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Electronic government procurement, ensuring fairness and transparency of trade: experience and prospects of Eurasian integration Member of the Board –

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Presentation on theme: "Electronic government procurement, ensuring fairness and transparency of trade: experience and prospects of Eurasian integration Member of the Board –"— Presentation transcript:

1 Electronic government procurement, ensuring fairness and transparency of trade: experience and prospects of Eurasian integration Member of the Board – Minister in charge of Competition and Antitrust regulation Nurlan Aldabergenov Astana, 2014

2 The volume of mutual trade of Republic of Belarus, Republic of Kazakhstan and Russian Federation *
+43,9%** +36%** mln. USD Before the joining CU After the joining CU *the total volume of mutual export between the Member States of the Customs Union ** growth to 2010

3 The volume of mutual trade of EU countries * (28)
The volume of mutual trade of EU countries * (28) +11,1%** +11%** +10,4%** bill. euro *the total volume of mutual export between the Member States of the European Union ** growth to 2010

4 Main directions of competition policy
Antitrust regulation Government (municipal) procurements Competition advocacy

5 | 5 The volume of electronic public procurement in the Republic of Kazakhstan mln. USD + in 2,2 times + 43,6 % 2011 2012 2013 Before the establishment of SES After the establishment of the SES * growth to 2011 **The Single Economic Space on the territory of Kazakhstan, Belarus, Russia

6 The volume of electronic public procurement in the Russian Federation
mln. USD + 30% + 20% 2011 2012 2013 Before the establishment of SES After the establishment of the SES** * growth to 2011 **The Single Economic Space on the territory of Kazakhstan, Belarus, Russia

7 The volume of electronic public procurement in the Republic of Belarus
| 7 The volume of electronic public procurement in the Republic of Belarus mln. USD Before the establishment of SES After the establishment of the SES** *growth to 2011 **The Single Economic Space on the territory of Kazakhstan, Belarus, Russia

8 ~ 60,0% Percentage of e-procurement* Estimation for the 2015:
*Estimated cost of procurement

9 Advantages of e-procurement in the CU and SES
| 9 For economic entities: For public procurement authorities: Access to procurement information, including regulatory and reference documents, simplify information search Procurement proceedings transparency Reducing the costs of preparing and filing Rapid results obtaining Savings growth Decrease in corruption risks Reducing the time of procurement proceedings Data bases creation possibility

10 Agreement on government (municipal) procurement of December 9, 2010*:
Unified requirements to public procurement for all Member States of CU and SES, legislation harmonization Duty to publish procurement information publicly on information portals Provision of national treatment in government procurement for CU and SES member states * entered into force on January 1, 2012

11 State and (or) municipal procurement
Harmonization of legislation Monitoring of national legislation Supervisory functions: the abolition of exemptions from national treatment

12 1 stage 1 stage - Law of the Republic of Belarus of 13 July 2012 № 419
(Belarus and Russia) before 1 January : - Law of the Republic of Belarus of 13 July 2012 № 419 «On public procurement of goods, work, services» in full compliance with the Agreement (entered into force on 1 January 2013) - open access to the web portal, e-procurement practices adopted - national treatment introduced - amendments to the Federal Law of 21 July 2005 № 94-FZ "On placement of orders for delivery of goods, works and services for state and municipal needs ", ensuring compliance with the Agreement - improvement of the web portal and practice of electronic auctions - national treatment with exceptions introduced bringing the legislation into conformity with the Agreement implementation of information systems (web portal, ETP, EDS) introduction of a national regime for Belarus and Russia

13 2 stage 2 stage - amendments to the Law of the Republic
of Kazakhstan of № 303-3 «On public procurement», ensuring compliance with the agreement: - improving the web portal; - expansion of electronic procurement (request for bids, open competition, electronic auctions) 2 stage (Kazakhstan) before 1 July : bringing the legislation into conformity with the Agreement implementation of information systems (web portal, ETP, EDS)

14 3 stage ensuring equal conditions for business entities of three countries under the national treatment development of mutual trade of the three countries 3 stage (Belarus, Kazakhstan, Russia)  before January 1, 2014: introduction of national regime for Belarus, Kazakhstan and Russia

