Improvement of the Public Procurement System in the Republic of Uzbekistan

Improvement of the Public Procurement System in the Republic of Uzbekistan

Current Legal Framework Order of Cabinet Ministers No. 242 of 27.07.2016 (special information portal) Government Decree 1475 of 07.02.2011 (electronic public procurement), Government Decree 1948 of 05.04.2013 (electronic corporate procurement) Order of Cabinet Ministers No. 456 of 21.11.2000 (traditional tenders equipment, goods) REGULATIONS Decree of Cabinet Ministers No. 69 of 26.03.2015 (purchases using electronic catalog) Order of Cabinet Ministers No. 302 of 03.07.2003 (traditional tenders in capital construction) PKM 166 of 11.07.2013 (reverse auction) No Law on Public Procurement

Current System of Public Procurement Procurement in electronic form Electronic reverse auction ($ 300 100,000 according to the list) Electronic catalog (up to $ 100,000 according to the list) Purchase in the traditional form Tender (competition) (over $ 100,000) Direct contracts (up to $ 100,000, not on the list) Selection of bids (up to $ 100,000, not on the list)

Amount of Public Procurement using eauction and Catalog (bln UZS) 2011 2011 2012 2013 2014 2015 2016 Turnover Savings

Number of Suppliers Participating in etrading 2011 2012 2013 2014 2015 2016

Level of Competition in etrading (number of suppliers applying per lot) 2011 2012 2013 2014 2015 2016

Main Directions of Public Procurement System Improvement Improvement of Legal Framework Further Introduction of ICT Development of Public Procurement Infrastructure

Improvement of Legal Framework Adoption of the Law On Public Procurement Adoption of By-laws The draft law has been prepared, approved by the ministries and departments, underwent public discussions after posting on the single interactive public services portal. Several dozen proposals received from representatives of budgetary organizations and business structures. It will be considered by the Legislative Chamber and the Senate in the second half of this year. BASIC PROVISIONS: Approval of the procurement principles. Expansion of electronic forms of procurement. Anti-corruption measures. Independent and effective appeal mechanism. Draft Resolution of the Cabinet Ministers On Approving the Concept of Improving Public Procurement in the Republic of Uzbekistan for 2017 2021. NAP projects, regulating the implementation of new electronic methods of procurement. Improvement of the system of appeal (Draft Order of the Cabinet Ministers On Improving the System for Appealing Against Illegal Actions (Inaction) of Officials in the Public Procurement System ). Draft Order of the Cabinet Ministers On Measures to Further Improve the Public Procurement System and Counteract Corruption in their Implementation (automated monitoring of settlements and performance of contractual obligations, organization of internal control of customers).

Further Introduction of ICT Improvement of existing electronic platforms Improvement of platforms of electronic reverse auction, electronic catalog (simplification of registration processes, introduction of EDSs, integration with the clearing and settlement platforms). Introduction of new electronic platforms Implementation of electronic tender platforms, electronic price requests, electronic requests for proposals, registration of direct contracts in the state procurement information system. Interaction of electronic databases of ministries, departments and organizations. Organization of interaction with single-window databases, tax, customs authorities, MOF Treasury, State Committee for Competition, other ministries and departments, banks and insurance organizations to simplify and speed up the registration processes, organize purchases and make payments.

Registration of Direct Contracts in the State Procurement Information System The customer and the supplier enter into a transaction for the supply of goods under the cancellation clause. Registration of the contract (48 hours). The information system sends out an offer to all suppliers with the request to propose the lowest price possible. Suppliers offer lowest prices possible. Suppliers do not offer prices. Rights and obligations under the direct contract are terminated. The contract is concluded with the supplier offering the lowest price. The information system registers the transaction, the price of the contract is recognized as market price, and the contract with the original supplier comes into force. The introduction of a transaction registration system will simplify and accelerate the process of concluding contracts, preserve the traditional ties between the customers and suppliers, and at the same time ensure market pricing and prevent price manipulations.

Development of Public Procurement Infrastructure Establishment of the State Procurement Agency Methodological support of procurement. Training and professional development of personnel. Centralized purchase. Improvement of the Specialized Information Portal Expansion of the portal functionality for users (statistics and analytics, notification of purchases of certain goods, etc.). Improving of the System of Appeal - Establishment of an Appeals Commission (including representatives of the public, media, customers, suppliers, NGOs). - Establishment of a Specialized Arbitration Court (consideration of disputes and disagreements in the execution of contractual obligations). Implementation of an Automated Settlement System - Transfer of the practice of using clearing and settlement mechanisms to the public procurement system (creation of an electronic system for automated monitoring of performance of contractual obligations, electronic payments and remote management of personal accounts).

Improvement of the Specialized Information Portal Legal and Methodological Module Information Module Trading Module Registration and Settlement Module Regulatory Legal Module Placement of announcements, time schedules and results of purchases Electronic Auction Electronic Requests for Proposals Registration in cooperation with databases of ministries Online Learning Module Statistical Analysis Digital Catalogue Electronic Competition Obligations Monitoring Module (delivery versus payment) Appeal Module Price Module Electronic Requests for Proposals Registration of transactions in the state procurement information system Personal Accounts Management Module

What has been Done in the Past 12 Months 1. The issues of combating corruption in public procurement are reflected in Art. 23 of the Law On Combating Corruption. 2. The Government Decision (No. 242 of 27.07.2016) regulating the functioning of a special information portal providing access to the information on public procurement (schedules, announcements, procurement results, information on prices) was adopted. The portal functions successfully. 3. The Draft Law of the Republic of Uzbekistan On Public Procurement has been prepared and practically agreed.

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