EU4PFM Procurement Component prioritises support for the development of Ukraine’s Public Procurement system

The EU-funded Project “Support to Public Procurement Reform in Ukraine” underwent restructuring on January 1st and joined the EU4PFM Project as Component 2: Public Procurement.

The primary objective of the Component for 2024-2025 is to support the development of Ukraine’s public procurement system. Eriks Mezalis, Team Leader of the EU4PFM Procurement Component, announced this today during the opening of the first Steering Committee Meeting of the EU4PFM Component 2: Public Procurement.

The event gathered all Partner Institutions of the Component 2, among them representatives from the Central Project Management Agency (CPVA), the Ministry of Economy of Ukraine, the Anti-Monopoly Committee of Ukraine, the Accounting Chamber of Ukraine, the State Audit Service of Ukraine, as well as representatives from the EU Delegation. The parties convened to discuss the main priorities and expectations of Partner Institutions and outputs of the Work Plan for 2024, encompassing:

• Further alignment of procurement legal framework with the EU acquis
• Support for enhancing institutional capacity of public procurement stakeholders
• Enhancing the knowledge, skills and awareness of procurement oversight bodies
• Strengthening the framework of professionalisation of public purchasers, outreach to procurement market 
• Strengthening of public awareness of procurement reform

Deputy Minister of Economy of Ukraine Nadiya Bigun, during her welcome speech, expressed gratitude to the EU side for consultations during the development of the new draft law on Public Procurement. She also emphasised the need for further assistance from the Project to align the law with EU directives in practice as Ukraine progresses towards EU accession. To achieve this, Ms. Bigun specifically requested explanations and the sharing of best practices on how the new tools and approaches mentioned in the draft law function in EU countries.

Henrik Huitfeldt, Head of the Sector for Economic and Social Policies at the EU Delegation to Ukraine, stressed that the proper functioning of public procurement is crucial for ensuring stability and defending the country, especially under martial law. “Effectiveness and transparency of public tendering are also key factors for the recovery process. Therefore, public procurement, along with auditing, holds significant importance both during war and during the subsequent recovery phase. This presents an opportune moment to address these issues. Ukraine has an ambitious agenda, with a primary focus on aligning its legal framework with EU directives. This includes legislation concerning Public Procurement, Public Private Partnerships, Concessions, and Defence Procurement. The capacity to manage public procurement processes needs to be further strengthened”, Mr. Huitfeldt added.

Rasa Suraučiene, Deputy Director of the Central Project Management Agency (CPVA), informed that the additional component on Public Procurement was added to the PFM portfolio for 2024-2025 at the beginning of the year. “The Central Project Management Agency has been implementing this whole portfolio EU4PFM Programme in Ukraine since 2019. We are delighted to start our cooperation with new Partner Institutions in Ukraine. In Lithuania we have always been responsible for the procurement projects. As of now, we have the supervision function over a few thousands of projects in Lithuania. Therefore, we are ready to work with you to improve the PFM management, particularly focusing on public procurement”, Ms. Suraučiene added.

In 2024, the EU4PFM team of experts under Component 2 “Public Procurement” will continue to support Ukrainian partners in implementing various aspects of public procurement reform and maintaining the progress and resilience of the national procurement system in the context of martial law and reconstruction needs. 

The next Steering Committee meeting is scheduled for September 2024.

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The EU4PFM programme, funded by the European Union, is being executed by the Central Project Management Agency (CPVA) in Ukraine. On December 22 the Central Project Management Agency and the EU Delegation to Ukraine signed a Contribution Agreement on the “Extension of Public Finance Management Support Programme for Ukraine (EU4PFM)” was sign by . This agreement extends the implementation of the EU4PFM Project until December 31, 2025, with an extension until December 31, 2026, in the customs stream. Starting January 1, 2024, the EU4PFM Project has evolved with the addition of two vital components: Public Procurement and External Audit, and Parliamentary Oversight.

Here’s what the enhanced Project will encompass:

• Component 1: Budget Process Modernisation, Improved Control and Accountability
• Component 2: Public Procurement
• Component 3: Revenue Mobilisation
• Component 4: Horizontal Functions and Governance
• Component 5: External Audit and Parliamentary Oversight

With ambitious plans for the years ahead, EU4PFM is dedicated to pursuing its primary objective: facilitating Ukraine’s journey toward EU membership.