assessment summary 2008 - uzbekistan [ebrd - legal transition] · 2. checklist uzbekistan...

WS0101.4421617.1

Uzbekistan

Core Area Summary of PFI Guide recommendations1 / Best Practice Rating Assessment 1-General Policy and

Concession Legal Framework

Existence of a policy framework for public private partnerships ("PPPs").and existence of specific concession law or of a comprehensive

set of laws regulating concessions and allowing easy access to a clear and stable legal environment for PPPs.

[17]/24 0,7

High compliance

2-Definitions and Scope of the Concession Law

Existence of a clear definition of the boundaries and scope of application of the concession legal framework (definition of "concession", sectors concerned, competent authorities, eligible concessionaires) limiting the risk of a challenge to the validity of concession contracts irrespective of

the name given to the act.

[9]/36 0,25

Very low compliance

3-Selection of the Concessionaire

Mandatory application of a fair and transparent selection process. Limited exceptions allowing direct negotiations, competitive rules for unsolicited proposals and the possibility to challenge illegal awards.

[6]/45 0,13

Very low compliance

4-Project Agreement Flexibility with respect to the content of the provisions of the concession agreements which should allow a proper allocation of risks without

unnecessary or unrealistic/not bankable/compulsory requirements/interferences from the contracting authority (obligations,

tariff, termination, compensation).

[9]/27 0,33

Low compliance

5-Security and Support Issues Availability of reliable security instruments on the assets and cash-flow of the concessionaire in favour of lenders including "step in" rights and

possibility of government financial support or guarantee of the contracting authority’s proper fulfilment of its obligations.

[3]/18 0,17

Very low compliance

6-Settlement of Disputes and Applicable Laws

Possibility to obtain proper sanction for breach under the applicable law through international arbitration and enforcement of arbitral awards.

[11]/15 0,73

High compliance

OVERALL RATING 41% Low Compliance

1 UNCITRAL Legislative Guide on Privately Financed Infrastructure Projects, 2001 (hereinafter the "PFI Guide") Checklist Uzbekistan Local Expert: Mukhamedjanov and Partners

2.

Checklist Uzbekistan WS0101.4421617.1

OVERALL ASSESSMENT OF THE QUALITY OF CONCESSION LEGISLATION: A policy framework for improving the legal environment and promoting PPP has been identified in Uzbekistan (Resolution On approval if the concept of deepening of the economic reforms in the public utility services system, dated 1998, Commission on Perfection of the Public Utility Services in the Market Economy). The Uzbek Law was adopted in 1995. The Law is too vague as far as the majority of Core Areas are concerned. Its scope of application needs serious improvement (concession defined as an authorisation "for the performance of a certain kind of economic activity connected with the granting to such investor of property, plots of the land and subsoil on the basis of the conclusion of the concession agreement", discrimination against domestic investors, unclear definition of concerned sectors). In this respect, we note that other general pieces of legislation do contain certain interesting provisions (in particular the Law on Guarantees and Measures for the Protection of Foreign Investor’s Rights of 1998). The selection procedure is not detailed (no reference to the pre-selection procedure, to the publication of concession award, no sufficiently clear grounds for the possibility of direct negotiations- "exclusive cases", Cabinet of Ministers decision, no reference to review procedures). Even though the Law contains provisions on the project agreement, these do not contribute to the creation of a flexible environment for the negotiation of such an agreement (e.g. priority of the State to purchase concession production, "necessary cases for concession extension). Finally, the Law is silent as far as government support, financial securities and lenders' rights are concerned. Provisions regulating disputes favour domestic courts. We note however certain positive elements such as the reference to "mutual benefit". The Law does not constitute a sufficiently solid legal basis for the development of PSP in the infrastructure and utility services in Uzbekistan.

3.


