EBRD Public Procurement Assessment 5 key questions on eProcurement policies Eliza Niewiadomska Legal Transition Programme European Bank for Reconstruction and Development November 2011

2 The EBRD – fostering transition largest single investor in central and eastern Europe supports infrastructure projects in 30 countries from Central and Eastern Europe and the Caucasus to Central Asia fosters economically and environmentally sustainable transition by supporting development of private sector promotes transparency, accountability, and good governance frequently asked questions HomeHome > About the EBRD > Frequently asked questions [About the E...About the EBRD

3 The EBRD Legal Transition Programme The development of sound legal rules and the establishment of the legal institutions and culture on which a vibrant market-oriented economy depends. Promoting standards and international good practice Conducting legal assessments Developing technical cooperation on national and local government level

4 EBRD Public Procurement Assessment First assessment covering all 29 EBRD countries at the same time Benchmarking to assess compliance with core principles of public procurement and legal efficiency of public procurement regulation Review of public procurement LEGISLATION and PRACTICE Survey of entire public procurement process: pre-tendering tendering post-tendering More than 100 research participants: –contracting entities –local lawyers –procurement experts Online interview database and reports:

5 Towards greater efficiency of Public Procurement eProcurement is a replacement of paper-based public procurement procedures with: 1) ITC workflow (eNotices, eCommunication, eProcedures, eTenders, eRecords, eReporting, eMonitoring) AND 2) ITC procurement tools (eAuctions, eCatalogues, ePurchasing, etc) in order to increase transparency, competition and speed of procurement procedures and to reduce transaction costs for public contracts

6 EBRD 2010 Assessment: Key 5 Questions on eProcurement Does the law provide for an eProcurement platform and the eProcurement tools and require conducting procurement procedures electronically? In the EBRD 2010 Assessment we looked at: 1)What LEGAL FRAMEWORK provides for? 2)What is implemented IN PRACTICE? 3)What eProcurement solutions are mandatory to use and which are only facultative for contracting entity? 4)What is made available to public sector ready to use by the government regulatory agency: eProcurement platform or individual eProcurement tools? 5)What is practice of contracting entities, if eProcurement solutions are not made mandatory by policy-makers?

7 eProcurement in the EBRD region

8 eProcurement : lessons learned about legislation and market practice EBRD region: Slowly emerging but fragmented legislation Different levels of commitment from national governments Not the same approach of contracting authorities and contracting entities in the utilities sector eProcurement tools can be made available by law, but if not accompanied by a mandatory use of the eProcurement workflow are not used in practice Specific eProcurement tools can be provided by law and accessible in practice, but if not mandatory are not used Based on the 2010 research, we believe that a key policy issue is conducting procurement procedures electronically, not making eProcurement tools available by law and accessible in practice 05/12/2015

9 Key Questions on eProcurement: Another 5 questions on conducting procurement procedures electronically 1)eNotices: Does the law require notices on procurement opportunities to be readily accessible online to the public, until expiry of tender submission deadlines, preferably free of charge? 2)eProcedures: Does the law require tender documentation to be readily accessible online to the public, preferably free of charge? 3)eCommunication: Is it mandatory for contracting entities to accept electronic communication from tenderers? 4)eTenders: Does the law allow to submit tenders online, without the need for certified signatures? 5)eRecords: Does the law require contracting entities to record procurement decision in a real time and ensure that procurement records are readily accessible online to the public, preferably free of charge? 05/12/2015

10 5 Questions on eProcurement: eNotices 5 Key Questions on eProcurement - eNotices A STANDARD, BUT SOME IMPLEMENTATION PROBLEMS eNotices – online publication of notices by law and in practice in the EBRD region

11 5 Key Questions on eProcurement - eCommunication eCommunication – availability of electronic communication by law and in practice in the EBRD region A STANDARD BY LAW, NOT IN PRACTICE

12 5 Key Questions on eProcurement - eTenders eTenders – online submission, with no certified signature, by law and in practice in the EBRD region NOT YET A STANDARD BY BOTH LAW AND PRACTICE

13 5 Key Questions on eProcurement - eProcuredures eProcedures – online access to tender documentation by law and in practice in the EBRD region NOT YET A STANDARD BY LAW. AND PRACTICE?

14 5 Key Questions on eProcurement - eRecords eRecords – online access to records on procurement decisions by law and in practice in the EBRD region NOT YET A STANDARD BY LAW, EVEN LESS IN PRACTICE

15 eProcurement leaders in the EBRD region Albania Georgia Turkey FYR Macedonia Armenia Estonia Lithuania Romania Kazakhstan Accessibility ensured by a Single Central Government Platform Limited number of procedures Transparent allocation of roles Post-qualification, or prequalification limited to essentials due to integration with eGovernment Workflow ONLY for tendering Limited procurement tools Successful, when made mandatory for all contracting entities in the public sector Common Trends

16 How can international donors support eProcurement reform? Promoting long-term investment in developing eProcurement workflow and eProcurement tools by: Building political commitment by setting standards Supporting sound business, legal and technology decisions Advocating openness in redefinition of procurement eligibility rules and prequalification procedures Building awareness that technology can be used to the process advantage – simplification of procedures Facilitating a ‘technology neutral’ public procurement legislation Assisting in eProcurement reform development and implementation projects

17 Thank you for your attention. Eliza Niewiadomska Legal Transition Programme Office of the General Counsel European Bank for Reconstruction and Development

18 Tips for eProcurement policy reform Availability and accessibility of the eProcurement workflow and tools 05/12/2015