About the project
Public Procurement and Logistics Observatory (PPLO) is a platform for monitoring procurement processes and promoting best practices, initiating a dialogue between relevant stakeholders. It will perform qualitative and quantitative analysis of procurement processes in the Kyrgyz Republic, and share them with government officials and citizens through this portal, and blogs, tweets, newsletters, seminars and training. PPLO will also monitor procurement processes, distribute innovative forms of the public procurement system, and defend the best procurement methods in the Kyrgyz Republic. All this promotes cost savings and improved procurement efficiency.
The vision for institutional strengthen public procurement
The Government of the Kyrgyz Republic ensured the establishment of a public procurement system, and further is making efforts to integrate into global supply chains. Mitigating or overcoming this challenge requires a significant enhance the capacity building of the public procurement system. Existing, various short-term workshops and training courses cannot solve this problem. Therefore, it is necessary to launch educational programs at universities for bachelor, master and doctorate in public procurement.
PPLO - development and establishment of criteria for improving the efficiency of public procurement

Together with students and professionals, we set the following tasks: improving public access to information and events in relation to current public procurement of their processes. Track changes in the procurement system and practices of the Kyrgyz Republic and analysis to improve interactions between all participants in the system government procurement.

D.R.Almazbekov, А.K.Dolotbakova
632 | 0
Assessment of efficiency of investments in transport and logistic systems
The article deals with the main issues of assessing the effectiveness of investments in transport and logistics systems, which, within the framework of a program-oriented approach to financing transport systems, may become important from the point of view of rational use of budget funds at various levels. Key words: transport and logistics system, supply chain, investment, financial flows, cash flow, gross profit, total costs, the function of costs, fixed costs, variable costs. The evaluation of investment efficiency in transport and logistics systems within the framework of the application of a software-oriented approach to transportation system financing is of great importance in terms of rational use of budgetary funds at various levels. A regional transport and logistics system is a system that allows for the delivery of the necessary amount of cargo (passengers) to a specified point via an optimal route at the right time with the lowest costs. The cost of product creation consists of production costs and costs associated with the execution of all activities from material acquisition to the acquisition of goods by the end consumer. A significant portion of the costs is the added value associated with transportation and logistics expenses at each link of the "producer-consumer" chain. The movement of the material flow from the primary source of raw materials to the end consumer also incurs costs, which can account for up to 50% of the total logistics costs. Optimizing the movement of material flows in transport and logistics systems is largely achieved through improving their servicing with financial flows. Financial resources can be transformed into various other forms: goods, services, information, labor, etc. Therefore, the rational allocation of financial resources is an important condition for the efficient functioning of the regional transport and logistics system. Financial flow in logistics is the movement of finances not only within the logistics system but also between the logistics system and the external environment, which is necessary to ensure the efficient movement of material flow. Financial flows vary in composition, direction, purpose, and other characteristics. To optimize the flow of financial resources in logistics systems, it is necessary to classify them. Depending on the direction of movement, financial flows can be divided into positive and negative. These flows are interrelated: an insufficient volume of one type over a certain period of time leads to a decrease in the volume of another type. Therefore, in the financial flow management system, they should be considered as a complex object of management. The main goal of optimizing the movement of financial flows in the organization of a regional transport and logistics system is to ensure the movement of material flows with financial resources in the required volumes and at the right time, using the most efficient sources of financing (investments). This movement is influenced not only by the amount of financing but also by the location (site of action) of investments. Such points are considered as nodes of logistics chains. The location of these nodes should be associated with the transport hubs of the regional logistics system. This is necessary for coordinating the management of material flows at the nodes and distributing the functions of the elements (participants) of the transport and logistics system. The main resource flows that form a node are financial, informational, and material flows. These flows are constantly or periodically influenced by factors from the external and internal environment, as well as intentional control measures. A comprehensive approach to managing all types of flows should take into account the following characteristic: the use of management methods and models should be aimed at changing the maximum possible number of resource flow characteristics, which allows controlling the movement of materials by influencing financial flows. The use of pricing methods and cost allocation methods used in calculating the cost of resource extraction and determining the price of the final product allows us to correlate parameters such as "production costs of the product," "marginal utility of the final product for consumers," and "predicted financial performance of the system's operation." In the proposed model, by selecting management tools and methods, it is possible to control flows at the nodes by combining these flows. Management actions at the nodes are purposeful in nature - through modeling, incoming and outgoing parameters of the nodes or values and direction of financial and material flows that form them are changed. Most often, the goal of modeling and, consequently, the management process is to change the volume, time, or cost of the flow (investments) intended for financing the distribution channel. In this regard, nodes that encompass all the flows involved in the distribution process are subject to influence. The location of the nodes in the organizational management structure and the regional transport and logistics system is also taken into account during the modeling process, although it is not the only possible option. In some cases, it may be appropriate to modify the organizational structure or the location of the nodes within it to allow access to them. Bibliography 1. Надирян, С.Л. Влияние транспорта на инвестиционную привлекательность региона. /С.Л. Надирян, Д.Ю. Дудник, А.О. Гибашева // Вестник Сибирской государственной автомобильно-дорожной академии. - 2013. - № 5. - С. 146-150. 2. Коновалова, Т.В. Влияние инвестиций в основной капитал транспорта на развитие экономики региона / Т.В. /Коновалова, С.Л. Надирян // Вестник Саратовского государственного технического университета. -2013. - Т. 2. - № 2 (71). - С. 333-336. 3. Коновалова, Т.В. Оптимизация инвестиций транспортно-логистическую деятельность предприятия. / рян // Гуманитарные, социально-экономические и общественные науки. - 2013. - №3. - С. 208-210.
