0.167671 Oct-14 0.08076 Sep-14 0.04165 Aug-14 0.01475 Jul-14 0.05736 Jun-14 0.026069 0 1 2 3 4 5 6 7 8 9 10 11 12 13 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
PUBLIC PROCUREMENT IN IN THE KYRGYZ RE REPUBLIC Ads by Procurement Method (based on the new Law) Simplified 13 702 842 522,38 Direct contracting Single-stage Least-cost selection 1 163 716,02 Procurement Methods Number Amount 1 367 987 860,23 Single-Stage 2745 13 702 842 522.38 Two-Stage - - 961 841 808,88 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 (thousand KGS) As of 2013 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 0 14 906 0 0 Consulting Services 8 19 495 0 0 19 495 0 Request for Quotation 1 678 1 519 832 39 1 519 832 0 0 Single-Source 183 532 439 4 241 425 233 228 57 786 As of 2014 (Latest Update) Total amount of conducted tenders Procuring Entities Number (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 0 Consulting Services 1 5 007 0 5 007 0 Request for Quotation 1 342 1 160 836 1 160 836 0 0 E-Procurement 24 218 798 218 798 0 0 Single-Source 144 2 262 283 2 108 043 87 472 66 768 As of October 1, 2015 (Latest Update) Total amount of conducted tenders Procuring Entities Number (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 0 0 0 0 0 0 Consulting Services 0 0 0 0 0 0 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 0 0 0 0 0 0 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 over 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 over 9 months of 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.
PUBLIC PROCUREMENT IN IN KYRGYZ RE REPUBLIC Recommendations and Future Plans - 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 Thank you!
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