LAW OF THE REPUBLIC OF ARMENIA

of July 16, 2019 No. ZR-113

About partnership state-part sector

Accepted by National Assembly of the Republic of Armenia on June 28, 2019

Chapter 1. General provisions

Article 1. Subject of regulation of the Law

1. This Law establishes legal circle of regulation of partnership the state-part sector (further - PGCh), including the rules and procedures connected with development and implementation of programs of partnership the state-part sector (further also - the PGCh programs), the institutional circle of management, applicable criteria, the procedure of the choice of the private partner and other questions connected with PGCh.

Article 2. The basic concepts used in the Law

1. In this Law the following basic concepts are used:

1) the payments based on result - the payments made by clients and (or) the public partner to the private partner for the goods sold by the private partner and the rendered services;

2) net present value (Net Present Value, NPV) - difference of present values of inflow and cash outflow in the course of implementation of the estimated program when which calculating the interest rate of discounting established by the PGCh procedures is used;

3) competent authority - The government, body of system of public administration which develops and performs policy in certain sphere of public administration, local government body of the Republic of Armenia;

4) authorized body - the body of system of public administration developing and performing policy of the Government in the sphere of management of public finances;

5) the applicant - the legal entity or consortium of the legal entities participating in the procedure of the choice of the private partner to become the private partner and to sign the contract with the public partner. At the same time society with direct or indirect equity of the Republic of Armenia or community or society in which the Republic of Armenia or community in any other form which is not forbidden by the law has opportunity to predetermine decisions of society, or consortium with participation of the above-stated society cannot be the applicant;

6) the public partner - the competent authority signing the contract PGCh with the won applicant in the procedure of the choice of the private partner;

7) public infrastructure - the fixed asset which is of public interest or benefit (including buildings, structures, the equipment), and (or) the intangible asset used for the purpose of rendering public services (or in connection with them), operation and (or) construction and (or) improvement and (or) maintenance of which provides the private partner according to the agreement PGCh;

8) public service - the activities following from public concerns which are usually performed by state bodies and (or) on behalf of the last and (or) the main responsibility for which the state body, and also any service or activities in the regulated sphere of public services in sense of the Law "About Regulating Authority of Public Services" bears;

9) payments for access - the regular payments made by the public partner private the partners based on availability of the public infrastructure corresponding to the key performance indicators (Key Performance Indicators, KPI) established by the agreement PGCh;

10) the private partner - the private legal entity created and operating according to the legislation of the Republic of Armenia with which the public partner signed the agreement PGCh or which according to the procedure, the stipulated in Article 21 this Law, replaces the legal entity being the agreement party;

11) division of partnership the state-part sector or division of PGCh - the unit established by the Government, performing the powers assigned to it by this Law;

12) PGCh - partnership the state-part sector;

13) the PGCh program - the program directed to construction and (or) improvement and (silt) operation and (or) maintenance of public structure with participation of private sector which risks are spread between the public partner and private sector and which duration constitutes at least five years from the date of implementation of all precedent conditions (conditions precedent) necessary for entry into force of the agreement PGCh;

14) the PGCh procedure - procedures and the rules applicable to implementation of the PGCh programs established by the decision of the Government;

15) the agreement PGCh - the agreement, including concessions signed with the procedure established by this Law between the public partner and the private partner for the purpose of implementation of the PGCh program;

16) admissible limit of contingent obligations of PGCh - the maximum limit of contingent obligations of the Republic of Armenia as regards the agreements PGCh signed after entry into force of this Law. The methodology of calculation and assessment of contingent obligations of the Republic of Armenia is established by the Government;

16. 1) admissible limit of direct commitments of PGCh - the annual limit of direct commitments of the Republic of Armenia set by the Government as regards the agreements PGCh signed after entry into force of this Law;

17) consortium - the legal persons applicants participating in the procedure of the choice of the private partner according to the procedure of joint activities;

18) the creditor - the private financial organization granting the loan to the private partner in connection with the agreement PGCh;

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