I INTRODUCTION

Uzbekistan is a unitary republic with a continental legal system. The head of state is the president, the legislative branch is a two-chamber parliament and the executive functions are carried out by the Cabinet of Ministers. With a population of around 32 million, Uzbekistan is the most populous country in Central Asia. The country is also rich in natural resources, including hydrocarbons, gold, copper and uranium.

In the 2016 election campaign, the current president campaigned to double GDP by 2030 and to increase the industrial sector's share of GDP to 40 per cent (from 33.5 per cent in 2015).

To achieve these ambitious plans, the country is investing heavily in infrastructure projects, including with the help of development banks and multilateral agencies (such as the Asian Development Bank (ADB), the World Bank (WB), the Islamic Development Bank and many others).

The two main examples of project finance are the Surgil (US$2.54 billion debt financing) and Kandym (US$500 million debt financing) gas-field projects, both of which have been successfully commissioned. The government is implementing significant reforms in all areas, including construction, banking, public procurement and investments.

II THE YEAR IN REVIEW

There have been a number of key reforms, of which the following two are of note.

First, the country carried out foreign exchange liberalisation by removing barriers to foreign exchange and allowing easy repatriation of profits to foreign investors.

Secondly, there has been a shift in policy to allow for public-private partnership (PPP) arrangements in different sectors, ranging from preschool education to power production plants.

In addition, the first-ever Law on Public Procurement has recently been enacted, and the Law on Public-Private Partnership is being developed. There have also been numerous reforms in many areas, including tendering, financing, planning and land-allotment regulations, which are developing at a fast pace.

Another significant development is the Government's plan to get a sovereign credit rating to enable companies and banks of Uzbekistan to obtain a similar rating and raise funds in the financial markets. Based on the rating, Uzbekistan also intends to issue the first-ever sovereign bonds in 2018.

III DOCUMENTS AND TRANSACTIONAL STRUCTURES

i Transactional structures

In recent years, private companies acting as investors or operators have been widely involved in the construction and operation of economic and social infrastructure projects. This practice allows increased access to private investment and enhances the economic efficiency of infrastructure. At the same time, as major infrastructure projects usually operate as natural monopolies, the state maintains its presence in this area as an owner, regulator and controller of private companies.

Owing to lack of specific regulations on PPPs, build-operate-own-transfer, build-operate-transfer and build-operate-lease models are rarely utilised in Uzbekistan. The country's first Law on PPP is currently under development and is expected to be adopted in 2018.

Despite the lack of a regulatory framework, a few projects have been implemented under the build-operate-own (BOO) model. Usually, contractors under BOO contracts operate through joint ventures (JVs) set up by both a foreign and a local company. The JV then attracts financing for the project, builds, operates and owns the project. Examples of this include the Uzbekistan-China gas pipeline and Surgil projects. Moreover, with governmental incentives,2 PPPs have started to be used in the preschool education, sports and tourism sectors, with the state-investor relations being structured purely on the contractual basis.

ii Documentation

Considering its complexity, a project finance transaction may generate a large number of transactional documents. The precise requirements will depend upon the type of the project, the ownership structure, the regulatory environment and the nature of public sector involvement.

Regarding complex investment projects in the Uzbek market, the following constitutes the principal documentation:

    1. government resolutions outlining the sources of funding, executing bodies, tax and customs benefits;
    2. tender documentation, which is comprised of general, technical and commercial parts;
    3. loan agreements between the owner and borrowers (e.g., international financial institutions, such as ADB, WB and the Japan International Cooperation Agency, as well as the local organisations, such as the Fund for Reconstruction and Development of the Republic of Uzbekistan or the Fund for Financing of State Development Programmes);
    4. terms of reference or financial and economic reports, or both;
    5. pre-feasibility studies or pre-cost analyses, or both;
    6. contract documents (shareholders agreements, joint venture agreements, investment agreements, contract agreements, offtake agreements, supply agreements, concession or licensing agreements, product-sharing agreements, operation and maintenance agreements, technical service agreements, etc.);
    7. feasibility studies or cost analyses or both;
    8. design documentation, including agreements with local design institutes for review and adaptation of design documentation to local standards; and
    9. security documentation (bonds and insurances).

The Republican Design Institute 'UzEngineering', which was recently established, has been appointed as the general contractor for development of pre-design and design documentation for projects in primary sectors of economy.3

Additionally, in the beginning of 2018, the Centre for Comprehensive Expert Examination of Project Documentation was established. As opposed to the previous sectoral examination of documentation of investment and infrastructural projects by various ministries and departments, the Centre now performs the functions of a one-stop shop in the sphere of review of pre-design, design, tender documentation and contracts.4 Such consolidation of functions, if duly performed, is expected to significantly simplify the process of development of project documentation.

iii Delivery methods and standard forms

In the Uzbek construction industry, the choice of delivery methods and standard forms mainly depends on whether or not the construction works are financed from centralised sources, such as budgetary appropriations, state trust funds or loans of international financial institutions backed with sovereign guarantees. If the financing is derived from centralised sources, any construction, expansion, reconstruction and technical re-equipment must be delivered on a turnkey basis.5 Therefore, engineering-procurement-construction and engineering-procurement-construction-management models are the most commonly used method as they offer maximum risk transfer to contractors. Because of frequent involvement of international financial institutions, their standard forms – which are usually based on the International Federation of Consulting Engineers suite of contracts – have become increasingly widespread in Uzbekistan.

In relation to privately financed projects, standard local agreements are most commonly utilised for construction works.6

IV RISK ALLOCATION AND MANAGEMENT

i Management of risks

There are different types of risk that may be encountered in a project finance transaction. Normally, parties tend to identify all risks and regulate these risks contractually before they arise. Typical risks are construction risks, operation risks, revenue risks, insolvency risks, environmental risks and political risks.

Generally, the employers tend to pass all the risks on to the contractors, and contractors pass them on to the subcontractors.

Typically, insurance is obtained to address the risks outside the direct control of the contracting parties.

ii Limitation of liability

Project companies and their subcontractors will frequently negotiate limitations on their liability in the contracts. Naturally, mandatory rules on liability under Uzbek law have to be considered while negotiating the limitation rules and caps. The level of caps is usually agreed on the basis of a fixed percentage, fixed sum or formula.

Project agreements usually provide the parties with relief from liability in respect of force majeure circumstances. If a force majeure event occurs, the parties will generally look to agree alternative means of delivering the project. If the event continues for a specific period, the parties usually have the right to terminate.

iii Political risks

Under Article 3 of the Law on Foreign Investments, foreign investments can refer to almost any asset, and the definition is broadly interpreted. A similarly broad approach is adopted in relation to the definition of foreign investor. Foreign public bodies, international organisations and foreign legal and natural persons are, inter alia, recognised as foreign investors.

National law applies the national treatment standard in relation to foreign investments, and foreign investments are treated no less favourably than domestic investments. Other standards of treatment (e.g., 'most favoured nation') can be found in more than 50 bilateral investment treaties to which Uzbekistan is a party.

The Foreign Investments Law protects investors from political and other risks, such as:

    1. expropriation or any other alienation of property;
    2. restrictions on the transfer of foreign currency outside the country;
    3. changes in law that discriminate against particular groups of investors;
    4. any intervention of the government and its officials in the contractual relations of investors; and
    5. any other kinds of political and legal risks associated with foreign investors and their investments.

The successful succession to power of President Mirziyoyev demonstrates Uzbekistan's continued political stability. The new government is showing positive signs on strengthening protection of private property and on liberalising the foreign exchange market, among other key reforms. The government may also begin large-scale privatisation in the near future.

