Ukraine introduces new mechanisms to control the purchase of electricity for the Armed Forces: what you need to know

Ukraine introduces new mechanisms to control the purchase of electricity for the Armed Forces: what you need to know

Kyiv  •  UNN

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The Ministry of Defense and the Ministry of Economy are introducing new rules for electricity procurement for the Armed Forces. Order No. 651 establishes open tenders, requirements for participants, and criteria for evaluating proposals to ensure transparency and savings.

The Ministry of Defense, together with the Ministry of Economy, is introducing new mechanisms to control the purchase of electricity for the Armed Forces, UNN reports with reference to the Ministry of Defense.

Details

The Ministry of Defense of Ukraine continues to introduce new measures to ensure the proper functioning of the Armed Forces of Ukraine during the period of martial law. The recently adopted Order No. 651 establishes a new procedure for the procurement of electricity for the Armed Forces and the State Special Transport Service.

The document was developed by the Ministry of Defense of Ukraine jointly with the Ministry of Economy.

According to the order, the purchase of electricity must be made on the basis of recommendations approved by the Ministry of Economy of Ukraine and using the developed tender documentation.

The Order, in particular, provides:

1. Open tenders through the electronic procurement system in compliance with the principles of transparency and non-discrimination of participants.

2. Tenderers must submit documents confirming their competence and experience in electricity supply.

3. Bidders are required to provide bank guarantees to secure bids and fulfill contracts, which ensures the reliability of suppliers.

4. 4. Companies from Russia, Belarus, and Iran are not allowed to participate in tenders, which is an important step in strengthening the country's security.

According to the tender documents, the criteria for evaluating proposals should be based on the lowest price to ensure transparency of the process.

Tenderers are also allowed to correct technical errors if it does not affect the essence of the proposal, and the contract performance security is up to 5% of the procurement amount, which guarantees the fulfillment of obligations by the successful tenderers.

Approval of the draft order is due to the need to create a unified approach to the organization of public procurement of electricity, preparation of tender documents, including a draft procurement agreement.

It also defines the mechanism and guidelines for customers who carry out relevant procurement for the needs of the Armed Forces of Ukraine in order to ensure maximum savings, efficiency, fair competition, openness and transparency at all stages, the Procurement Policy Department of the Ministry of Defense of Ukraine emphasizes.

"The introduction of new mechanisms to control the procurement of electricity for the Armed Forces is a practice that contributes to the establishment of clear, transparent and uniform rules that prevent abuse. Methodological recommendations on the specifics of public procurement in the electricity sector have been reviewed and supplemented taking into account the specifics of the customer," said Iryna Sopylyuk, Deputy Director of the Department for Public Procurement and Competition Policy of the Ministry of Economy.

She also added that the cooperation between the Ministry of Defense and the Ministry of Economy will help save money on electricity purchases and become a convenient mechanism for both the Armed Forces and suppliers.