Key for assessment of Each Question

Yes 3 points Yes, with reservations 2 points No, with limited compliance / redeeming

features 1 point

No 0 point N/A Not applicable 0 point

Key for Assessment of Each Core Area and for Overall Assessment

> 90% Very High Compliance 3+1 points ≥ 70%-89% High Compliance 3 points 50%-69% Medium Compliance 2 points 30%-49% Low Compliance 1 point

< 30% Very low Compliance 0 point

4.


1.

GENERAL POLICY AND CONCESSION FRAMEWORK

QUESTION

ANSWER

ARTICLE

COMMENTARY

1. Is there a general/national policy framework (explicit or implicit) for PPPs in infrastructure or public services?

PPPs are understood in this context as different forms of cooperation between public authorities and the world of business which aim to ensure the funding, construction, renovation, management or maintenance of infrastructure or the provision of a public service.

The Resolution of the Cabinet of Ministers of the Republic of Uzbekistan “On approval of the Concept on deepening of the economic reforms in the public utility services system” #461, 3 November 1998.

2. If the answer to 1 is yes, is PPPs policy framework distinct from that for privatisation?

Law “On Concessions”,

art. 6

Civil Code, art. 182

Legally distinct (rights of possession and use by the concessionaire ≠ ownership right) but the Resolution mentioned in 1 relates to both concepts.

5.


3. If the answer to 1. is yes, is such policy framework supported by:

3.1. certain policy framework documents? 3.2. certain institutions (a "task force" or other institution specialised in the promotion and development of PPPs)? For information, are there:

• reference to PPPs in the Constitution?

• sector-specific policy frameworks dealing with

PPPs?

• municipal policy frameworks dealing with

PPPs?

If the Country's legal or institutional framework contains undesirable restrictions on PPPs in infrastructure or public services, please mention these.

No

Yes

Yes

The Resolution of the Cabinet of Ministers of the Republic of Uzbekistan “On approval of the Concept on deepening of the economic reforms in the public utility services system” #461, 3 November 1998 - Republican Commission on perfection of the

public utility services in the market economy; - Republican Commission on realisation of the

“Concept on deepening of the economic reforms in the public utility services system.”

e.g. relevant regulations adopted for sewerage system. Relevant regulations adopted for Tashkent.

6.


QUESTION

ANSWER

ARTICLE

COMMENTARY

4. Does the country have a concessions or a PPPs law (the "Law") or if the answer is no, do the Constitution or other general laws (ex: the Civil Code, sectorial law ) recognise the basic principles of concessions and regulate the granting of concessions in such a way that concessions are legally possible in the country?

[.For the purpose of this questionnaire, the set of rules applicable to concessions in the absence of a specific concession law will also be referred to as the Law] .For information, is a new concessions/PPP law or amendments to the existing Law being prepared?

Law of the Republic of Uzbekistan on Concessions, 30/08/1995

5. If the country has a Public Procurement Law, is it clear to what extent the Public Procurement Law applies or not to granting of concessions

For information:

• is the application of the Public Procurement

Law specifically excluded?

• does it apply for certain types of concessions

No separate Public Procurement Law, but a special section in the Civil Code entitled “The State Contract for Supply of Goods”.

7.


only?

• is it applicable to the selection of the

concessionaire?

• is it applicable to all or some sub-contracts to

be entered into by the concessionaire?

6. If the country has sector-specific laws

regulating the granting of concessions in specific sectors, is it clear which law is applicable to a particular sector and/or infrastructure and/or services?

Only one sector-specific law regulates the granting of concessions: the Decree of the President # 2598 "On measures for attracting Foreign Direct Investments to oil and gas exploration and production", 28 April 2000. Confusion should thus be avoided.

7. If the country has a "local public services" law (i.e. law regulating basic legal framework for municipalities using PPPs for the construction of "local infrastructure" and/or the provision of "local utility" services) is it clear which law is applicable to a particular infrastructure and/or services?

