E-system for transparent state procurements
18 November, 2010
E-system for transparent state procurements

All state procurements will be implemented via e-procurement system starting December 1, 2010.

New procurement system is expected to save time; be much more transparent, cheaper and unbiased.
State procurement transactions will be available via electronic system alone starting this December and is supposed to make all the procurement-tender-related information transparent and unbiased. According to Tato Urjumelashvili, Chairman of the State Procurement Agency, the law on e-procurement system introduction entered into effect on August 1st, 2010 actually, however it is volunteer

at the moment for it is put on a testing regime to prepare potential partners to get closer with the new e-procurement system as far as it becomes obligatory starting  this coming December.
The e-system aims to make simpler the currently active state procurement system so as to enable as many companies to participate in tenders as possible. Increased number of participants will boost competition, cut down service prices and make tender-related procedures transparent and unbiased.
According to researches made by Georgian Employers’ Association and GTZ conducted under request of the State Procurement Agency (SPA), number of factors prevents companies from participation in tenders at the moment. 70% of polled respondents find the paper-work too complicated and time-wasting. All tender participants have to submit a lot of documentation to be admitted at tenders. They have to run from the public registry to banks and other state instances to gather due papers that takes a lot of time and is related with pecuniary expenses as well. Moreover each tender participant has to pay GEL 200 as a participation fee. 72% of inquired people think that costs and technical requirements for participation in procurement are too high, 59% complains of lack of transparency, and 70% claims that handling with payments is too long.
According to Urjumelashvili, new e-procurement system streamlines all the troublesome procurement procedures and creates much better access to all tender-related information not for participant companies but to any interested citizen of Georgia. This increases transparency and lays ground to fair and non-discriminated tenders.


“Today full information on state procurement tenders is gathered only at the agency post-factum alone, and to process this information is very difficult as far as information enters by portions at the agency as following: tender announcements, then an operative account on tender follows in 10 days, then reports on agreement implementation are submitted quarterly. And all this includes 10 million paper-pages and it takes a lot of time to process and disseminate all this information. While the e-system opens all the questioned information immediately and everything is available and transparent to everyone starting the tender announcement till its completion and results via our web-site,” Urjumelashvili told Georgian Journal.

E-procurement is expected to cut down costs and paper-work as well as save time spent on tender-related procedures. The thing is that companies can get all due information respective to tenders and participate there from their offices immediately. Companies seem specifically happy that according to new system  only tender winner companies are obliged to submit documentations respective to their companies’ backgrounds, reputation and financial stability in compliance with the tender criteria, all the remainder tender participants are exempted from the questioned paper-work that saves a lot of time and money as well. Moreover the participation fee is cut down four-fold to GEL 50.
“The e-procurement system makes procedures simpler,” Levan Kanchaveli, Sales Executive of Georgian Express Ltd focused on international mail orders, told Georgian Journal. “You can participate in tenders without stepping out your office and save a lot of time. We have been participating in 5 tenders at average per year, but now we will be participating much more frequently.” 
Tender participation get more available as far as yearly procurement plans of each procuring state organization that are closed at the moment will be put on the SPA web-site after the state budget is approved. This enables interested service companies get aware of potential procurements beforehand and improve their business planning.
Procurement tenders are supposed to become much more frequent as far as according to the new procurement law, the tender obligation benchmark decreases almost 20-fold. By old legislation a state organization had to announce a tender if it was going to procure service and goods price of which exceeded GEL 100 thousand. In case of works procurement the tender was obligatory it the price exceeded GEL 200 thousand. According to the new law, both tender benchmarks are equated and cut down to GEL 5 thousand. 
“We think to announce 2100-2200 this year and then we think about 10 thousand tender will be announced in coming years as far as the tender benchmark reduced almost 20-fold,” Urjumelahsvili said.
“We have never participated in any tender before, “Tiniko Gvazava, Office Manager of Polzug InterModal LLC, a German-based transportation company, told Georgian Journal. “But we will participate in coming tenders for sure as far as procedures are getting streamlined, transparent, and easier. You needn’t provide with plenty of information on your company to participate in the tender like to make sure that your company is not bankrupt or blacklisted etc. And what is really attractive is that you can look through the web-site and learn when tenders can be announced and on which service, also you can monitor who is participating in the tender and what they propose.”

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