Finance

Finance

Azerbaijan improves state procurement system - EXCLUSIVE

Azerbaijan improves state procurement system - <font color=red>EXCLUSIVE</font>

27 December 2011 11:24 (UTC +04:00)

The document covers new mechanisms for improvement of state procurement mechanism, making the procurement process transparent, simplifying of shareholderâ€™s participation in this process, said the head of Agency Alekber Guliyev.

One of suggested news is the planning of procurements by state bodies and posting of them on the internet site. He says the organizations plan their procurements weakly. A part of organizations donâ€™t hold tender during a year: â€œAt the end of the year, they apply to hold the procurements without tender due to lack of time. But, we want such mechanism, that allows the organizations to hold tender during whole yearâ€œ. Besides, the procurements must be posted on the internet that, the potential applicants can plan their works.

Other news is to apply an environment which excludes the discrimination against the applicants. At the current legislation, itâ€™s used several factors that are not significant. New law offers to abolish such factors.

One of the interesting changes offered in connection with improvement of procurement â€“ publicize supposed price of a good or service. Currently, according to the standing law, this price must remain secret. But the agency considers this rule unimportant. First of all, keeping of a price in secret does not give any benefit or advantage. The second, anyhow the price can not be kept in secret, it is easy to obtain information about it from other sources: â€œFor example, an order is made for conduction of any works. The order determined the amount of funds considered for this work. The order is not a closed document and everyone can read it. So, it is possible to understand the supposed price for this work. Clear prices provide transparency and thus the pretendants can prepare a better proposalâ€.

Formation of participation fee in the tender is expected to be changed too: â€œSometimes, participation fee is so high that the companies meet with difficulties in payment of it, they hesitate, and it reduces number of participants. According to new proposals, participation fee must pay technical expenses related to holding of the tender and that is allâ€.

In general, the project comprises proposals on elimination of exceptions that violate competition during state procurement, give baseless advantages or privileges, as well as undermine the rights of participants.