LAW OF THE KYRGYZ REPUBLIC

of August 11, 2021 No. 98

About public-private partnership

Accepted by Jogorku Kenesh of the Kyrgyz Republic on July 29, 2021

Article 1. Purpose of this Law

The purpose of this Law is creation of legal conditions for development and projects implementation of public-private partnership, creating favorable conditions for subjects of public-private partnership.

Article 2. Subject of regulation of this Law

1. Subject of regulation of this Law are the relations in the public-private partnership sphere.

The public-private partnership is applied to infrastructure facilities and/or infrastructure services. The public-private partnership is not applied to the infrastructure facilities and/or infrastructure services connected with use of natural resources, public procurements and privatization.

2. Inclusion in other laws of regulations which subject of regulation is this Law is not allowed.

3. Relations on projects of public-private partnership of interstate nature are regulated, the international treaties which became effective in the procedure established by the law which participant is the Kyrgyz Republic.

4. In case of application of public-private partnership to the objects included in the list of strategic objects also requirements of the legislation of the Kyrgyz Republic about strategic objects shall be observed.

5. To bank legal relationship and subjects, the licensed and regulated National Bank of the Kyrgyz Republic, this Law is applied taking into account requirements of the bank law of the Kyrgyz Republic.

If project participants of public-private partnership are persons under surveillance to National Bank of the Kyrgyz Republic of person, then regulations of this Law are applied in the part which is not contradicting regulations of the bank law of the Kyrgyz Republic.

Article 3. Tasks of public-private partnership

Tasks of public-private partnership are:

1) increase in efficiency and quality of creation of infrastructure facilities and provision of infrastructure services;

2) increase in efficiency of the public expenditures on designing, construction and/or upgrade, operation, content of infrastructure facilities and provision of infrastructure services;

3) investment attraction in national economy;

4) involvement of additional managerial potential of private sector;

5) achievement of optimum price relation during lifecycle of assets and quality or compliance to their appointment in case of implementation of infrastructure projects;

6) use of innovations and efficiency of private sector;

7) stimulation of growth and development of new technologies.

Article 4. Public-private partnership

The public-private partnership (further - PPP) is cooperation between the state and private partners for the purpose of development and projects implementation in creation and/or upgrade, operation and content of infrastructure facilities and/or infrastructure services.

As the state partner the authorized state body in the PPP sphere together with state bodies, local government bodies, the state, municipal companies and organizations, joint-stock companies has the right to act, 50 and more percent of voting shares of which belong to the state, in the corresponding field of activity or state bodies, local government bodies, the state, municipal companies and organizations, joint-stock companies, 50 and more percent of voting shares of which belong to the state, in the corresponding field of activity on small projects.

Legal entities and individual entrepreneurs have the right to act as the private partner.

Article 5. The basic concepts used in this Law

In this Law the following basic concepts and their determinations are used:

1) the state support - the state financial support, the state economic support directed to creation of favorable and mutually advantageous sales terms of projects of PPP and ensuring obligation fulfillment of the state partners in agreements on PPP;

2) the interested person - the individual entrepreneur, the legal entity registered according to the legislation of the Kyrgyz Republic or the legislation of foreign state, consortium, interested in participation in tender and/or project initiation of PPP;

3) request of qualifications for participation in tender - the document developed, approved by authorized body on the organization of tender and including:

a) project description of PPP;

b) qualification requirements to participants of tender;

c) minimum requirements to the project of PPP;

d) evaluation criteria and selection of the private partner;

e) term for submission of applications for participation in qualification selection;

e) other information establishing requirements to participants of tender and/or the project of PPP;

4) request for proposals for participation in tender - the document developed and approved by authorized body on the organization of tender, containing requirements to technical and financial proposals of participants of tender;

5) infrastructure services - works and/or services of social, economic or production appointment, including work and/or services provided with use of infrastructure facility and/or on servicing of infrastructure facility;

6) infrastructure facility - property or the property complex of social, economic or production appointment which is in the state-owned, municipal or private property;

7) small projects of PPP - projects of PPP on which expected investments constitute the amount equal or less than 100 million som;

8) the minimum requirements to the project of PPP - the minimum mandatory requirements of technical, operational, commercial and other nature necessary for project implementation of PPP;

9) the offer on project implementation of PPP - the document including:

a) project description of PPP;

b) purposes and tasks of project implementation of PPP;

c) reasons for feasibility of application of PPP to object of PPP;

d) the amount of expected investments for project implementation of PPP;

e) minimum requirements to the project of PPP;

e) project deadline of PPP;

g) financial and economic and legal analysis;

h) types and conditions of provision of the state financial and/or state economic support;

10) the offer on private initiative - the document including:

a) information which shall be included in the offer on project implementation of PPP;

b) the document confirming availability at the interested person who addressed with the offer on private initiative, experience of projects implementation on infrastructure facilities or infrastructure services;

c) the amount of expected investments and the document confirming availability of the financial resources guaranteeing their investment in the amount of at least 5 percent against the amount of expected investments;

d) the main terms of agreement about PPP;

11) the project of PPP - the complex of relations of the state and private partner in project implementation of PPP settled by the agreement on PPP;

12) the mode of "project sandbox" - the special regulatory mode regulating procedure for pilot projects implementation of the PPP brought by the interested person;

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