The Verkhovna Rada has passed a draft law (No. 11520) on new public procurement procedures, the parliament reported on Wednesday, UNN writes.
Details
245 People's Deputies voted in favor.
The law, as indicated by the parliament, provides for European standards of transparency and competition in the field of state tenders, harmonizes the public procurement system with EU Directives, and introduces new tools such as innovative partnerships and dynamic systems.
The document, as noted, simplifies the attraction of international investment and will support domestic enterprises, particularly those established by war veterans.
"Public Procurement Law No. 11520. Repeated second reading. The bill is linked to negotiations on EU accession, as well as financing programs from the IMF and the World Bank," reported MP from the financial committee Olha Vasylevska-Smagliuk on social media.
She also reported that "bill 11520 is part of the World Bank DPO and an IMF beacon on public procurement."
"No. 11520 – new public procurement procedures. A World Bank law, this will unlock $3.5 billion," added MP from the financial committee Yaroslav Zheleznyak on social media.
The Ministry of Economy expects that the adoption of bill No. 11520 on public procurement will promote the development of Ukrainian entrepreneurship.
"This is not just a technical update of Prozorro – it is a global change in the rules of the game, where the focus is on the interests and opportunities of Ukrainian business. It is also a transition from temporary wartime adaptations to a stable legislative foundation," the ministry indicated.
What Ukrainian business will receive - explanation from the Ministry of Economy
Bill No. 11520, the Ministry of Economy noted, significantly expands opportunities for Ukrainian companies, especially SMEs, to participate in procurement and removes outdated bureaucracy:
- Revision of the mechanism for dividing the procurement item into lots. The law clearly regulates the mechanism for dividing large procurements into lots. This will prevent large players from taking all orders and will open doors for small regional companies to participate in large-scale tenders.
- Opportunity to offer own solutions (alternative tender proposals). For the first time, businesses will be able to submit variants of their solutions (if provided for by the customer). That is, if you have a technologically better or more cost-effective alternative, you will be able to propose it at the tender.
- Flexible tools for long-term cooperation. Updated rules for using framework agreements and dynamic procurement systems will allow companies to plan their work ahead, supplying standardized goods without constantly collecting document packages from scratch.
- Regulation of subcontracting. Relationships with subcontractors and co-executors are now clearly regulated at the legislative level. This makes working on large projects safe and legally protected for every participant in the chain.
Why it is important for European integration
The Ministry of Economy explained why this is important for European integration and international cooperation:
- Alignment with EU standards. The bill is aimed at implementing Directive 2014/24/EU. Public procurement is part of the first, basic cluster of negotiations on Ukraine's accession to the European Union.
- Donor trust and partnership development. For partners, the adoption of the law is an indicator that Ukraine's reconstruction is taking place according to the highest global standards of transparency. This will pave the way for large-scale attraction of foreign investment and financing of recovery projects, where Ukrainian business will play a key role.
- Attracting large-scale financial support (World Bank DPO). The adoption of the law is part of a broader package of institutional reforms that Ukraine is implementing in cooperation with international partners. In particular, the successful advancement of such reforms opens access to financing under the World Bank's Development Policy Operation (DPO) for jobs and private sector growth in the amount of $3.4 billion. The funds received are directed directly to the general fund of the state budget to cover priority social and humanitarian expenditures, which allows for maintaining economic stability while business adapts to new European standards.