Public procurement: “green” and energy and resource efficient procurement (Part 2)

Tashkent, Uzbekistan (UzDaily.com) -- The first part of the article on “green” public procurement describes the concept, the urgency of introducing "green" public procurement in Uzbekistan and Uzbekistan’s experience in implementing measures to improve energy and resource efficiency of the economy. Based on international experience and the analysis, the report proposed the main pillars of applying EREPP in Uzbekistan. They are as follows:

The first pillar: the development of a common and coherent policy to increase energy and resource efficiency (ERE) in national economy. One of the main measures is to create a system of incentives and optimal distribution of costs and benefits among all stakeholders taking part in the improvement of ERE. This will speed up the implementation of measures to improve ERE and generate sufficient investment resources for that. A scheme showing the distribution of costs and benefits in power industry is presented as an example. This scheme with some variations can be used as a template for other industries and production chains.

In addition, measures are needed to reduce the cost of purchased energy and resource efficient goods (works, services), including through their efficient localized production in Uzbekistan.

To effectively implement this package of measures it is necessary to develop and use target indicators for improving energy and resource efficiency in the economy.

The second pillar: the establishment of the necessary legal and regulatory framework, which includes widely used methods of supplier selection based on the ERE criteria. At the initial stages it is advisable simply to encourage the purchase of ERE goods (works, services),later this can become a “must” requirement. Due to the high dynamics of the market most of the materials will be concentrated in teaching aids, the "Guidelines for assessing the cost of the life cycle" and various calculators to estimate ERE being themain ones.

The third pillar: cataloging of ERE goods recommended for purchasing and goods prohibited to be purchased. Making these lists will reduce the need of analyzing the life cycle costs for every purchase. As a catalogue we can refer to standard design of public buildingsand offices implemented in Uzbekistan taking into account the increase in energy and resource efficiency.

The fourth pillar: building certification system and energy labeling for ERE goods (works, services). The main role will belong to “Uzstandard” Agency, which is a responsible government authority in this area, and it is advisable that Uzbekistan becomes a member of the Global Ecolabelling Network. Establishing the energy labeling system will also contribute to the promotion of domestic energy and resource-efficient products in the world markets.

Fifth pillar: training of human resources. Enhancing capacity of staff should focus on big customers and enterprises with more than 50% of state shares since they are the main consumers of energy and resources. At the same time not only staff involved in procurement proceduresshouldimprove the qualification, but also staff responsible for the development of activities and investment projects to improve the energy and resource efficiency should do so. This emphasis will save considerable funds. We should also focus on building a culture of respecting the power and resources. This is the basic premise for meaningful implementation of measures to improve the energy and resource efficiency.

Sixth pillar: the development of institutions to promote EREPP. Application of EREPP requires close coordination among several institutions: the Ministry of Finance, the Treasury, the Ministry of Economy, the “Uzstandard”Agency, the State Committee for Geology, the State Committee for Nature Protection, the SJC “Uzbekenergo”, NHC “Uzbekneftegaz”, Fund for Reconstruction and Development of Uzbekistan (FRDU), customer ministries, etc. Therefore, it is advisable to appoint the Ministry of Finance as the responsible agency for applying EREPP. In order to provide methodological support and further promote the EREPP, it is necessary to establish an appropriate methodical council. It will address the complex methodological issues and make recommendations on addressing them before the relevant regulations, guidelines and instructive materials are issued.

In order to accelerate the process of applying EREPP, it is advisable to attract grants and possibly soft loans by donor community. This will also create an effective system for the exchange of experience and knowledge with other countries, especially those successfully having implemented EREPP and improve the energy and resource efficiency in Uzbekistan.