15 Provision of information transparency
National web portals in the field of public procurement: The Republic of Belarus - The Republic of Kazakhstan - The Russian Federation - Open access is ensured to: legislation in the field of public procurement procurement Notice documentation, including procurement contract drafts protocols drawn up in the procurement process information on the procurement contract register of unfair suppliers In the future, following data is to be published: Information on the result of the purchase Information on complaints Procurement plans (at the discretion of the Member State)

16 1

17 Electronic trading platforms
Web Portal of Kazakhstan/ETP (ETF JSC «BYTB») (ETF LLC «RTS-tender») (ETF Tatarstan) (ETF LC «MICEX-IT») (ETF LC «Sberbank-АСТ»)) (ETF JSC «SETF») Web portal of Belarus/ETP Kazakhstan - one Belarus - two Russia - five

18 Cross-border use of electronic signatures
unimpeded access to digital signature plans of actions approved adjustment of national legislation and regulations of the electronic trading platforms mutual transfer by Member States of national cryptographic systems and software on the electronic trading platforms Correction of software and hardware systems of electronic trading platforms Participation of economic entity in the electronic procurement of CU and SES with digital signature on the national territory of its registration between Belarus and Russia was implemented in late 2012 between Belarus, Kazakhstan and Russia on the stage of completion 19

19 Stages of e-procurement
| 19 "Electronic form (format) procurement" - procurement procedures carried out by using Internet, web portal and (or) electronic trading platform (e-platform), as well as software and hardware Purchase Process publishing information about purchasing on the web portal submission of applications for participation in the auction in the form of an electronic document price decrease resulting from by auction using the software and hardware Processing proposals using software and hardware conclusion of an agreement in the form of an electronic document Partially implemented in 2012 Complete implementation planned for 2015 implemented in 2012 implemented in 2012 - Partially implemented in Kazakhstan, - In general, planned in 2016 - Partially implemented in Kazakhstan, - In general, planned in 2016 1

20 Results Harmonize national legislation in the field of public procurement and ensure its practical application Eurasian Economic Commission permanently monitors legislation and practice of public procurement Work has been done to ensure national treatment in the field of public procurement, including the mutual recognition of the digital signature, the abolition of exemptions from national treatment The main provisions of the Agreement on the state (municipal) procurement of 9 December 2010 with the best international practices transferred to the Treaty on the Eurasian Economic Union of 29 May 2014

21 Russian suppliers in Belarus
Number of lots of procurement procedures (e-procurement) Subject of procurement The total value of contracts participants winners 2013 (according to official statistics, Belarus) Russian suppliers 1039 (376) 630 (112) - 54,9 (22,2) Mln. USD (most active according to electronic trading platform of "BUCE" and "NCMPS", Belarus) LLC «Industrial Union KIT» (Smolensk) 57 4 process equipment 0,8 LLC «TEHNOMED» (St. Petersburg) 24 6 medical products 2,04 JSC «Metrovagonmash» (Mytishchi, Moscow region) 2 wagonage 22,5 1

22 in electronic auctions
Belarusian suppliers in Russia in electronic auctions Association of electronic trading platforms, Russia Supplier Cost of contracts, Mln. USD Number of contracts RUE «Belarusian aircraft repair plant» 5,5 22 LLC «Assomedika» 4,6 430 PE «Belgiprodor» 1,2 9 JSC «Minskmetroproekt» 0,9 3 NE RUE «KBTEM-OMO» 1 RUE «Belarusian Broadcasting Center» 0,4 5 MEI «Institute of Retraining and Development» Emergency Situations Ministry, RB 0,3 8 RNTUP«KRIPTOTEH» 0,2 4 Belarusian-Japanese joint venture «LOTIS TII» 0,1

23 Kazakhstan’s Suppliers’ Activity in Belarus
Kazakhstani supplier’s name Number of lots of procurement procedures in which Subject of procurement Total value of purchases (contracts) participated won (according to the web portal of public procurement, Belarus) Kazakhstani suppliers, including: 17 9 - 4,5 mln. USD «KazMetizProm» LLC, Ust-Kamenogorsk 3 2 ceramic products 1,5 mln. USD «Combine Of Bakeries N.a. Grigorovich'» LLC, Kostanay wheat 1,3 mln. USD ТОО «Kazzink» LLC, 1 zinc in ingots 1,0 mln. USD 1

