Electronic procurement system – instrument for implementing green public procurement: analysis of the Latvia’s expierence

Abstract

Green public procurement (GPP) is a mean of saving up finances for public institutions, especially taking into consideration not only procurement price but also total expenses of the contract lifecycle. In Latvia the first Electronic Procurement System (EPS) was established in 2005 and was the first such procurement system in the Baltic States. Initially, it only acted as an e-Procurement system in which public institutions can purchase standard goods and services. This paper analyzes the success of the implementation methodology for evaluating e-Procurement in public procurement. The aim of the paper is to explore the proportion of applied GPP of total procurement in EPS in Latvia in the period from 2015 to 2017, and to analyze how the aims of the proportion of GPP are achieved. In order to investigate the share of GPPs in the EPS, data on purchases made by EPS was collected and analyzed. An analysis was made of the percentage of GPP and the most important groups for which GPP was appropriate, and it was assessed whether the objectives set by the GPP have been achieved. GPP proportion in procurement made within the EPS in 2015 was 9%, 2016 - 8%, but in 2017 - 19.10%, which means that GPP a substantial increase. As the calculations made in the study prove a complete transition to e-Procurement will reduce both administrative costs and significant savings for the state budget in the Latvia.