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      1. 3.3.1 Personnel Management
      2. 3.3.2 Environment Protection
      3. 3.3.3 Management systems
      4. 3.3.4 Procurements
      5. 3.3.5 Anti-corruption Policy and Enforcement of Economic Security of Operations
      6. 3.3.6 Disclosures
      7. 3.3.7 Development of territories
      8. 3.3.8 Stakeholder Liaison

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3.3.4 Procurements

Purchase activities during the reported period were regulated by the Rosseti’s Single Purchase Standard (Procurement Regulations)[42].

Principles for building-up purchase activities of the Company:

Principle 1:

Information transparency of tenders – enforcement of the transparency of purchase activities in compliance with the laws of the Russian Federation to the extent, required and sufficient for potential contractors to decide on tender bidding.

Principle 2:

Equal rights, lack of discrimination and unwarranted competitiveness restrictions towards tender bidders – provision of non-discriminatory access of suppliers (contractors) to tenders is preferential; suppliers (contractors) are selected mainly via tenders with equal opportunities, lack of discrimination and unwarranted restrictions toward tender bidders, in compliance with reasonable demand to potential tender bidders and purchased goods, works and services, keeping in mind, if required, product life cycle; discontinuation of single-source contract practices.

Principle 3:

Appropriate and efficient expenditures on goods, works and services, implementation of cost-cutting measures – offers are selected through a totality of predefined price and non-price criteria defining economic and other efficiency of a tender.

Principle 4:

Unrestricted access to a tender by setting immeasurable requirements for bidders.

Principle 5:

Transparency and controllability of purchasing activities – planning, accounting, monitoring, control and audit of purchasing activities on all stages.

Principle 6:

Professionalism and competency of employees engaged in purchasing activities – personal responsibility of officials for efficient arrangement of tenders and their decisions on tenders; flawless performance of actions prescribed in documents regulating tenders; evaluation and retraining of the personnel, liable for purchasing activities;

Principle 7:

Compliance with the laws regulating purchasing activities and combating corruption, incl. Anti-corruption Tender Regulations.

In 2021, the Company conducted 3,145 purchases worth RUBruble 28,207,486.666 thousand (plus VATvalue-added tax), namely:

 

Tender type Number of tenders Tender value
pcs % of total amount of tenders RUBruble thousand, plus VATvalue-added tax % total tender value
Electronic tender 182 5.787 8,825,983.008 31.290
Price inquiry after competitive pre-selection 639 20.319 1,352,088.523 4.794
Price inquiry after pre-selection 282 8.967 1,809,500.267 6.415
Single-source purchase 530 16.852 3,991,955.867 14.152
Purchase from vendors 27 0.859 143,345.255 0.508
Single-source purchases after cancelled tenders 538 17.107 6,146,507.622 21.790
Pre-selection 4 0.127 0.00 0.00
Competitive pre-selection 4 0.127 0.00 0.00
Electronic auction 8 0.254 2,382,400.000 8.446
Electronic quote inquiry 97 3.084 91,514.151 0.324
Electronic price comparison 74 2.353 11,789.847 0.042
Electronic request for proposals 760 24.164 3,452,402.126 12.239

There were 2,588 e-commerce procurements worth RUBruble 24,072,185.544 thousand plus VATvalue-added tax (100% of total purchases and 100% of total value, net of single-source purchases and purchases from vendors).

 

 

Number of contracts Contract value Payments under concluded contracts (RUBruble thousand, incl. VATvalue-added tax)* % of concluded and paid contracts*
(RUBruble thousand, incl. VATvalue-added tax)
Purchases from small-and medium-size businesses 2,541 17,147,463.091 9,569,791.677 68.197%
Incl. purchases only from small-and medium-size businesses (“special bidding”) 1,235 7,847,781.784 5,335,819.453 38.024%

The economic effect from the purchases amounted to RUBruble 1,162,921.693 thousand, incl. VATvalue-added tax or 4.6% of the announced price targets (net of single-source purchases and purchases from vendors). Open purchases contributed 85.340% to the total purchase value.

The following activities are enforced to enhance economic metrics, improve and promote purchase transparency:

 

MU 2019 2020 2021 2021/2020, %
- Share of open competitive purchases and purchases on electronic trading platforms in total amount of purchases;n- savings volume % 95.21

3.33
94.30

5.26
85.34

4.6
0.905

0.875
- Share of purchases from small-and medium-size businesses and purchases from SMBsmall- and medium-sized business acting as subcontractors % 88.02 72.55 68.20 0.940