Though the innovation was inspired from the latest experience of Ukraine on implementing of a multi-platform eProcurement system (Prozorro), the proposed innovation contain a set of significant features which make it more modern and advanced: The System will cover full cycle of the procurement that starts from the identification of the Contracting Authority's needs (planing) and ends with the contract execution and contract payment, and it will be reached by Integration with the following eGovernment tools:

eFactura - Tool to create electronic invoices, to be used for eInvoicing;

MPass - National service that allows authentication and access to digital public services. The service offers different authentication mechanisms: mobile signature, digital certificate, username, and password.

MSign - Tool to sign documents electronically. It will be used to submit bids and sign contracts online and will be integrated within Electronic Networking Procurement Platforms.

MNotify- Tool to send electronic communications. Can be used to communicate notifications to EOs and CAs. MConnect - National interoperability BUS that can be used to facilitate connection to the state registers.

MCloud - National cloud service that is used to host the system.

MLog - Tool that will keep a register of the transactions within the system

MPay - Tool that allows payments to be made electronically Now integrated: MPay, MSign, MPass, MCloud.

In process – integration with MConnect. - The eProcurement system will be interoperable with the following state registers State Register of Population State Register of Juridical Units Tax Service State Treasury State Register of Licences State Register of Non-commercial Organizations Criminal Records Register

- Due to integration with State Treasury, the System will provide workflows for verification of availability of budgetary funds, registering of awarded contracts, issuing of invoices and reflecting payments made on contracts according to the approved payment schedule.

- eCatalogues - The eContract Management module will include the functionalities that allow the creation of eCatalogues and submission of orders for products or services included in the eCatalogue.

- In according with the pillar 4 – “Costefficient model” the project uses available Open Source modules.

In order to carry out the pilot, a Memorandum of Understanding was signed on 30 November 2016 by the Moldovan Government, international donors, businesses, Networking Electronic Procurement Platforms, and civil society. This memorandum outlined the basis of the project. The pilot is divided into two different stages:

- Micro value procedures (implemented). Includes procedures not covered by Public Procurement Law (below 100.000 MDL equiv EUR 5000 for works and 80.000 MDL equiv EUR 4000 for goods and services). The system used for micro value procedures is electronic bidding (with reverse auction) only. This stage started in February 2017 and included 5 Contracting Authorities, with possibility to join for any other Contracting Authority wishing to join. At the moment the pilot system is used by 22 Contracting Authorities.

- Small and high value procedures (in process). It is covered by Public Procurement Law and includes two sets of procedures:

- Small value procedures. They are above 100.000 MDL for works and 80.000 MDL for goods and services and below 1.500.000 MDL equiv. EUR 71500 for works and 400.000 MDL equiv EUR 19000 for goods and services. It will cover request for price quotation with and without invitation. - High value procedures.

These procedures will be tested first for below and above the EU threshold (below 90.000.000 MDL for works equiv EUR 4.290.000 and 2.300.000 MDL equiv. EUR 110.000 for goods and services) but conducted according to the provisions of EUPD 2014 and WTO GPA. The procedures included in the pilot will be open and restricted procedures (tender). The financial evaluation for small and high value procurement procedure will be made by electronic reverse auction or on alternative modalities where e-auction for financial evaluation will not be possible to be used. The pilot of small and high value procedures is planned to be launched in October - November 2017 and will include over 300 Contracting Authorities. Further, the eProcurement system will be built upon the pilot system, enhancing pilot functionalities and adding new ones.

Collaboration between the Government, private sector and civil society is the main condition for this project. Lack of any of this partner could lead to a failure. Conversely, the participation of all these actors in project implementation would lead to increasing of transparency throughout the entire public procurement cycle, to increase efficiency and value for money and to reduce transaction costs for all stakeholders. The Government ensures legal framework for system operation, develops the Central Database Unit (CDU), supervises the private platforms and ensure the use of the system by the authorities. The private sector ensures development and proper operation of eProcurement platforms, take a part of risks and costs – related to implementation and maintenance of system, finances maintenance of CDU and facilitates the access to procurement procedures. The NGOs are monitoring the process of implementation, participate to decision taking process and help to promote the system.

