Kyiv, 14 of March 2013 PUBLIC PROCUREMENT SYSTEM IN UKRAINE

2 Total procurement in Ukraine in 2012 amounted 500 billions of Ukrainian hryvnia

3 The structure of public procurement in 2012 in terms of funding sources Data of the State Statistics Committee

4 The structure of public procurement in 2012 in terms of customers - the main managers of budgetary funds Data of the State Statistics Committee

5 The structure of public procurement in 2012 in terms of procurement objects Data of the State Statistics Committee

6 Since July 30, 2010 Public Procurement is regulated by the Law of Ukraine "On public procurements"

7 Principles of Procurement  fair competition among participants;  maximum cost efficiency and effectiveness;  openness and transparency at all procurement stages;  non-discrimination of participants;  objective and impartial evaluation of competitive bidding proposals;  prevention of corrupt practices and abuse.

8 State regulation in field of procurement  The Ministry of Economic Development and Trade of Ukraine shall be the Authorized Agency;  The Antimonopoly Committee of Ukraine shall be the complaint review authority.

9 Control in the field of procurement  Chamber of Accounts;  Antimonopoly Committee of Ukraine;  State Financial Inspection of Ukraine;  State Statistics Service of Ukraine. Special functions has of The State Treasury of Ukraine

10 Public Control in the Field of Public Procurement  The public control shall be exercised through free access to all public procurement information to be disclosed in accordance with Law.  Procuring entities and participants, and the Authorized Agency must facilitate involvement of the public in exercising control in the field of procurement according to the Laws of Ukraine "On Associations of Citizens", "On Petitions of Citizens" and "On Information".  Citizens, public organizations and associations thereof shall have no right to interfere with the activity of the Authorized Agency and the procedure for identifying the winner of the bidding by a procuring entity.  Mass media representatives shall have the right to be present during the opening of the competitive bidding proposals. Procuring entities shall provide unobstructed access to the procedure of opening of competitive bidding proposals for mass media representatives upon their demand.

11 Scope of Application of the Law  Law shall apply to all procuring entities and procurements of goods, works and services carried out in full or in part at the expense of public funds provided the cost of the procurement object equals or exceeds UAH 100,000 in case goods or a service (services) are to be procured (for construction - UAH 300,000 ) and UAH 1000,000 in case works are to be procured.

12 Funds of state enterprises  The operation of Law shall apply to state enterprises provided only such enterprises make procurements with public funds (Law No VI dd. Jul. 04, 2012)

13 Non-discrimination of Participants  Domestic and foreign participants shall participate in the procurement procedures on an equal basis.  Procuring entities shall provide equal access for all participants to the procurement information as defined by Law.  A procuring entity may not set discriminatory requirements for participants.

14 Procurement Procedures  open bidding;  two-stage bidding;  request for price quotations;  pre-qualification of participants;  single-source procurement;  electronic reverse auction.

15  Entry into contracts providing for the spending of public funds and/or payment for goods, works and services by a procuring entity before/without performance of procedures defined by Law, shall be prohibited.

16 Disclosure of Procurement Information  An announcement of the any procurement procedure (including a single-source procurement procedure), a protocol of opening of competitive bidding proposals, a notice of acceptance of a competitive bidding proposal or a price quotation, an announcement of the any procurement procedure results must be published in the state official printed public procurement newsletter and disclosed on the web portal of the Authorized Agency.  Competitive bidding documents may be obtained at no cost by every individual / legal entity on the web portal of the Authorized Agency.

17  An announcement of the procurement procedure and procurement procedure results must be additionally placed in the international information public procurement newsletter of the Authorized Agency and on the web portal of the Authorized Agency in English, if the expected value of the procurement object exceeds the amount equal to:  EUR 200,000 in case of goods;  EUR 300,000 in case of services;  EUR 500,000 in case of works.

18 Procurement under Framework Agreements  All necessary regulations for practical use of a procurements under framework agreements adopted in 2012