On May 2, at the 19th plenary meeting, the Senate of the Oliy Majlis of the Republic of Uzbekistan approved the Law “On Public-Private Partnership”. The law establishes the legal framework for PPPs, including the rules and procedures related to their development and implementation, governing their institutional structure, applicable principles and various other issues related to this area.
The minimum term of a PPP agreement is 5 years, and the maximum in turn cannot exceed 49 years.
To participate in the tender, a private partner must meet the following requirements: legal capacity, capacity, solvency, lack of tax arrears, availability of necessary financial, material and technical and labor resources.
Selection of a private partner will be held on the basis of a tender or direct negotiations. This establishes the order of the one-stage and two-stage tender. If the PPP project is worth up to $ 1 million (inclusive), a one-stage tender is held, if more than $ 1 million – two-stage (pre-qualification and selection of the winner).
In addition, the Law provides mechanisms and ways to protect the interests of a private partner and establishes the procedure for monitoring and reporting on the implementation of PPP projects. The mechanisms of financial support for PPPs are also defined, the main types of which are grants and subsidies, tax incentives, deposits in the form of assets, loans, government guarantees and others.