1. Presentation of public procurement system of Kyrgyz Republic
State Commission on Public Procurement and Material Reserves under the Government of Kyrgyz Republic
Presentation of public procurement system of Kyrgyz Republic

2. Legal framework
The President’s Edict as of January 29, 1997 “On Establishing of the State Agency on Public Procurement under the Government of Kyrgyz Republic»
The President’s Edict as of December 28, 2000, №363 “On reorganization of central government bodies”. The State Commission on Public Procurement and Material Reserves under the Government of Kyrgyz Republic is established.

3. The main goal of the State Commission
Ensuring the effective use of state funds, foreign credits and grants in the procurement of goods, works and services

4. The main tasks and functions of the State Commission
Development of normative legal framework for public procurement system functioning, which includes the procurement procedures, awarding of contracts and payments thereunder;
Coordination and regulation of the activity of State bodies in carrying out the procurement of goods (works and services) at the expense of state funds, foreign credits and grants;

5. The main tasks and functions of the State Commission
The control over state bodies on observance of the KR’s legislation on public procurement;
Assisting to State bodies in carrying out the procurement, including the training of personnel on procurement procedures and providing consultative assistance;
Ensuring the transparency and openness in procurement proceedings.

6. -procuring department -tender commission
Organizational structure of public procurement system in Kyrgyz Republic
State Commission on Public Procurement and Material Reserves under the Government of Kyrgyz Republic
Procuring entities:
-procuring department
-tender commission

7. Management structure of the State Commission
Consultative
committee – 11 people
The chairman
Board – 9 people
Public Procurement
Administration Unit – 21 p.
Vice-chairman
State Fund of
Material Reserves
(self-financing)
Legal department
Total on the budget – 69 p..
Oversight and
monitoring department
Department of analyses
and personnel policy
8 Regional
departments
– 46 p.
Regional Training Center
(self-financing)
Informational Publishing Center
(self-financing)

8. Procuring entities
Republican budget – ministries, departments, state commissions established at the expense of state funds.
Local budget:
Oblast budget- oblast entities;
Rayon budget- rayon entities;
Aiyl-okmotu budget- schools, kindergartens;
• Credits and grants provided under the KR Government’s guarantees – state entities;
• Joint stock companies with state share more then 51%, state enterprises and Foundations established at the expense of state funds;

9. I. Development of the normative legal framework for public procurement system functioning
Law of the Kyrgyz Republic “On Public Procurement of goods, works and services” as of May 13, 1997
Amended as of November 28, 1998
The new Law on Public Procurement was adopted on May 24, 2004

10. I. Development of the normative legal framework for public procurement system functioning
The goals of the present law are as following:
Ensuring of maximum economy and efficiency of the procurement
Expanding the participation and development of competition among suppliers
Guaranteeing the fair attitude to all suppliers
Ensuring the openness of procurement procedures

11. The main amendments to the Law “On Public Procurement”
The present law consists of 10 chapters and 69 articles;
The World Bank’s, World Trade Organization’s and European Union’s remarks and suggestions were taken into account in the new version of the law;
The funds of joint stock companies with state share more then 51%, state enterprises, funds of foundations established at the expense of state funds were included in the term “state funds” ;
The consultative services are included as well, chapters 6-7 consisting of 19 articles;
Restriction on participation in tendering based on state nationality was removed;

12. The main amendments to the Law “On Public Procurement”
Benefits to the internal suppliers (contractors) are envisaged;
The procuring entity establishes the department and for each tendering proceeding the separate tender commission;
The amount of bid security has been reduced to 3%;
The deadline for submission of tenders for the tendering with limited participation is shortened to 3 weeks.

13. Main principles of the Law on Public Procurement
Paragraph 2, article 2
This law does not regulate procurement directly connected with the state security, national defense, protection of the state secrets and natural disasters, the guidelines for which shall be determined by the Government of Kyrgyz Republic.
Paragraph 1, article 3
The procuring entity upon the agreement with the State body may grant benefits up to 20% while evaluating tender bids for goods, produced on the territory of Kyrgyz Republic in comparison with tender bids for goods of foreign production, and also 10% for works on proposals of internal suppliers in comparison with proposals of foreign firms.

14. Main principles of the Law on Public Procurement
Paragraph 1, article 13
The procuring entity entrusts one of its departments to organize tendering procedure (hereinafter – department) and establishes a separate tender commission for each single tender.
Paragraph 1, article 17
Public procurement is conducted by the following methods:
tendering with unlimited participation;
tendering with limited participation;
two-stage tendering;
request for quotation;
single-source procurement

15. Main principles of the Law on Public Procurement
Paragraph 1, article 25
The bid security amount must not exceed 3% of the value of goods, works and services offered by the suppliers (contractors) in their bid. The period of validity of the bid security must be not less than 2 weeks period after the expiration of bid validity term.
Article 40
Procurement of consultative services is conducted by the following methods:
By quality and cost;
By quality;
In conditions of fixed budget;
by the least price;
Individual consultants.

16. Main principles of the Law on Public Procurement
Paragraph 3, article 62
If the procuring entity rejects the claims or does not reply during the determined period of time, supplier (contractor) has the right to petition to the Arbitration, if the arbitration clause has been included in the contract, otherwise to the court of general jurisdiction.

