Government procurement of the Republic of Kazakhstan MF RK Government procurement of the Republic of Kazakhstan

History of e-Procurement Pilot operation of e-RFQs MF RK History of e-Procurement 2007 The introduction of the new law on public procurement: 5 procurement methods Requests for Quotation Single source Two stage tenders Electronic auctions Open commodity exchanges 2008 Amendments to the law on public procurement: Introduction of “Public e-Procurement” and the “Public e-procurement portal»; Introduction of the “Single e-procurement operator” Obligatory transition of all RFQs procurement from paper to online procedures starting from 2010. Pilot operation of e-RFQs

History of e-Procurement MF RK History of e-Procurement 2009 Pre-production operation of the RFQs module : Signing of MOUs between the Ministry of Finance and other agencies in Kazakhstan about transition of 50 % of procurement online E-procurement full scale trainings; Development of the module e-Tender. 2010 Amendments to procurement law on e-tenders procedures : Fully automatic and integrated tender procedures; Simplification of application and bidding procedures; Responsibility boost of each member of the tender committee. Pilot operation of the e-tender in Ministry of finance. Pilot operation of e-Tender RFQ in electronic format only

History of e-Procurement Tender and auction in electronic format only MF RK History of e-Procurement 2011 Harmonization of national legislation on public procurement in line with the Agreement on the state (municipal) procurement between the Republic of Kazakhstan, the Republic of Belarus and the Russian Federation: Development of the module e-auction; Pilot operation of the e-auction in Ministry of finance 2012 Tenders and auctions through e-procurement: The introduction of the extended classification of goods, works and services for the procurement planning (more than 190 000 products); Creation of an integrated information system for monitoring the prices of goods, works and services. Tender and auction in electronic format only

2009 2010 2011 2012 2013 General information 4 063 203 883 KZT MF RK General information 4 063 203 883 KZT factual amount of procurements 2009 2010 1 488 324 502 494 KZT factual amount of procurements 2011 2 664 882 932 135 KZT factual amount of procurements 2012 1 576 861 454 691 KZT factual amount of procurements 2013 243 659 410 829 KZT factual amount of procurements

MF RK Dynamics of 6 years 2008 2009 2010 2011 2012 27 th of May, 2013 Customer 592 19 453 21 970 24 223 24 613 25 055 Supplier 474 13 820 53 114 76 342 110 227 122 688 The number of users of the web-portal during the word of Electronic Government Procurement has reached more than 147 thousand of participants including 25 055 customers represented by state institutions and 122 688 suppliers - business representatives, including 55 888 supplier – legal entities and 66 800 supplier – individuals. In total during the web-portal there were posted more than 11,4 million lots and more than 3,4 million listings, there were concluded 3,8 million contracts.

MF RK Dynamics of 3 years Electronic Government Procurement save taxpayers’ money 2010 2011 2012 Planning amount, KZT 1,55 trillion 2,7 trillion 1,34 trillion Factual amount, KZT 1,48 trillion 2,6 trillion 1,3 trillion Economy, KZT 62 billion 55,3 trillion 36,5 trillion Economy, % 4 2 2,7 The increase of the share of Electronic Government Procurement in the total volume of state procurement, % 17,8 7,2 24,2 As of April this year thanks to the electronic system of state procurement the government has saved 3,9 billion KZT of the budget. Generally speaking over the years of the existence of the electronic platform for state procurement since 2010 the saving of Electronic Government Procurement through the request of price offers amounted to about 158 billion KZT.

MF RK Legislation in GP One source RFQ GP Tender Auction e-Contract

Conceptual scheme of e-RFQ MF RK Conceptual scheme of e-RFQ Customer Organizer Supplier Imports the Annual Plan of purchases Makes the requests to identify his needs to Organizer Allocates the contracts Passes the reports Makes the announcements Realizes the process of the opening the RFQs Summarizes the results Searching announcements Passes RFQs Monitors the results of GP Покупатель

Conceptual scheme of e-tender MF RK Conceptual scheme of e-tender Annual plans of purchases www.goszakup.gov.kz Portal annual plans of purchases e-bulletin government register monitoring and accounting National Certification Center databases Tax committee database Database to monitor prices Customers Suppliers

Technical specification document MF RK Conceptual scheme of e-auction Qualifying selection Technical specification document Auction Contract Open space of procurements Availability to information about all procurements hold in Kazakhstan Economy of time Decreasing of GP terms from several days to several hours Minimizing human factor in GP The decisions will be done by the system One time passing confirmation of qualification No huge documents to every bid, no expenses for inquires Openness and transparence of biddings for suppliers Equal opportunities to everybody

Advantages of e-procurements MF RK Advantages of e-procurements Announcement Opening and access Results Paper economy No transport expenses Auto opening Rising of the Committee members personal responsibilities e-report about the results Passing docs by Supplier Passing RQFs Checking debts to budget Checking the status of unfair supplier or insolvent debtors Simplification of passing process

Single organizer of e-procurement MF RK Plans for e-procurement for 2013 Single organizer of e-procurement Will be solved the problem of insufficient legal and technical competence Will be solved the problem of access to the web portal of public procurement e-contract Transparency in the process of writing a contract Reducing the time to sign the agreement

MF RK Questions www.goszakup.gov.kz