9. Comprehensive system of electronic procurement: Improving the institute of real beneficiaries
| Commitment Start and End Date: | 03.2023 - 06.2024 |
| Lead implementing agency: | Ministry of Finance |
| Person responsible from implementing agency: | Ministry of Finance |
| Title, Department: | Ministry of Finance |
| Email: | secretariat@minfin.am |
| Phone: | +10525274 |
Other actors involved
Other state actors involved
Office of Deputy Prime Minister Mher Grigoryan, Ministry of High-Tech Industry, Ministry of Justice, Government bodies, Commission for the Prevention of Corruption
Civil society, private sector
"Freedom of Information Center" NGO
"Transparency International Anti-Corruption Center" NGO
"NGO Center" NGO
Other NGOs and organizations
Issue subject to regulation
What problem does the commitment aim to address?
Increasing the level of transparency and effectiveness of the procurement system, use of the system by all clients, existence of a new modern, full national system of electronic procurement integrated with other systems relating to the procurements system and including all business processes.
The Republic of Armenia has undertaken the commitment to carry out the introduction of the institute of real beneficiaries; hence, in order to ensure comprehensiveness, it is necessary to ensure the interoperability for identifying data.
Main objective
The current system does not ensure the opportunity to include all clients, it is impossible to fully ensure receipt of information based on both all business processes and open data.
Despite this fact, the process of revealing real beneficiaries has been introduced in the Republic of Armenia, but the steps made are not sufficient for fully achieving reduction of corruption processes. A need arises to ensure interoperability with other systems and registers operating in the Republic of Armenia.
Brief description of commitment
To elaborate a new system for electronic procurement complying with the modern requirements, which will be integrated with the other electronic systems interrelated with procurement, including with the State Register in terms of automatic receipt and publication of data on real beneficiaries of bidders of the procurement procedure, including the bidder selected at the stage of execution of the contract. The new system will provide the opportunity to also expand the scope of clients using it. The system will have the functionality of free-of-charge and full automatic publication, generation and conduct of analysis of information on the Internet regarding the organization of procurement procedures and management of contracts based on open data.
OGP challenge addressed by the commitment
To have a new electronic procurement system complying with the modern requirements, which will be possible to integrate with other electronic systems via the interoperability platform of the Government of the Republic of Armenia. The new system will allow expanding the scope of clients using it. The system will ensure the functionality of free-of-charge and full automatic publication, generation and conduct of analysis of information on the Internet regarding the organization of procurement procedures and management of contracts based on open data.
As a result of implementation of the Commitment, it is expected to ensure the receipt of complete and accurate information on real beneficiaries of all organizations participating in the procurement process, and exclusion of conflict of interests at the stage of rendering decisions. This means that resident organizations of the Republic of Armenia may register in the electronic procurement system but may participate in the very process of procurement only in case of submitting (electronically) information on their real beneficiaries. This requirement will serve as an additional means for ensuring the submission — by resident organizations of the Republic of Armenia participating in the process of electronic procurement — of the declaration of real beneficiary in the State Register of the Ministry of Justice of the Republic of Armenia.
Besides submitting a declaration of real beneficiary, the client (member and secretary of the evaluation commission) signs and publishes a statement on absence of conflict of interests of bidders of the procedure following the opening of bids. It is envisaged that these statements will be automatically transferred to the Commission for the Prevention of Corruption. In case of ensuring a comprehensive scope, it will be possible to prevent potential corruption risks, including prevent money laundering risks, reveal related persons, conflict of interests, etc.
Relevance to OGP values
1. How will the commitment promote transparency?
The electronic procurement system based on open data will provide the opportunity to make complete information on the organization of procurement procedures and management of contracts available on the Internet free-of-charge and automatically.
2. How will the commitment help foster accountability?
Public availability of information on organizations participating in procurement, submission of declaration on real beneficiary and provision of information on the winning organization will improve accountability and transparency of decision-making.
3. How will the commitment improve citizen participation in defining, implementing, and monitoring solutions?
Representatives of CSOs, the media and other organizations have the opportunity to regularly study and analyze the procurement process and implementation of obligations by the winning organizations as a result thereof. As a result, it will be possible to exercise public supervision over all bidders and decision-makers related to procurement.
Ambition
To introduce a new electronic procurement system complying with the modern requirements, which will be integrated with other electronic systems related with procurement. The new system will provide the opportunity to also expand the scope of clients using it. The system will have the functionality of free-of-charge and full automatic publication, generation and conduct of analysis of information on the Internet regarding the organization of procurement procedures and management of contracts based on open data.
For the purpose of building the new electronic system of declaration of 2021, a contract has been concluded with "Synergy International Systems", which provides for introducing the new system. 2021-2022 As a result of the amendments made to the Law "On public service" and "On Commission for the Prevention of Corruption", the list of data subject to declaration and the scope of declarants have been expanded. It is envisaged to have the new system in 2023.
It is proposed to interconnect the new electronic procurement system, the system of real beneficiaries and declarations of high-ranking officials.
Potential Impact:
Implementation status
UN Goals
«ԲԱՑ ԿԱՌԱՎԱՐՄԱՆ ԳՈՐԾԸՆԿԵՐՈՒԹՅՈՒՆ» ՆԱԽԱՁԵՌՆՈՒԹՅԱՆ ՇՐՋԱՆԱԿՆԵՐՈՒՄ ՀԱՅԱՍՏԱՆԻ ՀԱՆՐԱՊԵՏՈՒԹՅԱՆ 2022-2024 ԹՎԱԿԱՆՆԵՐԻ ԳՈՐԾՈՂՈՒԹՅՈՒՆՆԵՐԻ ԾՐԱԳԻՐԸ