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The World Bank recommended using Prozorro for all purchases for the reconstruction of Ukraine

The Prozorro state e-procurement system, including the Prozorro Market e-catalogs, meets the e-procurement requirements for World Bank financed operations. This is evidenced by the results of the assessment conducted by the World Bank team.

The initial evaluation of Prozorro was carried out by the World Bank team back in 2017. At that time, it allowed the use of Prozorro for national procurement procedures under World Bank financed projects. The objective of the current assignment is to re-assess the compliance of the e-procurement system Prozorro with the updated Electronic Procurement Requirements for MDB Financed Operations, July 2019 (MDB Guidelines) to verify what customization and changes in the Prozorro system need to be done to conform to international best practices for use under World Bank financed projects. 

The assessment concluded that the e-procurement system, including the Prozorro Market, is generally compliant with the Electronic Procurement Requirements for MDB Financed Operations. In addition, the assessment's authors provided a list of recommendations for improving the system.

“Projects Implementing Agencies under Bank financed operations may use the eProcurement system and Prozorro Market for tenders requiring the use of national procurement procedures (with the threshold up to 5 mln Euro) whilst the identified improvements are under implementation. With respect to the World Bank financed international tender procedures (with the threshold from 5 mln Euro), Implementing Agencies may use the Prozorro e-procurement systems after the identified enhancements have been implemented by SoE Prozorro”, said Arup Banerji, Regional Country Director for Eastern Europe, Europe, and Central Asia, commenting on the assessment results.

For her part, the Deputy Minister of Economy of Ukraine, Nadiya Bigun, emphasized that some of the World Bank's recommendations had already been implemented as part of the update of the public procurement rules under martial law, approved by Decree of the Cabinet of Ministers No. 1178. In particular, the possibility of conducting tenders even with a single participant, the opportunity for tender participants to offer a price higher than the estimated, etc.

Nadiya Bigun reminded that the World Bank is already financing some critical reconstruction projects in Ukraine. With the implementation of the full-scale Recovery Plan, the number of such projects will increase significantly, and Prozorro should become the only system for conducting all procurement within the framework of the recovery.

"The Ukrainian e-procurement system has proven to meet the highest international procurement standards. Uninterrupted work during the large-scale invasion and the ability to respond flexibly to the needs of the state prove that Prozorro should become a single system for carrying out all the purchases for reconstruction projects - both with budget funds and with the funds of international partners and investors", Nadiya Bigun emphasized, adding that all additional recommendations of the World Bank regarding the improvement of procedures will be implemented as quickly as possible.

Thus, by the recommendations of the World Bank, SoE Prozorro has started adapting the system to the exceptional standards and conditions approved by the World Bank, including the appeal mechanism. The possibility to use the system in accordance with the special requirements of the World Bank will be available already in March 2023.

In addition, the possibility of adapting the Prozorro system for the specific needs of the reconstruction is being considered. For example, concerning the procurement of consultant services, design, and architectural works, the market for which during the recovery will be huge. That means a two-stage procedure: at the first stage, the technical offers of tender participants (composition of works, approaches, etc.) are considered, and at the second - the price offers. To this end, the Prozorro team is considering modifying an existing competitive dialogue procedure with a similar design.

In general, the position of the World Bank is that starting from 2023, Prozorro should be used in all reconstruction projects financed by the Bank. In addition to system improvement, the Ministry of Economy of Ukraine and SoE Prozorro will also provide free training for World Bank project managers on the use of Prozorro and Prozorro Market procedures and tools. The first seminars are scheduled for January 2023, after which World Bank specialists will be able to apply the skills they have acquired both in new projects and in projects that have already started in Ukraine.

For her part, Barbara Ziolkowska, Senior Procurement Specialist, World Bank, noted that the World Bank's support will help to provide a powerful impetus to the recovery of Ukraine's economy.

"Large international investment projects will help Ukraine not only to restore destroyed objects but also to restore economic ties in the affected regions, to give impetus to the development of regional business and production. Attracting international capital, participation of Ukrainian companies in tenders - both independently and in a consortium with international partners - will make it possible to implement ambitious recovery plans as much as possible," stressed Barbara Ziolkowska.

It is necessary to remind that in September 2022, the Government of Ukraine, the European Commission, and the World Bank, in cooperation with partners, have preliminarily estimated the costs of rebuilding and restoring Ukraine in the amount of $349 billion.

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