1 «Public Procurement System of the Republic of Azerbaijan» Elshad Samedzade PhD Web-site:

2 State Procurement Agency of the Republic of Azerbaijan welcomes the participants of the 7 th Regional Public Procurement Forum!!!

3 Legal base of public procurements The State Procurement Agency (SPA) was established under Decree No.583 by the President of the Azerbaijan Republic dated May 16, 1997 to carry out state policy in the field of procurement of goods (works and services) purchased by state funds. SPA’s duties were determined by the Charter approved by Decree No.855 by the President of the Azerbaijan Republic dated February 20, 2003 according to the requirements of article 4 of the Law “On public procurements”. The Law “On Public Procurements” was adopted by the Milli Mejlis (The Parliament) of the Republic of Azerbaijan in December 27, 2001 and came into force under the Decree No. 668 of the President of the Republic of Azerbaijan, dated January 29, 2002 “On application of the Law on Public Procurements”. The Present Law addresses the procurement of goods (works and services) fulfilled in the Republic of Azerbaijan by state enterprises and organizations (administrations), as well as, those enterprises and organizations, having 30 or more percent of state share in their charter fund, at the expense of state funds, loans and grants obtained by the state or received under the state guarantee.

4 Agency’s Duties SPA is charged with the following duties: establishment and improvement of the normative-legal base regulating public procurement in the Republic of Azerbaijan; ensuring control over the legality of procurement of goods (works and services) purchased by state funds on the basis of tender and implementation of contracts; carrying out measurements as provided by the existing legislation to improve the qualification level of specialists of procurement organizations in the field of public procurement; creation of a public procurement data base, as well as the implementation of other duties as determined by the legislation of the Republic of Azerbaijan.

5 Organizational Chart of the Agency Director General Department Economic Sector Department of Regulation of Procurement of goods (works and services) Sector of Electronic Database Formation Department of Economic Analysis and Control Sector of Economic analysis Department of Training Organization, International Relations, Law and Hearing Complaints Sector of International relations Finance sector Chief of StaffDeputy Director

6 Procurement Methods Public Procurement of goods (works and services) in the Republic of Azerbaijan is carried out by using following methods in accordance with the application conditions mentioned in the articles of the existing Law: Open tender; 2-staged tender; Tender with limited participation; Closed tender; Request for proposals; Request for Quotations; Single-source procurement.

7 Rules to implement procurement Any resident or nonresident legal and/or physical persons or association of legal persons irrespective of their state belongings they can participate as a bidder in the procurement procedures carried out in the Republic of Azerbaijan. According to the Decree, all public procurement in the amount of 50 (fifty) thousand AZN and more must be carried out through open tender. If the proposed amount of the purchased goods (works and services) are 300 (three hundred) thousand AZN (or equivalent amount in free convertible currency), then representatives from the Ministry of Finance, Ministry of Economic Development of the Republic of Azerbaijan and representatives of respective central executive authorities relating to the tender subject are included to the composition of tender committee.

8 Trainings SPA organizes trainings on “public procurement” which are regularly held for employees of the ministries, committees, institutions and organizations as well as employees of departments of education, health, culture, local executive authorities, municipalities of the cities and regions of the Republic of Azerbaijan to improve the qualification level of specialists involved in public procurement procedures from procurement organizations.

9 Participation of foreign contractors, including EU countries in the public procurement system of the Republic of Azerbaijan. Foreign companies from countries, such as EU, USA, Japan, China, Ukraine etc. also are suppliers in the procurement system in the country. The companies that can be mentioned as examples out from EU countries are: French company, which is involved in construction of Baku Waste-to- Energy Plant (total sum is 408,280 million euros), Swiss company, which is implementing the construction of the first Mountain-Ski Resort “Shahdagh” (total sum of the contract is over 350 million euros), German companies mostly supply medical equipment, pharmaceutical goods, transport facilities and agricultural equipment. Azerbaijan’s first national satellite to be build by american company Orbital Sciences Corporation (total sum is 165 million USD).

10 Dynamics of performance of state procurement contracts based on the reports submitted to the State Procurement Agency in years (in thousand manats)

11 Ratio of total amount of implemented public procurements according to each corresponding financial source in 2010 (in thousand manats)

12 Thank you!