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e -Procurement in Georgia Everyone sees everything Tato Urjumelashvili, CSPA

e -Procurement in Georgia Everyone sees everything Tato Urjumelashvili, CSPA Tbilisi, September, 2012. Where we started. SPA office. January 2010. Collection of documents from state bodies (paper tenders). Waste of administrative resources. Service agency of mia. Notary. courts.

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e -Procurement in Georgia Everyone sees everything Tato Urjumelashvili, CSPA

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  1. e-Procurement in Georgia Everyone sees everything Tato Urjumelashvili, CSPA Tbilisi, September, 2012

  2. Where we started SPA office. January 2010

  3. Collection of documents from state bodies (paper tenders) • Waste of administrative resources Service agency of mia Notary courts • Waste of paper Tax Department Tender proposal • Waste of money Qualification docs • Waste of time Bidder NATIONAL AGENCY OF PUBLIC REGISTRY Commercial banks Other state agencies Procuring Entity

  4. Paper tenders and “geographical inequality” • Limited access to information • Bidders had to make at least 4 physical visits to procuring entity, • and the winner – an additional 5th visit to sign a contract • High compliance costs • High transaction costs 20 mln paper copies – in last 5 years Procuring entity

  5. Side effects of paper tenders High risk of corruption Non-reliable data Failing procurement system Restricted competition Geographical inequality High compliance costs Lack of transparency

  6. What we wanted • Transparency • Non- discrimination • Fair evaluation • Streamlined and easy to follow procedures ..and get rid of papers!!!

  7. Two options Off-the-shelf solutions In-house development • Cost • Cost • Approx. • $ 10 mln • Less than • $ 1 mln

  8. Second option: Georgian alternative • S/W $ 150 000 • H/W $ 500 000 • BI $ 70 000 • Website $ 10 000 • Communication campaign $ 30 000 Sleepless nights  not counted

  9. Pace of the reforms • January 2010. Started with legal amendments and design of the e-procurement system • August 2010. E-procurement system launched in test mode • October 2010. First e-tender announced • December 2010. Paper tenders abolished. Only e-tenders allowed • September 2011. 10 000 registered users • October 2011. $ 100 mln savings generated • December 2011. Bilingual system was introduced • May 2012. 13 339 registered users • September 2012. $ 198 mln savings generated • More is coming !!!

  10. What we got Everyone sees everything • Bidders do not make physical visits to procuring entity. Only • the winner once visit procuring entity to sign a contract No physical visits Minimum transaction costs Geographical “inequality eliminated” Increased competition Maximum efficiency Procuring entity Fair evaluation Electronic dispute resolution Minimum paperwork

  11. Georgian Electronic Government Procurement - Ge-GP

  12. Some features of Ge-GP

  13. Ge-Gp business process in brief

  14. Bilingual system. Georgian - English System prevents mechanical and procedural mistakes System provides subscription andinternal messaging options Yes Yes Yes No Yes No All activities are logged Integrated appeal mechanism Electronic payments module/ linkage with State Treasury

  15. Everyone sees everything

  16. DRB Business Process

  17. Data on DRB activities

  18. CPV Codes

  19. How we built it Transparent & Efficient System of State Procurement (in 1 year !!!) Mainstream Alternative: • Elaboration of a strategy (1 year) • Dialogue with the interested parties • Elaboration of an action plan/introduction (1 year) • Implementation (3 years) Consolidated team – unified views and values Unilateral liberalization of procurement market for foreign bidders Clear and well articulated political will Maximum transparency – “everyone sees everything” Visionary approach – no special rigid strategy Too long and too expensive for us (what about you ?) Non-discrimination & fair evaluation Correction during the implementation – return to the reforms several time Streamlined, easy-to-follow procedures

  20. What we learned • Reform boldly, broadly and communicate • Start small and leverage on demonstrable results • Businesses love change they understand • More transparency – less corruption • Streamline then automate • Simplicity is power • Keep on identifying the next biggest binding constraint, reform in series • Reform unilaterally, don’t wait for reciprocity • Communicate reforms… Results inspire

  21. Assessment by Others • UN- United Nations Public Service Award, 2nd place, in the category of “Preventing and Combating Corruption in the Public Service”,2012 • EBRD - “In the Eastern European countries, including Georgia and Russia, the basic policy features of public procurement are in place. However, only Georgia scored a high compliance rate, as most integrity safeguards and procurement efficiency instruments recommended by international best practice were adopted in Georgia in 2010”… • Transparency International Georgia - "In the past year, we have seen the successful introduction of an electronic, transparent procurement system, which has been a very positive development” . • European Parliament, Committee on International Trade - “Welcomes Georgia’s new procurement system, enabling e-auctions for all types of contracts, irrespective of their size or nature; points out that Georgia should also serve as an example for the EU Member States in this area”.

  22. Thank you for your attention! 28 Pekini Ave., Tbilisi 0160, Georgia e-mail: info@procurement.gov.ge

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