|Project Name||Implementing the e-Procurement System|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
|Sector / Subsector||
Information and communication technology - ICT industries and ICT-enabled services
Public sector management - Public expenditure and fiscal management
|Gender Equity and Mainstreaming|
|Description||The TA will support the development and rollout of the government e-procurement system. The work will involve management system establishment, rules-making, system analysis, building of the hardware and software platform iteratively with system managers and users, capacity building of all stakeholders, testing and installation on a phased basis, and monitoring over the initial use period.|
|Project Rationale and Linkage to Country/Regional Strategy||
Public procurement forms a significant percentage of national GDP. The potential impact of improvements in procurement systems is thus quite large, creating fiscal space for more and better services from governments. Improved public procurement systems also add to increased trust and support for government operations, ADB's R-CDTA 7437: Asia Pacific Public Procurement Initiative has demonstrated the importance of such enhancements.
Electronic government procurement (e-GP) helps to improve governance and reduce corruption, particularly when it is integrated with other areas of government functions such as budget, tax and audit. The result is a more efficient, open, transparent and competitive procurement environment for the government as a whole and for the supplier community. Good examples exist in Korea, Andra Pradesh in India, and Georgia.
In the Kyrgyz Republic, public procurement accounts for about 6% of GDP. The ADB/World Bank joint procurement assessment reported the need for procurement reform and specific measures for prevention and detection of fraud and corruption. In response to a request submitted by the government in January 2012, ADB provided technical support to (i) conceptualize an e-GP reform strategy, (ii) initiate stakeholder consultation process, and (iii) provide necessary technical advice on development of the e-procurement portal developed by the government. . The Public Procurement Development Strategy 2012-2014, approved on 27 September 2012, provides for national adoption of government e-procurement.
The Government has already established a team to develop and implement a unified e-GP system for online bid submission; centralized registration of suppliers; implementation of pre- and post-tendering workflows; e-Payment; e-Shopping mall for ordering low value items; and implementation of unified item code classification system. The government envisages augmentation of the in-house information system center under the Ministry of Finance (MOF) required for development of the full-fledged end-to-end e-procurement software. Overall implementation of the e-GP system will be done in a phased manner over 4 years; the TA will provide essential support for establishment of the system, user capacity building, public information, and problem-solving.
The proposed TA fits well with the economic management and governance priority areas of the Joint Country Support Strategy (JCCS) 2007-2010 and subsequent Country Operations Business Plan (COBP) 2011-2012 . The Kyrgyz national development strategy highlights governance reform, in particular public sector reforms and anti-corruption measures. Development and adoption of a nationwide e-procurement system is one of the key reform initiatives announced by the government in January 2012
|Impact||Efficiency and trust in public sector spending increased|
|Description of Outcome||Transparency and efficiency of the public procurement system improved|
|Progress Toward Outcome||
The new e-portal developed under this TA allows the government to enjoy much greater functionality than the previous one (www.zakupki.okomot.kg) which was used for (i) user registration; (ii) procurement plan creation and modification; and (iii) tender publication only.
The new portal allows undertaking all procurement stages from publication to contract award online. Since the roll-out the new portal by Prime-Minister Otorbaev in July 2014, 5,762 providers, and 1,640 procuring entities have registered in the new system with 8,824 bids amounting to around $436 million published online at (www.zakupki.gov.org). The new portal allows procurement of goods using various methods; modules for the procurement of services and works are about to be added in few months.
|Description of Project Outputs||
The Ministry of Finance establishes a phased rollout for the e-GP system.
Technical skills for development, implementation, and use of e-GP system enhanced
Awareness and capacity of end users of e-GP system improved
|Status of Implementation Progress (Outputs, Activities, and Issues)||
Output 1: The server infrastructure (6 servers) required for development and hosting of e-Procurement application was installed in August 2013. The Registration module for suppliers and government agencies went live on 10 February 2014. The system went live in July 2014. To date, 1,186 providers and 512 procuring entities have registered in the new system with 468 bids amounting to around $60 million published online.
Output2: 12 national individual consultants are hired by June 2013 for PMU and SDU created to support MOF. Necessary office hardware and software items were purchased to support PMU operations. MOF established a Technical Committee chaired by the State Secretary to ensure good governance and consultation in implementing the e-procurement system. The training equipment procured for both training centers has been delivered and installed. The training room in Bishkek and Jalal-Abad are fully operational. To date, 256 staff of procuring entities and 387 provider company staff have undergone respective training under the TA provided for free.
Output 3: To ensure smooth transition to the e-procurement system the capacity of the call center was expanded with a dedicated telephonic help desk. PMU prepared a draft strategy on public procurement capacity development including the e-procurement training to be conducted under the TA.
Two field assistants have been hired to support end-users in the provinces; 4 more field assistants will be hired.
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||The government announced implementation of e-GP as one of the key policy initiatives in its 100 day program in January 2012. At the first stakeholder consultation meeting chaired by Vice Prime Minister on 13th February 2012, the government officially launched the implementation of e-GP and sought the assistance and cooperation of concerned agencies and donors to support this initiative. The MOF, the state regulatory agency in charge of public procurement policy and reforms is given the mandate to: a) coordinate all activities associated with implementation; and b) form a working group to advise on implementation of e-GP system. The consultant engaged by the ADB has closely interacted with key procuring entities, budget, procurement and software development teams of MOF, and supplier representative for development of strategy and roadmap for the implementation of e-GP. The draft strategy and the e-GP concept were shared with the working group and interested donors. Based on these consultations, the government finalized the Public Procurement Development Strategy 2012-2014.|
|During Project Implementation||
The progress made in this TA will be evaluated as per the performance targets / indicators defined in the Design and Monitoring Framework specified in Appendix 1. A baseline study will be conducted at the outset to benchmark performance in the manual system, and the same study will be repeated post implementation to evaluate the impact of e-GP system.
The learning from implementation of this TA will be documented during project reviews conducted periodically. The documentation will be made available for public consumption in ADB web site and presented during regional workshops and procurement forums organized among ADB developing member countries.
|Responsible ADB Officer||Mamatkalil Razaev|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Kyrgyz Resident Mission|
Ministry of Finance
Public Debt Department Room 500
58 Erkindik Boulevard
Bishkek 720040, Kyrgzy Republic
|Concept Clearance||15 Oct 2012|
|Fact Finding||23 Oct 2012 to 25 Oct 2012|
|Approval||11 Dec 2012|
|Last Review Mission||-|
|Last PDS Update||25 Sep 2015|
|Approval||Signing Date||Effectivity Date||Closing|
|11 Dec 2012||11 Jan 2013||11 Jan 2013||31 Dec 2015||19 Feb 2016||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|1,000,000.00||0.00||300,000.00||0.00||0.00||0.00||1,300,000.00||11 Dec 2012||606,449.65|