New public procurement legislation in force - International Law Office

On June 1 2010 Parliament passed the Law on Public Procurement (2289-VI), which sets out the legal and economic basis for the public procurement of goods, works and services. The law entered in force on the date of official publication, June 30 2010, and was officially implemented 30 days thereafter.

The law applies to procurement undertaken fully or partly at the state's expense, provided that the total value of the procurement is no less than UAH100,000 for goods and services or UAH300,000 for works. However, the law does not apply to:

• commodities and services connected with the design or manufacture of anti-counterfeit paper, bank notes or coins, or the storage, transportation or recording thereof;
• services funded by state banks or banks capitalized with state participation for the exclusive purpose of conducting transactions pursuant to the Banking Law;
• commodities, works and services procured by non-resident tenderers;
• commodities, works and services covered by state secrecy rules; or
• services required for obtaining public loans or servicing or discharging the national debt.

The Ministry of Economy is authorized to execute state regulation and control in the sphere of public procurement. The law provides for:

• open tenders;
• two-stage formal tenders;
• requests for price proposals;
• the preliminary qualification of participants; and
• procurement from a sole participant.

Ukrainian and foreign entities are entitled to participate in procurement procedures on equal terms.

For further information on this topic please contact Wolfram Rehbock or Sergiy Shklyar at Arzinger by telephone (+380 44 390 5533), fax (+380 44 390 5540) or email (wolfram.rehbock@arzinger.ua or sergiy.shklyar@arzinger.ua).