| Moscow, 23 May 2006. In 2005, RAO UES Holding Company carried out 9,245 procurement transactions on a competitive basis, which represents an increase of 24% compared to 2004. The number of open tenders, the preferred procurement method to be used by RAO UES entities, nearly doubled to 7,118 from 3,023, reaching 77% of all competitive tenders held at RAO UES Holding Company. The value of goods, works, services procured totalled about RUB300 billion. These figures were presented at the Conference "Becoming a Supplier to RAO "UES of Russia" held today.
The procurement system at RAO "UES of Russia" is decentralized. Every RAO UES entity determines what products and services it needs, and procures them independently. However, it follows the uniform procurement rules and corporate standards. These rules are intended to ensure a maximum level of information availability, transparency, non-discriminatory access, and equal competitive opportunities for all bidders. The comprehensive system of regulated procurement and procurement management established at the Holding Company targets to make the maximum use of bidding and other competitive procedures, and to increase their transparency.
B2B-Energo, the information and trading system used by RAO UES entities in their procurement activities, is growing into an e-marketplace for products, services and technologies for the electricity industry. Today, B2B-energo has about 5,300 participants from 28 countries of the world. This e-commerce system helps considerably reduce the procurement transaction costs for RAO UES entities, improve transparency of procurement processes, and promote competition.
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