Министерство финансов Республики Узбекистан Тел.: ( ) , Министерство экономики Республики Узбекистан Тел.: ( ) Торгово-промышленная палата Республики Узбекистан Тел.: ( ) Central Asian Public Procurement Forum April 21-24, 2009 Central Asian Public Procurement Forum April 21-24, 2009 Public Procurement Practices in the Republic of Uzbekistan Ibragimov D. D. – Ministry of Finance of the Republic of Uzbekistan Kizyan G. I. – Ministry of Economy of the Republic of Uzbekistan Ryzhichenko O. R. – Trade and Commerce Chamber of the Republic of Uzbekistan Ibragimov D. D. – Ministry of Finance of the Republic of Uzbekistan Kizyan G. I. – Ministry of Economy of the Republic of Uzbekistan Ryzhichenko O. R. – Trade and Commerce Chamber of the Republic of Uzbekistan

Министерство финансов Республики Узбекистан Тел.: ( ) , Министерство экономики Республики Узбекистан Тел.: ( ) Торгово-промышленная палата Республики Узбекистан Тел.: ( ) Republic of Uzbekistan Capital city: Tashkent Population: 27.5 million people ( ) Area: 448,900 km2 Administrative division: 12 oblasts, 1 autonomous republic National currency: sum. 2

Министерство финансов Республики Узбекистан Тел.: ( ) , Министерство экономики Республики Узбекистан Тел.: ( ) Торгово-промышленная палата Республики Узбекистан Тел.: ( ) Macroeconomic indicators for 2008 GDP growth – 9% Inflation rate – 7,8% Share of small business in GDP % Budget surplus – 1.5% of GDP 3

Министерство финансов Республики Узбекистан Тел.: ( ) , Министерство экономики Республики Узбекистан Тел.: ( ) Торгово-промышленная палата Республики Узбекистан Тел.: ( ) Recipients of budgetary and extra- budgetary funds Government bodies (controlling bodies) SuppliersOrganizations contributing to implementation of procurement procedures 1. Budgetary organizations 2. Executive directorates of extra- budgetary earmarked funds 3. Single customer services under the Council of Ministers of the Republic of Karakalpakstan, khakimiats of oblast and Tashkent city 4. Organizations receiving international grants or credits against the Government guarantee when implementing public procurement at the expense of credits and international grants 1. Cabinet of Ministers 2. Chamber of Accounts 3. Ministry of Finance 4. MEER&T 5. State Committee for Architecture and Construction Economic entities Banks providing services to forwarders, consulting organizations and other experts organizations Субъекты государственных закупок

Министерство финансов Республики Узбекистан Тел.: ( ) , Министерство экономики Республики Узбекистан Тел.: ( ) Торгово-промышленная палата Республики Узбекистан Тел.: ( ) Public Finance Management Reform Introduction of the State Budget Execution through the Treasury System (January 1, 2006) LEGAL FRAMEWORKS Law of the Republic of Uzbekistan On Treasury Execution of the State Budget 664-II Law of the Republic of Uzbekistan On Treasury Execution of the State Budget 664-II Resolution of the President of the Republic of Uzbekistan On Measures for Further Development of the State Budget Execution through the Treasury System 594 dated Resolution of the President of the Republic of Uzbekistan On Measures for Further Development of the State Budget Execution through the Treasury System 594 dated Resolution of the Cabinet of Ministers of the Republic of Uzbekistan On Approval of the Regulation on the Treasury of the Ministry of Finance of the Republic of Uzbekistan 53 dated Resolution of the Cabinet of Ministers of the Republic of Uzbekistan On Approval of the Regulation on the Treasury of the Ministry of Finance of the Republic of Uzbekistan 53 dated

Министерство финансов Республики Узбекистан Тел.: ( ) , Министерство экономики Республики Узбекистан Тел.: ( ) Торгово-промышленная палата Республики Узбекистан Тел.: ( ) A considerable limitation of a possibility for effective management of temporarily free government funds as balances in thousands of bank accounts of the budget and budgetary organizations; Lack of opportunities to implement quality prior and current control over the purposeful use of budgetary funds; Complexity when maintaining records and preparing reports on execution of the State budget to the available mechanism of budgetary organizations financing. Pre-requisites for a transition to the Treasury execution of the State Budget

Министерство финансов Республики Узбекистан Тел.: ( ) , Министерство экономики Республики Узбекистан Тел.: ( ) Торгово-промышленная палата Республики Узбекистан Тел.: ( ) Advantages of the Treasury Execution of the State Budget Operational execution of budget expenditures by direct payment for expenditures of budgetary organizations to suppliers accounts without using accounts of budgetary organizations; Significant tightening of control over purposeful use of budget allocations; Effective use of temporarily free government funds; A significant reduction in unjustified accounts payable of budgetary organizations; Improved operational efficiency of collection, processing and analysis of information about the status of the budgets of all levels, as well as daily monitoring over cash execution of revenues and expenditures of the state budget;