V SECURITY AND COLLATERAL

Creditors may accept a pledge by means of a general security agreement, or by concluding a general pledge agreement for movable and immovable assets and property rights. The pledge agreement should specify the objects of security and their value, as well as the nature and terms of the obligation that is being secured. Negotiation of pledge agreements should take into account different perfection requirements for different types of assets.

Uzbek law also allows for security to be taken over cash deposited in bank accounts, and over shares in companies incorporated in Uzbekistan.

VI BONDS AND INSURANCE

i Bonds

Generally, the Civil Code provides for the possibility of issuing guarantees to ensure proper execution of a principal's obligations in relation to the beneficiary of the guarantee. Such guarantees may be issued by banks or other credit organisations, and are irrevocable and non-transferable by default.7 However, owing to regulatory restrictions requiring companies to freeze the guaranteed amount on their accounts, bank guarantees, in particular the 'on-demand' type, are non-existent in local transactions. Corporate guarantees are also not typically used in Uzbekistan.

By contrast, in large-scale investment projects, involving international contractors and financed by international financial institutions, various types of guarantees are widely utilised, including bid bonds, advance payment bonds, interim payment bonds and performance bonds.

ii Insurance

Under Uzbek legislation, the contractor has an obligation to insure the object of construction, as well as the construction works, at the contractor's own expense.8

In case of construction projects financed by the state budget or through loans of international financial institutions under sovereign guarantees, the property interests of the contractor and other interested persons, as well as the liability of the contractor for harm to life, health and property of third persons as a result of construction and installation works shall be insured.9

In addition, the following types of insurance are frequently stipulated in contract agreements:

    1. workers' compensation;
    2. cargo insurance – covering loss or damage occurring while equipment and materials are in transit from the point of shipment until their arrival at the construction site; and
    3. mandatory insurance for automobile vehicles and employer liability.

VII ENFORCEMENT OF SECURITY AND BANKRUPTCY PROCEEDINGS

If a project company fails to perform its contractual obligations, a project lender can enforce its rights over the collateral based on a pledge or mortgage agreement. A project lender enforces its rights through a court. It may enforce its rights over collateral without engaging a court if such enforcement (outside the adjudication) was envisaged in the pledge or mortgage agreement. A project lender and a project company may also enter into an agreement that entitles a project lender to enforce its rights over collateral without involving the court after grounds for enforcement arise (non-performance or failure to perform duly the obligations of the project company or any other event of default established in a facility agreement). The agreement should be certified by a notary office.

Once the court makes a decision in favour of the project lender, the collateral will be sold at public auction. The project company may ask the court to defer the enforcement for up to a year.

The starting price of the sale at auction is determined by the court or by the parties themselves. The collateral will be sold to a person who offers the highest bid.

If the public auction does not take place, a project lender may receive the collateral and set off the claims secured by the collateral against its purchase price.

If a project lender does not exercise its rights to keep the collateral within one month after the public auction is declared not to have taken place a second time, the pledge or mortgage agreement will be deemed as discharged.

Thus, the steps to enforce the rights over collateral can be summarised as follows: the project lender files a claim to a court in connection with the collateral. The court will make a decision in favour of the project lender. The collateral subject matter will be put on sale at public auction. It will be sold to a person who offers the highest price and the proceeds will be distributed to the project lender to the extent of the liability of the project company. If an auction does not take place because of lack of interest from buyers in the subject matter of the collateral, the project lender will have a discretion to receive it and set off its claim against the purchase price of the collateral. If the project lender does not exercise this discretion, the agreement over collateral will be rendered as discharged.

Once a project company is insolvent, a project lender enforces its rights over the collateral through a meeting or committee of creditors. A project lender may not enforce its rights individually after an application for bankruptcy has been accepted by an economic court. All actions on behalf of the creditors will be made by the meeting of creditors.

The project lender will be paid from proceeds received as a result of the collateral sale. The collateral will be put up for sale at auction. If it is not sold, the collateral will be offered to the secured creditor as payment in kind. If the collateral costs more than the liability of the project company, the difference will be reimbursed by the project lender in cash.

