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Public procurement regulation heavily influences public spending; it is a sensitive component of public law and an essential supplement to public finance legislation. Dated public procurement law can be a drain o limited public funds and can undermine fiscal reform efforts. The EBRD 2010 Public Procurement Legal Frameworks Assessment has shown that countries in the EBRD region can be classified into three groups, reflecting the level of development of their PP legislation. - EU member states in the EBRD region that aim for full compliance with EU public procurement directives, and have achieved a satisfactory level of compliance with international standards as a minimum; - South-eastern European countries, along with Turkey, Georgia and Mongolia, which have recently introduced new laws on public procurement, and now need to focus on implementation issues and institution building; - other countries, where legislative reform may have started, but procurement laws fall well short of international standards. With some exceptions, the CIS countries are classified within the third group, where the need for reform is greatest. The assessment results have shown that in many CIS countries procurement laws and policies are fragmented and frequently unbalanced. In addition, in some countries the PP legal framework is irresponsive to the local business culture and market situation challenges. Historically, legal reform in the public procurement sector in the CIS started from scratch about a decade ago. It was primarily designed to tackle corruption and nepotism. Today, the CIS countries provide legal regulation of public procurements with mixed results. Most of the CIS countries have minimally reformed legal regimes and a low level of compliance with the international PP standards. The situation is better in Kazakhstan, Moldova and Russia and worse in Azerbaijan, Tajikistan, Turkmenistan, Ukraine and Uzbekistan. Shortcomings are identified in several areas: - In the CIS countries in particular, PP regulation does not cover the whole of the public sector, leaving significant number of public entities outside the regulation of the public procurement system. Moreover, in all CIS counties the PP legislation regulates only a fraction of the public procurement – the tendering process. - The regulation of a tendering phase itself does not always enable the efficient selection of a tender type or method, resulting in inefficiency both in the procurement process and public contracts. - Primary PP eligibility rules are often unclear and inconsistent. Several national PP laws do not enforce a uniform procurement practice between contracting entities in the same jurisdiction. - Institutional framework: In a modern PP framework, independent public procurement regulatory agencies are desirable. These are not common in the CIS countries. Dedicated public procurement remedies bodies can only be found in Georgia and Mongolia. In other jurisdiction in this part of the EBRD region either an administrative of judicial ex post review is available, but it is mostly provided by means of ineffective monitoring by the same administrative body that provides the procurement regulatory function. In general, the capacity of these bodies is limited. Assessment results show little evidence of impartiality and objectivity in several CIS countries. All CIS countries have undertaken reform of their procurement laws in the past ten years, but many key questions have not been properly addressed, leaving the legal framework lacking one or more of the features recommended by the EBRD PP Core Principles and UNCITRAL PP Model Law. The lack of regulation of procurement planning, budgetary approval procedures, and public contract management is a common weakness throughout the region, including among regional leaders like Russia and Kazakhstan. Furthermore, building local procurement capacity and creating national benchmarks have often been neglected. Recent developments in international best practices, leading to new procurement methods, still await implementation. In summary, the EBRD Public Procurement Assessment results reveal a need for significant improvement of the national public procurement frameworks in the CIS countries. Given that local PP laws in the CIS countries were originally based on the 1994 UNCITRAL standard, legal reform following the revised UNCITRAL PP Model Law would upgrade public procurement legislation to the good performance level. >> News |
Workshop in Vienna
9 April 2013
Tajikistan
In partnership with the Public Procurement Agency and the Ministry of Finance and President’s Administration of the Republic of Tajikistan, EBRD, UNCITRAL and OSCE hosted a Policy Dialogue Workshop in Vienna on enhancing public procurement legislation in the Republic of Tajikistan.
Workshop in Vienna
6 March 2013
Kyrgyz Republic
Recent workshop organised in partnership with the Ministry of Finance of the Kyrgyz Republic, the EBRD and UNCITRAL took place in Vienna, Austria.
Government representatives and international experts discussed the draft Law of the Kyrgyz Republic on Public Procurement and its relations with the 2011 UNCITRAL Model Law on Public Procurement.
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