State Procurement in the Kyrgyz Republic

1. State Procurement in the Kyrgyz Republic

2. Total area: (76641 sq. miles)925 km from east to west: 453 kmfrom north to south. Total length of the Kyrgyz borders - 4508 km. • Population: 5 millionPopulation density - 24 per sq. km38% - urban population, 62% - rural population: 51% - women, 49% - men • Altitude (м.н.у.м): The highest point - 7437 m – Pobeda peakThe lowest point - 401 m – Lyailyak rayon in Fergana valleyAverage altitude - 2750 m. Bishkek - 750 m • 93% of the territory of Kyrgyzstan are on the altitude above 1500 mand 41% - are on the altitude above 3000 m. • Administrative Setting:The Kyrgyz Republic is divided into 8 administrative areas and 7 oblasts:Chui oblast, Issyk-Kul oblast, Talas oblast, Naryn oblast, Osh oblast, Djalal – Abad oblast, Batken oblast and Bishkek area. The oblasts are divided into 39 rayons. There are 4 districts in Bishkek city. The rayons comprise a total of 429 local communities (Aiyl Okmotu).

3. There are approximately 4 thousand procuring agencies.The total procurement cost in 2010 amounted to 489,3 mln. USD The main procuring agencies in 2010 were: 1. Budget organization, state organizations, agencies and enterprises, municipal organizations, financed from local budget, local government institutions procured for 264,8 mln USD 2. Organizations and funds created from the state funds , Joint Ventures , where the Country has not less then 51% shares procured for 170 mln USD Also from single source – 54,5 mln USD

4. State Procurement Functions Delineation • Eliminate coordination of actions by procuring organizations • Expand possibilities of procuring organizations for single source procurement method. • Develop and maintain a single national register (a database) of procuring agencies, agreements and unreliable suppliers. 4

5. A Website

6. Procurement Plan

7. Upcoming Bid Announcements

8. The Bid Winners

9. Electronic State Procurement One of the innovations includeintroduction of electronic information technologies. Operational effectiveness is improved for state procurement by introducing modern information and communication technologies to the process of state procurement of goods, works and services as well as by replacing paper-based state Procurement with the electronic (digital format) one.

10. Electronic Reverse Auction (Reverse auction) The reverse auction is an auction organized for bids upon application, where the winner is the one who offers the lowest price. The reverse auction is organized, as a rule, to organize bids upon application, where a party with the lowest price is considered a winner. It is controlled by the buyers, who apply for goods they need to purchase, while the sellers compete for the right to sell. Herewith, a buyer actually initiates the bid among the sellers. While observing the bidding process, the buyer considers such factors as location of a seller, cost and time of goods delivery. By end of the auction, the lowest price is selected. Buyers make payments and sellers deliver the goods.

11. Reducing corruption practices in the bidding process by: • Improving bidding documents preparation: • Bid announcements come only after the bidding documents are prepared; • Bidding documents are made available to the inquirers immediately after they request the former; • Placing shorter deadlines for bid application submissions; • Using a threshold approach • Improving bid opening procedures • Mandatory presence of all parties including the possibility of using audio and video communication devices. • Improving agreement filing and registering process: • Registration of contracts (agreements); • Post all signed agreements on the website of the State Procurement Bulletin; • A possibility of amending the signed agreements. • Strengthening responsibility of management and chairs of bidding committees for violation of state procurement laws. 11

12. Thank You! ? • Questions