If the subject matter of the collateral consists of the entire property of a project company and the proceeds from its sale are not sufficient to meet the total claims of the secured creditors, distribution of the proceeds will be made to the creditors after the following have been met:

    1. court expenses;
    2. fees of the receiver or liquidator;
    3. utility payments and operation costs;
    4. insurance of the debtor's property;
    5. liabilities of the debtor that have arisen since the insolvency; and
    6. claims of citizens arising out of damage caused to their health and property.

VIII SOCIO-ENVIRONMENTAL ISSUES

i Licensing and permits

There are several instruments regulating social and environmental aspects of project finance transactions and construction contracts. These are the Construction Code, the Law on Ecological Expertise, the Regulation on Ecological Expertise, the Law on Environment Protection, the Regulation on Preparation, Review and Expertise of Investment Project Documentation, and other delegated acts. While transacting and constructing, project companies, lenders and contractors should bear in mind the main requirements of Uzbek law in connection with social and environmental aspects of deals. Participants have to comply with provisions on the safety and protection of the environment, ecological safety and sanitary norms and rules. They should refrain from actions affecting the environment, cities, regional landscape, civil engineering works, transport and social infrastructure.

All projects under public development programmes, construction documents, entities affecting the environment and designs are subject to ecological expert evaluation. The authorised ecological expert body is the State Committee on Ecology and Environmental Protection.

General construction works do not require a special licence, however, a licence must be obtained for particular types of work, such as bridges, construction of chemical plants, power plants, oil-gas facilities and other potentially hazardous facilities.

Contractors need to register the object of the construction with the regional inspection unit of the State Committee for Architecture and Construction and obtain a construction permit.

ii Equator Principles

Project finance transactions and construction contracts are subject to standards set by environmental laws of Uzbekistan. Financial institutions review and ensure compliance with these environmental laws while reviewing finance documentation. Project finance transactions and construction contracts are not subject to the Equator Principles. However, banks are free to adopt international banking practices and to ensure compliance with the Equator Principles in their lending policies.

iii Responsibility of financial institutions

Uzbek law does not provide for criminal liability of legal entities, including banks. Civil liability may be applied to banks and administrative liability to the bank's senior management for violation of provisions of contractual, commercial or other regulatory laws. The most common liabilities that banks may face are penalties for breach of environmental laws and payment disciplines.

IX PPP AND OTHER PUBLIC PROCUREMENT METHODS

i PPP

It is estimated that nine infrastructure projects with a total value of US$3.985 billion were implemented with private participation in the period 1990–2014.10 The institution of PPPs in Uzbekistan is still in its infancy. The draft law on PPPs, which is expected to be adopted in 2018, should introduce a comprehensive framework of the principles and basic methods of operation of PPPs; currently only laws on concessions, production sharing agreements, privatisation and attraction of foreign investment may be regarded as existing forms of PPP.11

ii Public procurement

In April 2018 the new Law on Public Procurement was adopted, which incorporates international public procurement principles, such as professionalism of the procurer; reasonableness; rationality and efficiency of use of financial resources; transparency; competition and objectiveness; proportionality; consistency; and impermissibility of corruption.12 It unifies the previously separate notions of budgetary customers13 and corporate customers14 into a single term of 'state customers'.15

The Law distinguishes between five types of procurement procedures: e-procurement, reserved auction (in electronic form), competitive bidding, tender and procurement from a single supplier. It defines the following criteria for each:16

Type of procurement procedure

Price criteria in minimum monthly wages (MMW)*

Other criteria

E-procurement

Corporate customers:

• goods of up to 250 MMW (approx. US$5,300) per contract, but not more than 2,500 MMW (approx. US$53,000) a year; and

• works, services of up to 25 MMW (approx. US$530).

Budgetary customers:

• goods of up to 25 MMW (approx. US$530) for one contract, but not more than 2,500 MMW (approx. US$53,000) a year; and

• works, services of up to 25 MMW (approx. US$530).

