REPUBLIC OF ARMENIA MINISTRY OF FINANCE ARMENIAN PUBLIC PROCUREMENT SYSTEM Se rgey Sh a h na za rya n He a d of P u b lic I nt e rna l F ina ncia l Co nt ro l a nd P u b lic P ro cu rement Me t h o do lo gy D e pa rt m e nt A S TA N A , 2 0 1 6 1
MAIN ACTIVITIES IMPLEMENTED IN THE PUBLIC PROCUREMENT • Legal framework and infrastructure - development and improvement • Capacity building • Competitive procurement - increase of the shares and volumes • e-Procurement • Cooperation with the donor and international organization (IFIs) 2
DEVELOPMENT AND IMPROVEMENT OF THE LEGAL FRAMEWORK AND INFRASTRUCTURE • 2000 - Public Procurement Law (PPL), by-laws and institutional arrangements developed in cooperation with USAID • 2004 and 2010 - PPL was revised to incorporate recommendations presented in the assessment reports done by the World Bank and EU SIGMA • 2011 - Armenia - WTO member and signatory of the GPA (1994 version). 2015 - Armenia ratified new version of the GPA (2012 version) • 2015 - Armenia entered Eurasian Economic Union (EAEU) 3
CAPACITY BUILDING • In cooperation and with assistance of the international and donor organizations (WB, EBRD, EU SIGMA, USAID/CLDP and ADB): - needs assessment, development of training materials, manuals and conducting of trainings for the staff of the procuring entities and potential bidders. - study tours to the countries with the advanced Public Procurement systems, participation in the international public procurement forums, seminars and round tables • Training, continuous professional development and accreditation system - are adopted at the legislative level. Currently under discussion - certification of the specialists, involved into the continuous training programs, upon completion each of the training modules/courses • The amendments in the procurement legislation, caused by necessity to meet the international commitments, will require additional trainings for the relevant staff of the procuring entities and prospective bidders • International financial institutions (WB, EBRD, ADB) - organizing trainings for the specialists involved in the implementation of their projects 4
COMPETITIVE PROCUREMENT INCREASE OF THE SHARES AND VOLUMES 2013 2014 2015 State budget (% of total budget) allocated 13.3 11.2 11 for procurement: out of which - competitive procurement 11.3 9.3 9.3 - single source procurement 2.0 1.9 1.7 Average number of bidders per tender 2.7 2.7 3.2 5
E-PROCUREMENT Stage 1 - in 2005 official web site was introduced www.procurement.am. The information available at the site include: - Public procurement Law and by-laws (adopted and drafts); - Procurement Plans ((PP disclosure is compulsory for all procuring entities); - Procurement ads and the amendments, if any, including for the items procured under WB financed projects; - information on the intention to award the contract, contract awards, procurement process cancellation; - complaints and decision made on the complaints. The Appeal Committee's sessions are open and available for online access. - the list of the companies debarred from participation in the public procurement; - Public procurement reports (quarterly and annual); - Procurement process monitoring reports; - Training programs; - List of the procurement accredited staff. 6
E-PROCUREMENT • Stage 2 - introduced e-Procurement system ARMEPS (www.armeps.am) developed under the WB - financed project. The following procurement methods conducted via electronically: 2012 - open bidding; 2014 - framework agreements; 2015 - simplified and competitive negotiation • 2015 - e-procurement system under the WB financed project was supplemented with the three additional modules for: - Procurement planning; - Monitoring and reporting; - Contract administration. • 2016 (planned) - start using the ARMEPS for WB financed NCB procurements (given the 2014 Bank's positive assessment of the e- Procurement system). In May of 2016 training for PIU staff on ARMEPS 7
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PARTICIPANTS REGISTERED IN THE E- PROCUREMENT SYSTEM 2012 2013 2014 2015 Total Number of companies registered In the 1000 425 1130 1863 4418 ARMEPS e-Procurement system 11
COOPERATION WITH INTERNATIONAL AND DONOR ORGANIZATIONS • USAID - in 1999 development of the first Public procurement Law; • The World Bank - in 2004 and 2009 - Country Procurement Assessment Report (CPAR). Based on the recommendations done in the CPAR 2004 and 2009 the PPL was amended in 2005 and 2010 Procurement Regulations For Borrowers (2016) - Armenia participated in Consultations with External Stakeholders (2014) - Para. 2.3 “.. the Bank may agree to rely on and apply the procurement rules and procedures of an agency or entity of the Borrower…” 12
COOPERATION WITH INTERNATIONAL AND DONOR ORGANIZATIONS • EU SIGMA - in 2008 and 2013 - joint assessment of the Public procurement system. - PPL 2010 incorporated recommendations in 2008; - PPL 2015 (draft) incorporated recommendations in 2013 EBRD - UNCITRAL Public Procurement joint Initiative - GPA Technical Cooperation Facility - Series of capacity building session- - Two main directions: legislative amendments and electronic procurement reform - Assessment of the e-procurement system. ADB 2014 - Procurement Reform Scoping Exercise in the frames of the Developing Procurement Capacity For Improved Procurement 13
THANK YOU FOR ATTENTION! 14
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