24 Kazakhstan’s Suppliers’ Activity in Belarus
Kazakhstani supplier’s name Number of lots of procurement procedures in which Subject of procurement Total value of purchases (contracts) participated won (according to the web portal of public procurement, Belarus) Kazakhstani suppliers, including: - 25 2,6 mln. USD «Nefteproduct-Sever» LLC, Petropavlovsk 1 heating oil 2,4 «Cheese mediya» LLC, Kyzylorda 2 printed editions 0,02 1

25 exemptions from national treatment:
National treatment in CU and SES introduced on 1 January 2014  exemptions from national treatment: can be set unilaterally for a period not exceeding 2 years may be canceled by EEC within one year

26 Example 1. Abolition of EEC’s exemptions from national treatment
in the manufacture of uniforms use worsted fabric of Russian origin Government Decree of the Russian Federation dated March 30, 2012 № 269 The elimination of this exemption provided to suppliers of products of JSC "Kamvol" (Belarus) an access to the placement of orders for worsted fabrics for sewing uniforms for the Russia’s federal executive bodies. Belarus proposed to eliminate this exemption EEC QUASHED THIS EXEMPTIONS FROM THE NATIONAL REGIME the Decision EEC Collegium dated September 18, 2012 № 160 Russia has eliminated this exemption for Belarus Government Resolution of the Russian Federation December 24, 2012 № 1389

27 The prohibition of the purchase of foreign goods (works, services)
Example 2. Abolition of EEC’s exemptions from national treatment The prohibition of the purchase of foreign goods (works, services) for defense and security of Russia Government Resolution of the Russian Federation of December 24, 2013 № 1224 Eliminating of this exemption will provide access of wide range of Belarusian and Kazakh goods (works, services), along with Russia, to the placement of state orders for defense and security of Russia (in terms of procurement, the details of which do not constitute state secrets (secrets) Belarus has offered to hold consultations in EEC (in particular, of "Kursk TD" Belshina "- tires) The letter from the Ministry of Trade of Belarus № / 524 RUSSIA acknowledged the fact of exemptions from the national regime for Belarusian and Kazakh goods (works, services) notified of the intention to remove them until the end of 2014 The Protocols of consultation in EEC from № 1-kon and № / pr The letter from the Economic Development of Russia from № EE / D28i in connection with the request of Government

28 Example 3. Elimination of violations when establishing exemptions from national regime
JSC "BTK groups" (St. Petersburg) - the only provider of clothing equipment for the Armed Forces of Russia for an indefinite period The regulation of the Government of the Russian Federation from September 5, 2012 № 1612-r For reference: The Agreement on the public (municipal) procurement - not more than 2 years Result - elimination of violations Member of the Board N.SH. Aldabergenov - the letter to the Russian Government about adopting measures on elimination of infringements of international obligations Russia restricts the validity of the order until 09/05/2014 the regulation from May 13, 2013 №762-r extension of a 2-year exemption (JSC "BTK groups" - the only supplier) use of tissue from LLC "Bryansk Worsted» The regulation of the Government of the Russian Federation from June 11, 2014 № 1035-r Member of the Board N.SH. Aldabergenov - the letter to the Russian Government about adopting measures on elimination of infringements of international obligations In case of violations the Government of the Russian Federation entrusts authorized state agencies to take measures to eliminate them Letter from the Government Office of Russia from October 29, 2014 № P

29 International cooperation in the field of procurement
Negotiation and drafting of agreements on free trade areas (in terms of public procurement) Vietnam, New Zealand, Egypt, India, Israel Memorandums and agreements: Memorandum of Cooperation with the ICAP Agreement on cooperation with the Austrian Federal Competition Authority Participation in conferences and seminars: CEFACT, UNCITRAL, WTO Committee on Public Procurement, the Executive Committee of the CIS, OECD, UNCTAD, the International Competition Network, the International Bar Association, the US, EU, Japan, Korea, Morocco, Brazil and others.

30 Prospects of development
Harmonizing statistical monitoring (reporting) Maximum use of IT- technologies Expanding public procurement market within CU and SES accession of the Republic of Armenia (1 January 2015) accession of the Kyrgyz Republic (after the implementation of the "roadmap") Continued work on removing possible barriers and other restrictions on access to public procurement markets mutual CU and SES

31 Thank you!


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