Министерство финансов Республики Узбекистан Тел.: ( ) , Министерство экономики Республики Узбекистан Тел.: ( ) Торгово-промышленная палата Республики Узбекистан Тел.: ( ) budget - ministry - oblast ministry subdivision - budgetary organization - supplier Treasury - supplier (payment execution period – 1 day, for salaries – up to 2 days) (payment execution period – up to 5 days, for salaries – up to 7 days) Scheme for execution of payments BEFORE introducing the Treasury execution of the State budget AFTER introducing the Treasury execution of the State budget

Министерство финансов Республики Узбекистан Тел.: ( ) , Министерство экономики Республики Узбекистан Тел.: ( ) Торгово-промышленная палата Республики Узбекистан Тел.: ( ) Bidding process Tenders are conducted to procure imported and local raw materials, materials, components and equipment: for the value exceeding US$ 100 thousand equivalent under one contract; for the value exceeding US$ 100 thousand equivalent under one contract; financed form: financed form: the state budget; the state budget; extra-budget earmarked funds; extra-budget earmarked funds; foreign grants and credits extended under the Government guarantee by international and foreign financial institutions. foreign grants and credits extended under the Government guarantee by international and foreign financial institutions. If the terms and conditions of foreign credits extended against the Government guarantee and those of foreign grant specify a different procedure for procurement of goods, as well as is the procurement is done according to decisions of the Cabinet of Ministers of the Republic of Uzbekistan – tenders are not conducted. Legal frameworks: Resolution of the Cabinet of Minister of the Republic of Uzbekistan On Measure to Improve Organization of Tenders 456 dated November 21, 2000 Resolution of the Cabinet of Minister of the Republic of Uzbekistan On Measure to Improve Organization of Tenders 456 dated November 21, 2000.

Министерство финансов Республики Узбекистан Тел.: ( ) , Министерство экономики Республики Узбекистан Тел.: ( ) Торгово-промышленная палата Республики Узбекистан Тел.: ( ) Public procurement control Prior Financial bodies – at the moment of registration of estimated expenditures. State Committee for Architecture and Construction – at the moment of experts evaluation of bidding documents. Ministry of Economy – when selecting projects to be included into the Investment Program. Prior Financial bodies – at the moment of registration of estimated expenditures. State Committee for Architecture and Construction – at the moment of experts evaluation of bidding documents. Ministry of Economy – when selecting projects to be included into the Investment Program.

Министерство финансов Республики Узбекистан Тел.: ( ) , Министерство экономики Республики Узбекистан Тел.: ( ) Торгово-промышленная палата Республики Узбекистан Тел.: ( ) Current MEER&T – when concluding import contracts (experts evaluation of import contracts); Financial bodies – when financing expenditures for procurement; Treasury – when registering contracts (legal and financial commitments); State Committee for Architecture and Construction – from the moment of organization of bidding and until the facilities are put in operation. Current MEER&T – when concluding import contracts (experts evaluation of import contracts); Financial bodies – when financing expenditures for procurement; Treasury – when registering contracts (legal and financial commitments); State Committee for Architecture and Construction – from the moment of organization of bidding and until the facilities are put in operation. Public procurement control

Министерство финансов Республики Узбекистан Тел.: ( ) , Министерство экономики Республики Узбекистан Тел.: ( ) Торгово-промышленная палата Республики Узбекистан Тел.: ( ) Post Control and Revision Department of the Ministry of Finance Prosecutors Office Chamber of Accounts Post Control and Revision Department of the Ministry of Finance Prosecutors Office Chamber of Accounts Public procurement control

Министерство финансов Республики Узбекистан Тел.: ( ) , Министерство экономики Республики Узбекистан Тел.: ( ) Торгово-промышленная палата Республики Узбекистан Тел.: ( ) Prospects for introduction of e-public procurement system Legal frameworks RU Law On Electronic Digital Signature 562-II dated RU Law On E-Commerce 613-II dated RU Law On Electronic Payments 13 dated г RU Law ON Electronic Document Turnover 611-II dated Feasibility study on e-Procurement in Uzbekistan From May to July, 2009 – a feasibility study will be conducted to study the issue of development of a model information system for e-public procurement with consideration of the experience of the Republic of Korea (Korean On-Line Procurement System) Partners: Public Procurement Service of the Republic of Korea (PPS); Korean IT Promotion Agency (KIPA).

Министерство финансов Республики Узбекистан Тел.: ( ) , Министерство экономики Республики Узбекистан Тел.: ( ) Торгово-промышленная палата Республики Узбекистан Тел.: ( ) Central Asian Public Procurement Forum April 21-24, 2009 Central Asian Public Procurement Forum April 21-24, 2009 Thank you for attention! Ibragimov D. D. – Ministry of Finance of the Republic of Uzbekistan Kizyan G. I. – Ministry of Economy of the Republic of Uzbekistan Ryzhichenko O. R. – Trade and Commerce Chamber of the Republic of Uzbekistan Ibragimov D. D. – Ministry of Finance of the Republic of Uzbekistan Kizyan G. I. – Ministry of Economy of the Republic of Uzbekistan Ryzhichenko O. R. – Trade and Commerce Chamber of the Republic of Uzbekistan