Prozorro.Sale

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ProZorro.Sale is an electronic auction system aimed at transparent sales of state and local government assets. It involves a central database that conducts auctions and stores all the information about the transaction and commercial platforms connected to the database via Application Programming Interface (API). After the transaction all the information becomes public.

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The Ukrainian state has vast amounts of assets in ownership, but the non-transparent process of state assets sales leads to the problems with auction data availability and to a limited number of bidders. Moreover, inefficient bidding process creates even more opportunities for corruption. Assets are sold for lower prices than they could have been and the state loses its potential revenue. Therefore, there is a dire need for a transparent and efficient auction system integrated with an assets register providing full accessibility, equal conditions for all the participants and increased accountability.

In 2015 the civil society group with support of donors, businesses and volunteers launched a pilot e-procurement platform named ProZorro where assets can be offered by companies and bought by authorities within the online auction. Drawing on the successful experience from ProZorro public e-procurement system, the team of civil activists initiated to implement the ProZorro.Sale system to handle the state assets sales process. Since the launch of the Project, the Deposit Guarantee Fund has managed to sell above EUR 315m of assets. According to ProZorro.Sale estimations, an effective sale of public assets could save billions hryvnas yearly to Ukraine’s economy.

ProZorro.Sale is the only e-auction state assets sales system of its kind in Ukraine. ProZorro.Sale is a “hybrid model” e-auction system, which means the information is stored in one central database, but bidders and sellers can access the data from a number of different platforms, choosing the one that best serves their needs. Using an API, these interfaces are connected to the central database. Finally, the key participants in the project play their own role in what is called the “golden triangle of partnership”. Government is responsible for setting general rules and protecting information; businesses are responsible for providing services to the bidders and sellers; and civil society is responsible for monitoring and developing risk-management methodologies. After a quick successful pilot stage in 2016 the Fund made ProZorro.Sale obligatory for all asset sales since early 2017.

One goal is to electronically conduct all sales of the Fund in a transparent and efficient manner, thereby increasing the budget revenue. The following are the platform’s distinctive features: Firstly, all information related to the selling process, including bids, can be accessed and monitored by everyone. The system is open source, and all data is structured in line with the Open Contracting Data Standard, making cross-country data comparison and analysis possible. The Project has received national and worldwide recognition.

Prozorro.Sale won the price of the best anti-corruption start-up by Citi Tech for Integrity Challenge in 2017 and C5 Accelerate & USA Institute of Peace in 2018 (“The Shield in the Cloud Innovation Challenge” program). In Ukraine, the Project became the main implementor of state assets sale in such an important field like small-scale privatization, land leasing rights and assets of state enterprises. Additionally, the sale of liquidated banks assets is obligatory only through Prozorro.Sale platform.

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Year: 2016
Level of government: Regional/State government

Status:

  • Implementation - making the innovation happen

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