Public Procurement Monitoring In Azerbaijan and Abroad Zuzana Dančíková Transparency International Slovakia Why is monitoring public procurement an issue In Slovakia 39 billion was spent in public procurement in 2012 15 of total government expenditure ID: 373541
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Baku, 17.4.2013
Public Procurement Monitoring In Azerbaijan and AbroadZuzana Dančíková, Transparency International SlovakiaSlide2
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 highways21 % pay raise for all young teachers2Slide3
Why is monitoring public procurement an issue? TI Slovakia experience suggests: Monitoring procurement based on aggregate
procurement data leads to savings byIntroducing better policy based on evidencePointing to individual cases of inefficient procurement3Slide4
What to monitor in public procurement?
Formal procurement processSubstance of procurementIndividual levelAggregate level4
Individual level
Aggregate level
Publishing data
State
Civil society
Monitoring procurement procedure
State
Civil society
Civil
society
Monitoring procurement substance
Civil society
Civil society
Monitoring public procurement in Slovakia: Civil society supplements the StateSlide5
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 dataANALYSIS & INVESTIGATION Aggregate data enables us to analyze trends in procurement & investigate individual tenders5Slide6
Compiling and presenting aggregate data
6Slide7
Compiling and presenting data: Individual vs. aggregate procurement data7Slide8
Compiling and presenting data: Collecting information from individual tender notices8
Source: e-vestnik.skSlide9
Compiling and presenting data: Defining relevant dataSearchable data:
Descriptive data:Calculated data:SupplierProcurerProcured articleRegionYearType of procedure
Expected price
Final price
Number of bids
Overall procured
volumes
Average
competition
9Slide10
Compiling and presenting data: Aggregate information about an individual procurer10
Source: tender.sme.skSlide11
Compiling and presenting data: Information about an individual tender in context11
Source: tender.sme.skSlide12
Analysis of trends in procurement & investigation of individual tendersAnalysis of aggregate data allows us to answerpolicy 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?12Slide13
Analysis of trends in procurement & investigation of individual tenders: Closer attention should be paid to public procurement in Slovak health care13
Source: tender.sme.skSlide14
FINDINGS:More than half of all tenders in healthcare receive just a single a bid35 million EUR (14% of annual procurement expenditure in health care) could be saved if number of bids in single-bid tenders increased to twoIMPACT:40 media citations, most cited analysis by Slovak commentators 2 months later Ministry of Health strengthened oversight over state hospitals
14Analysis of trends in procurement & investigation of individual tenders: Closer attention should be paid to public procurement in Slovak health careSlide15
Analysis of trends in procurement & investigation of individual tenders: Mandatory e-auctions save public money15
Source: SDKU-DSSlide16
Analysis of trends in procurement & investigation of individual tenders: Mandatory e-auctions save public moneyFINDINGS:Rising number of bids in tenders is associated with increasing savingsSavings are more significant when e-auctions are usedIMPACT:
Widely cited by mediaPromotion of mandatory e-auction in political parties’ programs16Slide17
Analysis of trends in procurement & investigation of individual tenders: Searching for bad deals 17Medical equipment often said to be
bought inefficientlyCT tenders over last 5 years investigated (27)Price differences of up to 100 % found: CORRUPTION Source: tender.sme.sk, hospitalsSlide18
Technical conditions18Slide19
Way forwardMonitoring procurement leads to savings. What is next?Closer involvement of all stakeholders (government, journalists, public)New features:Collecting information on calls for tendersIntroducing 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). 19Slide20
THANK YOU!http://tender.sme.sk/en/dancikova@transparency.sk
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