World Bank recommends Prozorro for procurements for recovery needs

December 19, 2022

According to the Ministry of Economy of Ukraine, the World Bank recommends using Prozorro system for all procurements under EUR 5 million budget threshold for recovery needs.

As soon as in March 2023, Prozorro will enable users to conduct procurements in compliance with the World Bank’s international procurement procedures.

Prozorro e-procurement system meets the e-procurement requirements for operations financed by the World Bank, which is confirmed by an assessment held by the World Bank team.

The assessment team drew a conclusion that the e-procurement system, including Prozorro Market, generally meets the e-procurement requirements for operations financed by the World Bank. In addition, the assessment authors provided a list of recommendations to improve the system.

For the World Bank funded operations, project implementation agencies can use the e-procurement system and Prozorro Market for tenders that require using the national procurement procedures (with budget threshold under EUR 5 million). As for the international tendering procedures financed by the World Bank in Ukraine (with budget threshold exceeding EUR 5 million), the implementing agencies can use Prozorro after the mentioned improvements are introduced, said Arup Banerji, Regional Country Director for Eastern Europe, commenting on the assessment results.

Meanwhile, Nadiia Bihun, Deputy Minister of Economy, emphasized that some of the World Bank’s recommendations had been introduced by Decree No. 1178 that enacted new specifics of procurement during the martial law. Inter alia, it allows holding the tendering procedure even if there is only one tenderer and enables the tenderers to offer a price that is higher than the estimate one, etc.

Aiming to meet the World Bank’s recommendations, Prozorro State Enterprise has started adjusting the e-system to the special standards and conditions approved by the World Bank, including the appeal mechanism. Prozorro can be used in compliance with the World Bank’s requirements in March 2023.

What is more, possible adjustment of Prozorro system for specific needs of the recovery is being reviewed, e.g., for procurement of consulting services, design and architectural works, which will be in great demand in the recovery period. A two-stage procedure is considered, i.e., at the first stage, technical offers of tenders are reviewed (scope of works, approaches, etc.), and at the second stage – their price offers.

Basically, the World Bank’s position is that since 2023, Prozorro is to be used in all recovery projects funded by the Bank.

Taking advantage of the opportunity, let us remind you that the Interstate Consultants Engineers Guild together with the Scientific School of Risk Management in Construction and Operation of Real Estate consistently studied and promoted in Ukraine the international approaches to procurement of intellectual services and bringing the Ukrainian legislation in compliance with the EU legislation, specifically, Directive 2014/24/EU of the European Parliament and of the Council of Feb. 26, 2014 on public procurement and repealing Directive 2004/18/EC, taking into account specifics of work and service procurement in construction. ICEG also published the first edition of FIDIC PROCUREMENT PROCEDURES GUIDE in Ukrainian language.

ICEG

Interstate Consultants Engineers Guild

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