According to a World Bank study, online auctions in Prozorro.Sale for land lease doubled financial revenues to local authorities.
The analytical report notes that the average land lease price at online auctions held from November 2021 to March 2022 in the system doubled from USD 157 to over USD 400 per hectare.
Let us remind you, Prozorro.Sale is an online auction system that helps the state and local authorities sell or lease property and real estate at a market price.
TI Ukraine was also engaged in the creation of this electronic transparency tool — in this way, we helped make Ukraine stronger. Our organization as a co-creator is very proud that Prozorro.Sale contributes to the functioning of the land market and increases revenues in the national and local budgets.
According to Klaus Deininger, Lead Economist in the Sustainability & Infrastructure Team of the Development Research Group of the World Bank, the transition from opaque offline auctions to full digitalization became one of the key components of land reform in Ukraine, which aimed to increase transparency and bring the land market closer to European standards.
Previously, land auctions in Ukraine were held offline and on the imperfect SETAM platform. The transition to a secure and transparent open-source system in land auctions at the end of 2021 doubled prices and reduced barriers to participation in auctions.
By the way, this is not the first e-product to improve the state and reduce the space of corruption, which TI Ukraine helped to create and subsequently transferred to the state — these are also the Prozorro, Prozorro. Sale, eHealth, and Prozvit systems and the Register of Declarations. Read more about the organization’s achievements here — https://bit.ly/TI_Ukraine
If this mechanism was used immediately, starting from 2015, today the city councils would have had USD 500 mln in additional rental income per year. And this is especially important in the context of the post-war reconstruction of Ukraine.
Our organization as a co-creator is very proud that Prozorro.Sale contributes to the functioning of the land market and increases revenues in the national and local budgets.