- Rules on rendering the utility services to the public in the Republic of Uzbekistan, registered by the Ministry of Justice #648, dated 20.02.99;

- Rules on rendering the utility services on removal of liquid and solid domestic wastes, registered by the Ministry of Justice #647, dated 20.02.99.

8.


2.

DEFINITIONS AND SCOPE OF THE CONCESSION LAW

2.1 Concession definition 2

QUESTION

ANSWER

ARTICLE

COMMENTARY

8. Does the Law define one or several term(s) (ie: "PPP", "concession", "BOT", others) for the arrangements to be regulated by the Law which specify the limits of application of the Law?

For information, please provide the given definition, if any. (Irrespective of the name given in the Law the word

1 “Concession is an authorisation issued on behalf of the state to a foreign investor for the performance of a certain kind of economic activity connected with granting to such investor of property, plots of land and subsoil on the basis of the conclusion of the concession agreement.”

2 For further information on concession definition please refer to: PFI Guide, Consolidated Legislative Recommendations, Recommendation 3 and Commission Interpretative Communication on Concessions Under Community Law dated 12 April 2000;together with additional EU major documents/decision /recommendation on concessions including Directives 2004/18/EC and 2004/17 EC of 31 March 2004; Green Paper on Public Private Partnerships and Community Law on Public Contracts and Concessions dated 30 April 2004; Report on the public consultation on the Green Paper (SEC(2005) 629- Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on Public-Private Partnerships and Community Law on Public Procurement and Concessions (Brussels, 15.11.2005. COM(2005) 569) European Parliament resolution on public-private partnerships and Community law on public procurement and concessions (2006/2043(INI))

9.


concession will be used for all types of defined agreements for purposes of this questionnaire)

9. Does the Law provide that it applies to all contracts entering into the definition of concession irrespective of the name given to such contract (concession, licence, usufruct right, lease, etc.)?

10. Does the Law make a clear distinction between concessions and public procurement contracts (i.e.: public works, supply or services) whereby the distinguishing criterion is the transfer of risks inherent to the exploitation?

No but different set of legislation

11. Does the Law make a clear distinction between concession/PPPs and licence (i.e an authorisation to operate granted automatically by a public authority when certain criteria are met)?

On the contrary, the concession is defined as an “authorisation”, but based on the “concession contract”.

2.2 Application of the Law

QUESTION

ANSWER

ARTICLE

COMMENTARY

12. Does the Law provide that it prevails over any

sector-specific law or other laws dealing with concession?

We note that article 14 of the law “On legislative acts", dated 14.12.00, provides that where there is a discrepancy between the legislative acts of equivalent

10.


legal effect, the legislative act which was adopted later prevails over the legislative act adopted earlier.

2.3 Entities involved 3

2.3.1 Public Authorities

QUESTION

ANSWER

ARTICLE

COMMENTARY

13. Does the Law identify (or allow identification by reference to other laws or regulations) the public authorities that are empowered to award concessions and enter into project agreements ("Contracting Authority")?

If yes, for information, which of the following

authorities are identified?

• national authorities (e.g.: the government, ministries, independent agencies)?

• provincial authorities?

• local or municipal authorities?

Yes

Yes

Yes

7 8 9 10

• Competence of the Cabinet of Ministers: development of programmes of priority directions, determination of the order and conditions for carrying out competitions and auctions, determination of the order for carrying out state expert appraisal for concessionaire projects and programmes; determination of the concessionaire agreements registration order, determination of the list of objects not subject to concession transfer or with limited concession transfer, organisation of control of concession agreements;

• Competence of "authorised administrative state body in the area of concessions": organisation of competitions or auctions, conclusion of

3 For further information on the entities involved, please refer to: PFI Guide, Consolidated Legislative Recommendations, Recommendation 2, 6 and 42.

11.


• public enterprises?

concession agreements, where authorised; • Competence of local state bodies:

determination of concession objects, where managed by them, organisation of competitions or auctions, where managed by them, conclusion of concession agreements, where authorised and negotiation, where on their territory.

14. Is there a specialised agency established to take care of concessions (which consent or recommendation is necessary for the granting of a concession, ex: Concession / PPPs Agency)?

9 The "authorised administrative state body in the area of concessions" shall organise the competitions and auctions and conclude concession agreements. Seems to be a permanent body and to our knowledge yet not established.

15. Is the division of power between different public authorities involved in the concessions granting process simple and coordinated (ex: one stop shop)?

Responsibilities clearly indicated, but simplicity and coordination not ensured by the Law.

2.3.2 Concessionaire and Project Company

QUESTION

ANSWER

ARTICLE

COMMENTARY

16. Can concession be granted to a domestic and/or foreign person or to a domestic person with a foreign shareholders can the shareholders of the concessionaire be domestic and/or foreign persons (without discrimination)?

1 5

Discrimination against domestic persons. Discrimination against domestic shareholders. Possibility of minority domestic shareholders, provided the concessionaire is a foreign legal entity that is

12.


registered (formed) and acting in compliance with the law of a foreign state. In this respect, according to the article 4 of the law “On Foreign Investments” foreign investors include inter alia: legal entities or any other partnerships, organisations or associations established and acting in compliance with the acts of legislation of foreign states.

For information only, can concession be granted to public entities or to entities jointly owned by private and public entities?

No/Yes Not clearly specified. This should be the case, provided such legal entities are foreign i.e. established and acting in compliance with the legislation of a foreign state.

2.4 Concerned sectors4

QUESTION

ANSWER

ARTICLE

COMMENTARY

17. Does the Law identify (or allow identification by reference to other law or regulations) the sectors and/or types of infrastructure and/or services in respect of which concessions may or may not be granted?

4

Vague references in the Law:

• "Objects of concessions are separate kinds of economic activity, not prohibited by the legislation of the Republic of Uzbekistan connected to granting property, land plots and subsoil".

4 For further information on the concerned sectors please refer to: PFI Guide, Consolidated Legislative Recommendations, Recommendation 3 and 4.

13.


8

21

• The Cabinet of Ministers develops the programmes of priority directions and determines the list of objects not being subject to “concession transfer” or transfer of which is limited. To date, the aforesaid list has not been developed or at least it is not available to the public.

• A concessionaire has the right of use of the allocated area, water resources, energy carriers, engineering communications and to construct buildings, structures, roads, telegraph and telephone communication lines.

We note that according to the article 13 of the law “on Foreign Investments” concessions are allowed in all spheres and types of activities, provided they are not prohibited by the legislation of the Uzbekistan and answer the purposes of the concluded concessions.

18. Do the sectors eligible for concessions correspond to a large extent to those listed below, or if not, is the list of eligible sectors an open-ended one (as opposed to being exhaustive) allowing (or at least not preventing) concessions to be granted in numerous sectors”?

For information:

a) does it include the transportation sector?

• is the railway system included? • are rail transport services included?

N/A

14.


• are ports included? • are airports included? • are public roads included?

b) does it include the electricity sector?

• is the generation of electricity included? • is the transmission of electricity included? • is the distribution of electricity included?

c) does it include the water and wastewater sector?

• is water production included? • is water treatment included? • is wastewater treatment included? • is water distribution included? • is wastewater collection (sewerage) included?

d) does it include solid waste collection, transfer or

disposal?

e) does it include the oil, gas and mineral sector?

f) does it include other public services such as

education, health care and prisons?

g) Does it include any other sectors or infrastructure

(please specify)?

15.


3.

SELECTION OF THE CONCESSIONAIRE5

3.1 General Considerations

QUESTION

ANSWER

ARTICLE

COMMENTARY

19. Does the Law require in principle the Contracting Authority to select a concessionaire through competitive procedures?

3 12

Vague reference to “competitions” and “auctions”. The method is chosen by the Contracting Authority.

