Centralised Procurement Body Officially Launched in Ukraine

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On 7 December 2016 the pilot project regarding the establishment and functioning of the first Central Procurement Body in Ukraine was presented by the EU Project Team in cooperation with the Ministry of Economic Development and Trade

The presentation introduced the strategy and next steps for the first Central Procurement Body (CPB) to be operated by the newly established State Enterprise “Professional Procurement” as a pilot activity to test the centralised procurement mechanism envisaged by the current Law on Public Procurement and the Public Procurement Reform Strategy/ Road-Map (2016 – 2022). The event also provided an opportunity for the Ministry of Economic Development and Trade (MEDT) and its CPB policy team supported by EU experts to discuss the pilot and efficiency expectations from targeted centralised procurement with Ministries and other central government bodies as main clients of the new CPB initiative.

Mrs Liliya Lakhtionova, Deputy Director of Public Procurement Regulation Department, Ministry of Economic Development and Trade, said that “The establishment of centralised procurement in Ukraine, as foreseen by the Action Plan under the Public Procurement Reform Strategy/Road-Map, will considerably simplify many current procedures and save public money by bulk purchasing and help to reduce corruption.”

Mr Andreas Nemec, Chief Executive Officer of Austrian Federal Procurement Agency, said: I am pleased to be here today at the very founding of centralised procurement in Ukraine which has proven to be efficient in the practice of many EU Member States. There is no doubt that a centralised purchasing body is an appropriate solution for tackling many of the problems confronting the Ukrainian public procurement system. There are enough good practice examples in Europe to support this, and academic studies also demonstrate the positive effects centralisation can have. The challenge is to correctly implement the system and to find the right balance between a centralised and a decentralised structure.”

Dr. Eugene Stuart, Team Leader of the EU-funded Project, said: “Today’s launch of centralised procurement is the culmination of a series of earlier Project activities dedicated to promote the introduction of centralised procurement in Ukraine. These included the preparation of recommendations on framework agreements, A Report on EU experience on centralised procurements, and the participation of Project experts in a special working group of the MEDT on designing a pilot project for centralised procurements. The Project was also able to build a close cooperation on this with the Austrian authorities in the course of this work. The centralised procurement initiative is focused on EU best practice and should lead to early expenditure savings and greater efficiency on certain public procurement operations”.

On 23 November 2016, the Cabinet of Ministers of Ukraine approved the establishment of a pilot Centralised Procurement Body (CPB), as envisaged by the Public Procurement Reform Strategy/ Road-Map (2016-2022). The Resolution approves the creation of the State agency “Professional Procurement” which will pilot the CPB initiative up to end-2017 in collaboration with the Secretariat of the Cabinet of Ministers and the Donetsk Civil Administration. It is expected that, after the successful completion of the pilot project, the use of the model will be widened and also used at regional level.

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