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ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of April 5, 2013 No. 175

About approval of Rules of purchase by subjects of natural monopolies of goods (works, services)

(as amended on 05-08-2016)

According to articles 6 and 8 of the Law of the Kyrgyz Republic "About natural monopolies in the Kyrgyz Republic" the Government of the Kyrgyz Republic decides:

1. Approve the enclosed Rules of purchase by subjects of natural monopolies of goods (works, services).

2. This resolution becomes effective after fifteen days from the date of official publication.

Prime Minister

Zh. Satybaldiyev

Approved by the Order of the Government of the Kyrgyz Republic of April 5, 2013 No. 175

Rules of purchase by subjects of natural monopolies of goods (works, services)

1. General provisions

1. These rules of purchase by subjects of natural monopolies of goods (works, services) (further - Rules) determine procedure for purchases by subjects of natural monopolies of goods (works, services), costs for which are considered in the prices (rates) for regulated goods (works, services).

1-1. These rules are not applied to the relations connected with purchase of goods (works, services) by subjects of natural monopolies which activities are performed in pursuance of the international treaties which came in the procedure established by the law into force which participant is the Kyrgyz Republic.

1-2. In these rules the concepts determined by article 3 of the Law of the Kyrgyz Republic "About natural monopolies in the Kyrgyz Republic" and also the following concepts are used:

the tender - tender by means of which the winner on delivery of goods is determined, (works of services) according to the procedure, provided by these rules;

the applicant - any legal entity or the individual entrepreneur applying for the conclusion of the purchase agreement in the held tenders the subject of natural monopolies;

the supplier (contractor) - the legal entity or the individual entrepreneur with whom the purchase agreement is signed.

2. The purpose of these rules is ensuring the maximum profitability and efficiency of purchases, control of expenditure of the funds allocated by subjects of natural monopolies for purchases of goods (works, services), costs for which are considered when forming rates (prices).

2. Procedure for carrying out tender by subjects of natural monopolies

3. The subject of natural monopoly conducts procurement of goods (works, services), costs for which are considered in the prices (rates) for regulated goods (works, services), on tender basis. At the same time the tender is held with respect for the following principles:

1) openness and publicity of holding tender procedures;

2) providing to all potential suppliers of equal opportunities for participation in the tender;

3) fair competition among potential suppliers.

4. Subjects of natural monopolies in which the state or local government bodies own more than 50 percent of shares in case of purchase of goods (works, services) of costs for which are considered in the prices (rates) for regulated goods (works, services), conduct procurement of goods, works and services according to the legislation of the Kyrgyz Republic on public procurements.

5. The subjects of natural monopolies which do not have the state property share or share which is not exceeding 50 percent also conduct procurement of goods (works, services), costs for which are considered in the prices (rates) for regulated goods (works, services), by carrying out the tender if the amount of purchase of goods (works, services) exceeds 10 million som.

6. The tender is held by open tender in paper or electronic format by the methods provided by the document regulating purchasing activity of the subject of natural monopolies.

Paragraph two of Item 6 ceased to be valid according to the Order of the Government of the Kyrgyz Republic of 05.08.2016 No. 434

Purchases of goods (works, services) in electronic format are performed with use of the information systems and electronic information resources providing purchase of goods, works, services in real time.

7. Serve as the main criteria in case of the choice of the supplier (contractor):

1) the proposal of the supplier (contractor) meeting the requirements established by the subject of natural monopoly (technical and quality characteristics);

2) the price in case of which determination proceed, first of all, from the prices which competitors, but not from the level of own costs or the product demand (work, services) can appoint;

3) quality of the delivered goods (works, services).

8. For implementation of purchases the subject of natural monopoly shall:

1) annually, in ten-day time after approval of procurement plan by the head to represent to the state antimonopoly authority and its territorial authorities (further - antimonopoly authority) procurement plan for the next financial year, in natural (quantitative) and value (cash) term, with indication of methods of purchases;

2) the procurement plan represented on paper shall be stitched and numbered, the last leaf is ratified the first head or person fulfilling its duties and seal.

9. The subject of natural monopoly within year has the right to make adjustments of procurement plan proceeding from requirement of production which no later than 5 days from the date of their acceptance are represented to antimonopoly authority.

10. The subject of natural monopoly when carrying out the tender sends the notification to antimonopoly authority no later than 10 working days from the date of decision making about carrying out the tender.

11. The representative of the state antimonopoly authority can take part in the tender of subjects of natural monopolies.

12. The subject of natural monopoly within 3 working days after carrying out the tender sends the following information containing to antimonopoly authority:

1) data on the purchased goods (works, services), with indication of amounts, the prices and total sum;

2) the list of applicants, with indication of bid price, and also technical and quality characteristics of the goods (works, services) offered by applicants;

3) protocol of procedures of purchases;

4) data on the name and the location of the supplier (contractor) who won the tender, on the prices and scopes of supply.

13. Antimonopoly authority by consideration of information provided according to Item 12 of these rules in case of detection of essential differences in the price proposal of participants of the tender having the right to request the tender documents from the subject of natural monopoly concerning procedures of purchases for check of observance of regulations of the legislation of the Kyrgyz Republic.

The subject of natural monopoly shall submit tender documents and reasons by which it was guided in case of the choice of the supplier (contractor).

14. Affiliates (group of persons) of the subject of natural monopoly have no right to participate in the tender, except as specified, stipulated by the legislation about the competition.

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