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Baku, 17.4.2013

Public Procurement Monitoring In Azerbaijan and Abroad Zuzana Dančíková , Transparency International Slovakia. Baku, 17.4.2013. Why is monitoring public procurement an issue? . In Slovakia € 3,9 billion was spent in public procurement in 2012 (15 % of total government expenditure)

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Baku, 17.4.2013

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  1. Public Procurement Monitoring In Azerbaijan and Abroad ZuzanaDančíková, Transparency International Slovakia Baku, 17.4.2013

  2. Why is monitoring public procurement an issue? • In Slovakia € 3,9 billion was spent in public procurement in 2012 (15 % of total government expenditure) • According to a survey, Slovak businesses believe on average 13 % of the value of a tender goes to bribes. • € 500 million could be saved annually, the equivalent of • 16 new hospitals • 51 km of new highways • 21 % pay raise for all young teachers

  3. Why is monitoring public procurement an issue? TI Slovakia experience suggests: Monitoring procurement based on aggregate procurement data leads to savings by • Introducing better policy based on evidence • Pointing to individual cases of inefficient procurement

  4. What to monitor in public procurement? Monitoring public procurement in Slovakia: Civil society supplements the State

  5. How do we monitor procurement? • COMPILATION & PRESENTATION OF AGGREGATE DATA Transparency International Slovakia has developed a web portal tender.sme.sk , which allows us to compile available data on individual cases of procurement and present aggregate data • ANALYSIS & INVESTIGATION Aggregate data enables us to analyze trends in procurement & investigate individual tenders

  6. Compiling and presenting aggregate data

  7. Compiling and presenting data: Individual vs. aggregate procurement data

  8. Compiling and presenting data: Collecting information from individual tender notices Source: e-vestnik.sk

  9. Compiling and presenting data: Defining relevant data

  10. Compiling and presenting data: Aggregate information about an individual procurer Source: tender.sme.sk

  11. Compiling and presenting data: Information about an individual tender in context Source: tender.sme.sk

  12. Analysis of trends in procurement & investigation of individual tenders Analysis of aggregate data allows us to answer policy questions such as: • Does public procurement in a particular sector (e.g. healthcare) require special oversight? • If mandatory electronic auctions are introduced in public procurement, do savings occur?

  13. Analysis of trends in procurement & investigation of individual tenders: Closer attention should be paid to public procurement in Slovak health care Source: tender.sme.sk

  14. Analysis of trends in procurement & investigation of individual tenders: Closer attention should be paid to public procurement in Slovak health care FINDINGS: • More than half of all tenders in healthcare receive just a single a bid • 35 million EUR (14% of annual procurement expenditure in health care) could be saved if number of bids in single-bid tenders increased to two IMPACT: • 40 media citations, most cited analysis by Slovak commentators • 2 months later Ministry of Health strengthened oversight over state hospitals

  15. Analysis of trends in procurement & investigation of individual tenders: Mandatory e-auctions save public money Source: SDKU-DS

  16. Analysis of trends in procurement & investigation of individual tenders: Mandatory e-auctions save public money FINDINGS: • Rising number of bids in tenders is associated with increasing savings • Savings are more significant when e-auctions are used IMPACT: • Widely cited by media • Promotion of mandatory e-auction in political parties’ programs

  17. Analysis of trends in procurement & investigation of individual tenders: Searching for bad deals • Medical equipment often said to be bought inefficiently • CT tenders over last 5 years investigated (27) • Price differences of up to 100 % found: CORRUPTION Source: tender.sme.sk, hospitals

  18. Technical conditions

  19. Way forward Monitoring procurement leads to savings. What is next? • Closer involvement of all stakeholders (government, journalists, public) • New features: • Collecting information on calls for tenders • Introducing notifications • Opening further data, e.g. Open Contracts (in Slovakia all public contracts, invoices and orders have to be published online before they enter into force).

  20. THANK YOU! http://tender.sme.sk/en/ dancikova@transparency.sk

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