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e -Procurement in Georgia Rapid development and low cost model Tbilisi, March 2012. Where we started. SPA office. January 2010. Collection of documents from state bodies (paper tenders). Waste of administrative resources. Service agency of mia. Notary. courts. Waste of paper. - PowerPoint PPT Presentation
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Georgia rapid development and low cost model
e-Procurement in Georgia
Rapid development and low cost model
Tbilisi, March 2012
1Where we started
SPA office. January 2010Collection of documents from state bodies (paper tenders)Service agency of mia
Tax Department
NATIONAL AGENCY OF PUBLIC REGISTRYOther state agencies
Commercial banks
Notary
courtsProcuring Entity
Tender proposal
Qualification docsWaste of time
BidderWaste of moneyWaste of administrative resourcesWaste of paper3
Paper tenders and geographical inequality
Procuring entity
Bidders had to make at least 4 physical visits to procuring entity, and the winner an additional 5th visit to sign a contract
20 mln paper copies in last 5 years
High transaction costsLimited access to informationHigh compliance costs
4Side effects of paper tendersLack of transparencyHigh risk of corruptionNon-reliable dataRestricted competitionGeographical inequalityHigh compliance costsFailing procurement system5What we wantedTransparency
Non- discrimination
Fair evaluation
Streamlined and easy to follow procedures
..and get rid of papers!!!In-house developmentOff-the-shelf solutionsCostCostLess than $ 1 mlnApprox.$ 10 mlnTwo options7First option (widely used off-the-shelf solution)
8Second option: Georgian alternativeS/W $ 150 000H/W $ 500 000BI $ 70 000Website $ 10 000Communication campaign $ 30 000
Sleepless nights not counted
Pace of the reformsJanuary 2010. Started with legal amendments and design of the e-procurement systemAugust 2010. E-procurement system launched in test modeOctober 2010. First e-tender announcedDecember 2010. Paper tenders abolished. Only e-tenders allowedSeptember 2011. 10 000 registered usersOctober 2011. $ 100 mln savings generatedMarch 2012. 12 474 registered usersMarch 2012. $ 142 mln savings generated
More is coming !!!
Geographical inequality eliminatedWhat we got
Procuring entity
Bidders do not make physical visits to procuring entity. Only the winner once visit procuring entity to sign a contract
Minimum paperworkMinimum transaction costsEveryone sees everythingNo physical visits
Increased competitionMaximum efficiencyFair evaluationElectronic dispute resolution11
Yes
YesYesYesNoNo
System prevents mechanical and procedural mistakesSystem provides subscription and internal messaging optionsElectronic payments module/ linkage with State TreasuryAll activities are loggedBilingual system.Georgian - English Integrated appeal mechanism
Make profit by placing banners on your website!!!Why companies will pay?170 456 unique visitors!!!5 128 227 page views!!!
Clear and well articulated political will Visionary approach no special rigid strategyConsolidated team unified views and valuesCorrection during the implementation return to the reforms several time Unilateral liberalization of procurement market for foreign biddersStreamlined, easy-to-follow proceduresNon-discrimination & fair evaluationMaximum transparency everyone sees everythingHow we built itTransparent & Efficient System of State Procurement (in 1 year !!!)Mainstream Alternative:Elaboration of a strategy (1 year)Dialogue with the interested parties Elaboration of an action plan/introduction (1 year)Implementation (3 years)Too long and too expensive for us (what about you ?)19What we learned
Reform boldly, broadly and communicateStart small and leverage on demonstrable resultsBusinesses love change they understandMore transparency less corruptionStreamline then automateSimplicity is powerKeep on identifying the next biggest binding constraint, reform in seriesReform unilaterally, dont wait for reciprocity
Communicate reforms Results inspireThank you for your attention!
28 Pekini Ave., Tbilisi 0160, Georgia e-mail: [email protected]