Alexander Ignatyuk, analyst of Energocapital IC

– New procurement system will allow nuclear companies to save their extra-budgetary funds

Nov 2009 Rosatom State Nuclear Energy Corporation is transiting to Unified Corporate Procurement Standard. The reformation of Rosatom’s procurement activities is part of the program to reduce our costs and to enhance the efficiency of all nuclear enterprises.

This is a step to ensure the transparency of its procurement activities.

The goal of the project is to create a centralized procurement system on the basis of unified standards so as to ensure the effective use of funds by Rosatom and all corporate organizations.

The Unified Standard is aimed at stimulating fair competition on the basis of transparency of all procurement contracts. The new procurement policy will guarantee that we will have no unscrupulous suppliers, which is especially important in the nuclear industry.

One more important goal is prevention of corruption and other abuses in this field. Rosatom seeks to ensure favorable price and quality conditions for equipment procurements. That’s exactly why we are reforming our procurement system.

The new system will help to save extra-budgetary funds and to spend them on programs suspended because of the crisis.

Rosatom has taken one more step to form an efficiency business process structure. I mean not only the efficiency of the new tender system. The economic effect of this system has been proved: 300mln RUR saved at the initial stage. This economy is the result of not only the efficiency of the system, as such, and the effect of market pricing, as its consequence, but also the electronic format of the tenders. This system is simple and transparent. Its structure is built in such a way so as to prevent any corruption. The formation of the state register of suppliers of the nuclear industry will ensure high quality and reliability of supplies and the establishment of a supervisory body to be headed by the director general of Rosatom will make impossible any abuses by those keeping the register. In other words, the new centralized procurement system will improve the management system of Rosatom and will make the corporation more open and transparent for the public and the state.