A.T.Turusbekova, A.V.Litvinova, A.A.Orozonova
611 | 0
Organization of procurement activities of state-owned enterprises
The concept and types of electronic procurement are considered. The drivers of more active implementation of e-procurement technology have been identified. The organization of procurement processes of state organizations of the Kyrgyz Republic is briefly described. Special attention was paid to the legal aspect of public procurement. The main problems of e-procurement and ways to solve them are also considered. Key words: procurement logistics, electronic trading platforms, EDS, electronic bidding, procurement department, public procurement portal Currently, the functioning of both commercial and government organizations cannot be imagined without procurement activities. Any organization, in one way or another, carries out its activities through the procurement of goods, services, raw materials, and consumables: from purchasing office supplies and equipment for administrative work to acquiring high-tech equipment for direct use in production or service provision to clients. The issue of procurement activities for government or municipal organizations is resolved through the conduct of tenders. Government organizations plan the procurement process for the next year starting from September of the current year. The Procurement Department collects applications or requirements for the procurement of goods or construction of facilities from the respective departments. Before the annual plan is approved, the Procurement Department will include the goods and services in the annual list. The task at hand is to prefer one of two alternative solutions: either produce any product, raw material, or component using our own production facilities or procure the necessary inventory items from reliable suppliers or contractors who specialize in providing them. According to the "Public Procurement Law," government organizations can enter into a framework agreement with suppliers. The essence of a framework agreement is: - Procurement of goods at previously agreed prices throughout the year. - In force majeure circumstances, there will be no need for suppliers, as under any circumstances, the second party will fulfill its obligations according to the agreed-upon terms of the contract. - The main reasons why purchasing from suppliers may be more feasible include: - Lower costs of acquiring material resources from suppliers compared to the costs of self-procurement of goods and services. - Higher quality of goods from suppliers. Procurement by government organizations is conducted based on reasonable norms and regulations regarding the use of goods and services. As a result, the quantitative aspects of procurement have a much lower degree of subjectivity compared to specific cases. Government procurement is carried out to address national tasks, with the priority being the satisfaction of societal needs, achieved through the government's fulfillment of its organizational and economic functions. The mechanism of government procurement is structured in a way that gives the state a dominant role. In government procurement, the state acts as a regulator of economic processes. By encompassing both the procurement of goods and the execution of works and services, the term "government procurement" highlights its systemic nature, which necessitates the development of a unified mechanism for legal regulation of the relationships arising during the procurement process. Externally, government procurement, as a procurement itself, does not differ from private procurement. However, as government procurement, it still has its distinctive features that manifest in the nature of the government procurement process: - Public need for the purchase: Government organization's procurement can be seen as purchases made due to some objective necessity that is inherently present in the activities of the state. - Rationality of the purchase: In the case of government procurement, everything that is purchased is theoretically only those things and services that are truly necessary for the functioning of the government organization. The state, as a societal consciousness, cannot afford to buy unnecessary, defective, harmful, etc., items that may pose a danger to the entire state as a whole. For example, purchasing low-quality military equipment can result in defeat in a war. - Quantitative rationality (proportionality) of the purchase: Government organization's procurement is carried out based on reasonable norms and standards of using goods and services. Therefore, the quantitative dimensions of the procurements have a much lower degree of subjectivity compared to specific cases. Government procurement of goods and services beyond their reasonable physical limits for periodic consumption leads to overspending of government funds, unjustified material losses during storage, and shortages. At the first stage, which is the stage of forming the government order, a consolidated list of the government order is created based on the volumes and scope of the government order carried out by the government, recipients, and managers of consolidated budgetary funds. At the second stage, the government order functions as an offer. Government agencies, budgetary institutions, or other authorized recipients of budgetary funds, acting as "state customers," determine the procurement method, set deadlines for bid opening, establish qualification requirements and technical specifications for