1. Kyrgyz Republic is a sovereign, unitary, democratic republic Land area: ca. 199.9 thousand square kilometers (ranked 85 th in the world) Land area: ca. 199.9 thousand square kilometers (ranked 85 th in the world) Capital city: Bishkek Capital city: Bishkek Population: ca. 5.4 million Population: ca. 5.4 million Kyrgyz Republic consists of 7 regions (oblasts) Kyrgyz Republic consists of 7 regions (oblasts) Kyrgyzstan borders on China (858 km), Kazakhstan (1,051 km), Tajikistan (870 км) and Uzbekistan 1,099 km) Kyrgyzstan borders on China (858 km), Kazakhstan (1,051 km), Tajikistan (870 км) and Uzbekistan 1,099 km) State language: Kyrgyz; official language: Russian. State language: Kyrgyz; official language: Russian.

2. Ministry of Finance of the Kyrgyz Republic Presentation of the public procurement system of the Kyrgyz Republic

3. Ministry of Finance of the Kyrgyz Republic Role of the Ministry of Finance in the public procurement system The state policy in the area of procurement of goods, services, works and consulting services financed by the state budget, foreign loans and grants

4. The legal framework governing public procurement Public Procurement Law of the Kyrgyz Republic Public Procurement Law of the Kyrgyz Republic Primary objectives of the Law: Primary objectives of the Law: Maximization of efficiency and effectiveness of procurement Maximization of efficiency and effectiveness of procurement Increasing involvement and promoting competitiveness among suppliers (contractors) in the procurement process Increasing involvement and promoting competitiveness among suppliers (contractors) in the procurement process Ensuring equitable treatment of all suppliers (contractors) Ensuring equitable treatment of all suppliers (contractors) Ensuring transparency of the procurement procedures Ensuring transparency of the procurement procedures

5. The legal framework governing public procurement Law of the Kyrgyz Republic on public procurement of products of associations of disabled persons of the Kyrgyz Republic Law of the Kyrgyz Republic on public procurement of products of associations of disabled persons of the Kyrgyz Republic Primary objectives of the Law: Primary objectives of the Law: - ensuring sale of products of associations of disabled persons and achieving optimum production profitability by mandatory placement of state orders for procurement of their goods and products without application of the tendering procedure; - ensuring sale of products of associations of disabled persons and achieving optimum production profitability by mandatory placement of state orders for procurement of their goods and products without application of the tendering procedure; - social protection of disabled persons and their family members; - social protection of disabled persons and their family members; - provision of skilled employment opportunities for disabled persons; - provision of skilled employment opportunities for disabled persons; - guaranteed enforcement of procurement contracts by government institutions and agencies, and enforcement of suppliers’ obligations to procuring entities. - guaranteed enforcement of procurement contracts by government institutions and agencies, and enforcement of suppliers’ obligations to procuring entities.

6. State Agency for Public Procurement and Material Reserves under the Government of the Kyrgyz Republic The State Agency for Public Procurement and Material Reserves under the Government of the Kyrgyz Republic was liquidated by Decree of the President of the Kyrgyz Republic on measures to ensure implementation of the Law of the Kyrgyz Republic on structure of the Government of the Kyrgyz Republic (#425 dd. October 26, 2009).

7. State Agency for Public Procurement and Material Reserves under the Government of the Kyrgyz Republic State Agency for Public Procurement and Material Reserves under the Government of the Kyrgyz Republic Public Procurement Department Regional Training Information Center Fund of the State Material Reserves Bishkek MB Chui MB Osh-Batken MB Jalalabad MB Batken MBNaryn MB Board

8. On the Ministry of Finance of the Kyrgyz Republic Regulation of the Government of the Kyrgyz Republic (Reg. #733 dated December 4, 2009) on the Ministry of Finance of the Kyrgyz Republic delegated the public procurement methodology functions, including procurement procedures training, to the Ministry of Finance.

