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LAW OF THE AZERBAIJAN REPUBLIC

of July 14, 2023 No. 988-VIQ

About public procurements

This Law according to Items 10 and 15 of part I of article 94 of the Constitution of the Azerbaijan Republic determines economic, legal and organizational basis and rules of public procurements in the Azerbaijan Republic.

Chapter 1. Basic provisions

Article 1. Basic concepts

1.1. The basic concepts used in this Law have the following values:

1.1.1. advance providing - the providing in warranty type, insurance coverage, the letter of credit, deposits and other financial assets provided by the winner supplier for the obligations on return of the payments which are previously made to it taken before the buying organization if the advance payment is not used for purpose, agreement performance of purchase is not begun or the agreement of purchase is not performed.

1.1.2. the beneficial owner - person, the stipulated in Article 1.1.19 Laws of the Azerbaijan Republic "About fight against legalization of the property received in the criminal way, and terrorism financing";

1.1.3. the framework agreement - the agreement signed between the buying organization and two and more suppliers meeting the requirements, determining purchase conditions within one fiscal year of the corresponding subject of purchase necessary periodically or repeatedly whose amount and total price cannot be completely determined at the same time in advance;

1.1.4. the single Internet portal of public procurements (further - the portal) - unified information system of public procurements which activities will be organized and operated by supervision body, providing carrying out purchases in electronic procedure, and also used for other purposes provided by this Law;

1.1.5. the unreliable supplier - the supplier recognized risk based on article 16 of this Law and entered in the register of unreliable suppliers;

1.1.6. expectation term - the term which grants to suppliers the right to address by results of purchase, including to appeal results, to the acceptance of the offer;

1.1.7. services - any other subject of purchase, except goods and works;

1.1.8. ensuring execution - the providing in warranty type, insurance coverage, the letter of credit, deposits and other financial assets provided by the winner supplier for the obligations undertaken by it before the buying organization for purchase agreement performance;

1.1.9. works - construction (construction, routine maintenance and overhaul repairs, reconstruction, restoration) or demolition of construction objects, and also boring, geodetic, scientific and design, prospecting researches connected with it, satellite shootings and seismic researches;

1.1.10. the guarantor - the financial institution providing guarantee for the proposal of the supplier, its providing on agreement performance of purchase and other payment documents;

1.1.11. the nonresident - person, stipulated in Article 13.2.6 Tax codes of the Azerbaijan Republic;

1.1.12. financial resources - means of the government budget of the Azerbaijan Republic and the budget of the Nakhchivan Autonomous Republic, including means of trust budget funds, budget advances, subsidies, the credits obtained under the state guarantees, state grants, the help, means of off-budget state funds, means of the public legal entities created on behalf of the state, legal entities whose controlling stake of shares (shares) belongs to the state, and other state companies and the organizations (departments), and also all money which is not carried to public funds, but being at the disposal of the buying organization;

1.1.13. goods - any material or non-material property, held for sale, exchange and other forms of the address;

1.1.14. the purchase connected with confidential information - the purchase containing confidential information and granting the buying organization the right to impose certain requirements and to take measures for protection of this information;

1.1.15. supervision body - the body (structure) determined by relevant organ of the executive authority, exercising the state control in the sphere of purchases in the Azerbaijan Republic;

1.1.16. the simple agreement of purchase - the document concluded between the buying organization and the supplier chosen at the second procurement cycle which is carried out using the framework agreement, and determining obligations of the parties in connection with purchase of subject of purchase;

1.1.17. the buying organization - state bodies, off-budget state funds, the public legal entities created on behalf of the state, legal entities whose controlling stake of shares (shares) belongs to the state, and other state companies and the organizations (department) buying purchase subject;

1.1.18. purchase - acquisition of subject of purchase by financial means according to the procedure, established by this Law;

1.1.19. the procurement commission - the temporary work group created by the buying organization which carries out purchase from her name and makes the decision by its results;

1.1.20. purchase method - the method of open tender, the two-stage tender, the closed tender, request for quotation and purchase from one source applied to purchase execution according to the procedure, established by Chapter 7 of this Law;

1.1.21. the agreement of purchase - the document concluded between the winner supplier or the supplier chosen by purchase method from one source (further - the winner supplier) both the buying organization and determining obligations of the parties in connection with purchase of subject of purchase;

1.1.22. procurement plan - the document containing information on purchases which will be organized within one fiscal year, and placed on the portal constituted by the buying organization according to article 18 of this Law;

1.1.23. purchase subject - the goods, works or services which are purchased based on this Law;

