Last year Prozorro system completed procurements valued at UAH 3.6 million, up by 28% YoY. The expected value of procurement increased by almost 70%, to UAH 622 billion, the Deputy Minister of Economy of Ukraine Nadiia Bihun declared.
“Despite the full-scale war, the public procurement sector is developing dynamically as never before. Last year proved that it is possible to reach the level of procurement that we had before the full-scale invasion. Today, about 80% of all public procurement funds are spent through Prozorro. Not only the number, but also the success of procurements and competition have increased. In 2022, 60% of procurements were successful, in 2023 – 68%. The level of competition in 2022 was 1.8, which was the average number of offers per procurement. And last year, it was 2.02,” noted Nadiia Bihun.
In 2023, the number of announced competitive procurements increased by a quarter and reached 400,000, the number of concluded contracts – by 47%, reaching 270,000. At that, the savings on competitive procurement amounted to UAH 42 billion (an increase of 135% compared to 2022).
Food products (35,000 procurements), medicines (28,000), gasoline and diesel fuel (16,000) and electricity (14,000) were procured most often on Prozorro last year.
The Deputy Minister emphasized that in addition to transparency, competition and openness, simplicity and speed of procurement were also important during the war.
“That is why the Prozorro Market tool has been actively developed. With its help, procurement was 15-20% cheaper than under direct contracts,” said Nadiia Bihun.
As a result, in 2023, Prozorro Market was used for procurement for more than UAH 12.5 billion. Over the year, more than 6,000 procuring entities made more than 44,000 purchases in Prozorro Market.
Significant budget savings were achieved thanks to solutions designed to increase the transparency of defense procurement and minimize corruption risks. In particular, the decision obliged defense-contracting authorities to conduct simplified procurement through the Prozorro electronic system.
“Prozorro has managed to find an optimal balance between transparency and security during the war. The decision to open up rear procurement of the Ministry of Defense allowed us to save almost UAH 7 billion. In the future, Prozorro will become even more open while protecting sensitive information,” said Nadiia Bihun.
Last year, the amount of completed defense procurement amounted to UAH 52.4 billion. In total, 11,000 procurements were announced and about 8,000 contracts were concluded. The share of competitive procurement at the expected value reached 85%.
The average number of bids per tender was 2.28. As of the end of 2023, almost 100% of the MoD’s logistics procurement was carried out in the Prozorro system.
The high results in all areas are also due to the work on improving procurement procedures and expanding opportunities for participants. For example, a procurement mechanism based on the rules of international donor organizations was launched. It combines proven donor rules with the standards of transparent and open procurement in Ukraine. This procedure will allow Prozorro to conduct procurement with funds from international organizations, which will, in particular, finance Ukraine’s recovery. Important amendments to Government resolutions No. 1178 and No. 1275 have also been adopted to increase transparency of procedures and return procurement to a competitive environment.
According to Nadiia Bihun, the Ministry of Economy continues to work on improving public procurement procedures.
“We are actively working to harmonize our legislation with the EU and ensure transparent reconstruction of Ukraine. The Ministry of Economy has prepared draft amendments to the Law of Ukraine “On Public Procurement”. The goal of the project is to transfer to regular legislation those initiatives that proved to be effective during the war, to bring our legislation closer to the European one, to create new tools to ensure the efficiency of complex procurement, in particular for the reconstruction of Ukraine,” said the Deputy Minister of Economy. (Government portal)