The goal and principles of the ProZorro.Sale reform
ProZorro.Sale — ProZorro.Продажі
ProZorro.Sale is a system initiated by the Ministry of Economic Development and Trade of Ukraine, Transparency International Ukraine, the Deposit Guarantee Fund, the National Bank of Ukraine and the Ukrainian electronic platforms. The system is designed in accordance to the values and principles of the ProZorro family.
Our goal is a transparent, fast and effective sales of state and communal property, as well as fighting against corruption by the means of equal access to data, public control and increasing number of the potential buyers
Objectives of reform
Principles of reform
Maximum engagement of all of the stakeholders to the reform
Open decision-making procedures
Crowdsourcing and involvement of society at large
Governmental modules of the central database and auction and integrated private electronic platforms
Opensource software, standard protocols of data exchange
Step by step implementation based on “from simple to complex” principle
About the reform of state and communal property in Ukraine
Currently, the normative and institutional base is being developed in Ukraine and its aim is to provide adequate regulation of the property sales mechanism through traditional and electronic markets based on the rules similar to the EU or USA.
Also, formal compliance to the norms of Ukrainian legislation does not ensure transparent, effective and fair procedures for property sale. Because of these problems, state and communal property has been unsold for years depreciating their value and reducing the state budgetary revenues. Misuse of the unsold property also leads to increased levels of corruption. ProZorro.Sale system is a project that integrates business trading practices into the public sector providing for the full control of the project implementation to society.
The practice of the pilot project (since 31 October 2016) demonstrates efficiency and effectiveness to all of the process’s sides: state, business and society.
The core of the reform
Development and implementation of an electronic system of property sales owned by the banks going bankrupt of a particular segments of the state property market (woods, property in use, non-core assets) and later it will be rent and small-scale privatization.
In the ProZorro.Sale system, the central database and auction module are developed jointly by the team of the pilot project and Transparency International Ukraine, and then will be administered and controlled by the state. Until the transfer, the central database and auction module are controlled by Transparency International Ukraine.
More details about auction process of the system are available.
The reform budget:
- Development of the central modules of the system is financed by the electronic trading platforms.
- The price of basic system’s development was about 10 thousand dollars.
- Development and maintenance of the full-scale system (software) that will be able to include all of the Deposit Guarantee Fund’s lots in electronic form required a sum of about 120 thousand dollars.