No special requirements should be imposed on goods (works, services).

Reserved auction (in electronic form)

Corporate customers:

• Goods of not less than 5,000 MMW (approx. US$106,000) per contract.

Budgetary customers:

• Goods of up to 2,500 MMW (approx. US$53,000) per contract.

• Goods are of standard features;

• no need to evaluate and compare technical, operational and other characteristics of goods; and

• works, services are not the object of public procurement.

Competitive bidding

Corporate customers:

• Goods of 5,000–25,000 MMW (approx. US$106,000–US$530,000) per contract; and

• works, services of 25-25,000 MMW (approx. US$530–US$530,000) per contract.

Budgetary customers:

• Goods of 2,500–6,000 MMW (approx. US$53,000–US$126,000) per contract; and

• works, services of 25-6,000 MMW (approx. US$530–US$126,000) per contract.

• Possibility of formulating a detailed and precise description of goods (works, services); and

• criteria for defining the winner not only includes price evaluation, but also quantity and quality assessment.

Tender

Corporate customers:

• Goods (works, services) of more than 25,000 MMW (approx. US$530,000).

Budgetary customers:

• Goods (works, services) of more than 6,000 MMW (approx. US$126,000).

• Criteria for defining the winner not only includes price evaluation, but also quantity and quality assessment.

Procurement from a single supplier

• Goods (works, services) should be technically complex, without alternatives on the market and can be procured only from a single supplier;

• procurement of items of cultural value;

• procurement on the basis of decisions of the President or the Cabinet of Ministers;

• procurement by natural monopolies; and

• procurement in accordance with tariffs set by the government.

* 1 MMW = 172,240 som (approximately US$21) as of 13 June 2018.

Notably, during the implementation of investment projects financed from foreign loans and grants, executed by foreign contractors and paid for in freely convertible currency, bidding documentation must include a condition on participation of local Uzbek companies in at least 50 per cent of the works, unless otherwise provided for in loan agreements with international and foreign financial institutions.17 Moreover, contractors must be selected exclusively from small businesses for works with less than 500 million som invested.18,19

Disputes arising out of the bidding procedure and claims arising from the actions and decisions of the owner, organisers and other bidding participants are generally filed with local economic courts, whereas the state antimonopoly authority has administrative responsibility for participants' compliance with Uzbek competition laws.20

However, application of Uzbek procurement laws can be excluded if loan agreements with foreign international financial institutions provide for another procurement procedure.21

X FOREIGN INVESTMENT AND CROSS-BORDER ISSUES

Foreign financial institutions and design or construction companies can act as lenders and contractors in project finance transactions. Foreign lenders are not required to obtain permits or licences to finance projects. Uzbek banks undertaking refinancing, or other Uzbek commercial banks attracting foreign loans, have to notify the Central Bank of Uzbekistan within five days of receiving such foreign loans, for the purpose of identifying the total amount of Uzbekistan's liability in respect of external loans.

Generally, Uzbek law does not require a foreign company to obtain a licence to construct in the territory of Uzbekistan. However, construction works in certain areas or sectors are subject to licensing. The main sectors where contractors (irrespective of nationality) need to obtain a licence are:

    1. design, construction, operation and maintenance of gas or oil pipelines;
    2. design, construction, operation and maintenance of bridges and tunnels;
    3. design, construction, operation and maintenance of objects of high risk and potentially dangerous production;
    4. design of architecture and construction documents; and
    5. expertise of design of construction;

Uzbek law envisages the issuance of licences in connection with the aforementioned activities only to legal entities incorporated in Uzbekistan. Nevertheless, in practice, authorised bodies issue licences in respect of the project goal or object of construction, and in turn foreign contractors perform their contractual obligations on the basis of these licences. There may be instances where a special government resolution on a particular project is adopted to provide for, along with other related matters, the issuance of licences, and which accelerates the licensing process.