the procured goods, and announce a tender on the government procurement portal. At the third stage, the tender commission determines the winner in accordance with the qualification requirements, who is subsequently obliged to fulfill the contract. In any country, the sphere of public procurement is always under close scrutiny and attention of the prosecutor's office and the audit chamber. Public procurement is not only a tool for meeting public needs but also a powerful and effective instrument of state policy. For example, through the mechanism of government procurement, it is possible to influence economic growth and development, enhance business activity, manage tax policy, and so on. An important criterion in forecasting and formalizing procurement is the time and delivery schedules of goods. Relatively short delivery times allow for more flexible planning of orders to suppliers, forming smaller but more frequent deliveries. In this case, errors in forecasting the demand for goods can be compensated by fast delivery times. However, for long delivery periods, careful planning of the needs and sizes of orders for goods and materials is necessary, along with determining the delivery schedule. This is because there is a lack of modernized warehousing facilities and equipment for storing goods throughout Kyrgyzstan. Thus, the procurement of necessary goods and services by state enterprises is more efficient than the traditional method used before 2015. The electronic procurement format has reduced corrupt practices across the republic by threefold. This is due to the publication of procurement notices on the procurement portal, allowing all eligible suppliers who meet the qualification requirements set by the procurement department and the purchasing organization to participate. The results of the evaluation by the tender committee are also publicly disclosed within a specified timeframe. Suppliers who disagree with the committee's decision have the right to appeal it through legal procedures. As a result, the tender committee carefully considers its decisions, relying on the law on public procurement. However, just like in any sector, there are drawbacks to the previous interpretation in the public sector. In our final decision, the tender committee is guided by the condition that the lowest bid amount is important. Taking advantage of this, unscrupulous suppliers provide the lowest bid and win the positions specified in the tender lot. As a result, they deliver low-quality goods. According to the author of this article, it is necessary to refine the law on public procurement and address the loopholes in the legislation. As practice shows, goods of inadequate quality do not last long, and the purchasing organizations will have to re-tender for the same goods using the budget of the Kyrgyz Republic. Thus, more money from the budget of the Kyrgyz Republic is spent on acquiring the necessary needs of the purchasing organization for the same goods. The electronic digital signature was implemented nationwide in March 2021. All actions are now verified by an electronic digital signature. The automated processing of electronic documents has reduced the time from creating a request to publishing a purchase to a matter of days and hours. The deep data structure from planning to procurement has allowed for the implementation of a multi-level system of control over incoming information to ensure compliance with legislation. Thus, competitive procedures for the needs of budgetary institutions and state unitary enterprises are conducted according to the principles outlined in the Law of the Kyrgyz Republic "On Public Procurement" through the government procurement portal. These actions have created conditions for competition to thrive in this market segment. Increasing the share of competitive procurement in the overall volume of concluded contracts will lead to positive effects for the budget, such as cost savings. Bibliography 1. Закон Кыргызской Республики «О государственных закупках» от 3 апреля 2015 года № 72 2. Положение о применении рамочного соглашения от 31.12.2019 3. Юдина М. Трудности перевода. Роль закупок в становлении инновационной экономики // Информационно-аналитическое издание «Бюллетень Оперативной Информации «Московские торги». 2015. № 11. С. 46–49. 4. http://zakupki.gov.kg/popp/ 5. Ассоциация электронных торговых площадок [Электронный ресурс]: офиц. сайт. URL: http://www.aetp.κg
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Акылбек Жапаров принял участие в Центрально-Азиатском инвестиционном форум
Акылбек Уметалиев эфир на КТРК Изменения в госзакупках Биринчи студия
А. С. Уметалиев “Мамлекеттик сатып алуулар жөнүндөгү” мыйзам долбоорун парламентте талкуулоо
Профессор Акылбек Уметалиев об экономическом эффекте работы золоторудного комбината в КР
Комментарий Акылбека Уметалиева о запуске золоторудного комбината
Презентация открытия «Исследовательский центр логистики и государственных закупок»
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What are we going to do?
improve public access to information and events related to current public procurement and its processes
facilitate the flow of information between various stakeholders in public procurement
monitor and analyze changes in the procurement system and practice in the Kyrgyz Republic
seize the opportunity to learn lessons from experience and best practices and develop recommendations for future reforms and innovations
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