1 ARMENIA Public Procurement Reforms Seventh Regional Public Procurement Forum May , 2011 Mr. Karen Brutyan, PhD Head of the PIFC and PP methodology department Ministry of Finance, Republic of Armenia

2 Content of presentation  Reforms preparation: Where we started  Reforms strategy: What we planed to do  Implementation: What has been done so far  E-procurement (E-Tendering)  WTO GPA accession  Challenges

3 Where we started EU SIGMA: Analysis of the Armenian PP Law and Implementing Decree vis-à-vis the EC PP Directives and the WTO GPA WB: CPAR RA Government: Self assessment and Gap analysis

4 Reforms strategy In 2009 the RA Government approved: In 2009 the RA Government approved:  Procurements reform strategy, and  It’s action plan. For details go to: For details go to:

5 Improvement of legal framework, Implementation of institutional reforms, E-procurement system, Ensuring existence of the exclusively market pricing mechanisms, Detection of anti-competitive agreements and prevention system, Ensuring existence of the unified and fully regulated procurement planning system, Capacity developments of the procurement’s specialists, Ensuring existence effective system of the contracts management and quality control. What we planned to do: Main tasks

6 What has been done: Main changes  The RA Parliament approved new PPL in 2010, and the RA Government approved procurement’s secondary legislation in New legislation is covering also Utilities and PPPs  The State Procurement Agency has been changed to Procurement Support Center in Currently Armenia has fully decentralized PP system  Procurement Appeal Board has been established in 2011.

7 E-procurement (1) E-Tendering  The E-Tendering system: ARMEPS has been developed and tested in 2010  ARMEPS is a secure web-based application which constitutes a total solution for the implementation of electronic procedures in conducting public procurement competitions  For details go to:

8 E-procurement (2): Benefits Tender documents are easily accessed and downloaded from the site. Tender documents are easily accessed and downloaded from the site. The online submission process is simple to use, the upload is quick and a confirmation of receipt will be issued. The online submission process is simple to use, the upload is quick and a confirmation of receipt will be issued. The system provides a secure method of completing and submitting bids electronically The system provides a secure method of completing and submitting bids electronically History log-keeps supplier up to date with the process History log-keeps supplier up to date with the process No need to rely on third party delivery of documents No need to rely on third party delivery of documents More time to prepare a response. By submitting documents electronically, a bidder will have extra time to complete responses More time to prepare a response. By submitting documents electronically, a bidder will have extra time to complete responses

9 WTO GPA accession (1) In September 2009 Armenia applied to WTO for GPA accession. Six round of negotiations held in Geneva during In December 2010 Armenia came as a forty-second WTO GPA Member. The WTO GPA other members are: Canada; the European Union, with its 27 member States; Hong Kong, China; Iceland; Israel; Japan; Korea; Liechtenstein; the Kingdom of the Netherlands with respect to Aruba; Norway; Singapore; Switzerland; Chinese Taipei and the United States. For details go to:

10 WTO GPA accession (2): Benefits Remarks by Mr. Pascal Lamy,The WTO Director-General WTO GPA accession (2): Benefits Remarks by Mr. Pascal Lamy, The WTO Director-General “Participation in the GPA brings real benefits not only in terms of access to other Parties' markets for procurement of goods, services and construction services, but also in the form of enhanced competition and transparency in the Party's internal markets. It embodies a political and legal commitment to good governance principles that reflects very positively on the acceding government and on its leaders.” “In applying for GPA accession and then completing the related negotiations in a little over a year, Armenia has effectively demonstrated to the world its commitment to these principles” 7 December 2010, Geneva For details go to: ay=short ay=short

11 Challenges Implementation of the new regulations, Implementation of the new regulations, Lack of capacities, Lack of capacities, Limited funds for the reforms, Limited funds for the reforms, Use of country systems by donors. Use of country systems by donors.

12 Thanks for your attention!