17. Main normative legal acts regulating public procurement
«Provision on the State Commission on public procurement and material reserves under the Government of Kyrgyz Republic»
«The procedure of procurement of goods, works and services, connected with the state defense, state security, protection of state secrets and liquidation of natural disaster consequences»
«On approval of threshold amounts in public procurement proceedings»

18. Main normative legal acts regulating public procurement
Provision «On tender and tender commission»
- The sample of announcement of the opening of tenders;
- Announcement on contract awarding;
- The list of documents to be submitted to the State Commission on Public Procurement
«Provision on procedure of reviewing of administrative violations and imposing of sanctions for the violation of the legislation on public procurement of goods, works and services»
«Provision on establishing the database of unreliable suppliers (contractors) and the procedure of its use»

19. Main normative legal acts regulating public procurement
«Standard tender documents on procurement:
Goods by method of unlimited and limited tenders;
Works by method of unlimited and limited tenders;
Goods and works for small and medium size volumes;
Consultative services;
On service maintenance of office equipment
The model of minutes of procurement procedures (goods, works and services).

20. II. Coordination and regulation of the activity of state bodies on public procurement of goods (works and services) at the expense of state funds, foreign credits and grants
Agreement on method of public procurement, constituted by the pubic procurement legislation;
Forming of plan of public procurement of goods, works and services, according to the submitted data of entities within the limits of budget financing in republican and local budgets;
Conducting the quarter, annual analysis of state funds use in republican and local budgets.

21. The elements of public procurement system
Analysis of republican budget use for 2004 (million, soms)

22. The elements of public procurement system
Analysis of tenders in 2004 comparing to 2003

23. The elements of public procurement system
Procurement of goods, works and services
by procurement methods for 2004 (million, som)

24. The elements of public procurement system
Procurement of goods, works and services by expense items for 2004 (million, soms)

25. III. The control on observance of public procurement legislation by state bodies of KR
The instruction of conducting the monitoring over the procuring entities on observance of Pubic Procurement Law and other public procurement related legal acts;
The monthly control scheme is composed annually;
In case of violations of the public procurement legislation the administrative sanctions are applied according to the Administrative Code of Kyrgyz Republic .

26. Academic institutions
IV. The procurement training of the representatives of procuring entities and suppliers (contractors)
State entities
Regional Training Center under the State Commission on public procurement
Private sector
n/a
Academic institutions
Kyrgyz Technical University named after Razzakov conducts the training course «Project analysis and project management» (114hours)
В настоящее время обучением по процедурам государственных закупок проводит Региональный Учебный Центр Госкомиссии.
Кроме РУЦ, в Кыргызской техническом университете, проводится курсы «Проектный анализ и управление проектами», где из 114 часов 28 часа составляют лекции по процедурам закупок.

27. Regional Training Center
It is the only educational institution in the Kyrgyz Republic and Central Asia, which focuses on training and re-training of procurement specialists.
The focus groups are state employees on procurement, private sector, control auditors in state bodies (according to the Law of Kyrgyz Republic on Public Procurement as of May 24, 2004)

28. Activities on institutional strengthening of public procurement system in Kyrgyz Republic through the Regional Training Center
The World Bank grant «Institutional strengthening of public procurement system in Kyrgyz Republic through the support of Regional Training Center»
Business plan and training materials are elaborated
Training materials on World Bank procurement procedures are developed
Preparing of trainers-and-consultants is conducted jointly with International Training Center (Turin)
Two international seminars have been held with the participation of representatives from Azerbaijan, Uzbekistan, Tajikistan, Turkmenistan, Kazakhstan and Kyrgyzstan

29. Educational Process FIVE-DAY SHORT-TERM COURSES:
PUBLIC PROCUREMENT MANAGEMENT:
- Public procurement
- Procurement process
- Procurement of goods
- Procurement of construction
- Contract administration

30. Educational Process One-day courses:
Management and planning of public procurement
Contract administration
Recommendations for suppliers and contractors participated in the performing of state order

31. Educational Process SHORT-TERM FIVE-DAY AND TEN-DAY COURSES:
The WORLD BANK PROCUREMENT PROCEDURES
- Procurement of goods
- Procurement of works
- Procurement of consultative services

32. Analysis of conducted seminars for 2002-2004

33. V. Ensuring of openness and transparency of public procurement procedures – Informational Publishing Center
In purpose of ensuring of openness and transparency the Public Enterprise “Informational Publishing Center” was established.
The main tasks of the Public Enterprise “Informational Publishing Center” are as following:
1. Edition of weekly Public Procurement Bulletin;
2. Ensuring of functioning of State Commission on public procurement website;
3. Introduction informational technologies to the system of State Commission on procurement.
4. Creation of e-procurement system in KR.

34. V. Ensuring of openness and transparency of public procurement procedures – Public Procurement Bulletin
1. Public Procurement Bulletin is published:
- weekly as a newspaper; - monthly as a journal.
2. The following is published in newspaper version of Public Procurement Bulletin:
- according to the articles 17 and 30 of the Law of Kyrgyz Republic on Public Procurement:
- data on forthcoming tenders; - data on past tenders.
3. In journal version of Public Procurement Bulletin the following is published:
- data on coming and past tenders; - normative legal acts; - analytical materials; - interview; - consultations from specialists ; - answers on questions; - information about the training; - information about the foreign experience.

35. V. Ensuring of openness and transparency – Website
The Website of State Commission on Public Procurement contains the following:
- News;
- Information about:
- State Commission on Public Procurement; - Informational Publishing Center; - Regional Training Center; - Normative legal acts;
- Drafts of normative legal acts;
- Data on coming and past tenders for registered users;
- Data on suppliers and contractors participating in tenders;
- Announcements.

36. Actions on improvement of public procurement system, which will be undertaken soon
Improvement of legal normative base
Elaboration of draft Law of KR “On e-procurement»
Continue working on website
Creation of system of collection, storing of information on procurement including creation of tender database
Creation of system for exchange and collection of information on conducted public procurement procedures

37. The parts of the system which need to be improved
To bring the normative legal acts to conformity with the new version of the Law of KR “On Public Procurement”
Organizational structure
Educational process
Publishing of Public Procurement Bulletin
Website