ELECTRONIC PROCUREMET SYSTEM TO BE INTRODUCED IN ARMENIA IN NEXT THREE
YEARS

YEREVAN, JANUARY 31, NOYAN TAPAN. The state procurement system is
quite effective in Armenia, the only problem is the absence of an
electronic system that must be introduced. Head of the State
Procurement Agency of South Korea Yong Min Kim stated this at the
January 31 press conference. Accordig to him, Korea has its system –
KONEPS (Korea On-line Electronic Procurement System), thanks to which
the whole procedure of procuremet is done via one website. This system
was introduced in South Korea in 2002 and last year it allowed the
goverment to save 4.5 bln USD. Yog Min Kim said that another advantage
of the system is increasig the transparency of the government’s work
and the fight against corruption.

Karen Brutian, Head of the Procurement Department of the RA Ministry
of Finance and Economy, noted that it is envisaged to itroduce the
electronic procurement system in Armenia within the next three years –
in three phases. The preparatory phase will be completed in May, after
which the process of introduction of the electronic system of tenders
will start, while during the last phase reports and other relations
related to deals will be automated. Accordig to the department head,
the Armenian government is cooperating with the respective department
of South Korea with the aim of introducing this system.

K. Brutian expressed the opinion that an efficient method of
procurement is tender. In his words, in 2006 purchases of 53 bln drams
(about 14.5 mln USD) were made through tenders, while in January 2007
tenders with the total amount of procurement of 40 bln drams were
announced, and bids for procurement of 30-40 bln drams will be
submitted within next few weeks. K. Brutian said that this is
conditioned by the RA president’s instructions to reduce purchases
from one source to the minimum.