Public-private partnership – a bridge between the government and the investor
On May 20, 2019, the Public-Private Partnership development agency under the Ministry of Finance of the Republic of Uzbekistan organized a briefing for the media on the topic “Public-private partnership – is a bridge between government and investor”. The Public-Private Partnership Law of the Republic of Uzbekistan signed by the president Sh.M.Mirziyoyev on 10th of May, 2019. It was noted that many ministries, deputies of the Legislative Chamber and members of the Senate of the Oliy Majlis, representatives of the ADB, EBRD, World Bank, IFC and other members participated in the preparation of PPP Law project.
Nowadays, large-scale reforms are making to attract direct investment and improve the investment climate in the country. Nowadays, in order to attract direct investments and improve the investment climate, large-scale reforms are making in the country.
So, these reforms are aimed to create a modern legal framework and implement projects with private investors.
The PPP should play its role in the development of the Republic of Uzbekistan. The quality of infrastructure and public services in the country is enhanced by the use of private investment through public-private partnership and the introduction of advanced management experience. In this case, financial resources are provided by a private partner, who takes the main business risks. At the same time, 49-year contracts require highly trained and highly professional staff.
According to the calculations of the Asian Development Bank, Uzbekistan must annually invest in production and infrastructure funds in the amount of 7.4 percent of its GDP (about $ 3.6 billion). Priority areas include transport, energy, information and communication technologies, and drinking water supply.
It is obvious that the existence of a public-private partnership law is very important for our society and the economy. In addition, the development and functioning of legislative documents emanating from it is necessary to create a unified system in this area.
The adoption of this law laid the legal basis for PPP, which in turn, of course, will increase the activity of investors in the country, as well as attract financial and other resources of the private sector.
Features of the law:
“This document is a direct action, which means that the need to study other legal documents for an investor who wants to invest in Uzbekistan will be lower.
– The law is aimed at protecting investors – in particular, there are separate articles on the protection of private partners and creditors.
– The law aims to improve the quality of public services and public infrastructure.
– The law provides for transparency of the rights and obligations of the parties.
– The law provides for a one-time tender for small projects.
– The law provides for the implementation of projects with the participation of private entrepreneurs.
Identification criteria for suitable projects:
- a) a reflection of the priorities of the sector, the state program and strategic documents.
- b) focus on the development of public infrastructure and public services.
- c) the need to improve the quality and efficiency of work in a particular area.
- d) the majority of risks are assumed by the private sector.
- e) introduction of advanced private experience.
For reference: Public-private partnerships are long-term mutually beneficial contracts and agreements that are designed to attract private investment and introduce advanced management methods, as well as improve the quality of public services. At the same time, indicators of the effectiveness of the parties’ obligations and their risks are clearly defined. The private partner is responsible for financing and assuming major risks, and the state retains its authority to regulate these projects. Traditional spheres of application of PPP – construction, modernization and maintenance of infrastructure facilities.