Armenian Finance Ministry promises in Sept-Oct 2017 reveal a list of companies-favorites on state procurements

ArmInfo. "The figures published by Transparency International anticorruption center also include data on purchases in monopolized markets," Head of State Internal Financial Control and Public Procurement Department of Armenian  Finance Ministry Sergey Shahnazaryan stated at a meeting with journalists on June 9, commenting on the divergence of official procurement statistics from one person with estimates of independent structures, in particular, Transparency International. In addition, the representative of the Armenian Ministry of Finance, responding to a question from ArmInfo, assured that in September-October of this year the agency will publish a list of companies of favorites on state purchases. According to Sergey Shakhnazaryan, in comparison with the indicator of 2015, purchases from one person for 2016 decreased more than 2.5 times - from 21.2 billion AMD or 18.3% to 6.6 billion AMD and 7.2%. Of the purchases in 2016, 97 billion AMD were purchases in the monopolized markets - natural monopolies (water, electricity, other utilities, medical facilities). "There is no competition in these areas, and even with a great desire, it is impossible to conduct competitive purchases, since there is simply no competition in this market. Thus, the published figure of 70% also applies to purchases in monopolized markets, "he explained. During the same year, purchases in the amount of 90.5 billion AMD were made through tenders. This year, competitive purchases, not including secret purchases, amount to 87 billion AMD. As for the fixed - obvious favorites of the process, which win every year from state sponsors, then, as Sergey Shahnazaryan assured, at this stage the Ministry of Finance is developing the appropriate tools that will allow to follow online the results of the competitions and its beneficiaries in the regions and regions of the country. "Thanks to the program, in September-October of this year, for all stakeholders, the range of beneficiaries of the process will become clear," he said.

According to Armenian Finance Ministry representative, Armenia in 2016 compared to the previous year reduced purchases from one person by more than 2.5 times - in the total volume of tender purchases indicator last year amounted only 7.2% or 6.6 billion AMD, while in 2015,this figure was 21.2 billion AMD or 18.3% of the total volume of public procurement. "We expect that 2017 will be completed with lower indicators for urgent purchases from one person," Shahnazaryan said.  In addition, by the end of the year there was an increase in the degree of competition - the average participation in open tender procedures was 6.4 organizations per 1 competition, while in 2015 this indicator was 3.4 for the competition. And this, despite the fact that total number of participants in the annual tenders has decreased, reaching 744 contractors last year compared to 2015, from 7591 to 6847, which, according to the department, is associated with a reduction in the overall budget. This year it is also expected to reduce the budget - from 90.5 billion AMD in 2016 as part of competitive purchases (excluding secret purchases) to 87 billion AMD in 2017. But, according to Sergey Shakhnazaryan, this will not affect the amount of participation, since all steps taken by the Ministry of Finance are aimed at activating and expanding the circle of participants in the process by increasing its transparency.  The new law adopted by  Armenian Parliament by the end of  2016, fully entered into force on April 25, 2017. The Armenian Government has simplified the procedures - the number of Government purchases is limited to four (instead of previous 7) - an electronic tender, a tender, quotation and purchases from one person. The law, as the responsible persons stated , is primarily aimed at increasing the efficiency of the use of public funds and leveling corruption risks by ensuring transparency of procedures throughout the chain, creating equal competitive conditions for all participants in the process, accountability of persons participating in it and the availability of all information on the electronic site armeps.am.  To note,  the first law in the field of procurement in Armenia was adopted in 2000. And although the subsequent law laid down the basic ideas and principles of public procurement, until 2010, purchases for state needs were implemented  in a centralized manner. The current law is the fourth.