Uzbekistan Enhances Financial Security Measures with New Laws
Tashkent, January 22 - The Republic of Uzbekistan has taken a significant step to boost financial security measures by adopting new laws aimed at improving public-private partnership (PPP) legislation. The amendments, which came into effect on January 23, introduce key changes to currency regulation and PPP projects.
Key Changes in Currency Regulation
Companies can now tie prices of goods and services sold in Uzbekistan to foreign currencies or conventional units based on presidential decisions for projects involving foreign investment through PPP agreements and investment deals with the government. This move is expected to attract more foreign investors to the country’s economy.
Additional Powers Granted to Cabinet of Ministers
- Determine state partners in cases of uncertainty
- Set one-time payments to successful bidders
- Negotiate concession agreements
Roles and Responsibilities
The Agency for PPP Development under the Ministry of Finance will:
- Coordinate tender documentation and draft PPP agreements worth over $1 million
- Conclude agreements with international financial institutions for consulting and audit services
Local executive bodies have been tasked with:
- Identifying potential facilities for PPP projects
- Reviewing high-potential projects and land plots
- Eliminating obstacles to successful project implementation
- Allocating land plots without auctioning
Procedures for Amending, Supplementing, or Terminating PPP Agreements
- Public partner and private partner can make changes independently for projects worth up to $1 million
- Approval required from the Agency or Cabinet of Ministers for larger projects (worth over $1 million)
Transparency Measures
PPP project information must now be posted on official websites, excluding state secrets.
Enhanced Guarantees for Private Partners
Private partners’ rights have been enhanced, allowing them to demand compensation if legislation increases their expenses or reduces income within a PPP project.
Creditors’ Rights
Creditors can enter into direct agreements with public and private partners, outlining the rights and obligations of all parties involved in case of replacement or removal of a private partner. Additional guarantees can be provided through government support agreements or PPP agreement procedures.
These changes are expected to improve financial security measures in Uzbekistan’s financial institutions, making it more attractive for foreign investors and enhancing transparency in public-private partnerships.