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The success of public procurement service ProZorro is to expand to sales of state property

Kyiv, March 03, 2017.

The success of public procurement service ProZorro to expand to sales of state property

The project “ProZorro.Sales” is an attempt to extend the success of ProZorro system of public procurement into the scope of sales of state assets. The goal is to ensure transparent, effective and fair procedures for the sale of property. The development and implementation of system “ProZorro.Sales” is conducted jointly with community, state and private sector. The transparent online auctions are used to sell assets of failed banks, managed by the Deposit Guarantee Fund. Since February 1, 2017 all sales of property of bankrupt banks are made exclusively via “ProZorro.Sales”. In the near future, a mandatory tool for all areas of sales of state property will be introduced.

What will change?

The project “ProZorro.Sales” will expand to the entire scope of sales of state property, to ensure transparent and simple sale of assets of state enterprises and minimize the human factor. This was told by the project participants, representatives of the project “ProZorro.Sales” office, the Ministry of Economic Development and Trade of Ukraine, State Property Fund of Ukraine and Transparency International at a press briefing at Ukraine Crisis Media Center. A new electronic system will be in charge of the sales of state and municipal property, raw wood, scrap metal, small privatization objects, buildings and so on.

Maksym Nefiodov, first Deputy Minister of Economic Development and Trade of Ukraine, said that the system has been worked out for 5 months as a pilot project for sales of assets of the Deposit Guarantee Fund, and since February it has become mandatory for the sales of all assets of the Deposit Guarantee Fund.

Together with the new law on privatization, which changes the principle of determining the starting price, the system will help to increase the transparency and efficiency of state property. “‘ProZorro.Sales’ will help us establish a process of preparation and exhibition of objects for sale. That is how we completely negate the human factor, “- said Andriy Haidutskyi, deputy head of the State Property Fund of Ukraine.

First results

Yaroslav Yurchyshyn, executive director of Transparency International Ukraine, said that he considers “ProZorro” and a new project to be very successful example of cooperation between business, government and civil society. “200 million profit from the sale of assets of Deposit Guarantee Fund from the property of failed banks, price increase of 19% as compared to the declared are a direct proof that the system gives the results,” – he said. “I hope that the second phase will be interesting for partners not only at national level but also at the level of municipalities,” – he added.

One of the first customers of “ProZorro.Sales” is PJSC “Ukrhazvydobuvannya”, said Oleksii Sobolev, head of the project office of “ProZorro.Sales”. The first stage of the sale plan presents a lot of scrap metal, used batteries, oil, etc., the second is advanced technological equipment.

“We are now in the final stages of integration with the register of the Ministry of Justice and the Unified State Register to replace paper certificates with electronically data and avoid physical trading with companies that do not meet the requirements,” – said Nefiodov.

You can read more about ProZorro here.

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