ProZorro.sale

Sale of state and communal property belonging to liquidated banks, non-performing loans (NPLs), and lease rights.

Prozorro.sale is a Deposit Guarantee Fund (DGF) system that organizes sale of the property (assets), belonging to insolvent or liquidated banks, and sale of non performing loans. Such assets include collateralized property (like household appliances, cars, buildings, land lots) and loans (set of receivables of individuals and legal entities). According to the Ukrainian laws such assets are sold through electronic exchanges based on rules similar to those of the EU or the US. In order to ensure transparent, effective and fair sale procedures DGF decided to apply the same software that already proved to be effective in the Prozorro system.

Non-performing Loans

The ProZorro.sale system holds auctions with non-performing loans (NPLs) at sale. Any loan that is logically expected to enter default can be considered a non-performing loan. Thus, it is a sum of borrowed money upon which the borrower has not made any regular payment for at least 90 days.

OpenProcurement toolkit has been used because it ensured simple and quick implementation. The Prozorro.sale’s architecture and main components are similar to those in the original Prozorro project. Hybrid system architecture with Central database (CDB) and electronic platforms connected to it proved to be efficient, since it provides equal access to the assets for all potential purchasers and bidders.

The main difference between Prozorro and Prozorro.sale is in the project goals. While Prozorro aims at purchasing items for the lowest price, Prozorro.sale is interested in selling assets for the highest price. This means that ascending auction should be used in order to increase profit from assets sale. The toolkit’s code has been altered to accommodate DGF sale procedure specifications, for example ascending auction and combined auction, based on dutch auction, rounds timeframe, additional document types, classificators, registers, etc.

OpenProcurement’s Data Standard (developed on the basis of Open Contracting 1.0RC) was extended to fit Prozorro.sale project requirements. The toolkit’s code customized for this project is open source and can be viewed on Github: github.com/openprocurement/openprocurement.auctions.dgf. The documentation is available in English and Ukrainian.

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Awards and recognition

On June 13, 2017, Prozorro.Sale won in the demo-days of the Citi Tech for Integrity Challenge (CitiT4IChallenge) anti-corruption startups finals held in Hyderabad, India. T4I is a global program from leading bank Citi that encourages startups worldwide to build solutions for the public sector. In total, 103 projects took part. Winners receive the support of the CITY in the implementation of the project worldwide.

On February 28, 2018, ProZorro.Sale won “The Shield in the Cloud Innovation Challenge” anti-corruption award from C5 Accelerate and USA Institute of Peace and received a worldwide recognition as the best anti-corruption startup in public administration. The award is given to projects with significant anti-corruption effect that can become an example of success to follow in other countries. Only within a year ProZorro.Sale managed to fundamentally change the public procurement sector in Ukraine.