REPUBLIC OF ARMENIA MINISTRY OF FINANCE
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1 REPUBLIC OF ARMENIA MINISTRY OF FINANCE ARMENIAN PUBLIC PROCUREMENT SYSTEM Sergey Shahnazaryan Head of Public Internal Financial Control and Public Procurement Methodology Department ASTANA,
2 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
3 DEVELOPMENT AND IMPROVEMENT OF THE LEGAL FRAMEWORK AND INFRASTRUCTURE Public Procurement Law (PPL), by-laws and institutional arrangements developed in cooperation with USAID 2004 and PPL was revised to incorporate recommendations presented in the assessment reports done by the World Bank and EU SIGMA Armenia - WTO member and signatory of the GPA (1994 version) Armenia ratified new version of the GPA (2012 version) Armenia entered Eurasian Economic Union (EAEU) 3
4 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
5 COMPETITIVE PROCUREMENT INCREASE OF THE SHARES AND VOLUMES State budget (% of total budget) allocated for procurement: out of which - competitive procurement single source procurement Average number of bidders per tender
6 E - PROCUREMENT Stage 1 - in 2005 official web site was introduced 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
7 E - PROCUREMENT Stage 2 - introduced e-procurement system ARMEPS ( developed under the WB - financed project. The following procurement methods conducted via electronically: open bidding; framework agreements; simplified and competitive negotiation e-procurement system under the WB financed project was supplemented with the three additional modules for: - Procurement planning; - Monitoring and reporting; - Contract administration (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
8 E-PROCUREMENT 8
9 E-PROCUREMENT 9
10 E-PROCUREMENT 10
11 PARTICIPANTS REGISTERED IN THE E- PROCUREMENT SYSTEM Total Number of companies registered In the ARMEPS e-procurement system
12 COOPERATION WITH INTERNATIONAL AND DONOR ORGANIZATIONS USAID - in 1999 development of the first Public procurement Law; The World Bank - in 2004 and 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 the Bank may agree to rely on and apply the procurement rules and procedures of an agency or entity of the Borrower 12
13 COOPERATION WITH INTERNATIONAL AND DONOR ORGANIZATIONS EU SIGMA - in 2008 and 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 Procurement Reform Scoping Exercise in the frames of the Developing Procurement Capacity For Improved Procurement 13
14 THANK YOU FOR ATTENTION! 14
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