Uzbek public procurement winners to be obliged to name their owners, beneficiaries

Uzbekistan Materials 8 July 2020 11:05 (UTC +04:00)

BAKU, Azerbaijan, July 8


A new order of conducting public procurements shall be introduced in Uzbekistan since January 1, 2021, according to which all the winners will be obliged to name their beneficiaries and owners, Trend reports referring to the local Podrobno.uz News Agency.

This is provided for by the Uzbek president’s decree "On additional measures to further develop the competitive environment and reduce state participation in the economy," which was signed the day before.

According to the decree, from January 1, 2021, executors of public procurements, as well as procurements of business entities and strategic enterprises, shall disclose information about their beneficiaries, having actual control by direct or indirect ownership of 25 or more percent of the shares, within two days from the date of their announcement as winners based on the results of tenders or tenders, selection of the best offers or direct negotiations.

This information should be disclosed by posting relevant information on a special public procurement information portal to avoid a conflict of interests and prevent the participation of affiliates.

Moreover, from October 1, it will be forbidden to create and initiate the creation of business entities with state participation, as well as affiliates and state institutions in the country, except those ones associated with ensuring the defense capability and national security of the state.

“The country introduces the so-called principle of “yellow pages” when the state restricts its participation in those markets where business entities already operate. At the same time, restrictive thresholds are introduced. So, if five or more private business entities participate in a particular product market, then ministries and departments are forbidden to create enterprises with state participation," said Farrukh Karabayev, deputy chairman of the Antimonopoly Committee of Uzbekistan, in an interview with Uzbekistan-24 TV channel.

The decree also envisages reducing the number of monopolistic enterprises by 40 percent in 2024, as well as making the Antimonopoly Committee accountable to the Uzbek Senate and president.