20. Is there reference in the Law to the principles of transparency, equal treatment and proportionality.

For information, please specify if a reference is made to the principle of mutual recognition.

3 Reference to “mutual benefit”.

21. Is there a provision in the Law concerning the publication of information related to the competitive procedures in the Country media and in the international media (for large projects)?

13 The “message on realisation of competition, auction” is to be published in mass media. No reference to the international media.

5 For further information on the selection of the concessionaire, please refer to: PFI Guide, Consolidated Legislative Recommendations, Recommendations 14 to 39 included.

16.


22. Are there provisions of the Law, regulations or special manual, recommendation governing in detail the selection of the concessionaire ("Regulations") (i.e.: the pre-selection of bidders, the procedure for requesting proposals, other procedure such as competitive dialogue/two stage procedure) ?

23. Does the Law / Regulations provide that, if the Contracting Authority rejects an applicant at the time of preselection or disqualified a bidder , it must make public the reasons for the decision (or inform the rejected bidder thereof explaining the reasons for rejection)?

3.2 Award of concession

QUESTION

ANSWER

ARTICLE

COMMENTARY

24. Does the Law / Regulations provide that all proposals are ranked solely on the basis of the evaluation criteria set forth in the pre-selection documents/ request for proposals?

25. Does the Law / Regulations provide that a notice of the award of the project, identifying the concessionaire and including a summary of the essential terms of the project agreement is to be published?

17.


26. Does the Law / Regulations provide that the Contracting Authority or any other public authority maintain records of key information pertaining to the selection and award proceedings?

13 18

The Law provides only that concluded a concession agreement is subject to registration.

27. If the answer to 26 is yes, does the Law provide that such record is accessible for public or at least to interested parties?

N/A

3.3 Final negotiations

QUESTION

ANSWER

ARTICLE

COMMENTARY

28. Does the Law /Regulations contain provisions regulating final negotiations (i.e. post contract award) so that transparency, equal treatment and competition are preserved?

The does not contain any provision limiting final negotiations

29. Does the Law / Regulations provide that the Contracting Authority has the authority to terminate negotiations with the invited bidder when it becomes apparent that the bid will not result in an agreement and start negotiations with the second ranked candidate?

3.4 Concession Award without competitive procedure

18.


QUESTION

ANSWER

ARTICLE

COMMENTARY

30. According to the Law / Regulations, does the Contracting Authority have the authority to award a concession without competitive procedures only in limited exceptional circumstances such as the ones listed below?

For information, which of the following conditions

allowing direct negotiations are provided for?

• when there is an urgent need for ensuring continuity of the provision of service and engaging in a competitive selection procedure would be impractical?

• for projects of short duration and with an anticipated initial investment value not exceeding a specified minimal amount (or with an anticipated turnover not exceeding a specified minimal amount)?

• reasons of national defence or national security?

• cases when there is only one source capable of providing the required service (e.g.: in the case of patented technology or unique know-how)?

• when an invitation to the pre-selection proceedings or a request for proposals has been issued but no applications or proposals were submitted or all proposals failed to meet the evaluation criteria?

12 Reference to “exclusive cases” where direct negotiations are possible, on Cabinet of Ministers decision. “Exclusive cases” should be defined. We note that according to the Presidential Decree # 2598 “On measures on attraction of Foreign Direct Investments to oil and gas exploring and production”, dated 28 April 2000, the Cabinet of Ministers is authorised to grant the concessions on the basis of the direct negotiations between the authorised body and strategic investor in individual cases (presumably in the gas and oil sector). “Individual cases” are not defined.

19.


• others (please specify)?

31. According to the Law / Regulations, is there a procedure (rules) to be respected for the award of a concession without competitive procedures?

3.5 Special case of unsolicited proposals

QUESTION

ANSWER

ARTICLE

COMMENTARY

32. Does the Law / Regulations provide for the adequate framework for the Contracting Authority to handle unsolicited proposals/private initiative concessions (proposal relating to the implementation of a concession that is not submitted in response to a request or solicitation by the Contracting Authority) that ensure transparency and equal treatment and do not distort competition?

3.6 Review procedures

QUESTION

ANSWER

ARTICLE

COMMENTARY

33. Does the Law allow the bidders who claim to have suffered or that may suffer loss or injury, to seek review of the Contracting Authority’s

20.


acts or failures to act?

21.


4.

PROJECT AGREEMENT6

QUESTION

ANSWER

ARTICLE

COMMENTARY

34. Does the Law contain (or refer to) a model concession/PPP agreement which use is optional (for guidance only as opposed to being mandatory) or a mandatory list of provisions to be included in the agreement (the content of such provisions being left for negotiation) ?

15

4.1 Duration and extension of the project agreement

QUESTION

ANSWER

ARTICLE

COMMENTARY

35. Does the Law provide that the concession duration should depend on the length of time taken for the amortization of the private investment and an appropriate return on the capital?

For information, please provide the given duration (if any) and relevant information in the Law with respect

17

15 years This might be too short for certain concessions with possible extension by cabinet of Ministers

6 For further information on the project agreement definition, please refer to: PFI Guide, Consolidated Legislative Recommendations, Recommendations 12 and 40 to 68 included.

22.


to the conditions for extension. 4.2 Termination of the project agreement

QUESTION

ANSWER

ARTICLE

COMMENTARY

36. Does the Law provide for a restrictive list of termination events (such as those listed below)?

• material breach by the other party;

• if performance is made impossible by the

occurrence of circumstances beyond either

party’s control;

• mutual consent .

Yes

No

Yes

18

18

18

Concession agreement can be terminated:

• by mutual agreement of the parties; • by court decision, in case of infringement by

one of the parties of the contract; • by the Contracting Authority, in case the

concessionaire submitted incorrect information at the time when the agreement was executed .

23.


37. Does the Law provide for (or does not prevent ) compensation of the concessionaire:

37.1. in case of termination for public interest?

37.2. for losses incurred as a result of public authorities acts? 37.3. in all cases of early termination (including in case of serious breach or failure by the concessionaire), for the non-depreciated value of assets financed by the concessionaire-?

No provisions in this respect (no prevention, no provision on compensation).

4.3 Tariff setting, service standards

QUESTION

ANSWER

ARTICLE

COMMENTARY

38. Does the Law provide for clear guidance for all aspects of interaction between the bodies that have the power to award concessions and the bodies that regulate tariffs and service standards?

4.4 Financial responsibilities of concessionaire and Contracting Authority

QUESTION

ANSWER

ARTICLE

COMMENTARY

39. Does the Law provide that the concessionaire

24.


can collect tariffs or fees for the use of the facility or its services?

40. Does the Law provide the possibility for fixed

and/or consumption-based payments to the concessionaire by the public authorities?

5. SECURITY AND SUPPORT ISSUES7

5.1 Security Interests

QUESTION

ANSWER

ARTICLE

COMMENTARY

41. Does the Law provide for the possibility for (or not specifically prevent) a concessionaire to create security interests on the project assets and proceeds or other valuable guarantees related to the project?

Not specified

42. If the answer to 42 is yes, does the Law clearly state which types of security can be provided and includes some of the most common type of guarantees in project financing (such as those listed below)?

N/A

7 For further information on support and financial securities, please refer to:

PFI Guide, Consolidated Legislative Recommendations, Recommendations 13, 49, 57 and 60.

25.


For information, can a concessionaire pledge or assign:

• the proceeds and receivables arising out of the

concession?

• the assets for which it has rights of use under a

project agreement;?

• its property?

• shares of the Project Company?

• the project agreement?

• or obtain other valuable guarantees (please

specify)?

