ARMENIAN PUBLIC PROCUREMENT SYSTEM

A S T A N A , 2 0 1 6

REPUBLIC OF ARMENIAMINISTRY OF FINANCE

S e r g e y S h a h n a z a r y a nH e a d o f P u b l i c I n t e r n a l F i n a n c i a l

C o n t r o l a n d P u b l i c P r o c u r e m e n t M e t h o d o l o g y D e p a r t m e n t

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M A I N AC T I V I T I E S I M P L E M E N T E D I N T H E P U B L I C P RO C U R E M E N T

• Legal framework and infrastructure -development and improvement• Capacity building• Competitive procurement - increase of theshares and volumes• e-Procurement• Cooperation with the donor and internationalorganization (IFIs)

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D E V E LO P M E N T A N D I M P ROV E M E N T O F T H E L E G A L F R A M E W O R K A N D I N F R A S T RU C T U R E

• 2000 - Public Procurement Law (PPL), by-laws and institutionalarrangements developed in cooperation with USAID

• 2004 and 2010 - PPL was revised to incorporaterecommendations presented in the assessment reports done bythe World Bank and EU SIGMA

• 2011 - Armenia - WTO member and signatory of the GPA (1994version). 2015 - Armenia ratified new version of the GPA (2012version)

• 2015 - Armenia entered Eurasian Economic Union (EAEU)3

C A PAC I T Y B U I L D I N G

• In cooperation and with assistance of the international and donororganizations (WB, EBRD, EU SIGMA, USAID/CLDP and ADB):

- needs assessment, development of training materials, manuals andconducting of trainings for the staff of the procuring entities and potentialbidders.

- study tours to the countries with the advanced Public Procurementsystems, participation in the international public procurement forums,seminars and round tables

• Training, continuous professional development and accreditation system - areadopted at the legislative level. Currently under discussion - certification of thespecialists, involved into the continuous training programs, upon completioneach of the training modules/courses

• The amendments in the procurement legislation, caused by necessity to meetthe international commitments, will require additional trainings for therelevant staff of the procuring entities and prospective bidders

• International financial institutions (WB, EBRD, ADB) - organizing trainings forthe specialists involved in the implementation of their projects

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C O M P E T I T I V E P RO C U R E M E N T I N C R E A S E O F T H E S H A R E S A N D VO LU M E S

2013 2014 2015

State budget (% of total budget) allocated for procurement:out of which - competitive procurement

- single source procurement

13.3

11.3

2.0

11.2

9.3

1.9

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9.3

1.7

Average number of bidders per tender 2.7 2.7 3.2

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E - P RO C U R E M E N T

Stage 1 - in 2005 official web site was introducedwww.procurement.am.

The information available at the site include:- Public procurement Law and by-laws (adopted and drafts); - Procurement Plans ((PP disclosure is compulsory for all procuring entities); - Procurement ads and the amendments, if any, including for the itemsprocured under WB financed projects;- information on the intention to award the contract, contract awards,procurement process cancellation;- complaints and decision made on the complaints. The AppealCommittee's sessions are open and available for online access.- the list of the companies debarred from participation in the public procurement;- Public procurement reports (quarterly and annual);- Procurement process monitoring reports;- Training programs; - List of the procurement accredited staff.

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E - P RO C U R E M E N T

• Stage 2 - introduced e-Procurement system ARMEPS (www.armeps.am) developed under the WB - financed project.

The following procurement methods conducted via electronically: 2012 - open bidding;2014 - framework agreements;2015 - simplified and competitive negotiation

• 2015 - e-procurement system under the WB financed project was supplemented with the three additional modules for:- Procurement planning; - Monitoring and reporting;- Contract administration.

• 2016 (planned) - start using the ARMEPS for WB financed NCB procurements (given the 2014 Bank's positive assessment of the e-Procurement system). In May of 2016 training for PIU staff on ARMEPS

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E-PROCUREMENT

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E-PROCUREMENT

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E-PROCUREMENT

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PA RT I C I PA N T S R E G I S T E R E D I N T H E E -P RO C U R E M E N T SYS T E M

2012 2013 2014 2015 Total

Number of companies registered In the ARMEPS e-Procurement system

1000 425 1130 1863 4418

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C O O P E R AT I O N W I T H I N T E R N AT I O N A L A N D D O N O R O RG A N I Z AT I O N S

• USAID - in 1999 development of the first Publicprocurement Law;

• The World Bank- in 2004 and 2009 - Country Procurement Assessment

Report (CPAR). Based on the recommendations done in theCPAR 2004 and 2009 the PPL was amended in 2005 and 2010

Procurement Regulations For Borrowers (2016)- Armenia participated in Consultations with ExternalStakeholders (2014)- Para. 2.3 “.. the Bank may agree to rely on and apply theprocurement rules and procedures of an agency or entityof the Borrower…”

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C O O P E R AT I O N W I T H I N T E R N AT I O N A L A N D D O N O R O RG A N I Z AT I O N S

• EU SIGMA

- in 2008 and 2013 - joint assessment of the Public procurement system.

- PPL 2010 incorporated recommendations in 2008;- PPL 2015 (draft) incorporated recommendations in 2013

EBRD - UNCITRAL Public Procurement joint Initiative- GPA Technical Cooperation Facility- Series of capacity building session-- Two main directions: legislative amendments and electronic

procurement reform- Assessment of the e-procurement system.

ADB 2014 - Procurement Reform Scoping Exercise in the frames of the

Developing Procurement Capacity For Improved Procurement 13

THANK YOU FOR ATTENTION!

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