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Framework conditions for PPPs: further development

📒 Creating the framework conditions for the implementation of PPPs is a consistent and progressive process.

Here the Republic of Uzbekistan has amended a number of laws, including the PPP law of 2019
The law itself in the old version can be viewed here

Briefly about the changes:

💰 There is an opportunity to peg the price of goods (works, services) in PPP projects to foreign currency.
+ This is important at the stage of formation of the PPP market, in order to reduce the currency risk for private partners
— The currency risk cannot be fully and indefinitely allocated only to the state
What should be done: when preparing PPP projects to assess whether such a pegging to the currency is appropriate, not only in terms of the macroeconomic situation in the country, but also in a particular project.
There are also costs in the project that are not pegged to foreign currency — for example, labor costs

Concessions are now exclusively regulated by PPP legislation, as they should be, and are thus a form of PPP
+ finally, an outdated and dysfunctional law, adopted as far back as 1995, is no longer in force

🔑 The possibility of PPP projects with fees for accessibility has appeared
+ it opens up opportunities for construction, especially of schools and hospitals, but also possible in the public sector
— it will require a rethinking of the role of the state in the implementation of projects — because the fee for accessibility implies budget financing for the duration of the project

🧰 it is clearly stated that a special project company can be created by the winner of the tender
+ opportunities for project financing open up
— local financiers as well as banking law may not be prepared to deal with a newly created project company

🕹 the institutional issue has been resolved: when different ministries compete for a project, the government partner is identified by the Cabinet of Ministers as advised by the PPP agency
+ in the case of a dispute over a «tasty project», there is a solution mechanism involving the PPP Agency
— in principle, there should be no such «manual» solution to the issue, in addition, there is an opportunity to «run» the project not through PPP, but through investment legislation

🎉 Also, the Cabinet of Ministers sets the amount of a one-time payment by a private partner in case of successful signing of documents as a result of a tender
+ these funds may be used, inter alia, to compensate for the costs of preparation of documents for the project
— there is a risk that these funds will be spent on remuneration of persons working in the PPP agency

⛺️ local authorities are included in the perimeter of PPP projects
+ Taking into account the fact that land issues are their prerogative, this is a definite advantage
— at the stage of project evaluation it will be necessary to involve local authorities in the negotiations and this may prolong the project preparation period

🧩 land plots are allocated without auction procedures.
+ only pluses

🧨 financing organizations were excluded from PPP agreements
— direct agreements are now outside the PPP agreement, which is a pity, because the state partner may not want to sign additional agreements, which were not part of the tender documents

🎁 when submitting a private initiative:

The private partner must meet the qualifications
+ Now you can’t just give a private initiative to just anyone
— it can be difficult to create one-size-fits-all qualification requirements for all projects
other applicants must also meet the eligibility requirements
+ just «passersby» will be eliminated
— unclear qualification requirements may lead to limitation of participation of experienced participants in competitive procedures
negotiations are held with the initiator, if no one has expressed an interest
+ negotiations are carried out for all items of the private initiative presented
— unrealistically short time for negotiations — 60 days
then, only one-stage tender is held among those who have submitted an expression of interest and the initiator
+ the tender is held
— for some reason then it is a one-stage tender… As they say, the prequalification has already been carried out.
But it contradicts the international practice, according to which the private initiative is the concept of the project and then the whole process goes according to the procedure of competitive bidding, including two-stage tenders
if the initiator does not win the tender, he will be compensated for the actual costs of preparing the private initiative
+ something is compensated at all
— the actual costs are not spelled out in detail
📤 information about PPP projects posted on the websites of government agencies includes the location of the project, the industry, terms, tariffs, project costs, and the amount and types of government support
+ proactive disclosure of information
— No understanding of what information will be published when the project is monitored

🪡 a disclaimer about changes in legislation that came into effect after the conclusion of the PPP agreement and led to the

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