Uzbekistan: Filling The Legal Gaps In Public Procurement In Uzbekistan

Last Updated: 14 November 2018
Article by Eldor Mannopov and Bobur Shamsiev

The Law of the Republic of Uzbekistan "On public procurement" (hereinafter referred to as the 'Law') adopted on April 9, 2018, defines the main principles and subjects of public procurement, general requirements for the process of public procurement, and the instructions governing procurement procedures. Article 1 of the Law also provides for the following types of procurements (seven in total) that do not fall under the Law:

  1. Procurements made by the strategic subjects of the public procurements according to the list approved by the President of the Republic of Uzbekistan except for public procurement of goods, works, services made under the implementation of the state development programs, projects provided for by the decrees, resolutions and orders of the President of the Republic of Uzbekistan and decisions of the Government of the Republic of Uzbekistan;
  2. Procurements made with the purpose of ensuring security of the persons eligible for state protection, national defence, security and maintenance of the order in the Republic of Uzbekistan, and also related to the state secrets;
  3. Procurements of goods (works, services) necessary to meet the needs of the Republic of Uzbekistan in force-majeure situations;
  4. If the procedures of donating countries, relevant international, foreign governmental and non-governmental organisations or terms of provision of foreign credits raised under the guarantee of the Republic of Uzbekistan and foreign credits provide for another procedure for procuring goods (works, services);
  5. Procurements made for preparation and conduct of the elections of the President of the Republic of Uzbekistan, to the Oliy Majlis of the Republic of Uzbekistan, regional, district and city congress of the people's deputies and referendums of the Republic of Uzbekistan;
  6. Procurements related to the appointment of the advocate (representative) to participate in court proceedings;
  7. Procurement of goods (works, services) with fixed prices in accordance with the law.

Resolution of the President of the Republic of Uzbekistan No. PP-3953 dated 27.09.2018 "On the measures for implementation of the Law of the Republic of Uzbekistan "On public procurement'" (hereinafter referred to as the 'Resolution'), in turn, defines that procurements specified in para. 2 and 5 above shall be made by selecting the best offers, whereas procurements under the para. 3, 6 and 7 shall be made under the direct contracts.

This Resolution also approves the list of goods, works and services (29 items in total) that shall be procured only by the public customers under the direct contracts in accordance with the procedure established by the National Project Management Agency under the President of the Republic of Uzbekistan, the Accounts Chamber and the Ministry of Finance. In analyzing the above list, it is possible to divide goods (works, services) into the following categories:

  • Goods (works, services) with fixed prices (fuel, liquid and compressed gas, diesel fuel, coal products, etc.);
  • Goods (works, services) sold by the unified suppliers or within the system of the same public authority (for example, tickets (air, railway and road transport) for business trips and other cases related to the operational activities of a public customer; procurement of goods (works, services) between the organizations (departments) within the same ministry (public authority, institution); new motor vehicles, specialized and agricultural equipment by the manufacturers of the Republic of Uzbekistan or their official dealers and distributors, etc.);
  • Procurement of goods (works, services) by means of conducting procurement-related procedures is unreasonable (for example, subscription to periodicals (newspapers, magazines) including electronic versions; tickets for cultural and entertainment events; accommodation during business trips and in other cases related to the implementation of the operational activities by the public customer);
  • Procurement of goods (works, services) is caused by the conditions requiring immediate decision-making, and conducting procurement-related procedures will have negative consequences (for example, goods (works, services) for the elimination of the consequences of the force-majeure events and technological disasters or emergency response in case of communications, mechanisms, devices and other equipment malfunction affecting the full functioning of the public customer's operational activities); 
  • Procurement of goods (works, services) under the previously concluded contracts (communication services, internet and broadcasting payments for the subsequent year under the previously concluded contracts; post-warranty and day-to-day service (for example, procurement of spare parts) by the supplier of the goods (works, services) previously supplied by him, in case such service cannot be provided by another supplier, and also maintenance and (or) functional expansion of the previously procured software product).

The Ministry of Justice, the Ministry of Finance together with the National Project Management Agency under the President of the Republic of Uzbekistan are required to analyze law enforcement practice in this area on a regular basis to reveal and resolve problems. The National Project Management Agency under the President of the Republic of Uzbekistan is required to prepare amendments and additions to the law within a two-month period in order to resolve these problems.

It should be reminded that the Resolution of the President of the Republic of Uzbekistan No. PP-3487 dated 22.01.2018 "On measures for supporting the activities of the business and strategic entities" approves the list of 19 business and strategic entities, which are entitled to enter into contracts for the goods, works and services procurement, regardless of the amount, by means of selecting the best offers assessed by the institutional bidding commissions, established by the business and strategic entities under the chairmanship of their Heads.

In case of procuring goods (works, services) for the amount exceeding the equivalent of US$50 thousand, technical tasks are subject to the compulsory expert examination, and contracts are subject to the expert examination and registration in the Centre for the Complex Expert Examination of Projects and Import Contracts of the National Project Management Agency under the President of the Republic of Uzbekistan.

Furthermore, the Resolution reduces the term of posting the announcement on the informational portal:

  • On conducting an auction – up to 5 (five) days (previously 10 (ten) days – part three of the Article 47 of the Law);
  • On conducting one-stage tender – up to 10 (ten) days (previously 30 (thirty) days – part one of the Article 52 of the Law).

About Dentons

Dentons is the world's first polycentric global law firm. A top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm is committed to challenging the status quo in delivering consistent and uncompromising quality and value in new and inventive ways. Driven to provide clients a competitive edge, and connected to the communities where its clients want to do business, Dentons knows that understanding local cultures is crucial to successfully completing a deal, resolving a dispute or solving a business challenge. Now the world's largest law firm, Dentons' global team builds agile, tailored solutions to meet the local, national and global needs of private and public clients of any size in more than 125 locations serving 50-plus countries. www.dentons.com.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Events from this Firm
30 Jan 2019, Other, Chicago, United States

Please join us on January 30, 2019, for the Fifth Annual Courageous Counsel Leadership Institute. This year's theme is "Risk and reward: Creating a culture that promotes innovation, change and growth.

 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions