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LAW OF THE KYRGYZ REPUBLIC

of April 14, 2022 No. 27

About public procurements

Accepted by Jogorku Kenesh of the Kyrgyz Republic on April 6, 2022

Chapter 1. General provisions

Article 1. Scope of application, purposes and principles of this Law

1. This Law establishes the general legal and economic principles of public procurements and regulates procedure of public procurements according to the established purposes.

2. The purpose of this Law is effective and economic use of the state resources by regulation of the relations connected with ensuring functioning of activities of the buying organizations.

3. Implementation of public procurements of the Kyrgyz Republic is based on the principles:

1) process optimizations of public procurements through creation of single system of public procurements and forming of public trust to it;

2) observance of the rights and legitimate interests of participants of public procurements;

3) opennesses, impartiality, publicity and transparency when implementing public procurements;

4) acquisitions of innovative and high-technology goods, works, services.

Article 2. Legislation on public procurements

1. The legislation of the Kyrgyz Republic on public procurements is based on the Constitution of the Kyrgyz Republic, this Law and other regulatory legal acts governing the relations in the sphere of public procurements.

2. If the international treaty which became effective according to the legislation of the Kyrgyz Republic establishes other regulations, rules and terms than provided by this Law, then regulations of the international treaty are applied.

3. For the purpose of implementation of this Law the procedure for the organization and holding procedures of public procurements of goods, works, services and consulting services is determined by the Cabinet of Ministers of the Kyrgyz Republic (further - the Cabinet of Ministers).

4. This Law does not regulate purchase:

1) connected with protection of the state secrets according to the legislation on protection of the state secrets. The procedure for the organization of such public procurements is determined by the Cabinet of Ministers;

2) performed by National Bank of the Kyrgyz Republic. The National Bank of the Kyrgyz Republic conducts procurement for ensuring administrative needs, accomplishment of construction works and capital repairs according to the internal regulations of implementation of purchases. Internal regulations about purchases affirm National Bank of the Kyrgyz Republic and shall not contradict the purpose and the principles of this Law;

3) at the expense of means of the international funds founded for the purpose of assistance to economic cooperation between the Kyrgyz Republic and other states;

4) connected with services of hemodialysis for patients with chronic renal failure of the fifth stage. The procedure for the organization and implementation of such purchases is determined by the Cabinet of Ministers;

5) performed by the state and municipal companies; joint-stock companies where 50 and more percent of share in the authorized capital belong to the state, including their affiliated economic societies.

5. Changes are made no more once a year to this Law, except as specified emergence of force majeure circumstances, elimination of contradictions and gaps which become effective since January 1 of the next calendar year.

Article 3. The concepts used in this Law

In this Law the following concepts are used:

1) administration of the contract - the management process and control of execution of contract obligations by the parties performed with use of the web portal and/or electronic catalog, providing the transparent, available and accountable process of execution of contracts directed to decrease in the risks connected with improper execution or non-execution of contracts, and also corruption risks in case of execution of the contract;

2) the affiliate - person corresponding to one or several below listed signs, except for the public and local government offices where participant or the founder is the buying organization and which activities do not contradict the legislation on the competition:

- person exerting impact on decision making according to procedures of public procurements;

- the head and the worker buying organizations/agent, and also their close relatives or close persons;

- the member (founder) of the supplier or the consultant who is person holding political state position, political municipal position, special state position and his close relatives or close persons owning share in the authorized capital of the supplier or the consultant;

3) the database of suppliers and consultants - the electronic database containing set of information on the suppliers and consultants participating in procedures of public procurements, integrated with the state information systems for disclosure of information on suppliers and consultants according to the legislation on public procurements;

4) the database of unfair suppliers and consultants - the register of unfair suppliers and consultants, and also their heads included in it for non-execution or improper execution of the contract obligations and for abuses of regulations of participation in procedures of public procurements;

5) bank support of the contract - providing with authorized bank based on the agreement on bank maintenance of carrying out payments, monitoring of the calculations perfromed by the supplier and all other persons involved in course of execution of the contract within execution of this contract, on the separate account opened in one of authorized banks, for control of target expenditure of money, and also bringing results of bank support of contracts to data buying the organization/agent;

