Report Transparency International Ukraine on the state of public procurement in the fourth quarter of 2023 revealed ambiguous trends in the Prozorro system. On the one hand, the average number of bidders increased to 2.06, which corresponds to the pre-war level of 2021.
The increase in the share of competitive procurement to 77% and the increase in transparency of direct and defense procurement are also positive signals. The development of the Prozorro Market electronic catalog helps to simplify and speed up the procurement process.
However, the report also revealed worrying trends. Only a third of competitive procedures (33.3%) had more than one bidder, indicating insufficient competition in most procurements. In addition, experts note problems with procurement control, which can lead to abuse and inefficient use of budget funds.
“The return of competition to Prozorro is a positive signal, but we cannot ignore the existing problems“, says Ivan Lakhtionov, Deputy Executive Director of TI Ukraine. He emphasizes the importance of further efforts by the state to stimulate competition, strengthen control and ensure equal conditions for all participants in the public procurement market.
Thus, the TI Ukraine report paints an ambiguous picture of the state of public procurement in Ukraine. On the one hand, there are positive developments that indicate the restoration and development of the Prozorro system. On the other hand, serious challenges remain that need immediate solutions to ensure the efficiency and transparency of procurement in war and post-war reconstruction.
