Elena Nikulina, the World Bank Links Between Public Procurement and Financial Management Information Systems in PEMPAL Countries Treasury COP Thematic Survey Results Elena Nikulina, the World Bank Budapest, Hungary June 5, 2019

Survey Objectives and Coverage - survey undertaken in preparation for the ongoing Annual Plenary Meeting, used as input to the event agenda - served the basis for this presentation, expected to establish a common ground for today’s discussion on interaction between the e-procurement and treasury information systems - contribution to PEMPAL knowledge bank of methodological, legal and analytical documentation Coverage responses received during April 29 – May 16 from all 16 TCOP countries attending the meeting THANKS TO EVERYONE!!! Only primary processing and analysis of the data undertaken, no deeper quality assurance

Which body is in charge of regulating public procurement in your country? Georgia – Public Procurement Agency under the Government Kyrgyz Republic - Department of State Procurement under the MOF Tajikistan - Agency for State Procurement of Goods, Works and Services under the Government Armenia Azerbaijan Belarus Kazakhstan Albania Croatia Kosovo Georgia Russia Moldova Kyrgyz Republic Ukraine North Macedonia Tajikistan Uzbekistan Turkey

Availability of Operational E-Procurement Systems Country URL Albania https://www.app.gov.al/ Armenia https://armeps.am Belarus http://www.icetrade.by/ Croatia https://eojn.nn.hr/Oglasnik/ Georgia http://procurement.gov.ge/ Kazakstan https://www.goszakup.gov.kz/ Kosovo https://e-prokurimi.rks-gov.net/Home/ClanakItemNew.aspx Kyrgyz Republic zakupki.gov.kg Moldova mtender@gov.md North Macedonia https://e-nabavki.gov.mk Russia www.zakupki.gov.ru Turkey https://ekap.kik.gov.tr/EKAP/Default.aspx?ReturnUrl=%2fEKAP%2f Ukraine https://www.prozorro.gov.ua/ Uzbekistan www.xarid.uz Total 14 E-procurement systems are operational in the majority of countries (14). Azerbaijan and Tajikistan have plans to develop such systems.

Coverage and Use of E-Procurement Systems Country e-Purchasing or e-Catalog e-Tendering e-Quotations or e-Shopping Albania x Armenia Belarus   Croatia Georgia Kazakstan Kosovo Kyrgyz Republic Moldova North Macedonia Russia Turkey Ukraine Uzbekistan Total 12 13 9 E- tendering – acquisition of goods, works and services that are of high value and low volume E-purchasing or E-catalogues – procurement of goods and services of low value and high volume E-shopping or E-quotations – low value and low volume items

Coverage and Use of E-Procurement Systems – Type / Size of Tenders / Contracts The use of E-procurement systems is mandatory for all types of contracts / tenders in Georgia, Kazakhstan, Kosovo, Kyrgyz Republic, and Russia In 6 countries it is mandatory for contracts above certain value. Country Contracts / tenders of certain type / value above a set amount Albania more than 800,000 ALL or 6,400 EUR Armenia more than 1 million drams Belarus more than 300 base values (base value -25.5 BYN) Croatia procurement of goods and services set at an estimated value equal to or above HRK 200,000 ($ 30,200) and for all works set at an estimated value equal to or above HRK 500,000 ($ 75,600) North Macedonia all contracts above 1,000 euros for goods and services, 5,000 euros for works and 10,000 euros for special services on annual level Ukraine 7,500 USD and above Total 6

The use of the E-Procurement system is mandatory for contracts financed from… Country Central government budget Subnational government budgets Extrabudgetary resources Donor financed projects and grants Albania Y   Armenia Belarus Croatia Georgia Kazakstan Kosovo Kyrgyz Republic Moldova North Macedonia Russia Turkey Ukraine Uzbekistan Total 14 13 9 3

Existence and Type of Data Exchange Interface between the E-Procurement System and FMIS

Level of Development of Information Exchange between the E-Procurement and FMIS Systems The most common purposes of information exchange: - automatic recording of all newly signed contracts (unique IDs) with respective payment schedules in relevant FMIS modules to ensure registration of annual commitments (7 countries), - recording of all contract amendments and delivery of outputs (6), creation (online via e-Procurement system) or transfer from FMIS of the procurement plans (5) facilitating preparation, processing and verification of payments related to tenders between public authorities and their vendors (5) facilitating preparation of detailed information reports to inform auditing, reporting and decision making (5)

Purpose of Information Exchange between the E-Procurement and FMIS Systems (1)   Russia Kazakstan Uzbekistan Armenia Georgia Kyrgyz Republic Ukraine Moldova Total Past procurement data made available in e-Procurement system to prepare forecasts for future spending in FMIS X 4 Creation (online via e-Procurement system) or transfer from FMIS of the procurement plans 5 Restricting the publication of tenders that exceed budget (appropriations) available to the spending unit Restricting the publication of tenders that exceed budget (appropriations) available to a spending unit under specific budget activities/codes 3 Initiating the workflow for revision of the spending unit’s budget in FMIS before contract signature, if estimated value of the tender exceeds available budget appropriation 2 Verification whether potential budget revisions during the procurement process have not rendered a particular procurement beyond budget allocations

Purpose of Information Exchange between the E-Procurement and FMIS Systems (2)   Russia Kazakstan Uzbekistan Armenia Georgia Kyrgyz Republic Ukraine Moldova Total Verification that the awarded contract price is not above the estimated contract value and hence beyond budget allocation X 4 Automatic recording of all newly signed contracts (unique ids) with respective payment schedules in relevant FMIS modules ensuring registration of annual commitments 7 Automatic recording of all newly signed contracts (unique ids) with respective payment schedules in relevant FMIS modules ensuring registration of multiannual commitments 3 Facilitating preparation, processing and verification of payments related to tenders between public authorities and their vendors 5 Recording of all contract amendments and delivery of outputs 6 Facilitating preparation of detailed information reports to inform auditing, reporting and decision making 12 9 1

Conclusions Responsibility for public procurement is clearly defined in all the countries and in many countries it is part of the mandate of the Ministry of Finance E-procurement systems are operational in the majority of countries and their coverage and use is expanding, so there is a strong rationale to develop information linkages with the FMISs Linkages are already established only in some countries and in most cases are limited, there is a room to develop and expand them further There are countries within the TCOP that are very advanced in this area and their experience could be useful for the others The topic is well chosen and has a potential to be explored further at the future meetings

Thank you for your attention!