The Prozorro Impact: what Real Savings an Electronic System Delivers. Policy Brief

30 December 2022

In 2015, the Prozorro electronic system and the Law of Ukraine “On Public Procurement” were developed to reform the deeply corrupt procurement system. In 2021, they ensured accountable purchases in the amount of UAH 1.1 trillion or 18% of Ukraine’s GDP. 

It is believed that the Prozorro system is effective due to its transparency and legislative design, but it has not yet been confirmed by facts how effective the system is in terms of financial savings. 

We identified 40 groups of goods that, as a rule, are most often purchased by public customers, and assessed how much more economically profitable procurement through Prozorro is compared to non-competitive and non-public procurement. 

Additionally, we compared 6 products with e-catalog purchases to the same non-competitive purchases. 

According to the results we obtained, tender procedures provide savings of more than 5%, and Prozorro market – more than 10%. For each market separately, the level of real savings varies from 1 to 20 percent of the prices of purchases made outside Prozorro. 

This is additional and convincing evidence that purchases, a significant part of which in 2022, after the start of a full-scale war, the Government allowed to carry out outside Prozorro, must be returned to the competitive system, and if possible – transferred to the Prozorro market.

You can read the full version of the Policy Brief “The Prozorro Impact: what Real Savings an Electronic System Delivers”.