In accordance with the decree of the President of the Republic of Uzbekistan and the resolutions of the Cabinet of Ministers, on the basis of one of the largest gold mining enterprises in the world – the State Enterprise “Navoi Mining and Metallurgical Combinat”, the Joint-Stock Company “NMMC” was formed. Ensuring the transparency of procurement is one of the most important conditions for the activities of a joint-stock company. Therefore, work in this direction was started even before the creation of the joint-stock company and continues to this day.

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First of all, it should be noted that with the involvement of leading consulting companies in this process, the following works were performed: KPMG – “Development and implementation of procurement business processes in accordance with international procurement standards and GRI/ISAR”; Alavarez&Marsal – “Development and implementation of the best world practices in certain types of activities in the process of transformation of the company”. All regulatory documents, business processes, standards necessary for the transformation of the company’s purchasing function have been developed and are being implemented in the company’s purchasing function.

Based on the requirements of the Law “On Public Procurement”, the rules for conducting procurements, as well as internal regulatory documents for the preliminary qualification selection of suppliers, have been developed and put into practice. Also, the procurement plan for 2022 is posted on a special public procurement information portal (exarid.uz).

In cases where the cost of goods (works, services) exceeds 25,000 times the BDV, the technical specifications for the purchase and tender documentation are sent to the “Center for comprehensive expertise of projects and import contracts” for a comprehensive examination in the prescribed manner.

In order to ensure a unified approach in the field of public procurement, organization of procurement based on openness, transparency and generally recognized international standards the Main department for organization and improvement of procurement methodology was created, and the procurement system was brought to a new stage. The involvement of managers and leading specialists who have worked in the field of procurement in foreign countries and have gained sufficient experience, thinking in accordance with modern requirements, the beginning of the activities of the commodity market situation department in the department, the development of an updated procurement policy by the main department bring results.

Today, any company can participate in the company’s procurement processes through an electronic store, an auction aimed at reducing the initial price, the best offer, a tender. Announcements on the procurement plan and each procurement procedure will be posted on the special information portals of state procurement of Uzbekistan xarid.uz, xt-xarid.uz, cooperation.uz, as well as on the company’s website www.ngmk.uz. In addition, management practices also use informing and inviting enterprises, manufacturers on procurement issues, holding negotiations and meetings, participating in industry and international industrial fairs and exchanges. Therefore, any company, resident or non-resident of the Republic of Uzbekistan, that has the necessary technical, financial, material and human resources for the execution of contracts, regardless of the form of ownership, can participate in the purchase of the company. At the moment, products and equipment are purchased at the company directly from manufacturers or through their official dealers.

The department is also entrusted with urgent tasks, such as optimizing import volumes and expanding industrial cooperation. Consistent implementation of work in this direction is our constant focus.

For the nine months of 2022, the volume of imports of products and services by the company amounted to $86.5 million, or decreased by $165.6 million compared to the corresponding period of the previous year. As part of the Localization Program, 147 projects produced products worth 412.3 billion soums.

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In other words, the growth rate compared to the corresponding period in 2021 was 122.4 percent. According to 96 new and expanded projects, localized products worth 270.2 billion soums were produced, such as cast parts from manganese steel of various grades, mill lining, technological equipment and parts from steel casting, castings and spare parts for excavators, etc.

In addition, 89 types of import-substituting products not provided for by the Localization Program were produced in the amount of 62.6 billion soums. 68 contracts for 23.2 billion soums were signed for the sale of products through the electronic cooperation portal.

The volume of products purchased from local manufacturers as part of industrial cooperation is 3 trillion 567.9 billion soums, which is 138.4 percent compared to the corresponding period of 2021. Based on the “Roadmap” of the company for this year, the target indicators for reducing imports reached $62.5 million due to the localization of the production of imported products and the expansion of intersectoral industrial cooperation.

In addition, in order to reduce imports through the development of intersectoral industrial cooperation with local manufacturers, 35 types of import-substituting products were purchased for $16.2 million.

In cooperation with local manufacturers, new types of import-substituting products were mastered, in particular, various types of agitators with Gidro Stanko Servis LLC, crown and immersion electrodes, bellows compensators with Navpromlitmash LLC, multifunctional measuring equipment with Karmana-Sharqona Invest LLC, brake bearing and pads from Stalmet Group Service LLC, coolant from Chilon Lubricants LLC, reverse osmosis, water filter from Eco Company PE, high pressure hoses for imported equipment (CAT, Нitachi, BelAZ) from Hydro Component PE, sulphite-alcohol rods from AX Trading LLC, graphite electrodes from Navoiyskiy Elektrodniy Zavod LLC, grinding balls from Latem-metal LLC.

In order to achieve economic efficiency, the company will continue to consistently work based on the best world experience, further improve procurement, ensure transparency, reduce imports through localization and expand industrial cooperation.

Sadik RUSTAMOV,

Head of the Main department for

organization and improvement of procurement

methodology of JSC NMMC.