BAKU, Azerbaijan, September 1. New mechanisms
have been created to promote participation of startups in public
procurement in Azerbaijan, Head of the Legal Department of the
Innovation and Digital Development Agency (IDDA), Sabina
Humbatzade, said during her speech on the topic "Development of the
digital and innovation ecosystem in Azerbaijan: new legislative
opportunities" organized within the framework of the educational
session "Digital skills for the media", Trend's correspondent
reports from the event.
According to her, one of the most important issues for a startup
is the formation of customers and demand for its product.
"In this regard, the state's role as the first buyer of startups
can help expand their market access opportunities and form a
reliable customer base. First of all, a startup needs a customer,
there must be demand for its product. A startup must form its
portfolio so that it can launch its innovative product on the
market and attract real buyers," Humbatzade noted.
She recalled that in the previous period, the complexity of
tender and other procurement procedures within the framework of
state procurement, as well as numerous requirements, made it
difficult for startups to participate in these processes.
"It's a great advantage for the state to act as the first buyer
for a startup. If the state trusts them, other buyers can also look
at this and trust the startup. This also allows for the formation
of a more reliable customer base for the startup," she
emphasized.
According to Humbatzade, a number of relevant amendments have
been made to the legislation on public procurement.
"If the price of innovative products presented by startups and
residents of the Technology Park is up to 100,000 manat ($58,820),
they can participate in direct procurement. State bodies and
institutions can acquire these products without going through
additional procurement procedures," the department head said.
She also noted that a price discount mechanism will also be
applied when purchasing innovative products.
"If the estimated price of an innovative product is up to
250,000 manat ($147,060), a 20% discount is applied to the startup.
This doesn't mean a 20% reduction in the price of the product.
Compared to other offers, a 20% discount is applied to the offer of
a startup or resident of the Technology Park, and this offer is
evaluated," Humbatzade explained.
The head of the department said that the concept of a "pilot
implementation contract" has also been added to the legislation as
a new mechanism.
"If a government body or institution has a real need, but it is
an innovative product whose purpose and specifications cannot be
precisely determined in advance, then a pilot implementation
agreement can be concluded," she clarified.
According to her, within the framework of such an agreement, the
state body communicates its need to the startup or resident of the
Technology Park and determines the product development process
according to specific indicators and stages.
"The development process is divided into KPIs, that is, specific
indicators and stages. As the specified periods expire, the
corresponding part of the product is transferred, and payment is
made for each transferred part," said Humbatzade.
She added that the amount of the pilot implementation agreement
cannot exceed 1 million manat, and its term cannot exceed 12
months.
Humbatzade also touched upon changes related to the prevention
of technological dependence.
"In many cases, software and other technological solutions for
state bodies and institutions are developed by private entities. In
these cases, the requirement to submit source codes to the state
body or institution has also been added to the legislation," - he
said.
The official also briefed on the mechanism for financing state
digital projects. According to him, the new mechanism mainly covers
the financing of projects related to state bodies and institutions,
and the goal is to prevent the same or similar digital solutions
from being re-developed by different institutions.
"If there is a product that can be used in state bodies and can
also contribute to the activities and services of other state
bodies, we want to prevent its re-creation. This will prevent the
spending of excess funds from the state budget," Humbatzade
noted.
She further said that previously, the law "On information,
informatization and information protection" had a certain mechanism
for the creation of state information resources and systems.
"Before the formation of state information resources and
systems, a positive opinion on the feasibility should have been
obtained from the Ministry of Digital Development and Transport.
After that, the creation of these systems and resources could be
carried out," the head of the department said.
According to Humbatzade, the scope of this approach has been
expanded in the new mechanism.
"Digitalization projects no longer mean only information systems
and resources, but also services, as well as technological
equipment necessary for daily use or for the creation and operation
of systems and resources," she stressed.
She noted that state bodies and institutions must submit a list
of their needs related to digitalization to the Ministry of Digital
Development and Transport by the end of April each year.
"The Ministry of Digital Development and Transport reviews that
list and assesses the projects' compliance with the system, the
services provided by the institution, the overall government
architecture, and the digital development vision. If a positive
opinion is given, the project is submitted to the Ministry of
Finance with that opinion attached," Humbatzade said.
According to her, if the Ministry of Finance considers the
project appropriate, the relevant funds are provided in the state
budget for the following years.
"Projects related to digitalization are not allowed to be
implemented without appropriate opinions. This is already a
requirement of the law," she added.
