Initiative: Prozorro.Sale
Institution: State-owned Enterprise Prozorro.Sale
Problem: Before the launch of Prozorro.Sale, Ukraine had no transparent mechanism for sales and leasing of insolvent properties. Sales and leasing procedures were complicated and opaque. It was lengthy and could take years. The property was often sold for below market value. The privatization and leasing procedures were decentralized with limited information about the varying procedures on the local governments’ websites.
Solution: Starting October 2019, it became mandatory to sell and lease national and municipal insolvent properties through Prozorro.Sale system. The initiative allowed open and accessible bidding of insolvent properties.
Impact: State Enterprise (SE) Prozorro.Sale was established to transform the management of public assets in Ukraine through a transparent electronic auction system. The goal was to establish and implement clear procedures, via a single online system, to ensure the transparency of the privatization and leasing of state-owned property and enterprises. There has been a year-on-year increase in the number of bidders in open auctions which has increased the final sale and leasing value. Accordingly, it has brought additional revenue to the national and municipal authorities. Open data was used for more transparent transactions to decrease corruption risks.