World Bank: Over 2 Years, 10% of Budget Funds Saved in Kyrgyzstan Thanks to Public Procurement

Марина Онегина Economy
VK X OK WhatsApp Telegram
According to Felipe Goya, the regional manager of the World Bank for procurement in Europe and Central Asia, competitive procurement in Kyrgyzstan has already proven its effectiveness. Currently, the electronic state procurement system in the country brings together more than 3,700 customers and over 40,000 suppliers, creating an effective platform for centralized procurement.

According to the World Bank, in 2024 and 2025, it is expected that competitive procurement will save about 10% of budget funds. Moreover, the implementation of centralized procurement could increase this savings to 11-13% for certain categories of goods.

Felipe Goya emphasizes that this savings is significant for the country. The freed-up funds could be directed towards the construction of 100 schools or other social needs.

He also noted that the competitive procurement process takes from 3 to 6 months, and sometimes longer, depending on the complexity. Nevertheless, their role in saving budget funds and combating corruption, as well as in increasing transparency and quality, makes their application justified, as evidenced by international experience.

With over 60 years of experience in procurement in more than 100 countries, the World Bank is ready to support Kyrgyzstan in improving its state procurement system by leveraging its global knowledge, Goya noted.

The expert also emphasized that public procurement is a way of spending taxpayer money, and it is important how these funds are used. Competitive procurement is the traditional and most effective method. Practice shows that they can provide significant savings—sometimes up to 19-20%. Examples from Latin America and Europe confirm that the application of competitive mechanisms in public procurement is justified.

Goya provided examples from other countries: in Brazil, savings from competitive procurement reach 19%, while in Romania, it amounts to nearly 2 billion euros per year. Competitive procedures not only allow for savings but also ensure transparency, which prevents corruption. Data shows that direct contracting can lead to collusion and other unfair practices, distorting the quality of governance.

In conclusion, he noted that Central Asian countries are demonstrating positive dynamics in this area. The region is witnessing progress in the application of competitive public procurement and electronic trading platforms, which contributes to reducing corruption and increasing competition.
VK X OK WhatsApp Telegram