Uzbekistan to expand access of small enterprises to state procurement

Uzbekistan, Tashkent, Feb. 22 / Trend D. Azizov /
The Uzbek president last week signed a decree on the optimization of the public procurement system and expanding small enterprises. It envisages the phased introduction of a transparent electronic placement of state orders to purchase goods, work, and services among small enterprises.
According to the decree, special quotas and preferences while implementing public procurement will be determined for small enterprises. In particular, starting from April this year, preference will be given to small enterprises while conducting tenders for state procurement.
Moreover, a contractor will be chosen exclusively among small enterprises to conduct the construction and reconstruction work of objects worth up to 500 million sums and financed by the state budget and other centralized sources.
The certain types of goods (work, services), which list will be determined by a governmental commission upon one contract worth the equivalent from $300 to $100,000, will be bought via electronic trading organized by the Uzbek Republican Commodity Exchange (UzEx), except the cases provided by the legislation.
It is planned to create a network of trading platforms and brokerages located in the places most convenient for small enterprises, as well as for budget receivers to ensure access for all concerned sides.
The president decided to establish a special commission on public procurement under the Uzbek Cabinet of Ministers to implement the above-mentioned things.
The commission should also promote training of representatives of all entities involved in the bidding (competitive) and exchange trading, and implementation of universally accepted international norms and standards.
According to the official statistics, the share of small business in Uzbekistan's GDP in 2010 was 52.5 percent compared to 50.1 percent a year earlier. The share of small business in industrial production was 19.6 percent. The total volume of construction work was 52.3 percent, and retail trade was 50.5 percent.
Small enterprises exported goods worth $1.774 billion (13.6 percent of the total export) and imports amounted to $3.224 billion (36.6 percent of total imports) in Uzbekistan last year.

Uzbekistan declared 2011 as the Year of Small Business and Entrepreneurship. The country approved the state program of measures to create favorable conditions to develop small business and private entrepreneurship.

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