PPP Legislation In Uzbekistan: Adoption Of The PPP Law

The Uzbek Law "On Public - Private Partnership" No. ZRU - 537 (the "PPP Law") has been adopted on May 10, 2019. It shall take effect on 10 June 2019. Unofficial English version of the PPP Law can be found at https://kostalegal.com/publications/legal-highlight/law-of-the-republic-of-uzbekistan-on-public-private-partnership. The Law provides a legal framework for co-operation between the public and private sectors, when developing public infrastructure or providing municipal services. As established by the PPP law, relations under the public procurement and production sharing agreements fall outside the scope of the PPP law. At the time of PPP Law adoption, the government has also adopted a series of sector - specific bylaws (e.g. Resolutions of the Cabinet of Minister) providing detailed rules and procedures for designing and carrying out PPP projects in these sectors, including the process of selecting Private Partners. As a result, such bylaws shall be brought into compliance with this PPP Law.

The PPP Law provides clear guidance on the rules related to project identification, initiation and preparation, as well as detailed procedures for the selection of Private Partners, the stages of project implementation and monitoring relations. Moreover, the PPP law clearly divides tasks, obligations and risks among the public and Private Partners, allocating them in the most optimal manner. PPP projects may be initiated not only by the government, but also by potential private investors. The PPP law provides for an adequate framework for the Public Partner to manage private initiatives that ensures transparency and equal treatment and does not distort competition.

The PPP Law determines the following state representatives as the key authorities in the PPP market:

PPP Agency under the Ministry of Finance ("PPP Agency"), which acts as a central PPP unit in Uzbekistan and takes part in the legislative procedure (develops guidelines and best practices reviews for PPP projects). Also, the Agency approves the concept of a PPP project with a total value of over USD 1 million; the Cabinet of Ministers of the Republic of Uzbekistan adopts regulations on PPPs and designates the Public Partner for PPP projects upon request of PPP Agency. Another important function of the Cabinet of Ministers of the Republic of Uzbekistan is that it approves the concept of a PPP project, the total value of which exceeds USD 10 million; the President of the Republic of Uzbekistan who takes a decision on whether the ownership rights to an object of PPP may be transferred to a Private Partner once the project has been completed. It would be premature at this...