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

Project Outcome

Transparency and efficiency of the public procurement system improved

Implementation Progress

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

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