Business news from Ukraine

Business news from Ukraine

Public procurement through Prozorro Market in 2024 amounted to UAH 30 bln, UAH 3 bln saved – Ministry of Economy

The electronic catalog Prozorro Market allowed the state to purchase goods and services worth more than UAH 30 billion in 2024 and at the same time save almost UAH 3 billion, First Vice Prime Minister and Minister of Economy Yulia Svyrydenko said.

“Since the launch of the tool (Prozorro Market – IF-U), the total amount of procurement has amounted to UAH 42 billion. The savings since the beginning of the instrument’s existence amounted to more than UAH 6 billion. This figure is explained by twice as much competition as compared to other procurement procedures. (…) Big savings are an opportunity for the state to buy more necessary goods. And this is especially important for me as the Minister of Economy: Prozorro Market is also a tool for active participation of Ukrainian producers in public procurement. For example, we were able to purchase more than 800 domestically produced school buses through this tool,” the press service of the Ministry of Economy quoted her as saying.

According to Dmytro Solovy, Deputy Director of Professional Procurement for Development, Prozorro Market is expecting a number of key innovations in the near future, including the introduction of a single electronic document that will combine ready-made contracts and terms of reference based on the constructor principle; expanding the range of complaints against unscrupulous suppliers; simplifying the process of qualifying suppliers; and speeding up the bidding procedure by half – from announcement to contract in three days.

“With the outbreak of full-scale war, Prozorro Market has become a tool that allows us to maintain a balance between transparency and competition on the one hand, and efficiency on the other. The e-catalog now effectively covers the needs of both civilians and the military. More than 90% of all food procured at the state level goes through Prozorro Market. The area of military goods is also developing very actively. Our goal is to make it as easy and transparent to buy a drone as a potato. And we are succeeding – 25 thousand different UAVs have been purchased by customers in the e-catalog in two years. In addition, through Prozorro Market, the military can buy tactical headphones, glasses, remote controls for drones, optical sights, night vision devices, etc.”, said Yevhen Yakubovsky, Director of Professional Procurement.

As part of the national forum “Prozorro Market: win-win for the state and business”, its direct customers – public procuring entities and businesses – shared their experience of using Prozorro Market. These include Fabrika-Kuhnya (Bucha, Kyiv region), Ukrnafta, the National Cancer Institute, the state-owned enterprise Forests of Ukraine, Zhytomyr City Council, etc.

The Ministry of Economy clarified that the further development of Prozorro Market is supported by a new 5-year project called Support for Digital Transformation, funded by USAID and UK Dev. They confirmed further support for the improvement of Prozorro Market and the implementation of best procurement practices within the project.

Prozorro Market has become mandatory tool for food procurement

The Cabinet of Ministers of Ukraine has obliged institutions of education, health care and other state contractors carrying out public procurement for budget funds to buy a number of products from the electronic catalog if their cost exceeds UAH 100 thousand.

According to the Ministry of Economy, Relevant amendments to the decree № 1178 on the peculiarities of public procurement for the period of martial law, the government adopted at a meeting on Friday.

“The Ministry of Economy has analyzed what set of products is most often purchased by educational institutions, medical institutions, and proposed amendments to the current regulations designed to simplify the procurement of such products for customers and suppliers. The electronic catalog procurement mechanism is the most understandable and accessible, so we suggest that customers and suppliers use the electronic catalog when making purchases. The decision will also contribute to the prevention of possible abuses and reduce corruption risks in procurement,” explained Deputy Minister of Economy Nadezhda Bigun.

The list of goods to be purchased through the catalog includes, in particular, meat – chicken, pork, beef, frozen fish, eggs, milk and dairy products including sour cream and kefir, cheese products, beet sugar, pasta, flour and various cereals, vegetables and fruits – cabbage, beets, carrots, apples, potatoes, etc.

The electronic catalog Prozorro Market is part of the reforms in the field of public procurement and allows customers to conduct competitive procurement of typical goods in just nine days, collecting competition twice as high as during the classic tender procedure. The administrator of the catalog in terms of consumer goods, including food products, has been determined by the centralized procurement organization GU “Professional Procurement”.

“Prozorro Market is not only a fast, convenient, safe, with minimal expenditure of resources of the customer procurement method, but also one where the savings are three times higher than in open tenders. The amount of food purchases in the electronic catalog already exceeds 2 billion UAH, and during 2023 every third purchase in the system was made using our tool”, – said the director of the State Institution “Professional Procurement” Eugene Yakubovsky.

It is assumed that if the purchase by electronic catalog by request for proposals did not take place, the customer can conduct a purchase at open tenders, without increasing the expected value of the purchase. Or procurement by request for proposals, taking into account the peculiarities of public procurement during martial law.

By the same decision, the government prohibited the purchase of goods, works and services from individuals and legal entities from the Russian Federation, Belarus and Iran, from companies whose ultimate beneficiaries or owners of more than 10% of shares are citizens of these countries. Exceptions are citizens legally residing in Ukraine; assets of citizens from these countries in the companies-suppliers are transferred to ARMA; goods from the Russian Federation and Belarus are necessary for repair and maintenance of goods purchased before October 19, 2022.

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Cabinet of Ministers has expanded list of medical products that are mandatory for purchase through Prozorro Market

The Cabinet of Ministers has expanded the list of medical products that are mandatory for purchase through the electronic catalog Prozorro Market.

According to the state enterprise “Medical Procurement of Ukraine” (MPU), thus, more than 400 categories of medicines and 92 categories of medical devices will be mandatory for purchase through the electronic catalog.

The relevant changes, enshrined in the government resolution No. 34 regarding medical devices, have already entered into force, while regarding medicines the innovations will be applied from March 1, 2024.

In 2023, more than 1600 customers conducted 13 thousand transactions using Prozorro Market to purchase medicines and medical devices.

The total value of medical goods purchased through electronic catalogs in 2022 amounted to $28 million, in 2023 – $ 2.5 billion.

Prozorro Market electronic catalog works on the principle of the market and is free for customers. With its help, customers can quickly, conveniently and favorably buy products. The medical part of the catalog is administered by specialists from the Ministry of Health.

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