5.2 Government support

QUESTION

ANSWER

ARTICLE

COMMENTARY

43. Does the Law provide for the possibility (or not specifically prevent) the public authorities to provide support to the Contracting Authority and guarantee for the proper implementation of concessions by the Contracting Authority?

Not specified. Not prevented.

44. Does the Law provide for the possibility (or not Not specified. Not prevented.

26.


specifically prevent) the public authorities to provide financial or economic support for the implementation of concessions?

45. If the answer to 44 is yes, does the Law clearly state which public authorities may provide such support and which types of support can be provided?

For information, are the following types of support

provided for:

• interest-free or low interest public loans?

• loan guarantees?

• direct or indirect equity participation by the

government in the project?

• subsidies for operations in non-profitable

sectors?

• direct subsidies?

• pro-poor subsidies?

• tax and customs benefits?

• foreign exchange protection (convertibility and

transfer guarantees)?

• protection from competition?

N/A

27.


5.3

Lenders’ rights

QUESTION

ANSWER

ARTICLE

COMMENTARY

46. Does the Law provide for the possibility for the lenders to “step-in” or substitute a qualified new concessionaire in case of concessionaire defaults without a new tender?

6. SETTLEMENT OF DISPUTES AND APPLICABLE LAWS8

6.1 Settlement of disputes

QUESTION

ANSWER

ARTICLE

COMMENTARY

47. Does the Law permit the Contracting Authority to enter into concession agreement that is subject to international arbitration?

24 The Law provides different regimes for: (i) disputes between a concessionaire and

concessionary body regulated in the “economic courts of the Republic of Uzbekistan”, “if not otherwise provided in the international agreements and treaties of the Republic of Uzbekistan” (international agreements and treaties meaning documents of an international public character, i.e. international agreements and treaties signed and

8 For further information on the settlement of disputes, please refer to: PFI Guide, Consolidated legislative Recommendations, Recommendations 57, 69 and 71.

28.


ratified by subjects of international law). (ii) disputes between the concessionaire and state

enterprises and other legal and physical persons and disputes with concessionaires on questions of their activity are regulated by domestic courts or international arbitration.

Thus, even though the Law refers to arbitration, this is not straightforward.

48. Has the government of the country ratified the following international conventions? 48.1. the Washington Convention on the Settlement of Investment Disputes (ICSID) (1965)? 48.2. the New York Convention on recognition and enforcement of foreign arbitral awards (1958)?

Ratified by the Resolution of Oliy Majlis #1077-XII, dated 06.05.94. Ratified by the Resolution of Oliy Majlis (the Parliament of the Republic of Uzbekistan) #184-I, dated 22.12.95.

6.2 Applicable laws

QUESTION

ANSWER

ARTICLE

COMMENTARY

49. Does the Law permit the Contracting Authority to enter into concession agreement that is governed in whole or in part by foreign law or at least allow the concessionaire to enter into financing and construction agreements governed

2

3

Legal relations arising during concession activity are governed by the Law and other legal acts of the Republic of Uzbekistan The concession activity shall also comply with the

29.


by foreign law?

25

prevailing legislation of the Republic of Uzbekistan in the areas of: labour protection; protection of the environment, ecological and sanitary security. The parties to the concession agreement are liable for performance of their obligations thereunder in accordance with the legislation of the Republic of Uzbekistan and the agreement. Not specified and not prevented with respect to financing agreement

50. Has the country ratified any international convention for the protection of foreign investments?

Seoul Convention on the establishment of the Multilateral Investment Guarantee Agency (1985). In addition, there are a number of bilateral treaties on protection of investments between the Republic of Uzbekistan and other countries (as of 1.06.03 the Republic of Uzbekistan has signed such treaties with 44 countries).

EFECTIVENESS ASSESSMENT: HOW THE LAW WORKS IN PRACTICE: (please comment based on the previous 2006 effectiveness general assessment)

assessment summary 2008 - uzbekistan [ebrd - legal transition] · 2. checklist uzbekistan...

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