Policy Wonk

ProZorro open e-procurement system in Ukraine

Headline result
24.5% → 70.3%
procurement value awarded competitively, 2015–2017
Observational
Implemented by
Ministry of Economic Development and Trade of Ukraine (ProZorro)
Type
National government
Where
Ukraine
Region
Europe
When
2015–2017
Evidence
Observational / administrative data

The challenge

Public contracts worth about 15% of GDP were often awarded without real competition.

The case

Ukraine piloted ProZorro, an online procurement platform, in February 2015; from August 2016 all public purchases had to go through it. Every tender and contract is published as open data, and electronic auctions became the default way to pick suppliers. The share of procurement value awarded competitively rose from 24.5% in 2015 to 70.3% in 2017, and the share of buyers signing single-supplier contracts fell from 11% to 5%. But a 2019 Center for Global Development study of contracts tendered competitively before and after the reform found only modest effects: final prices 3.5% to 5.8% below estimates and contracts signed 5 to 6 days faster, with no robust rise in bidder numbers.

Why the results were mixed

Putting every contract online brought far more buying into the open and made abuse easier to spot, but transparency alone did little to raise competition within tenders. Results depend on bidders turning up, which needs work beyond the platform.

Sources