May 13, 2019

The Law “On public private partnership” were adopted

The Law of 10.05.2019, No. ZRU-537 “On Public-Private Partnership” was published. The Law shall enter into force on 12.06.2019.

The law defines the definitions, principles, authorities of state bodies in the sphere of PPP, the procedure for drafting PPP project, the procedure for selecting a private partner, etc. In accordance with the Law, the Cabinet of Ministers of the Republic of Uzbekistan approves the concept of a PPP project that exceeds 10 million US dollars.

The authorized body is the recently created Agency for the Development of Public-Private Partnerships under the Ministry of Finance of the Republic of Uzbekistan.

In accordance with the Law, the authorized body shall:

– maintain a register of PPP projects

– approve, reject or return for revision the concept of a PPP project that exceeds one million US dollars.

– coordinate draft tender documentation, etc.

The law determines the procedure for selecting a private partner, according to which:

1) If the PPP project is equal or less than US $ 1 million, a one-stage tender shall be held;

2) if the PPP project is more US$1 million, two-stage tender shall be held.

Parties may enter into a PPP agreement without a tender based on direct negotiations in accordance with the decision of the public partner in the following cases:

– ensuring the defense and security of the state

– belonging to a certain person of exclusive rights to the results of intellectual activity, other exclusive rights, land, other real estate and other property, which is obligatory condition for implementation of PPP project.

– defined by decrees and resolutions of the President of the Republic of Uzbekistan.

The duration of the PPP agreement may not be less than 3 years and shall not exceed 49 years.