The annual OGP Awards is scheduled to be presented on December 15 during the OGP Summit. Ukrainian Prozorro.Sale is among the nominees. We decided to collect the main facts about the system for our readers.
Prozorro.Sale is both the name of a state-owned enterprise and an electronic trading system that sells and leases public and municipal property, as well as debtors’ property.
The main focus of the reform is a transparent, fast and efficient process of selling public and municipal property assets with a high level of public control and prevention of corruption. As they say in the SE, their goal is to make public sales of anything transparent.
It is built according to the values and principles of the Prozorro family. Prozorro.Sale is a two-level system. It combines information about all lots offered for sale and system users (first level) in a central database. The CDB does not interact with participants, but is only responsible for the smooth operation of the system itself.
The organizers and participants “communicate” with the system through accredited electronic platforms that are connected to the system (second level). The goal of the platforms is high-quality advisory support for buyers and sellers, as well as access to sales procedures.
The value of the system lies in the open API of the system, a modern auction portal, a detailed analytics module, and everyone’s access to information about the disposal of public property. This increases transparency and trust in the markets, strengthens competition, and makes public control possible.
In 2016, the Ministry of Economic Development, the National Bank of Ukraine, the Individual Deposit Guarantee Fund, and Transparency International Ukraine signed a memorandum to jointly build a transparent and efficient system for selling assets of insolvent and liquidated banks.
The document stipulated that TI Ukraine should create an electronic trading system (ETS) for the sale of property of bankrupt banks and provide its support. The organization fulfilled its obligations, and the system created for this purpose was transferred to the Fund.
Subsequently, another database was created for other procedures – privatization, lease, etc.
During 2019, the civil society organization transferred two databases to state ownership.
The functionality of the service was constantly improved and expanded. Therefore, public and municipal assets, land, property of insolvent banks, licenses for the extraction of mineral resources, railcars of Ukrzaliznytsia, property of private companies, etc. are sold and leased through the system. It is on Prozorro.Sale that small-scale privatization takes place.
In 5 years of the platform’s existence, more than 430,000 auctions were held with 46,500 participants, having replenished the state treasury by UAH 59 bln. The average price increase is 36.6%.
The most expensive lot in the system was the Dniprovskyi Iron and Steel Integrated Works in a bankruptcy case. It was sold for almost UAH 8.4 bln.
Moreover, the largest auction in the entire history of small-scale privatization in Ukraine was held on Prozorro.Sale. The Dnipro hotel was sold for more than UAH 1.1 bln. The auction was held in three rounds. 29 potential investors took part. The starting price of the object was approximately UAH 81 mln.
In December 2021, the Open Government Award will be presented, which marks the occasion of the 10th anniversary of the Open Government Partnership Initiative. Our country is represented by ProZorro.Sale in the OGP Impact Awards category as a project that changes the country, improves the quality of life in society, and opens up the actions of the authorities.
The Dozorro.Sale monitoring community started working in 2021. This is an association of civil society organizations that TI Ukraine will coordinate. Dozorro.Sale plans to monitor the accounting and use of municipal property and help local councils implement effective practices for managing community property.