Monday, October 5, 2015

Oleg Vyshniakov - Ukraine and Israel. Public procurement becomes transparent.


Recently the President of Ukraine Petro Poroshenko signed a procurement law. The reform is crucial and needful for our country!

The core of the initiative is to make information about public tenders more transparent and accessible. From now on, each of us can view on-line tender pricing, the list of participating companies’ owners and tender evaluation report. Full documentation package will be submitted only by potential winners and nobody can demand from participants the information which is already public.

Such reform would eliminate corruption in public procurement schemes in Ukraine. Cost savings will be hundreds thousands of dollars per year! Most developed countries have already implemented such mechanism in their tender system.

Besides, the Act will allow Ukraine to join the so-called Agreement on Government Procurement (GPA) within the WTO. GPA’s requirements of public procurement transparency are very high. Thereafter signing of the document will improve efficiency of the national tender system.
Israel joined the GPA in 1996. And that is what the state got.

First of all there is reduction of corruption by several times.

Secondly there is quality improving of final public services.

Thirdly there is a market access to public procurement in other countries (according to experts total amount is about 1.7 trillion $).

I hope that in the near future Ukraine can maintain its reputation and be on a par with such giants of effective public procurement system as Japan, Switzerland, the United States or Israel. Enactment of the relevant law is only the first step towards the aim.

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