Transparent procurement in Ukraine: Record volumes through the Prozorro system in 2023

In 2023, the Prozorro system in Ukraine underwent a significant transformation, resulting in a threefold increase in procurement volumes through this innovative mechanism, to an impressive UAH 480 billion. This became possible due to the effective reorganization of the system in wartime, reduction of the duration of procedures and implementation of Prozorro Market.

This was reported by the Ministry of Economy of Ukraine, noting that more than 80% of procurement funds are spent through the Prozorro system, guaranteeing a competitive and transparent process. According to Yulia Svyrydenko, First Vice Prime Minister and Minister of Economy of Ukraine, this indicates significant progress towards increasing the transparency and efficiency of the procurement system.

The return of non-armed defense procurement by the Ministry of Defense to the Prozorro system is also an illustration of transparency and cost savings. Within six months, almost UAH 7 billion was saved, which is 16% of the budget.

The overall effect of using Prozorro was impressive, as contracting authorities managed to reduce the cost of their procurement by UAH 37 billion compared to the expected cost. Thus, the system not only ensures efficiency in spending money, but also contributes to real savings for the state budget.

Deputy Minister of Economy Nadiia Bihun emphasized that, in addition to financial benefits, procurement plays a strategic role in the development of domestic production of goods and services. This can stimulate local businesses and manufacturers who are ready to join the process of rebuilding the country.

The Ministry of Economy emphasizes that public procurement is aimed at supporting domestic producers, and its main goal is to direct public funds to the purchase of domestically produced goods, which can lead to the return of up to 40% of these funds to the budget in the form of taxes.

Additionally, the Prozorro system has recently been equipped with a new feature that allows contracting authorities to justify the feasibility of their purchases, increasing transparency and accountability in public procurement.