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Kazakhstan to possibly change its procurement system using S. Korean expertise

Finance Materials 22 August 2020 14:44 (UTC +04:00)
Kazakhstan to possibly change its procurement system using S. Korean expertise

BAKU, Azerbaijan, Aug.22

By Nargiz Sadikhova - Trend:

Kazakhstan’s Ministry of Finance is considering introducing changes to the existing procurement system, Director of the Public Procurement Legislation Department of the Finance Ministry Sabit Akhmetov said, Trend reports with reference to the Central Communications Service under Kazakhstan’s President.

“A lot of work has been done to set the database of the procurement participants; now, work is underway to verify and check the reliability of the information entered into the electronic depository. The introduction of an electronic depository will automatically calculate work experience of each individual participant and eliminate corruption risks. At the same time, in our opinion, the only condition for eliminating corruption risks in procurement is the exclusion of the human factor in the process of choosing a supplier,” Akhmetov said.

In his words, the issue of introducing new procurement methods using a points system is also being considered.

“This method of procurement provides for the complete exclusion of human participation in the public procurement process and will be carried out without a tender commission. Through the wide integration of the electronic public procurement system, it is proposed to automatically assign a rating to potential suppliers on the web portal,” he explained.

For example, for having a good reputation, that is, having work experience, a high indicator of financial stability, and a long guarantee period offered by potential suppliers, corresponding positive points will be automatically assigned, he said.

“In case of poor records, for example, if the supplier was previously in the register of unscrupulous procurement participants or penalties were applied against them, such potential suppliers will automatically be assigned negative points," Akhmetov added.

The director added that based on the highest number of points, the combined price and quality criteria, the public procurement web portal will automatically determine the winner of the tender competition.

“This principle and approach of automatic supplier selection is proposed based on the experience of South Korea, which is one of the leaders in the electronic public procurement system. All the above innovations and proposals will be worked out by the ministry within the framework of the law draft on public procurement, which is currently under consideration by the parliament,” he said.

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