Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date
PDS Updated as of 15 Apr 2014

Project Name Implementing the e-Procurement System
Country Kyrgyz Republic
Project/Program Number 46397-001
Status Approved
Geographical Location
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector Multisector
Subsector Multisector
Strategic Agendas
Drivers of Change
Gender Mainstreaming Categories

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Technical Assistance8297Technical Assistance Special Fund1,000
Counterpart 300
TOTAL US$ 1,300

Summary of Environmental and Social Issues

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

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.

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

Development Impact

Efficiency and trust in public sector spending increased

Project Outcome

Description of Outcome
Transparency and efficiency of the public procurement system improved
Progress Towards Outcome
MOF is operating the public procurement portal (www.zakupki.okomot.kg) which is used for (i) user registration; (ii) procurement plan creation and modification; and (iii) tender publication. All procurement agencies and more than 1000 suppliers use this portal. The functional scope of the envisaged system under the TA is much larger than the existing portal. The envisaged e-Procurement platform will be rolled out in a phased manner. Therefore, MOF will maintain the existing portal until all data is migrated to the new system by the TA completion.

Outputs and Implementation Progress

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)
Under Output 1: The server infrastructure (6 servers) required for development and hosting of e-Procurement application was installed in August 2013. Overall, development of the e-procurement system is slightly behind the schedule. The Registration module for suppliers and government agencies went live on 10 February 2014. The team is fully focused on developing e-Tendering (unlimited method) by early April 2014 and roll out the system in the selected pilot agencies immediately thereafter. The TA international consultant has reviewed the software in detail and has made certain recommendations for improvement of the software including changes to the registration module.The e-Tendering module is scheduled to be launched for 5 piloting agencies by mid-April 2014. Under 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 and SDU 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 will be operational by April 2014. Due to some restoration work planned by MOF, the Jalalabad training room set-up will be done in June 2014. In April 2013, 3 staff from Info System attended a 3-day specialized training on Service Desk, Incident & Problem Management in Almaty. A tailor-made training program was developed based on the training needs of SDU and SE Info-Systema staff and delivered in January 2014. Under Output 3: To ensure smooth transition to the e-procurement system the current capacity of the call center operated by Info System will be expanded with a dedicated telephonic help desk before end of 2013. PMU prepared a draft strategy on public procurement capacity development including the e-procurement training to be conducted under the TA. The PMU in close coordination with SDU and PPMAD will develop training modules on a phased manner and provide necessary support to the Training Center of the MOF in delivering the e-procurement user training. A round of awareness creation and publicity campaign has to support the scheduled launching of the e-tendering module in 5 pilot agencies. Help desk contact information and the process for getting registered for training sessions have to be communicated as well to all interested parties.
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing
Consulting Services
Procurement
Procurement and Consulting Notices
http://www.adb.org/projects/46397-001/business-opportunities

Timetable

Concept Clearance 15 Oct 2012
Fact-finding 23 Oct 2012 to 25 Oct 2012
Management Review Meeting
Approval 11 Dec 2012
Last Review Mission

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Technical Assistance 8297 11 Dec 2012 11 Jan 2013 11 Jan 2013 31 Dec 2015

Utilization

Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
Cumulative Disbursements

TA Amount (US$ thousand)

Approval Number Approved Amount Revised Amount Total Commitment Uncommitted Balance Total Disbursement Undisbursed Balance
Technical Assistance 8297 1,000 1,000 676 324 274 726

Contacts and Update Details

Responsible ADB Officer Mart Khaltarpurev (mkhaltarpurev@adb.org)
Responsible ADB Department Central and West Asia Department
Responsible ADB Divisions Kyrgyz Resident Mission
Executing Agencies

Links

Project Website http://www.adb.org/projects/46397-001/main
List of Project Documents http://www.adb.org/projects/46397-001/documents