The EDB analyses changes in its member countries’ PPP regulations
St. Petersburg, 25 October 2023. The Eurasian Development Bank (EDB) reviewed legislative changes pertaining to public-private partnerships (PPP) in its member countries.
The years 2022 and 2023 marked significant milestones for PPP-related legislative innovations in Belarus, Kazakhstan and Russia.
“A comparative analysis of the evolution of improvements to EDB member countries’ PPP regulations reveals that they are not isolated from each other. Legislative approaches to PPP objectives, priorities and key project implementation mechanisms are similar and comparable in many respects. There are also multiple cross-adoptions of best principles and legislative norms from other countries that have demonstrated their effectiveness in practice,” said Svetlana Maslova, EDB Director for PPP Projects.
On 22 January 2023, Belarus’s Law 194-З, dated 18 July 2022, On Amendments to the Law of the Republic of Belarus On Public-Private Partnership, took effect. This legislative instrument clarifies certain key terms, expands the range of eligible PPP projects, streamlines decision-making mechanisms for PPP projects, and imposes certain restrictions on government financing for PPPs, while also making it possible to enter into PPP agreements through direct negotiations with investors.
Kazakhstan has introduced substantial changes to its PPP legislation. These stem from Law 177-VII ZRK, dated 30 December 2022, On Amending and Supplementing Certain Regulations of the Republic of Kazakhstan Related to the Implementation of Certain Directives from the Head of State. The majority of these amendments came into effect on 12 January 2023. Key alterations include the introduction of additional criteria for PPP projects, a significant revision of mechanisms for selecting private partners, and limitations on the forms and scale of public participation in PPP initiatives.
Russia’s concession and PPP legislation has also undergone a significant transformation. Federal Law 296-FZ, enacted on 10 July 2023, has introduced rules that were long-awaited in the PPP market and the absence of which had resulted in numerous disputes among PPP project participants, as well as with supervisory authorities. Key changes include detailed regulations pertaining to concession grantors’ financial contributions; the explicit possibility of including special circumstances in concession and PPP agreements; and the transition of open tenders for concession and PPP agreements to electronic format. Additionally, initiators of private concession initiatives can now seek reimbursement for preparation costs if their bid was not accepted after a tender, in which an alternative proposal was chosen.
The review contains feedback from national PPP centres, clarifying the innovations.
For the complete document, please refer to the link.
Additional Information:
The Eurasian Development Bank (EDB) is an international financial institution investing in Eurasia. For more than 17 years, the Bank has worked to strengthen and expand economic ties and foster comprehensive development in its member countries. The EDB's charter capital totals US $7 billion. Its portfolio consists principally of projects with an integration effect in transport infrastructure, digital systems, green energy, agriculture, manufacturing, and mechanical engineering. The Bank’s operations are guided by the UN Sustainable Development Goals and ESG principles.
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