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PUBLIC PROCUREMENT SYSTEM IN UZBEKISTAN. D. Pulatov Head, Unit for Registration of Financial Liabilities and Payments Operation Department, Treasury Ministry of Finance, Republic of Uzbekistan. Public Procurement Concept.

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public procurement system in uzbekistan

PUBLIC PROCUREMENT SYSTEM IN UZBEKISTAN

D. Pulatov

Head, Unit for Registration of Financial Liabilities and Payments

Operation Department, Treasury

Ministry of Finance, Republic of Uzbekistan

public procurement concept
Public Procurement Concept

“Public procurement is the procurement of goods that is partially or fully financed from the public funds”

Resolution of the Cabinet of Ministers #397 dated August 14, 1997

Public Funds – funds of the State Budget, extra-budgetary funds, funds of state unitary enterprises, and public grants.

The Civil Code does not contain definition of the procurement for state needs, however it outlines the definition of state contract

public procurement legal framework
Public Procurement Legal Framework

Civil Code of the Republic of Uzbekistan

  • Clause 4. State contract for supply of goods

Resolutions of the Cabinet of Ministers:

  • #307 dated July 03, 2003 On Improvement of Competitive Bidding in Major Construction Works;
  • #456 dated November 21, 2000 On Measures Aimed to Improve Organization of Tenders;
  • #136 dated April 8, 2000 Procurement of Staple Foods for State Needs in 2000 and annexed Procedure of Procuring Staple Foods for Social Sphere Institutions,Special Consumers and State Reserves;
  • #454 dated September 26, 1997 Supply of Food Products for State Needs and annexed Procedure of Organization of Tenders for Importing Food Products for State Needs;
  • #397 dated August 14, 1997 Improvement of the System for Procuring Staple Foods for State Needs, and a number of other regulations.
public procurement process
Public procurement process

Public procurement process consists of 4 elements:

  • Procurement planning
  • Arrangement of procurement
  • Contract signing and execution
  • Control
public procurement planning
Public Procurement Planning

Public procurement planning takes place in the process of budgeting for the forthcoming period and detailed designing of investment programs (by specific areas) that are partially or fully financed from the public funds.

  • Preparing and submitting budget requests to the finance bodies;
  • Approval of the State Budget and dissemination of budgetary allocations to spending units;
  • Registration of cost estimates grouping them by types of goods, works and services to be procured with no indication of nomenclature;
arrangement of procurement
Arrangement of procurement

Public procurement agencies take care of procurement process and selection of supplier independently through:

  • Direct contracts;
  • Fairs and exchange auction;
  • Open or restricted competitive bidding (tender).
contract signing and execution
Contract signing and execution
  • Contract signing
  • Direct contracts – on the terms and subject to conditions agreed by parties.
  • Fairs and exchange auction – in line with rules of fairs and exchange auctions (contracts are to be signed within 5 days from the date of tendering)
  • Competitive bidding – in line with legislation regulating specific procurement types and areas. The timeframe for contract signing is not stipulated in all the documents. According to the Civil Code the period for signing the contract should not exceed 30 days.
  • The procurement agencies individually monitor timely execution of the contract and its quality.
  • Payments under the contract are effected once the contract is registered at the Treasury.
public procurement control
Public Procurement Control

Preliminary control

  • Finance bodies, at the time of cost estimate registration
  • State Committee of Architecture and Construction, at the time of reviewing the bidding documents.
  • Ministry of Economy, at the time of selecting the projects to be included into the investment program.
public procurement control10
Public Procurement Control

Ongoing control

  • MFERI&T – at the time of signing import contracts (review of import contracts).
  • Finance bodies, at the time of financing procurement expenses.
  • Treasury, at the time of contract registration (legal and financial liabilities).
  • State Committee of Architecture and Construction, starting from arrangement of competitive bidding and up to commissioning.
public procurement control11
Public Procurement Control

Follow-up control

  • Supervision and Auditing Department (KRU), Ministry of Finance
  • Prosecutor's Office
  • Chamber of Accounts