The Ukrzaliznytsia public railway company saved UAH 75.3 million on purchases in the first quarter of 2016. The company made the savings on purchases of oil and diesel fuel. This was reported by the press service of the Production Support Centre, which is responsible for public procurement at the company.
From January to March, the Production Support Centre announced 153 tenders worth a total amount of UAH 12.3 billion, which is 95% of the procurement plan for 2016. By the end of the quarter, 68 bids worth UAH 6.6 billion had been unsealed. Contracts were signed in relation to 18 bids and 43 are still being prepared for signing.
According to the Production Support Centre, the savings were achieved through implementation of a new procurement concept.
"This concept provides for changing the procedure for holding tenders – organization of electronic auctions, introduction of a formula for calculating the cost of fuel based on the Platts system, etc. The change of the tender procedures has yielded positive results," the Production Support Centre’s Director Danylo Mizin said.
As reported, a law on public procurement entered into force on 1 April came into force. According to the provisions of this law, all state agencies must make procurements through the ProZorro electronic procurement system. This provision will extended to all customers on 1 August.
The Production Support Centre will switch to the ProZorro electronic procurement system during the second quarter of the year. In accordance with international practice, it also plans to introduce a formula for calculating the cost of diesel fuel that is pegged to the Platts system. As reported, a tender for supply of diesel fuel was the most resonant in the first quarter, with several bidders complaining to the Anti-Monopoly Committee.
