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

Виктор Сизов Economy
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Felipe Goya, the World Bank's regional procurement manager for Europe and Central Asia, noted that the electronic government procurement system in Kyrgyzstan brings together over 3,700 public buyers and more than 40,000 suppliers. The implementation of a centralized procurement mechanism also contributes to the formation of an effective system.

According to available data, competitive procurement is expected to yield savings of around 10% in 2024 and 2025. Centralized procurement, supported by the World Bank, could increase this figure to 11-13% for certain categories of goods.

Felipe Goya emphasized the importance of these savings, noting that the released funds could be used for building schools or other social needs.

However, he added that the competitive procurement process can take from 3 to 6 months or more, depending on its complexity. Despite the time costs, global experience shows that such procurement brings long-term benefits, including budget savings, combating corruption, and increasing transparency.

With over 60 years of experience in procurement worldwide, the World Bank is ready to provide Kyrgyzstan with comprehensive support to improve the public procurement system in the interest of the country's citizens, Goya noted.

The expert also added that public procurement is an important mechanism for spending taxpayer money, and its efficiency is of great significance. Competitive procurement is the traditional and most effective approach that allows for significant savings—sometimes up to 19-20%. The experience of countries in Latin America, Europe, and other regions confirms that the use of competitive mechanisms is justified.

As examples, Goya cited data from Brazil, where competitive procurement allowed for savings of up to 19%, and in Romania—almost 2 billion euros per year. Transparency in procurement prevents corruption, while direct contract awards can lead to collusion and corrupt schemes, distorting the quality of decision-making in public administration.

Furthermore, he noted that Central Asian countries are showing positive dynamics. The region is witnessing progress, and competitive public procurement along with electronic marketplaces is becoming the standard. The implementation of digital tools, such as indicators and electronic monitoring panels, contributes to the fight against corruption and strengthens competition.
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