Electronic bid bonds for residents and non-residents

In the modern digital world electronic documents flow becomes more and more important. Today all public procurement operations are being carried out through tenders by using web-portal PROZORRO. A lot of the bid documents are issued electronically, including bank guarantees (also called bid bonds).

What is the purpose of this bid bond?

Bid bond allows to "cut off" dishonest participants and in the case of thwart of bids or failure of a participant of its obligations - to compensate the costs of the Customer.

UKRSIBBANK provides guarantees for PROZORRO tender participation in the digital form (PDF format of the documents). Each document is signed and certified using digital signature and stamp.

UKRSIBBANK provides guarantees in the electronic form (PDF file). Each document is signed by the certain employee with usage of as a PDF file. Each guarantee signed by electronic digital signature and confirmed by digital stamp.

Digital signature and stamp can be verified on the official web page of Ministry of Justice http://czo.gov.ua/verify.

Tender guarantee’s wording proposed by UKRSIBBANK  fully complies with Ukrainian legislation and meets the requirements of the acquirer.

UKRSIBBANK offers quick issuance of bid bounds, minimum fee for the issue of such guarantees is 1000 hryvnyas.

Not only residents can take part in Ukrainian governmental procurement bids, but also non-residents. To participate in the bid a company must provide an electronic application with electronic bid bound, meeting the requirements of the legislation of Ukraine and bid documents.

How can a non-resident get an electronic bid bond?

The first way is to open a representative office in Ukraine and directly appeal to the Ukrainian bank for a bid bond issuance.

The second way is to appeal to its own bank to issue a counter-guarantee in favor of UKRSIB BANK  with instruction to issue the relevant bid bond.

What is a counter- guarantee?

This is a guarantee issued by a counter-guarantor bank in favor of a guarantor bank who is issuing the guarantee in favor of the Beneficiary.

Let's take a look at an example.

The Participant of the bid (non-resident) appeals to the bank for counter- guarantee issuance in favor of the Ukrainian bank. Than Ukrainian bank issues the guarantee, which is secured by abovementioned counter – guarantee, in favor of the Customer.

When UKRSIBBANK issues guarantees secured by counter-guarantee of a foreign bank, we takes risks of this foreign bank, therefore before guarantee issuance UKRSIBBANK examines the financial indicators and the ratings of the foreign bank counter-guarantor. In case of counter-guarantor approval UKRSIBBANK issues a guarantee for a non-resident of Ukraine in form and content, meeting the requirements of the legislation of Ukraine and bid documents.

UKRSIBBANK is a part of international financial BNP PARIBAS group and uses innovative global experience in new products creation. We support the development of smart bids in Ukraine and are happy to advise companies seeking to conduct honest business and aiming to work with us to contribute to the development of a healthy economy of Ukraine.

For advice and guarantee issuance you can always appeal to UKRSIBBANK and call 0800505800.

Oksana Solodchuk

Manager of documentary operations for SME customers UKRSIBBANK