In 2023, the volume of procurement conducted through the Prozorro system tripled to UAH 480 billion compared to the previous year. As of recent months, more than 80% of procurement funds are spent through the Prozorro system. This was announced by Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine, in her address at the Prozorro Awards event.
"Ukraine sets the trend in the world that 'everyone should see everything' in procurement. And this is true even in the context of a full-scale war. I would like to thank everyone who uses the Prozorro system. We plan to make sure that the public procurement system becomes the basis for Ukraine's recovery. The fact that the World Bank has already recognised the compliance of the Prozorro system with its rules is a very important sign of trust. The UKaid TAPAS project was the first to conduct its tenders in the Prozorro system for procurement with donor funds. We expect that they will soon be joined by the EBRD and other international partners who will also use the Prozorro system to rebuild Ukraine.
Over the past year, the system has undergone certain transformations to meet the requirements of wartime: the duration of procedures has been significantly reduced, it has become possible to conceal sensitive information, and such a fast and efficient procurement tool as Prozorro Market has been scaled up. As a result, the volume of procurement conducted through the Prozorro system tripled in 2023 – up to UAH 480 bn.
And as of recent months, more than 80% of procurement funds are spent through the Prozorro system, which means that they are spent in a competitive and open manner," said Yuliia Svyrydenko.
According to her, a vivid illustration of how transparent the public procurement system is the return of non-armed defence procurement by the Ministry of Defence of Ukraine to the Prozorro system. As a result, in just six months, almost UAH 7 billion, or 16% of the budget, was saved on these tenders. In total, by the end of 2023, the procuring entities managed to reduce the price of their procurement by UAH 37 billion from the expected value of the tenders.
According to Nadiia Bihun, Deputy Minister of Economy of Ukraine, procurement is not only cost-saving, but also of strategic importance. In the future, it is expected to stimulate domestic production of goods and services.
"Procurement can give a boost to local businesses and manufacturers who are ready to contribute to the country's reconstruction. After all, the system is well known to Ukrainian business. And this, in turn, is a plus for our economic priorities - supporting Ukrainian producers and attracting investment in the real sector.
Spending public funds on domestically produced goods should become our new philosophy. After all, public procurement in the interests of domestic producers is a sign of maturity and capacity of the state. And most importantly, it is an opportunity to return up to 40% of the funds back to the budget in the form of taxes. This will strengthen the resilience of our economy, enhance tax revenues and create new jobs," said Nadiia Bihun.
During the Prozorro Awards 2023 event, Yuliia Svyrydenko also presented two awards. Ukrposhta was awarded the title of Procuring Entity with the Most Competitive Procurement. This company held more than 400 competitive procurements over the year and received the highest average competition in customer procurement - 3.11 offers per tender.
The title of Unbreakable Procurement was awarded to Kherson Regional Cancer Centre, which conducted the largest number of competitive procurements among contracting authorities from the partially occupied regions - 31 procurements.
The full list of organisations and individuals recognised at Prozorro Awards 2023 is available here in Ukrainian version.