1.1.24. privilege for purchase - the preferential amendment applied according to the procedure, the stipulated in Clause 33.14 presents of the Law in case of assessment of offers to suggested prices of the same imported purchase subject for benefit of the offers provided regarding purchase of local origin;

1.1.25. the code of conditions - the document reflecting conditions of purchase and provided to suppliers after approval by procurement commission prepared by the buying organization;

1.1.26. the supplier - the physical person, the legal entity or temporary or permanent consolidation created by legal and (or) physical persons for joint activities without formation of legal entity based on the agreement, the purchases which are the potential or real agreement party which will be signed or signed with the buying organization, or the framework agreement;

1.1.27. providing the offer - the providing in warranty type, insurance coverage, the letter of credit, deposits and other financial assets provided by the supplier for the offer (except the offer by request for quotation method);

1.1.28. set of documents of compliance - the document reflecting requirements to indicators of compliance of suppliers and provided to suppliers after approval by procurement commission in cases when the procedure of preliminary determination of compliance is performed prepared by the buying organization.

1.2. Other concepts used in this Law express the values established by regulatory legal acts of the Azerbaijan Republic.

Article 2. Legislation of the Azerbaijan Republic on public procurements

The legislation of the Azerbaijan Republic on public procurements consists of the Constitution of the Azerbaijan Republic, international treaties which the Azerbaijan Republic, this Law and other regulatory legal acts joined.

Article 3. Circle of application of the Law

3.1. Taking into account requirements of Articles 3.2 - 3.11, 15.7 and 47.1 of this Law this Law extends to all procurements conducted by the buying organizations.

3.2. This Law does not extend to purchase of the following goods, works or services:

3.2.1. goods, the works or services provided only by state body (structure) or subjects of natural monopolies, the prices (rates) for which are regulated, (are established) by the state;

3.2.2. receipt of the credits;

3.2.3. securities, checks and foreign currency and related services;

3.2.4. goods, works or services within the relations regulated by the Law of the Azerbaijan Republic "About public-private partnership";

3.2.5. the notarial actions made by notaries;

3.2.6. the services connected with investment (placement) of means of off-budget state funds, and also purchase, sale, exchange, storage, placement and (or) asset management in the investment purposes;

3.2.7. goods, works or services, the stipulated in Article 65-1 Law of the Azerbaijan Republic "About the Central bank of the Azerbaijan Republic";

3.2.8. the goods, works or services acquired by commercial legal entities whose structure of the supervisory board (board of directors) affirms the body (structure) determined by relevant organ of the executive authority or in coordination with the body (structure) determined by relevant organ of the executive authority by other financial means, except for means of the government budget of the Azerbaijan Republic and the budget of the Nakhchivan Autonomous Republic, including means of trust budget funds, budget advances, subsidies, the credits obtained under the state guarantees, state grants, the help, means of off-budget state funds;

3.2.9. the goods, works or services received for needs of defense or state security taking into account requirements of article 3.11 of this Law.

3.3. Purchases at the expense of the means provided by the international organizations are performed according to the procedure, approved in the agreement signed with these organizations if other is not provided by the specified agreement.

3.4. Centralized purchase by the buying organizations of food products (except for the food products which are purchased for the state needs) at the expense of means of the government budget is performed according to the procedure, established by the body (structure) determined by relevant organ of the executive authority.

3.5. The means provided in the government budget for the purpose of purchase of office supplies in connection with record keeping in Trial Courts are transferred directly into bank accounts of judges according to the procedure, established by the body (structure) determined by relevant organ of the executive authority.

3.6. Provisions of this Law do not extend to purchase of goods (works and services) within functioning of the Alyatsky free economic zone, and the relations in this sphere are governed according to requirements of the Law of the Azerbaijan Republic "About the Alyatsky free economic zone".

3.7. Purchase of goods (works, services) by the body (structure) transferred based on the agreement to the control determined by the relevant organ of the executive authority which is the organizer of lottery and (or) the operator of sports gamblings is performed during the term of the agreement managements according to the procedure, established by the agreement of management.

3.8. Except for requirements of articles 3.9 and 58 of this Law, this Law does not extend to the purchases which are not provided by procurement plan of the buying organization the current year which total cost constitutes to 10 000 (ten thousand) manats within one fiscal year (and concerning state bodies of the highest, the 1st and 2nd categories, and also the buying organizations which are not financed from the government budget for January 1 of the current year - up to 20 000 (twenty thousand) manats).

3.9. In the case specified in article 3.8 of this Law, the buying organization places on the portal the relevant information according to article 38.11 of this Law within 3 (three) working days after agreement signature in connection with the corresponding purchases.

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