The Secretariat of the Cabinet of Ministers of Ukraine said the ProZorro e-procurement system aims at increasing transparency and cutting costs and after being successfully tested, it will become mandatory for all public procurement tenders.
Deputy Minister of economic development and trade, Maxym Nefyodov, said a pilot of the system running since February last year had saved up to 900 million Ukrainian hryvnia (UAH).
The first purchase through the system, which includes anonymous electronic bidding for tenders, was done by the Ministry of Justice, with other participants including the Ministry of Defense, the Ministry of Infrastructure and the Kiev Municipal State Administration.
Around 3,000 public authorities have voluntarily signed up for the system so far, representing 15% of all public sector buyers. Around 10,000 potential suppliers have also connected to the platform.
The Ministry of Finance believes procurements through the system would attract more suppliers and this would lower prices and reduce government spending.
From April 1st, all the central executive bodies and large enterprises are to be transferred to this system on a mandatory basis.
In November last year, the government agreed a draft law on public procurement to facilitate the electronic system as part of a legislative reform package.
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