6) the beneficial owner of the legal entity - the physical person (physical persons) which finally (through chain of ownership and control) directly or indirectly (through the third parties) owns the legal entity on the property right or controls the legal entity, exerts impact on adoption of decisions by it;

7) close relatives - the father and mother, adoptive parents, children including adopted full and not full brothers and sisters, the grandfather, the grandmother, grandsons;

8) close persons are persons consisting in the registered scrap including persons who jointly live, but are not married, and also the stepfather, the stepmother, the stepson, the stepdaughter, the son-in-law, the daughter-in-law;

9) the web portal of public procurements (web portal) - the state information system created by authorized state body on public procurements for the purpose of ensuring transparent, available and accountable process of public procurements with preserving information at least 10 years;

10) the state or municipal needs - the requirements of the buying organizations for goods, works, services and consulting services satisfied fully or partially at the expense of public funds;

11) public procurements - the acquisition by the buying organization of goods, works, services and consulting services as the methods established by this Law financed fully or partially by public funds. Public funds are recognized:

- means of republican, local budgets for activities implementation by the buying organizations;

- means of special accounts;

- means of the funds and other legal entities created at the expense of public funds, means of state bodies or local government bodies;

- the means provided as the foreign help based on the international treaties which became effective according to the legislation of the Kyrgyz Republic if different ways of use of means are not provided by such agreements;

- the borrowing facilities guaranteed and provided with the state;

12) warranty ensuring execution of the contract - method of ensuring obligation fulfillment by the supplier before the buying contract organization/agent - in the form provided by this Law;

13) warranty providing the proposal of the supplier - method of ensuring obligation fulfillment of the proposal of the supplier in the form provided by this Law;

14) dumping price - the price offered by the supplier for works, services and goods which is below the planned cost of subject of the purchase determined by the buying organization/agent, more than for 20 percent;

15) the declaration guaranteeing the proposal of the supplier - the document signed by the supplier and represented in buying to the organization/agent as guarantee of ensuring obligation fulfillment, specified in the offer;

16) the declaration guaranteeing execution of the contract - the document signed by the supplier and represented in buying to the organization/agent as method of ensuring obligation fulfillment, provided by the contract;

17) documentation on purchase - document package, including any changes to them, containing conditions, the procedure for carrying out purchases, including the draft contract represented by the buying organization/agent to the supplier or the consultant for preparation of the offer by them;

18) the buying organization - the state body, local government body, the public and local government offices, funds and other legal entities created at the expense of public funds, means of state bodies or local government bodies;

19) identification code - set of figures and symbols issued by the web portal of public procurements by enciphering of the name of the supplier in the course of carrying out public procurements by two-package method of unrestricted method for the purpose of exception of conflict of interest and human factor in other words the name of the supplier is opened during the second packet of two-package method;

20) the consultant - physical (the individual consultant) or the legal entity rendering consulting services;

21) consulting services - the services of intellectual or consulting nature provided by the consultants having necessary specialized professional knowledge, experience and the corresponding qualification including development of the design estimates (building designing, constructions) which development is not based on the standard regulations and rules approved by authorized state body on development and realization of policy in the sphere of architectural and construction activities;

22) the contract - the purchase agreement between the buying organization/agent and the supplier, the consultant concluded by results of procedures of purchases or the framework agreement;

23) the proposal of the supplier or consultant - the proposal of the supplier on delivery of goods, rendering services, implementation of works or the proposal of the consultant to rendering consulting services when carrying out public procurements;

24) the commission on purchase - the collegiate organ created by the order of the buying organization for approval of documentation on purchase and implementation of assessment and selection of proposals of the supplier or the consultant and determination of the winner on delivery of goods, works, services and rendering consulting services according to the procedure, provided by this Law;

25) evaluation criteria - the objective criteria established in documentation on purchase for determination of the winner of purchase;

26) lot - the indivisible subject of purchases acting as separate subject of purchase which assessment shall be made irrespective of other lots;

27) monitoring - research of the market which results are used for ensuring efficiency and profitability of purchases;

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