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Eldos Ramazanov: "Single pre-qualification and codification of goods, works and services will ensure equal access to procurement"

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Subject of the imperfection of the existing procurement system and companies of quasi-public sector for a few years are discussed by the business community. The Head of State concluded the protracted discussions. In his address "The third modernization of Kazakhstan: global competitiveness", Nursultan Nazarbayev said: "I am instructing the Government to introduce a unified public procurement system. We have made significant steps to reduce the level of corruption in the country. At the same time, the main focus is aimed at combating the effects of corruption. It is necessary to intensify efforts to identify and to eliminate the causes of corruption and preconditions.

How do businessmen see the new procurement system, and what has to be done in the first place for its modernization? Deputy Chairman of NCE "Atameken", a member of the Board Eldos Ramazanov told about this to Forbes.kz

- Eldos Muratovich, in your opinion, what is the main problem in the procurement of the public sector and quasi-public companies?

- The lack of order in procedures. We need systemic changes.

The main problem is that the existing procurement system has an element of non transparency! And it's not a question of work of Internet or software. Today, no one conducts monitoring of the prices, prevailing on the results of the procurement. But here is t the root of all evils - one and the same product, in the same period, is bought with a great price run-up. The same thing is purchased for 150 tenge and for 300 tenge at another and vice versa. That is why we offer the main thing: to make an integrated system that would include all the existing platforms, user-friendly, and NCE "Atameken" will ensure independent monitoring and analysis of prices.

- What do you mean when you talk about the need for systemic changes?

- We have three major platforms in Kazakhstan, operated by LLP "E-commerce Center" under the Ministry of Finance, LLP “Samruk-Kazyna Contract” under "Samruk-Kazyna", JSC “NADLoG” at the Ministry of Investment, as well as purchases of other domestic companies, not having its own electronic platform. And each of these organizations have their own requirements to suppliers when participating in tenders. But most importantly - each platform uses exclusively its own codification of goods, works and services, different from other sites. It is obvious that we need a universal classification for all market participants. After all, we live in one country? So why, for example, a water pipe in the codification of NADLoG system should be prescribed differently than from the program of CEC?

- Are not you afraid that a lot of time, effort, and money will be spend on the creation of such an electronic platform?

- Why to create something "super new"? We're talking about integration, so let's integrate the experience of already existing platforms. "Samruk-Kazyna Contract" has unified codes of products, works and services (ECPWS). It is, in the opinion of entrepreneurs, is clear to all. Why to re-invent the wheel? The second problem is prequalification selection. Without changing its principles, and ensuring transparency of this procedure, we will never get rid of the problems in the area of procurement. It is important that there be a unified system of passing the prequalification based on industry-orientation of business and the level of complexity of the subject of procurement. An entrepreneur must pass this procedure once, and these data should be accepted automatically by all other platforms. So that the tender participant does not have to fill in  the endless electronic forms, once he decided to participate in a tender on another platform. So they have to input data only once. If you do not change the nature of their business - for example, furniture production can’t be changed to cinder block production - the system remembers you, and allows you to participate as a "native".

- On what criteria prequalification should be based?

- We need a unified register of procurement participants. And what we have in practice? Each site maintains its own registry. The entrepreneur has to adjust to each individual platform, as each has its own approach and conditions for participation in procurement. In addition, it complicates the monitoring by independent experts.

Now let’s go back to prequalification selection. Today institutions, which with the support of NCE "Atameken" somehow interacts with potential suppliers in this regard are "Samruk-Kazyna Contract" and the Ministry of Finance. However, it should be noted that PQS in procurements conducted by "Samruk-Kazyna" are fundamentally different from the PQS in public procurement. That is, we have a picture that there is no systematic approach to the issue of PQS in the procurement, while the task of any PQS - is the formation of a pool of qualified and honest suppliers. We propose to introduce a uniform pre-qualification system based on industry-orientation of business and the degree of complexity of the subject of procurement. The selection system should be based on the Unified Register of suppliers of goods, works and services, which will include a single register of domestic producers, and it, in turn - on the basis of industrial certificates. NCE "Atameken" is ready to be in charge of the latter.

- What is the benefit in economic terms?

- Procurement system will be easy to study and to analyze. Through creation of a registry of domestic manufacturers, we will be able to evaluate the competitive advantages of Kazakhstani enterprises, and on this basis to say anything about the import substitution. Industry certification will allow to differentiate between real producers and false ones - brokers and dealers. That's then it will be possible to speak in detail about the targeted support of domestic business through the purchase and long-term contracts.

- What exactly does "Atameken" offer in terms of user-friendliness of IT-platforms for the procurements?

- Here we consider there are two main points. First - you need one single point of access for the entrepreneur - the potential bidder. Let the platforms be different - in the end, to bring together all marketplaces - it is technically - but the point of entry should be one! The entrepreneur must have one password. There should be single system of identification of its registration data.

Second - we need an independent and transparent monitoring of prices. This feature, in our opinion, must be given to NCE "Atameken", as an organization, consolidating the business community. Only in this way, we are not interfering in the tendering process itself, the ability to obtain on-line control over their transparency. It is meaningless to change the shape without changing the mechanism itself.

 Source Forbes.kz


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