9. Ministry of Finance of the Kyrgyz Republic Public Procurement Methodology Department (5 positions; headed by the head of department) has been established. Public Procurement Methodology Department (5 positions; headed by the head of department) has been established. The Department reports directly to the State Secretary (First Deputy Minister) of the Ministry of Finance of the Kyrgyz Republic. The Department reports directly to the State Secretary (First Deputy Minister) of the Ministry of Finance of the Kyrgyz Republic. Key functions of the Public Procurement Methodology Department include development and improvement of the legal and regulatory framework to ensure maximum efficiency and effectiveness of public procurement. Key functions of the Public Procurement Methodology Department include development and improvement of the legal and regulatory framework to ensure maximum efficiency and effectiveness of public procurement.

10. Key amendments to the Public Procurement Law of the Kyrgyz Republic In pursuance of the Regulation of the Government of the Kyrgyz Republic #520 of 10.23.2007, the Public Procurement Law of the Kyrgyz Republic (KR Law #69, as amended on 05.24.2004) was amended, as follows: The prior approval procedure (in form of no-objection by the Authorized Body) has been cancelled in 18 out of 19 cases. Only single-source procurement method is now subject to prior approval. The prior approval procedure (in form of no-objection by the Authorized Body) has been cancelled in 18 out of 19 cases. Only single-source procurement method is now subject to prior approval. The bid submission terms have been reduced from 6 to 4 weeks for unrestricted bidding, and from 4 to 3 weeks for restricted bidding. The bid submission terms have been reduced from 6 to 4 weeks for unrestricted bidding, and from 4 to 3 weeks for restricted bidding.

11. Amendments to laws and regulations on public procurement New thresholds have been approved by the Regulation of the Government of the Kyrgyz Republic #302 of 06.13.2008 on amendments to the Regulation of the Government of the Kyrgyz Republic #440 of 09.16.2005 on approval of threshold amounts for public procurement of goods, works and services: New thresholds have been approved by the Regulation of the Government of the Kyrgyz Republic #302 of 06.13.2008 on amendments to the Regulation of the Government of the Kyrgyz Republic #440 of 09.16.2005 on approval of threshold amounts for public procurement of goods, works and services:

12. for budget-funded organizations For procurement of goods and services: For procurement of goods and services: minimum threshold amount – 12.0 thousand US dollars maximum threshold amount – 36.0 thousand US dollars For procurement of works: For procurement of works: minimum threshold amount – 12.0 thousand US dollars maximum threshold amount – 48.0 thousand US dollars

13. For organizations and funds established at the cost of the state budget; state-owned enterprises and joint-stock companies with at least 51% of shares owned by the state and authorized capital stock of at least 2,400.0 thousand US dollars: For procurement of goods, works and services: For procurement of goods, works and services: minimum threshold amount – 48.0 thousand US dollars Maximum threshold amount – 241.0 thousand US dollars

14. Amendments to laws and regulations on public procurement Harmonized with a new Public Procurement Law of the Kyrgyz Republic – Regulations on the unit and tender commission

15. On April 5, 2010, the Training Center of the Ministry of Finance of the Kyrgyz Republic started delivery of five-day training workshops on public procurement procedures for the audience representing 321 organizations. On April 5, 2010, the Training Center of the Ministry of Finance of the Kyrgyz Republic started delivery of five-day training workshops on public procurement procedures for the audience representing 321 organizations.

16. Introduction of the electronic bidding system is the Ministry’s main objective for 2010/11 Formulation of clear and understandable instructions and the mechanism Formulation of clear and understandable instructions and the mechanism Training specialists based on the best practices of the countries with functioning electronic bidding systems Training specialists based on the best practices of the countries with functioning electronic bidding systems Implementation of a pilot project in several of the procuring entities Implementation of a pilot project in several of the procuring entities Gradual implementation of the system in procuring entities of the city of Bishkek Gradual implementation of the system in procuring entities of the city of Bishkek

17. Thank you for attention!