New rules in Uzbekistan for public procurement winners

Bishkek, July 8, 2020. / Kabar /. A new public procurement procedure will be introduced in Uzbekistan from Jan. 1, 2021.

Now all winners will be required to disclose information about their beneficiaries and owners, Trend reports citing Podrobno.uz.

The day before, President of Uzbekistan signed the decree "On additional measures to further develop the competitive environment and reduce state participation in the economy."

In particular, the document states that from Jan. 1, 2021, executors of government procurements, as well as purchases of business companies and strategic enterprises, within two days from the day they are declared winners based on the results of tenders or contest selection of the best offers or direct negotiations, are required disclose information about their beneficiaries who have actual control by direct or indirect ownership of 25 or more percent of the shares.

This information should be disclosed by posting relevant information on a special public procurement information portal. This will avoid a conflict of interest and prevent the participation of affiliates.

Moreover, from Oct. 1, it is not allowed to create and initiate the creation of business entities with state participation, as well as affiliates and state institutions. The exception is ensuring the defense capability and national security of the state.

“The country introduces the so-called principle of “yellow pages” when the state restricts its participation in those markets, where business entities already operate. At the same time, restrictive thresholds are introduced. So, if five or more private business entities participate in a particular product market, then ministries and departments are forbidden to create enterprises with state participation," Farrukh Karabaev, deputy chairman of the Antimonopoly Committee of Uzbekistan said in an interview to Uzbekistan-24 TV channel.

The document also envisages reducing the number of monopolistic enterprises by 40 percent by 2024.

Another important point - now the Antimonopoly Committee will be accountable to the Senate and the President of the country.