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Republic of Armenia

Reforms in the area of public

procurement and next steps

SkopjeMay, 2013

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Implementation of the procurement system

• In operation since 2000• In the first phase the public

procurement was centralized• Since 2005 the public procurement

system has been partially decentralized, and from the moment of coming into effect of the new law on the public procurement in 2011, procurement was completely decentralized

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The Law on Public Procurement

• It was approved in 22.12.10, entering into force on 01.01.11

• It complies with European Directives• Served as the basis for accession of

Armenia to the WTO agreement on the Public Procurement

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Major changes in the public procurement with entry into force

of the new law

1. Expanded the scope of the law

Operation of the law applies to procurement by public organizations, as well as procurement, which are made from funds, that have been received gratuitously from the state or from the Central Bank of Armenia or state organizations or enterprises

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Major changes in the procedure of public procurement with entry into

force of the new law

2. The system of public procurement has been completely decentralized

All government organizations carry out independently their own procurement

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Major changes in the public procurement with entry into force

of the new law

3. Created Complaints Council

The council involves not only government representatives, but also representatives of the municipalities, the central bank, the private sector and civil society organizations. The list of board members is published on the site of public procurement: www.gnumner.am.

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Major changes in the public procurement with entry into force

of the new law

4. Increased minimum limit for application of the simplified procedures

If the total price of the goods purchased, services or works does not exceed 20 million drams (40,000 Euros), the purchase will be carried out under the simplified procedure.

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Major changes in the public procurement with entry into force

of the new law

5. Approved the mandates of the center to support procurement

According to government resolution #168 dated 10.02.11, the procurement agency was transformed into the center to support the procurement, the same resolution approved the articles of incorporation of the Center. This resolution has reorganized the agency from procurement organizer into the center of support.

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The objectives of introduction of e-procurement

Transparency and accountability of the procedures Reporting Competitiveness and equality Profitability and Finance Economy. Encouraging of business and development of the

economy.

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The legislative framework for implementation of e-procurement

• In 2005, the road map was drawn up for implementation of electronic public procurement

• Government Resolution #137 dated 26.01.06 approved of the strategy of e-procurement implementation

• Protocolary government decree N17 dated 23.04.09 approved the strategy to reform the e-procurement system

• Public Procurement Law dated 22.12.2010 established procedures for electronic auctions

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Steps to implement the system of e-procurement

• In 2010-2011 software for e-procurement, e-procurement system testing, as well as piloting and users advanced training was designed

• From 1 January 2012 the open state procurement tenders are organized electronically

• Scheduled from 1 January 2014 all public procurement to be spent through e-procurement system

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Next Steps (Action Plan)

• Integral implementation of the public procurement system

• Partial centralization of the procurement system - implementation of procurement processes by the competent authorities for GNCO and CJSC Company

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THANKS