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Annual Report 2015

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Purchasing from small and medium businesses

The Government of the Russian Federation by Order No. 867-r dated 29 May 2013 approved an action plan involving the expansion of access for small and medium entities (SMEs) to procurement of infrastructure monopolies and state-owned companies (hereinafter, the Road Map).

As part of the Government order, the Company:

  • included in purchasing documentation an additional requirement to provide bidders and subcontractors with the documents that help to classify bidders (subcontractors) as SME;
  • set up  a Consultative BodyThe members of the Consultative Body for ensuring effectiveness of purchases at PJSC IDGC of the North-West, including small and medium businesses are publishedon the Company’s website in the Cooperation with Small and Medium Businesses (SMEs) section. for ensuring effectiveness of purchases at PJSC IDGC of the North-West, including from SMEs.
  • approved the Partnership Programme between PJSC IDGC of the North-West and SMEs. It outlines measures aimed at developing and supporting reliable, highly skilled, and responsible national SME cluster (contractors and vendors) by implementing the national SME development policy through procurement. Furthermore, the Partnership Programme outlines requirements for SMEs, rules, and conditions for joining the Programme.;
  • signed an Agreement on Cooperation between the Company and the Federal Corporation on Small and Medium Business Development (hereinafter, SME Corporation) on February 05, 2016. The subject of the Agreement is a cooperation between the parties to ensure access of small and medium businesses (hereinafter, SME) to purchases of goods, works, and services for PJSC IDGC of the North-West in accordance with Russian legislation;
  • set up a task force for cooperation between PJSC IDGC of the North-West and SME Corporation on SMEs’ access to purchasing processes.

The goal of the task force is to organize cooperation between the Company and SME Corporation with following tasks:

  • SMEs support;
  • preparation of proposals for the Government of the Russian Federation on purchasing from SMEs;
  • organization of cooperation between PJSC IDGC of the North-West and SME Corporation when evaluating or monitoring conformance of the purchasing plans for goods, works and services, innovative products, hi-tech products, drugs, changes to such plans, draft amendments to the plans, annual reports on purchasing from SMEs, annual reports on purchasing innovative products and hi-tech products from SMEs, to the requirements of Russian legislation on SME involvement in purchasing activities;
  • development of joint documents by PJSC IDGC of the North-West and SME Corporation on SME involvement in purchasing of goods, works, and services.

The Company has a list of goods, works, and services purchased from SMEs published on the official website http://www.zakupki.gov.ru and at the website of PJSC IDGC of the North-West. Purchasing exclusively from SMEs involves the maximum payment period of not more than 30 calendar days after the fulfillment of contractual obligations under the agreement signed based on purchasing results.

To report on SME involvement in purchasing of goods, labor, services, the Company publishes the following updates on its official website at http://www.zakupki.gov.ru:

  • number and total value of agreements signed based on results of purchasing from SMEs;
  • annual report on the purchasing of goods, works and services from SMEs with its content meeting the requirements approved by Decree of the Russian Government No. 1352 dated 11 December 2014.

As a result of Road Map implementation in the Company in 2015 purchases from SMEs amounted to RUB 6,964.2 million without VAt (60% of the annual purchases) of the total purchases worth RUB 9,782.52 million without VAT.

In November 2015, Dmitry Medvedev, Prime Minister of the Russian Federation, approved the list of 35 government companies, major customers, whose purchases were subject to government control: at least 10% of government companies purchases were reserved for small business. PJSC IDGC of the North-West was the first company from the list which obtained a favorable opinion from Federal Corporation on Small and Medium Business Development confirming the conformance of its Draft Plan of Purchasing Goods, Works, and Services for 2016 to the specified requirements.