“A new approach to procurement in “Ukrzaliznychpostach” allowed to save more than 100 million hryvnia in state funds” – Yevhen Khoroshchak

“A new approach to procurement in “Ukrzaliznychpostach” allowed to save more than 100 million hryvnia in state funds” – Yevhen Khoroshchak
July 08, 2015.

Kyiv, July 8, 2015. Over the past six months, Ukrzaliznychpostach saved more than 100 million hryvnia in state funds due to the new approaches in the area of procurement. In particular, this applies to the conditions for aligning procurement with the best international and European practices. Acting Director General of the state enterprise Ukrzaliznychpostach, Yevhen Khoroshchak announced these savings during a press briefing at Ukraine Crisis Media Center.

According to Khoroschak, to achieve this the company began simplifying the qualification and technical part of the tender documents. In order to improve the competitive environment, the company expanded its range of manufacturers.

In addition, a transparent mechanism for holding tenders was introduced, and full information about the tender process was made public. According to Yevhen Khoroshchak, everyone can track how the tender is being held – from the moment of its announcement, to the stage of making changes, to the additional agreements to the contracts. “For the first time, we have launched an online broadcast of tender offer opening procedures. That is why our new approach destroys the old corruption schemes,” said Acting Director General of the SE Ukrzaliznychpostach.

The changes in the procurement system are already showing results: significant savings in terms of state funds. According to the results of the latest tender for the purchase of diesel fuel, which was won by OKKO, nearly 90 million hryvnia will be saved each month in comparison to the previous contract.

In addition, in 2015, Ukrzaliznychpostach purchased wheels and tires for Ukrzaliznytsya at a price in dollars lower than the 2014 price by 23.5% and 27.4%, respectively. As a result, the company saved about $5 million of state funds on this purchase.

Due to the new measures regarding the sale of scrap metal, just one of the areas of work of Ukrzaliznychpostach, the company can earn additional 119 million hryvnia, provided that the planned sale of 160 thousand tons of scrap metal will be made by the end of the year. “We have changed one simple thing. Earlier bids of potential buyers came in the open form, by fax and by e-mail. Now, we have changed one feature – commercial proposals were submitted in sealed envelopes, and it was broadcasted online,” Yevhen Khoroshchak explained.

Khoroshchak announced plans for Ukrzaliznychpostach’s future, which include both the introduction of new procedures for procurement, as well as the establishment of a supervisory board which will exercise control over compliance regarding the conditions of holding a tender and the procedures for summarizing the results of the tender.

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