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State Procurement Agency of the Republic of State Procurement Agency of the Republic of AzerbaijanAzerbaijan

E-Procurement in Azerbaijan RepublicChallenges and perspectives

Elshad Samedzade,Elshad Samedzade, PHD PHD

&&

Arzu AliyevArzu AliyevE-mail: E-mail: mail@tender.gov.az

Web-site:Web-site: http://www.tender.gov.az/

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State Procurement Agency of the Republic of State Procurement Agency of the Republic of AzerbaijanAzerbaijan

Welcomes the participants of the 8Welcomes the participants of the 8thth Regional Regional Public Procurement ForumPublic Procurement Forum!!!!!!

Welcome to AlbaniaWelcome to Albania ! !

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Legal base of public procurementsLegal base of public procurements

• The State Procurement Agency (SPA) was established under Decree No.583 by the President of the Azerbaijan Republic dated May 16, 1997 to carry out state policy in the field of procurement of goods (works and services) purchased by state funds. SPA’s duties were determined by the Charter approved by Decree No.855 by the President of the Azerbaijan Republic dated February 20, 2003 according to the requirements of article 4 of the Law “On public procurements”.

• “The Action Program on “E-government” formation in 2010-2011 in the Republic of Azerbaijan” approved with the Order of the Cabinet of Ministers of Azerbaijan Republic

• The Law of the Republic of Azerbaijan on Electronic Signature and Electronic document, March 9, 2004

• The Law of the Republic of Azerbaijan on Electronic Trade, May 10, 2005

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Agency’s DutiesAgency’s Duties

SPA is charged with the following duties:• establishment and improvement of the normative-legal

base regulating public procurement in the Republic of Azerbaijan;

• ensuring control over the legality of procurement of goods (works and services) purchased by state funds on the basis of tender and implementation of contracts;

• carrying out measurements as provided by the existing legislation to improve the qualification level of specialists of procurement organizations in the field of public procurement;

• creation of a public procurement data base, as well as the implementation of other duties as determined by the legislation of the Republic of Azerbaijan.

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Organizational Chart of the AgencyOrganizational Chart of the Agency

Director

General Department

Department of Regulation of

Procurement of goods (works and services)

Department of Economic Analysis

and Control

Department of Training Organization,

International Relations, Law and Hearing

Complaints

Finance sectorEconomic Sector

Sector ofElectronic Database

Formation

Sector of Economic analysis

Sector of International

relations

Chief of Staff

Deputy Director

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Requirements for creating Public Requirements for creating Public Procurement Information System in Procurement Information System in

AzerbaijanAzerbaijan

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• Program

• 1. Learning world experience, expert involvement, specialists’ business trips, preparing technical tasks etc. in terms of E-procurement system

• 2. Planning system program and network• 3. Creating web portal that includes the Agency’s,

clients’ and contractors’ interface; information security, establishing storage and archiving, its integration with e-signature and e-payment systems

• 4. Integration, system adjustment, testing and adjusting the system

• 5. System Implementation, training the staff, conducting seminars and trainings for relevant government authorities, involving Press and TV for explaining the system

• 6. System follow-up for a year and making necessary corrections

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Network Network

• 1. Computers, telecommunication, electrical equipment etc. for main and reserve stations

• 2. Installation, adjustment

• www.icazeler.gov.az • By using this website which is created by the

initiative of the Ministry of Economic Development you can find information on how to obtain permissions, licenses etc. which is required to participate in public procurements held in Azerbaijan.

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1010

ChallengesChallenges

1) In terms of general E-government project State authorities should do several work in order for the system to function harmonically as a whole system.

2) E-signature process should be developed

3) Procurement organizations are less experienced

4) There should be trust and reliance on online system

TrainingsTrainings

• SPA organizes trainings on “public procurement” which are regularly held for employees of the ministries, committees, institutions and organizations as well as employees of departments of education, health, culture, local executive authorities, municipalities of the cities and regions of the Republic of Azerbaijan to improve the qualification level of specialists involved in public procurement procedures from procurement organizations.

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• A workshop on E-Procurement with a joint initiative of the State Procurement Agency and SIGMA (Support for Improvement in Governance and Management), April 6, 2011;

• SIGMA organized a seminar on “E-procurement” in Tbilisi on May 19, 2011;

• A workshop on “Public Procurement Proceduresin an E-procurement Perspective” with a joint initiative of the State Procurement Agency and SIGMA, June 22, 2011;

• SPA representative participated at Asia Pacific Regional e-GP Conference organized by Asian Development Bank in Indonesia, November 22-24, 2011.

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1313

Ratio of total amount of implemented public Ratio of total amount of implemented public procurements according to each corresponding procurements according to each corresponding

financial source in 201financial source in 20111 ((in thousand manatsin thousand manats))

405735.26; 15%

216124.64; 8%

2034083.8377%

Budgetary means

Means allocated by international financial organizations

Non-budgetary means of state organizations and enterprises

1414

705877

19697372157871

25140052544605

3344157

4564810

0500000

100000015000002000000250000030000003500000400000045000005000000

2005 2006 2007 2008 2009 2010 2011

1000000

Dynamics of performance of state procurement Dynamics of performance of state procurement contracts based on the reports submitted to the State contracts based on the reports submitted to the State Procurement Agency in 200Procurement Agency in 20055-2011-2011 years years ((in thousand in thousand

manatsmanats))

1515

Thank youThank you!!