“We have taken bold steps”: What changes have been introduced in the Law on Procurement?

The new Law on Procurement has come into force since 1 January 2017, principles of which are raising the effectiveness of public finance spending and neutralization of corruption risks. Vardan Aramyan, Minister of Finance of Armenia, told at today’s seminar-discussion on public procurement.

According to him, formerly public procurement agency was implementing centralized procurement, however, the point is, that with years capabilities of participants remained unchanged, they didn’t feel responsibility for financial stability. The procedure has been simplified upon the new law, procurement types have been decreased, and if formerly there was an open procedure, simplified procedure, negotiation procedure with and without declaration, under the new law only electronic auction, pricing terms and procurement from one person is valid. The Minister highlighted reduction of direct contact with business community, installation of counterbalance mechanisms, independent and active system of extrajudicial appeal.

“The more complicated the system is, the higher corruption risk is,” Aramyan said.

According to the Minister, the electronic platform will allow to eliminate speculations, it’s a straightjacket, as proposals are introduced on the platform and better offer can’t be left out from the process.

“We have taken bold steps,” The Minister said.

By Gayane Khachatryan