Foreign contractors do not have to register or file with government authorities to carry out works on a project. The object of construction should be registered and a permit for construction works should be obtained. These are usually obtained by the customer (the project company). Foreign contractors may be required to obtain certain licences, as mentioned above.

Uzbek law affords quite a good level of protection and a wide range of guarantees for foreign investments. The state guarantees and protects all rights of foreign investors. Foreign investments are afforded fair and equitable treatment, full protection and security. Foreign investments are not subject to nationalisation.

i Removal of profits and investment

Foreign investors can change operating funds or profits from one currency to another currency without any restriction. There is no control or law restricting repatriation of profits from Uzbekistan. The law on foreign investments expressly guarantees foreign investors' rights to repatriate profits without any restriction. Payment of profits or repayment of loans to parties in other jurisdictions is not subject to any restriction, control, fees or taxes, except for the bank commission that may arise as a result of funds transfers.

Project companies may also repatriate foreign earnings, and foreign earnings deposited in bank accounts in Uzbekistan may be subject to mandatory sale, the amount of which depends on the sector. Generally, 25 per cent of proceeds in foreign currency received from export of goods and services are subject to mandatory sale; 50 per cent of proceeds in foreign currency received from export of certain items (most of which are natural resources) are subject to mandatory sale. There are no restrictions on the use of proceeds in hard currency to the extent that it is permitted to make settlements in US dollars. Project companies may sell hard currency to commercial banks and use Uzbek som for local supply of goods and services.

XI DISPUTE RESOLUTION

i Arbitration and ADR

As a general rule, alternative dispute resolution is not very common in Uzbekistan. However, dispute avoidance mechanism does enjoy much support in large-scale government projects.

Uzbekistan does not have specialist courts in place whose sole function is to hear and determine project finance and construction disputes, and they usually fall under the jurisdiction of local commercial courts. Nevertheless, nothing in Uzbek legislation precludes the parties to opt for international arbitration. That is, there are no such disputes that are not arbitrable or are subject to automatic domestic arbitration.

In 1994, Uzbekistan ratified the ICSID Convention, and in 1995, it joined the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention). Hence, Uzbekistan recognises awards of international courts and arbitral tribunals as binding and enforces them in accordance with its procedural rules. Further, this issue is also regulated by international agreements on the provision of legal assistance concluded by Uzbekistan with other countries.

The process of recognition is initiated by the submission of a petition to the local court, together with authenticated original award and arbitration agreement (or their duly certified copies). If the award and agreement are not made in an official language of Uzbekistan, the party applying for recognition must produce the required translation. After receipt of the necessary documents, the court notifies all interested parties about the judicial proceedings, call witnesses and take other relevant actions. Based on the result of examination, the court gives its ruling and immediately issues an execution writ.22 Such a writ may be presented for enforcement within three years from the date of entry into force of the decision of the local court.23

Regarding the grounds for rejection of awards, national legislation of Uzbekistan does not establish any additional restrictions for recognition and enforcement except for those provided in Article V of the New York Convention and other relevant international conventions and treaties.

Historically, recognition of awards of international or foreign courts and arbitral tribunals was not very difficult – unlike their enforcement. The primary problem was challenges with currency exchange, which is no longer an issue. As a result of currency liberalisation reforms, which took place in September 2017, foreign investors are no longer reporting difficulties with conversion of Uzbek som into a freely convertible currency.

XII OUTLOOK AND CONCLUSIONS

The current shift in state policy towards modernising most of the existing infrastructure and building new infrastructure is likely to trigger a need for project finance in the near future. Uzbekistan is actively seeking to build new capital-intensive infrastructure, such as toll roads, bridges, power plants in regions to supply people and manufacturers with electricity, and other infrastructure projects.

The government understands that a regulatory framework plays a crucial role in boosting the confidence of investors and lenders in extending funds into capital-intensive industries. Therefore, it is reviewing substantial laws and regulations with the aim of improving the business environment and introducing certain changes. These changes have started with the regulation of foreign currency and the government is actively continuing to undertake reforms in the foreign exchange realm.

