Ukraine enacted a comprehensive PublicProcurement Law (PPL) on February 22, 2000. The first WorldBank Country Procurement Assessment Report (CPAR) forUkraine finalized in November 2001 included an action planfor improving systemic efficiency of public procurement.Since the 2001 CPAR, the country has undergone numerouspolitical and economic changes with natural concurrentevolution of the public procurement system. In light ofthese changes, the Government and the World Bank jointlyundertook the present review of the legal and regulatoryframework for procurement, institutional capacities, actualpractice, and the integrity of the system as a whole. Theanalysis and main findings of this report are presented asfollows: Section 2 analyzes the legislative and regulatoryframework of late 2005 through this writing in 2006. Section3 analyzes institutional framework and management capacity.Section 4 covers procurement operations, includingfunctionality of the public procurement market, contractadministration, and provisions for dispute resolution. Thereport then discusses integrity and transparency of thesystem (Section 5), e-procurement (Section 6), publicprocurement contract performance (Section 7), and gradualharmonization with the EU directives and eventual accessionto the WTO (Section 8). Section 9 presents risk analysis andthe 2006 action plan. Key recommendations are summarized inSection 9 and repeated in the executive summary.