The international Organisation for Economic Co-operation and Development (OECD) has started a comprehensive external review of NPC Ukrenergo’s procurement processes to provide the independent external evaluation and recommendations. In Ukraine, NPC Ukrenergo is the first state-owned company conducting such evaluation on its own initiative, and its support by the international organisation is a sign that our procurement activities are regarded highly. The project commenced in January 2020, will continue for 18 months, and is being delivered by the OECD using its own funds.
How transparent and effective our procurement processes are, how open and clear we are for potential counterparties and how our procurements correlate with global principles of free economic co-operation – we will receive the answer to these and other questions in the OECD evaluation report. Ukrenergo’s procurements reach billions of hryvnias and cover almost every category – from consumer goods and services up to high-tech equipment and legal services at the level of international law firms. The scale of procurements and the level of responsibility for their quality therefore demand such monitoring and review.
“Such external evaluation of the Company’s procurement activities is important to us. It will allow us to understand Ukrenergo’s reputation component in the procurement market, identify risks, and will help us improve our procurement processes based on recommendations of the international institution which concentrates world’s best practices of global business,” commented Maryna Bezrukova, member of NPC Ukrenergo Management Board.
The Project is made of a number of key stages, among which is reviewing the procurements inside the company and interviewing the external stakeholders, conducting workshops, building a roadmap to improve procurements, and ultimately issuing the report and recommendations on findings of the review.
The first stage of evaluation is underway – OECD experts have already interviewed NPC Ukrenergo’s procurement officers and procurement professionals, as well as compliance, economic safety and internal audit specialists. For the in-depth evaluation, the experts were provided with all procurement analytics for recent three years and with ongoing business processes of procurements.
Further to interviews within NPC Ukrenergo, similar questions will be asked to Company’s key stakeholders – NEURC, Ministry of Finance, Ministry of Economy, Ministry of Energy and Environmental Protection of Ukraine, Anti-Monopoly Committee of Ukraine, Prozorro, Transparency International Ukraine and others, as well as to the major vendors and contractors. It will facilitate the most comprehensive and objective evaluation of our procurements from the viewpoint of their efficiency and transparency.
The Project also includes two workshops on prevention and exposure of cartel collusion of vendors. This unique offer from OECD experts gives us the opportunity to learn from world practices of counteracting the cartel collusion present in the Ukrainian market.
“Based on results of such in-depth and comprehensive review we will receive recommendations which we will endeavour to implement immediately. In addition, the OECD recommendations can lay the basis for our proposals to policy makers as to improvements to the legal framework for procurements, which in its turn will facilitate improvement of the economic climate in the industry and in the country in general,” noted Maryna Bezrukova, member of NPC Ukrenergo Management Board.