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Reducing Corruption in Ukraine's Public Procurements

eGovernance offered as one tool to fight corruption

Ukraine’s Ministry of Economic Development and Trade (MEDT) estimated that the country lost about 20 percent of total procurement value in 2014 due to limited competition and corruption in an outdated and inefficient procurement system.

We assessed the business and technical requirements for implementation in the Kyiv City Administration and nationwide of a new electronic procurement system named “ProZorro,” for the USAID-funded Strengthening eGovernance for Ukraine’s Public Procurement project.

The system was created by a group of volunteer activists from the private and non-profit sectors who were inspired by the energy of the Maidan revolution. With support from the Presidential Administration of Ukraine and MEDT, they tackled the problem and ProZorro was piloted in several public institutions and municipalities, showing potential promise for larger adoption.

Our assessment resulted in recommendations for further developing and expanding the electronic procurement system, and a strategy for rolling it out nationwide.

We also increased the professional skill level of procurement professionals, formalized procedures for addressing fraud and corruption related to public procurements and promoted the use of the electronic procurement system by a broader range of private sector entities, especially small- and medium-size businesses.

We also assisted the Kyiv City Administration to establish a procurement competence center to guide and oversee procurements conducted by the city.