Summary of the initial audit of the Prozorro Project UKRAINE Mr ADAM JONCZYK, EBRD Consultant 27th of May 2015, Kiev

 A review of Prozorro Project was completed at the request of the European Bank for Reconstruction and Development (EBRD) under the technical cooperation project: Ukraine - Policy Advice for eProcurement Reforms in Public Sector.  The project launched in May 2014 is dedicated to supporting the government in designing, developing and implementing electronic procurement in public procurement sector in Ukraine.  The eProcurement support project is accompanying the technical cooperation project promoting Ukraine’s accession to Agreement on Government Procurement (GPA) of the WTO The review of Prozorro Project

1. Assess business and technology capacity of the Prozorro Project in the Pilot Phase 2. Verify potential for further development 3. Review of compliance with international best practices for electronic procurement in public sector. The objective of the review

What you will find in the review report 1.Scope and objective of the review 2.Methodology & Benchmarks 3.PROZORRO Project Concept 4.The PROZORRO Project in Pilot 5.Functionalities of the Prozorro Project systems 6.Review of compliance with 2014 EU Directive 7.Review of compliance with EU best practice for eProcurement 8.Review of compliance with MDB eProcurement 9.End-user feedback 10.SWOT Analysis of Development Capacity 11.Recommendations

Transparency International (Ukraine) Transparency International (Ukraine) Prozorro Project Stakeholders Platform Operator Platform Operator Agreement Prozorro Project Project Coordinator Project Coordinator National Council of Reforms Ministry of Economic Development and Trade of Ukraine GOVERNMENT

Pilot Project Organisation Project Coordinator Website Transparency International SoftServZen BI RBC Group QuintaGroupMirohost Contract Pro bono Testing of new dedicated software Hosting for Business Intelligence Module Reporting Module Licences and Development Call Center Services Development of new dedicated software & Central Unit Administration

The audit exercise covered business, legal and technology aspects Verified compliance with eProcurement standards included in:  the 2012 text of the GPA of the World Trade Organisation,  the EU Directive 2014/24/UE,  the EU Golden Book of eProcurement Best Practice, 2013  MDB ‘Handbook for e-Government procurement’, Methodology & Benchmarks

StandardPROZORRO Level of Compliance INTEROPERABILITY + TRACEABILITY - SECURITY + PROPORTIONALITY + TRANSPARENCY + Compliance Review: 2014 EU Directives on eProcurement

List of 23 best practices from EU Member States Score of compliant standards Score of non- compliant standards 177 Survey of 46 requirements for good electronic procurement Score of complaint standards Score of non- compliant standards EU best practice for eProcurement 2. International MDB eProcurement standards PROZORRO compliance with international best practice

Recommendations for succesfull completion of the pilot 1. Technical  Software development for closing functional gaps identified in the review  Security audit of the solution is needed upon completion of Pilot 1. Organisational:  Contractual safety of the Prozorro Project has to be assured (better SLAs);  New human resources have to be employed to implement Phase 2 of the pilot in the regions 2. Business:  Funding for completion of the Prozorro Project pilot has to be provided.

Recommendation for Prozorro Project future development  Coordinaton of Prozorro Project development & phasing with legislative work  Business model for financing of the Prozorro Project Central Unit and eProcurement platforms;  Standardization of procurement business process for Contracting Authorities;  Stability of the legal environment.

Thank you for your attention.