According to the Resolution of the Cabinet of Ministers “On Improvement of the Procedure of Implementation of Public-Private Partnership Projects” No.259 dated April 24, 2020 (the “Resolution No.259”), the mechanism of forming and approving prices for products under public-private partnership projects (the “PPP”) has been determined. The mechanism for implementing PPP projects includes the following stages:
- initiating, developing a project and selecting a private partner;
- preliminary assessment of the project;
- preparation of the project concept;
- reporting;
- maintaining a register of PPP projects.
The public partner conducts a preliminary assessment of the proposed PPP project to study the possibilities of its implementation, examining the compliance of project with specific criteria and conditions. If the results are positive, the project is initiated and prepared. Project initiation includes:
- development, evaluation, coordination and approval of the project concept;
- review and approval of the concept by the authorized state body;
- approval of an agreed project concept by a public partner or the Government;
- inclusion of the project concept by an authorized state body into the register of PPP projects.
The costs of production and sale of products (works, services) that justify prices (tariffs) for PPP projects are determined according to the Regulation on the composition of costs for production and sale of products (works, services) and the procedure for generating financial results approved by the Resolution of the Cabinet of Ministers of Uzbekistan No.54 dated February 5, 1999 and other regulatory acts.
Prices (tariffs) for monopoly products or products of a natural monopoly are approved by the Ministry of Finance and, based its instructions, by financial departments on a written request from a public partner, or are set in the form of fixed or marginal prices (tariffs) and mark-ups for certain types of goods according to decisions of the President. The public partner approves the prices for the rest of the products (works, services) for PPP projects in agreement with the private partner.