The combination of the need to modernise infrastructure dating from the previous century and to reform economic laws dealing with a wide range of issues – starting with the establishment of companies, the conversion of national currency into hard currency and the free repatriation of capital – and the need to build new infrastructure is likely to bring project finance to the forefront in the industrial sector.


Footnotes

1 Ulugbek Abdullaev is a senior associate and Diyora Abdurakhmanova is an associate at Dentons Tashkent.

2 Resolution of the President No. PP-3651 dated 5 April 2018 on measures for further stimulation and development of the system of pre-school education; Resolution of the Cabinet of Ministers No. 248 dated 28 March 2018 on measures for further development of entrepreneurship and private sector in the sphere of physical education and sport.

3 Resolution of the President No. PP-2831 dated 14 March 2017 on additional measures for enhancement of efficiency of design works in basic sectors of economy, Clause 2.

4 Resolution of the President No. PP-3550 dated 20 February 2018 on measured for development of the procedure of conducting expert examination of pre-design, design, tender documentation and contracts.

5 Regulation on the procedure of organization, financing and credit provision of construction executed from the centralised sources (Annex No. 2 to the Resolution of the Cabinet of Ministers No. 395 dated 12 September 2003), Clause 33.

6 Annex No. 3 to the Resolution of the Cabinet of Ministers No. 395 dated 12 September 2003.

7 Civil Code of the Republic of Uzbekistan, Articles 299-303.

8 Civil Code of the Republic of Uzbekistan, Article 669.

9 Regulation on compulsory insurance of construction risks for erection of objects from state budget and loans under the governmental guarantee (Annex to the Resolution of the Cabinet of Ministers No. 532 dated 20 December 1999).

10 The World Bank, Private Participation in Infrastructure Database, http://ppi.worldbank.org/snapshots/country/uzbekistan.

11 Sardor Akobirov, 'Development of Public-Private Partnership in Uzbekistan' (2014); Nurmuhammad Yusupov and Farrukh Karavaev, 'Theory and Practice of Public-Private Partnership' (UNDP Uzbekistan and Chamber of industry and Commerce of Uzbekistan, 2013).

12 Law No. ZRU-472 dated 9 April 2018 on Public Procurement, Article 23.

13 Budgetary customers include state organs, budgetary organisations, receivers of budgetary funds, state trust funds.

14 Corporate customers include state-owned enterprises, legal entities with 50 per cent and more state share, legal entities where 50 per cent and more shares belong to legal entities with 50 per cent and more state share.

15 Law No. ZRU-472 dated 9 April 2018 'On Public Procurement', Article 16.

16 Law No. ZRU-472 dated 9 April 2018 'On Public Procurement', Articles 23, 43, 46, 50, 59 and 67.

17 Resolution of the Cabinet of Ministers No. 302 dated 3 July 2003 on measures for development of the system of competitive bidding in capital construction, Clause 3.

18 Equivalent to approximately US$63,000 as of 13 June 2018.

19 Regulation on Competitive Bidding in Capital Construction on the Territory of the Republic of Uzbekistan (Annex to the Resolution of the Cabinet of Ministers No. 302 dated 3 July 2003), Clause 27-1.

20 Resolution on Competitive Bidding in Capital Construction on the Territory of the Republic of Uzbekistan (Annex to the Resolution of the Cabinet of Ministers No. 302 dated 3 July 2003), Clauses 108–109.

21 Law No. ZRU-472 dated 9 April 2018 on Public Procurement, Article 1.

22 Resolution of the Plenum of the High Economic Court No. 248 dated 24 May 2013 on some issues of application of legal acts concerning the recognition and enforcement of foreign courts decisions and arbitral awards, as well as the foreign court orders.

23 Law No. 258-II dated 29 August 2001 on enforcement of decisions of courts and other state bodies, Article 6.