Kyrgyz Republic is a sovereign, unitary, democratic republic

Land area: ca. 199.9 thousand square kilometers (ranked 85th in the world) Capital city: Bishkek Population: ca. 5.4 million Kyrgyz Republic consists of 7 regions (oblasts) Kyrgyzstan borders on China (858 km), Kazakhstan (1,051 km), Tajikistan

(870 км) and Uzbekistan 1,099 km) State language: Kyrgyz; official language: Russian.

Ministry of Finance of the Kyrgyz Republic

Presentationof the public procurement system

of the Kyrgyz Republic

Ministry of Finance of the Kyrgyz Republic

Role of the Ministry of Financein the public procurement system

The state policy in the area of procurement of goods, services, works and consulting services financed by the state budget,

foreign loans and grants

The legal framework governing public procurement

Public Procurement Law of the Kyrgyz Republic Primary objectives of the Law: Maximization of efficiency and effectiveness of procurement Increasing involvement and promoting competitiveness

among suppliers (contractors) in the procurement process Ensuring equitable treatment of all suppliers (contractors) Ensuring transparency of the procurement procedures

The legal framework governing public procurement

Law of the Kyrgyz Republic on public procurement of products of associations of disabled persons of the Kyrgyz Republic

Primary objectives of the Law: - ensuring sale of products of associations of disabled persons and

achieving optimum production profitability by mandatory placement of state orders for procurement of their goods and products without application of the tendering procedure;

- social protection of disabled persons and their family members; - provision of skilled employment opportunities for disabled persons; - guaranteed enforcement of procurement contracts by government

institutions and agencies, and enforcement of suppliers’ obligations to procuring entities.

State Agency for Public Procurement and Material Reserves under the Government of the Kyrgyz Republic

The State Agency for Public Procurement and Material

Reserves under the Government of the Kyrgyz Republic was

liquidated by Decree of the President of the Kyrgyz

Republic on measures to ensure implementation of the Law

of the Kyrgyz Republic on structure of the Government of

the Kyrgyz Republic (#425 dd. October 26, 2009).

State Agency for Public Procurement and Material Reserves under the Government of the Kyrgyz Republic

State Agency for Public Procurement and Material Reserves under the

Government of the Kyrgyz Republic

Public Procurement Department

Regional Training Information Center

Fund of the State Material Reserves

BishkekMB Chui MB

Osh-Batken MB

Jalalabad MB

Batken MB Naryn MB

Board

On the Ministry of Finance of the Kyrgyz Republic

Regulation of the Government of the Kyrgyz

Republic (Reg. #733 dated December 4, 2009) on

the Ministry of Finance of the Kyrgyz Republic

delegated the public procurement methodology

functions, including procurement procedures

training, to the Ministry of Finance.

Ministry of Finance of the Kyrgyz Republic

Public Procurement Methodology Department (5 positions; headed by the head of department) has been established.

The Department reports directly to the State Secretary (First Deputy Minister) of the Ministry of Finance of the Kyrgyz Republic.

Key functions of the Public Procurement Methodology Department include development and improvement of the legal and regulatory framework to ensure maximum efficiency and effectiveness of public procurement.

Key amendments to the Public Procurement Law of the Kyrgyz Republic

In pursuance of the Regulation of the Government of the Kyrgyz Republic #520 of 10.23.2007, the Public Procurement Law of the Kyrgyz Republic (KR Law #69, as amended on 05.24.2004) was amended, as follows:

The prior approval procedure (in form of no-objection by the Authorized Body) has been cancelled in 18 out of 19 cases. Only single-source procurement method is now subject to prior approval.

The bid submission terms have been reduced from 6 to 4 weeks for unrestricted bidding, and from 4 to 3 weeks for restricted bidding.

Amendments to laws and regulations on public procurement

New thresholds have been approved by the Regulation of the Government of the Kyrgyz Republic #302 of 06.13.2008 on amendments to the Regulation of the Government of the Kyrgyz Republic #440 of 09.16.2005 on approval of threshold amounts for public procurement of goods, works and services:

for budget-funded organizations

For procurement of goods and services:minimum threshold amount – 12.0 thousand US dollarsmaximum threshold amount – 36.0 thousand US dollars For procurement of works:minimum threshold amount – 12.0 thousand US dollarsmaximum threshold amount – 48.0 thousand US dollars

For organizations and funds established at the cost of the state budget; state-owned enterprises and joint-stock companies with at least 51% of shares owned by the state and authorized capital stock

of at least 2,400.0 thousand US dollars:

For procurement of goods, works and services:

minimum threshold amount – 48.0 thousand US dollars

Maximum threshold amount – 241.0 thousand US dollars

Amendments to laws and regulations on public procurement

Harmonized with a new Public Procurement Law of the Kyrgyz

Republic – Regulations on the unit and tender commission

On April 5, 2010, the Training Center of the Ministry of Finance of the Kyrgyz Republic started delivery of five-day training workshops on public procurement procedures for the audience representing 321 organizations.

Introduction of the electronic bidding system is the Ministry’s main objective for 2010/11

Formulation of clear and understandable instructions and the mechanism

Training specialists based on the best practices of the countries with functioning electronic bidding systems

Implementation of a pilot project in several of the procuring entities

Gradual implementation of the system in procuring entities of the city of Bishkek

Thank you for attention!