Ukrzaliznytsia to change its procurement system

From 2018, JSC “Ukrzaliznytsya” will significantly change procurement systems and processes and become a state-owned company with International Certification in procurement and supply. European Bank of Reconstruction and Development engaged Charted Institute of Procurement and Supply (CIPS) to assisting the Company in changing procurement policies and supply management to ensure the Companies ongoing efficient and sustainable development. Yevgeny Kravtsov, the Acting Chairman of Management Board, announced today.

The UK Chartered Institute of Procurement & Supply (CIPS) is the world’s largest procurement professional organization. CIPS is the primary accreditation authority for the certification of practitioners and organizations’ procurement functions.

European Bank of Reconstruction and Development have engaged the Chartered Institute of Procurement and Supply to conduct in 2018 a benchmarking and corporate certification of procurement and supply management procedures of the JSC “Ukrzaliznytsya”.

“We succeeded to get support from a large international financial institution to launch a systemic project. Ukrzaliznytsia will become a state-owned company in Ukraine, which will be certified and audited by this system “, – said Yevgeny Kravtsov.

The EBRD has worked extensively with the CIPS to develop a procurement standard suitable for companies operating in the public sector or public utilities in its countries of operation. This standard called the CIPS Corporate Certification – Primary Award. The CIPS Corporate Certification Primary Award has been developed specifically for State-Owned Enterprises with the assistance of the EBRD.

One of the conditions for EBRD credit financing of up to $ 150 million for the acquisition of general-purpose open freight wagons is international certification of the Company’s procurement and supply management.

CIPS will benchmark the Company’s procurement and supply management procedures, practices and personnel and will identify steps, which can be taken to improve procurement efficiency based on international good practice.

Effective procurement and supply management procedures will contribute to the transparency of the Company, resources efficiency and intensification of competition. Undertaking the CIPS Corporate Certification Primary Award will support the Company in achieving its long-term strategic plans and will:

•          Provide a progressive pathway to world-class procurement and supply management excellence;

•          Establish a robust, ethical approach to procurement and supply embedding anti-fraud and corruption principles;

•          Build efficient, effective and economical ways of planning and procurement, through policy updates and training of staff involved;

•          Strengthen risk identification, management, mitigation, and increase control through performance measurement and management for planning, procurement and supply management.

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