New state procurement mechanism to be launched in Belarus from July 1

A new version of the Law "On Public Procurement of Goods (Works, Services)" will come into force on July 1, 2019, and a state information and analytical system (GIAS) will be implemented, which will consolidate all information on electronic procurement in Belarus. Deputies and representatives of state bodies discussed the legislative novelties today at a round table meeting at the National Marketing Centre of the Ministry of Foreign Affairs of Belarus, a BELTA correspondent reports.

As Deputy Minister of Antimonopoly Regulation and Trade Andrei Kartun explained, the cost of contracts concluded as a result of public procurement amounts to about 6% of Belarus's GDP. The legislative changes are aimed at making the procedure more transparent and efficient.

Andrei Kartun emphasised that the Ministry of Antimonopoly Regulation and Trade is currently conducting seminars on public procurement in the regions to gather feedback. The innovations are also aimed at eliminating cases where the cost of goods and services increased several times after the conclusion of contracts.

"The new law is aimed at reducing the number of unscrupulous intermediaries, and a provision has been introduced on the immutability of the contract price (it can only be changed in proportion to the volumes). The supplier must assess their risks and set a real price," said Andrei Kartun.

The novelties concern the delivery times of goods, the preparation and submission of bids, the formation of the annual public procurement plan, the procedure for concluding contracts, and the conduct of tenders.

It is envisaged that from January 1, 2020, single-source procurements with an estimated value of the subject of public procurement from 50 to 300 basic units (one basic unit is Br25.5) must be conducted on electronic trading platforms.

As noted by Vladislav Shchepov, Chairman of the House of Representatives Standing Committee on Economic Policy, the bill was under consideration in the House of Representatives for eighteen months, and the norms included in it were widely discussed. Over a hundred proposals were received from deputies during the preparation of the document. "Public procurement is an indicator of market competition, and it is important to ensure the transparency of procedures in this area," added Vladislav Shchepov.

According to him, an open electronic system in the field of public procurement is relevant both from the perspective of the country's economic development and from the perspective of curbing corruption.

Representatives of various ministries and departments, enterprises and organizations, regional executive committees, and deputies participated in the round table meeting. First Deputy Director of the National Centre for Marketing, Alexander Zapolsky, spoke about the full transition to an electronic type of public procurement. The State Information and Analytical System for Public Procurement Management (GIAS) was presented, with the National Centre for Marketing of the Ministry of Foreign Affairs of Belarus designated as its operator. GIAS will contribute to increasing the transparency and efficiency of public procurement. As a result of these innovations, the automated system will be able to analyse the entire procurement lifecycle, from planning to contract execution. It will become possible to sign contracts in the form of an electronic document.

The National Centre for Marketing also presented a new module for single-source procurement in electronic format, which will reduce operational costs for customers and suppliers and make information about single-source procurement accessible to a wide range of users.

Issues related to the transition to full digitalisation of the public procurement process (in particular, regarding the placement of the annual procurement plan according to new rules, reservation of budget funds, and signing of public procurement contracts in electronic format) were the main focus of the discussion. Representatives of the Ministries of Finance, Antimonopoly Regulation and Trade, as well as the GIAS operator – the National Centre for Marketing – provided answers to these questions.

The National Centre for Marketing of the Ministry of Foreign Affairs is the operator of www.icetrade.by, a website for publishing information on public procurement and procurement using own funds.

News of Belarus (BELTA)