Ukraine: Everyone sees everything

The Maidan revolution of 2014 set off a chain reaction in Ukraine that had a profound impact on the country’s public procurement. Civil society, private sector and government reformers revolutionized public procurement after many years of corruption and inefficiency. They enshrined open contracting and the Open Contracting Data Standard into law, increasing competition, reducing the time and money spent on contracting processes, helping buyers make better decisions and making procurement fairer for suppliers.

 

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Key open contracting strategies

Implementation of a digital and transparent e-procurement platform Multi-stakeholder collaboration with civil society taking an active role in the development A business development approach to e-procurement system development: pilot, proof, legislate, expand. Legislation follows praxis supporting reforms Government benefits from cross-cutting effects from open contracting reforms in state asset sales and at different levels of government

Summary

Challenge: Public procurement was overly bureaucratic, inefficient, impervious to many potential suppliers, and riddled with corruption and abuse, undermined by oligarchs using government contracts to enrich themselves.

Open contracting approach: After the Maidan revolution, an electric coalition of reformers from civil society, business and government focused on transparency as the solution to pervasive corruption in public procurement. They created a radically transparent, open source e-procurement system called Prozorro, enabling government agencies to conduct procurement deals electronically and fully transparently. Prozorro made the state’s information about public contracts easily accessible online for anyone to see, access, and use. Initially conceived as a tool for fighting corruption, the potential benefits of the system are much broader — increasing competition, reducing the time and money spent on contracting processes, helping buyers make better decisions and making procurement fairer for suppliers. The unique access to all of the country’s procurement data has enabled companies and civil society organizations to build powerful data-driven tools and services leading to innovations such as Prozorro.Sale, the world’s first e-Bay for state assets.

Results: The reforms decreased corruption and increased competition, saving $6 billion. Now thousands of new businesses are competing for contracts, the government gets real-time insights for millions of tenders and contracts, and more than 100,000 citizen monitors make sure projects are delivered. Ukraine’s medical procurement agency, for example, pivoted fast to use procurement data for better planning, supplier engagement, civic monitoring, and strategic communications with medicine prices reducing by up to 40%. One of the tools built helped hospitals predict demand on over 100 critical items during the pandemic.

At a glance

Key stats

After the reforms
Savings As of December 2020, savings amount to over US$6 billion
Anticorruption and red flag monitoring As of December 2020, Dozorro monitors had uncovered violations in over 33,348 tenders with an estimated value of $4,5 billion.
Value for money By mid 2020, Dozorro helped to fix violations in 8,646 tenders with an estimated value of $934 million.
Improving public services in health procurement Ukraine’s medical procurement agency reduced medicine prices by up to 40%.