RESOLUTION OF THE CABINET OF MINISTERS OF THE KYRGYZ REPUBLIC

of June 10, 2022 No. 301

About approval of the Standard procedure for the organization and implementation of purchases by the state and municipal companies, economic societies where 50 and more percent of share in the authorized capital belong to the state, including their affiliated economic societies

For the purpose of streamlining of purchasing system of the state, municipal companies and economic societies, 50 and more percent of shares (shares) of which belong to the state, according to Item 2 of the resolution of Jogorku Kenesh of the Kyrgyz Republic of April 6, 2022 No. 169-VII "About acceptance in the second reading of the bill of the Kyrgyz Republic "About public procurements", articles 13, of the 17th constitutional Law of the Kyrgyz Republic "About the Cabinet of Ministers of the Kyrgyz Republic" the Cabinet of Ministers of the Kyrgyz Republic decides:

1. Approve the enclosed Standard procedure for the organization and implementation of purchases by the state and municipal companies, economic societies where 50 and more percent of share in the authorized capital belong to the state, including their affiliated economic societies.

2. Determine that rules of the organization and implementation of purchases are determined by internal documents of the subjects specified in Item 1 of this resolution and are subject to approval:

1) the board of directors, and in case of its absence - general shareholder meeting - for economic societies where 50 and more percent of share in the authorized capital belong to the state, including their affiliated economic societies;

2) head of executive body of the state company;

3) the head of executive body of the municipal company in coordination with executive body of local self-government.

3. Recommend to economic societies where 50 and more percent of share in the authorized capital belong to the state and their affiliated economic societies, under the organization and implementation of purchases, to apply the Standard procedure approved by Item 1 of this resolution.

4. To the authorized state bodies performing shareholder rights (participant) of economic society to provide acceptance and placement in open access by economic societies where 50 and more percent of share in the authorized capital belong to the state, including their affiliated economic societies, the internal documents regulating procedure for the organization and implementation of purchases.

5. To provide to state bodies and local government bodies acceptance and placement in open access of internal regulations of implementation of purchases by the jurisdictional state and municipal enterprises.

6. To the state company "Infosistems" under the Ministry of Finance of the Kyrgyz Republic within six months to develop and put into operation information system for carrying out purchases by the subjects specified in Item 1 of this resolution on declarative contractual basis.

7. To impose control of execution of this resolution on management of control of execution of decisions of the President and the Presidential Administration Cabinet of Ministers of the Kyrgyz Republic.

8. This resolution becomes effective from the date of official publication.

Appendix

to the Resolution of the Cabinet of Ministers of the Kyrgyz Republic of June 10, 2022 No. 301

Standard procedure for the organization and implementation of purchases by the state and municipal companies, economic societies where 50 and more percent of share in the authorized capital belong to the state, including their affiliated economic societies

1. Scope of application

1. This Standard procedure determines the framework provisions of the organization and implementation of purchases of goods, works and services by the state, municipal companies and economic societies where 50 and more percent of share in the authorized capital belong to the state, including their affiliated economic societies.

2. For the purpose of ensuring profitability and efficiency of use of means, when implementing purchases the customer is based on the following principles:

1) expansions of the competition, the fair, equal and impartial attitude towards suppliers in selection process;

2) publicity and transparency of the signed agreements.

2. Terms and determinations

3. In this Standard procedure the following basic concepts are used:

1) market research - research the Customer of commodity market, works, services by all available means (the Internet the websites, specialized market-pleysy, the offer, earlier signed contracts, commercial offers, etc.) which results are used for ensuring efficiency and quality of purchases;

2) intra group cooperation - implementation of purchases of goods, works and services at the organizations in group of companies, the companies, including the subordinated, affiliated, dependent organizations;

3) the customer - the state, municipal company or economic society, fifty and more percent of shares (shares) in the authorized capital of which belongs to the state or local government body;

4) purchase - acquisition by the customer of the goods, works, services necessary for ensuring its productive activity and normal functioning, except for:

- payments of charges, duties, payments, the membership fees including connected with the dispute resolution in courts and paid state, municipal services;

- introduction of deposits to the authorized capital of legal entities;

- share acquisition (shares) in the authorized capital of legal entities, including the redemption of own shares;

- acquisitions of electrical, heat energy and natural gas in the internal and interstate markets, and also utilities;

- acquisitions of the services performed by the physical persons or legal entities which are not subjects of business activity, including services of private notaries, private lawyers, brokers, examinations of goods, issues of certificates of origin of goods, etc.;

- compensations of travelers and the expenses accompanying them, entertainment expenses;

- remuneration payments to members of governing bodies of economic societies where 50 and more percent of share in the authorized capital belong to the state, including their affiliated economic societies, the decision on payment of remuneration which were accepted by governing bodies, within the competence determined by the legislation the Kyrgyz Republic;

- remuneration payments to the interim external manager exercising temporary external control in joint-stock companies;

- acquisitions of temporary right of possession and/or use of property (lease);

- banking services;

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