The Results of the Prozorro.Sale System

In this material, Oleksandr Smarchevskyi, head of the asset sales department on the SmartTender.biz platform, will tell what 2022 turned out to be for the electronic auction system, how much money was raised in the budget due to the sale and lease of state property, and what changes have taken place on Prozorro.Sale.

With the start of a full-scale war, most auctions in the Prozorro.Sale system were stopped for reasons of state security – only the procedures for selling and renting real estate remained relevant. Although, of course, a large number of trades were put on hold, because half of such property was located in the occupied territories or near the combat zones.

But gradually the Ukrainian territories were released, and the state customers announced auctions more and more actively. Over time, the government made changes to the legislation that allowed for the relaunch of small-scale privatization and leasing of agricultural land during the martial law period.

Also, in 2022, a new direction was launched – the sale of NPL – assets of state-owned banks. So far, only one organizer works on it – PJSC AB "UKRGASBANK" (an example of an auction).

According to the government's decision, auctions of large privatization were officially transferred to the Prozorro.Sale system. So already in 2023, we expect the publication of the first announcements and the first large-scale and transparent trades between participants.

All this time, our team was constantly in touch with state organizers and helped users with participation in auctions and relocation to safer regions of Ukraine.

About Performance Indicators of Organizers and Participants in 2022

As of December 26, 257 organizers registered on SmartTender.biz were active in the Prozorro.Sale system. During the year, they announced 5,208 auctions, of which 1,584 were successful and allowed to sign contracts for a total amount of UAH 657.12 million. The number of participants registered from our site who took part in the auctions was 1,476.

In total, 19,063 auctions with an expected value of UAH 120.74 billion were announced on Prozorro.Sale during the year. 13,548 participants submitted proposals to them, so the average competition index was 2.41. Due to this, the average price of lots increased by 116.41%.

In general, during the year, due to the sale and lease of property, the budget was replenished by UAH 10.31 billion, so the state received more additional funds for the purchase necessary in wartime.

The Results of the Prozorro.Sale System

How Have the Indicators Changed Compared to 2021?

We compared the data with the previous year and, as expected, most of the indicators turned out to be lower:

- the total declared value of lots was 43% lower than in 2021;
- the number of auctions decreased by 25%;
- the share of successful auctions decreased by 26%;
- the number of submitted offers increased by 12% (in 2021, the number of submitted offers for one auction was 2.15, and in 2022 – 2.41).

Which Categories of Auctions Were the Most Popular?

Most often, auctions were held in the following categories:

1. Real estate.
2. Transport equipment and accessories for it.
3. Real estate services.

And the most diverse in terms of types of procedures were the following categories:

1. Commercial lease.
2. Railcar lease.
3. Lease of state and communal property.

The Results of the Prozorro.Sale System

The Most Interesting Lots of 2022

The most expensive auctions held in 2022 were:

1. Mining permit. The expected price was UAH 40,713,000, and the winner offered UAH 1.102 million.
2. The single property complex of the State Enterprise "Electronmash" with an expected value of UAH 65.625 million. The winner offered UAH 430 million.
3. Property rights for a non-residential building in the center of Kyiv. The expected price was UAH 971.084 million, but the auction was conducted according to the "Dutch" scheme, so the final offer of the winner was UAH 351 million.

The auction for the sale of the "Trembita" recreation center complex in the Lviv region attracted the most attention of the participants – 83 persons submitted bids for it. The final price was 132 times higher than expected, but, unfortunately, the auction was deemed not to have taken place. This auction became the longest in 2022: three stages of bidding lasted 758 minutes (12.63 hours).

Separately, we would like to single out one more interesting auction – the sale of 40 heads of cattle – with an expected value of UAH 240,000. Only one participant applied, but the lot was so unusual for Prozorro.Sale that it attracted a lot of attention.

The Results of the Prozorro.Sale System

Results of Charity Auctions on Prozorro.Sale

During the year, charity auctions initiated by private companies and individuals were actively held in the system. This made it possible to collect and transfer UAH 6.9 million to the needs of the Armed Forces. In total, 154 participants took part in such auctions, and the most expensive lot was sold for UAH 4 million.

In our opinion, the following were the most interesting lots:

1. The pen with which US President Joe Biden signed the Lend-Lease Law on May 9 – was sold for UAH 600,000.
2. A tube from an anti-tank missile, decorated by masters of Petrykiv painting – was sold for UAH 155,000.

The Results of the Prozorro.Sale System

About the Improvements on the SmartTender Site

During the year, we continued to actively work on improving our functionality for users, and first of all, our improvements related to the direction of small-scale privatization:

1. Small-scale privatization procedures were transferred to the updated Central Data Base 2. In short, this means a global change of procedure and transition to a new software code, which will allow adding new modern features for our users in the future. Thanks to this, it was possible to implement the next two refinements.
2. We implemented a new page for submitting proposals for small-scale privatization auctions.
3. The office of the organizer of small-scale privatization auctions was implemented.

User Comments on Cooperation with the SmartTender Platform

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KAMIN-KASHIR CITY COUNCIL has been fruitfully cooperating with Smarttender LLC since 2021. In the course of their activities, the company's specialists confirmed their high professional status and efficiency in solving the assigned tasks.

Our cooperation with ETS "SmartTender.biz" left the most favorable impressions. The company always adheres to a loyal and individual approach to the customer and has a reputation as a reliable partner, which confirms the ability to work organized and at a high professional level.

We hope for further cooperation and recommend this platform as a reliable partner in working with electronic auctions in the Prozorro.Sale system.

KAMIN-KASHIR CITY COUNCIL

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ATLANTA-AGRO PRIVATE ENTERPRISE has been fruitfully cooperating with Smarttender LLC since 2019, despite offers from other companies. In our cooperation, company managers at a professional level reliably and promptly provided consultations in solving the assigned tasks.

Our cooperation with ETS "SmartTender.biz" leaves only positive impressions of a reliable partner. The work is organized at a very high professional level, for example, statistics on wagons are immediately provided. Regardless of the time and day, there is always reliable help and a solution to any issue, so we will continue to fruitfully cooperate with the platform in the Prozorro.Sale system.

ATLANTA-AGRO PRIVATE ENTERPRISE

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Final Word

We are very grateful that you choose and recommend us! And, of course, we are always happy and open to new acquaintances. The New Year is always a time of change, happy smiles, and plans for the future. Our development is already working on the functionality for the start of large-scale privatization and continues to improve the usability of the site. We wish you faith in yourself and our defenders, peace, and great achievements! Happy New Year! Everything will be Ukraine!