The Law of Turkmenistan on Public-Private Partnership has come into force
Entrepreneurs of Turkmenistan got the opportunity to initiate the implementation of large projects jointly with the state in a balance of the interests and risks within the framework of the Law on Public-Private Partnership, which officially took effect as of June 8.
According to the new Law, when carrying out a public-private project, private firms can gain various types of state financial support. It can be provided in the form of subsidies, investments in the form of assets and property, payments from the State Budget for goods, works and services necessary for the implementation of the project.
Money can be allocated from the State Budget to provide budgetary loans, grants and credits to private partners. They can also count upon state guarantees of Turkmenistan, tax and other benefits.
The state organization that has received the concept of a public-private partnership project prepared by a private initiator is required to make a decision within a month on approving or refusing to implement it.
If the project is approved, it shall be published on the website of the state organization, following which other private firms can apply for participation in it. If other market players show interest in the project, its participants are determined through a tender, the winner of which will have the opportunity to conclude an agreement for public-private partnership with the state institution.
The concepts of public-private projects must comply with a number of criteria, including an innovative approach to dealing with existing socio-economic and production problems, and provide a balanced benefit acceptable to the parties.
Public-private partnership shall be regulated by the Cabinet of Ministers and the Ministry of Finance and Economy of Turkmenistan.
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