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What are the benefits of the revised PPP law?

August 2, 2019

On July 22, 2019, the President of the Kyrgyz Republic signed a new version of the Law of the Kyrgyz Republic “On Public-Private Partnership”.

The law was approved by the resolution of the Jogorku Kenesh of June 19, 2019.

The Ministry of Economy of the Kyrgyz Republic explained the advantages of the new version of the Law compared to the current one.

The new law governing public-private partnerships (PPPs) has been issued in order to improve the legislative framework of PPPs, taking into account the practical experience of applying this law and bringing it into line with successful international practice. The provisions of the law make it possible to create more liberal conditions for building economic and business relations between public and private partners, while achieving a better ratio / balance of price and quality for PPP projects.

The main norms that distinguish it from the current Law on PPPs are the ability of joint-stock companies, fifty or more percent of the voting shares of which belong to the state, to act as a state partner.

The extension of the scope of PPP in the new version of the law also applies to infrastructure facilities and / or infrastructure services in the field of electronic governance, finance and banking services.

The most significant benefit of the new law is the simplification of the selection process for a private partner. To stimulate private initiatives, a norm is provided that allows the private initiator of the project to revise his financial proposal in case another participant has submitted a more advantageous proposal. Also, if the private initiator of the project is not recognized as the winner of the tender, the winner of the tender is obliged to reimburse him for the costs of developing a proposal for a private initiative.

The facilitated conditions for the development and promotion of projects will make it possible to more effectively attract private partners through the creation of a wide list of their selection.

The law provides that the regulatory legal act shall enter into force 3 months after the day of its official publication. From the day this law comes into force, the implementation of the PPP project, which is at the stage of development or tender, can be carried out at the option of the state partner in accordance with the procedures established in the new Law.