In process of implementation were involved also the project’s stakeholders:

State Treasury – in order to coordinate and ensure the automatic validation of contract notice and registration of contract;

Economical Operators (Suppliers) - there were organised informative trainings and separate meetings to motivate them to use the system. Further, some of them not only used the system to bid to organise own public procedure using the system;

Contracting Authorities – to test and propose optimisations; Business associations – to promote the system within their members; Government officials – to recommend the system for their subordinate organisations;

NGOs – to promote the system and motivate Contracting Authorities to use the system. This lead to an increase of number of piloting Contracting Authorities from 5 to 22; 75 published tenders; 21 tenders launched by the private companies; 25 articles in online press and 5 TV news/shows about MTender; 184 offers registered.

Observed results/impact: High degree of interest from the suppliers. Accessibility and transparency of the system raise level of confidence for public procurements. Even the private sector wants to organise (and they have organised) procurements through the system. Positive feedbacks from suppliers: the process of participation is simple and accessible from everywhere; Positive feedbacks from NGO and public society on one of main characteristic of the system: full transparency. Economies made: actually the level of savings for procurement procedures organised using MTender are 23.10 % from the estimated value. Positive feedbacks from the Contracting Authorities: they do not need to search for potential suppliers - this work is done by the platforms. The actual average number of participants to a procurement procedure is 2.45 Positive feedbacks from the Contracting Authorities: they do not need to write from scratch the tender documentation for similar tenders, they can use similar tenders carried-out by other authorities as examples and tailor them to their needs.

Expected results by the end of pilot project: Expected results/impact by the end of pilot project: At least 15% of savings for procurement procedures organised using MTender; Average number of participants to a procurement procedure - minimum 3; At least 300 contracting authorities connected to MTender system; Increased level of transparency: all information on awarding process and concluded contracts to be made public; Increased level of confidence of civil society and business regarding public procurements. Reducing the burden on economic operators, but automatic verification of their status with State Registries (thus avoiding the need of getting additional certificates and proofs from different State Institutions).

Challenges: Insufficiency of staff of Procurement Agency and Ministry of Finance; Insufficiency of IT specialists in public sector and especially in Public Procurement Agency and Ministry of Finance; As the result delays in new Legal framework development; Scepticism of Contracting Authorities and Suppliers; Initiative of economic operators to use the system to organise their tender procedures(+); To respond to these challenges, were taken additional measures as following: Involveing supplementary project staff; Identifying third part authority controlled by the Government who can manage the CDU; Deciding with implementation partners on supplementary activities with their participation (information trainings, separate meetings, presentations, social media articles) to motivate users; Involving high level government officials to encourage subordinate authorities to use the system; Adding supplementary features to the system; Modify/Extend the implementation plan.

1. Public-private partnership. The eProcurement solution is based on a close cooperation between the Government and private sector. The MTender system is a networking multi-platform electronic procurement system that comprises of a Central Database Unit (CDU) that is administered by the Government and a number of networking private electronic procurement platforms connected to the CDU.

2. Close cooperation with the civil society. Civil Society has the power to influence political, economic or public interest decisions, serving to monitor the work of state institutions and to take an attitude towards policies that are contrary to the citizen interests or in case of power abuse.

3. Using of Open Source, Open Data and Open Contracting model. eProcurement applications are open source and foster transparency and accountability by incorporating Open Data and Open Contracting Data Standards.

The modularity characteristic and Open Source condition of this innovation ensure full replicability of the project by its adaptation. From a data point of view, replicability along as interoperability is ensured by the use of Open Contracting Data Standard. By using of OCDS, the system ensures its integration with different services and facilitates interoperability. From business processes perspective the project’s approach is replicable outside national borders due the fact that the system will cover all mandatory default procedures as defined by the EUPD 2014 and will comply with WTO GPA. From technology point of view, the used within the project Opens Source solutions will facilitate the replication of the project. From economic point of view, the used fee model which enables the sustainability of the system in the long-term without jeopardising competition due to low participation fees in tenders is also an approach that could be fully replicable.

It should be analysed potential risks related with: Usually the public authorities have very limited resources or they are inexperienced; There is always a degree of fear of new and innovation; Legal changes may not be adopted in time due the diverse political factors Lessons learnt: Support of the civil society is crucial for promoting reforms of changes. This happens due the credibility and to closer connection with society; Be prepared to review some business processes after implementation; e-Procurement success depends firstly on motivation, transparency, trustability and people skills, and only then on technology; You can’t always rely on full dedicated staff from all the implementation partners; The concept of a rolling implementation with pilot authorities was a good idea; The Steering Committee has too many members making it difficult to reach consensus and make decisions. There is needed a dedicated communication officer to manage the communication plan effectively.