Senate of Oliy Majlis of Uzbekistan approved the Law “On Public Procurement” in a new edition

On March 12, 2021, the Senate of the Oliy Majlis of Uzbekistan held its ordinary plenary session, in which it approved a new edition of the Law “On Public Procurement” (hereinafter – the “Law”).

The new edition of the Law is being supplemented with several new terms, such as beneficiary owner, electronic public procurement market, conflict of interests, tender bidding and others.

As one of its main aims, the Law will try to reduce the level of corruption in the system of public procurement by effective monitoring and control system, publication of information on cases of violations of the legal requirements in open sources and other means.

In addition, in accordance with the Law, officials and other employees of the public procurement authority, operator of the electronic public procurement system, a specialized or expert organization, as well as members of the procurement commission have no right to receive any personal benefit directly or indirectly, which comes as a result of public procurement transaction with their participation.

Moreover, if more than three domestic manufacturing enterprises are taking part in the public procurement of goods (works, services), along with foreign suppliers, such domestic enterprises can be granted privileges and preferences by the relevant decision of the President of the Republic of Uzbekistan.

The Law also introduces amendments to the public procurement process itself. In particular, projects included in the Investment Program of Uzbekistan and other state programs can now be implemented on a “turn-key"”basis using the fast-track method (design, procurement and construction works at once).

The Senate notes that the Law will assist in eliminating conflicting legal requirements that previously existed, ensure transparency of procurement and create favorable conditions for business entities and the public.

The Law enters into force after its approval by the President.

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