Tashkent, Uzbekistan (UzDaily.com) -- Resolution of the Cabinet of Ministers “On approval of the Regulations on the procedure for managing the state’s fiscal obligations that may arise from public-private partnership projects” was adopted.

The regulation regulates the procedure for managing, reviewing and agreeing on direct and conditional (hereinafter referred to as fiscal) obligations of the state that may arise from PPP projects at the stage:

• implementation;
• implementation expectations;
• preparation;
• tender.

Direct of the state are payments that have obligations specific amounts, terms and conditions of payment specified by the state partner in the PPP agreement. These include:

• one-time advances;
• constant payments
• payments due upon achievement of agreed results;
• payments payable depending on the level of use of a particular service;
• subsidies.

Contingent obligations of the state are possible financial obligations to the State budget in the future, as well as the size and volume of which during the implementation of the PPP project is not determined.

The Ministry of Economy and Finance carries out the functions of reviewing, agreeing, maintaining records, managing and regulating fiscal obligations that may arise from PPP projects.

The coordination scheme is as follows:

• the state partner submits to the Ministry of Economy and Finance a calculation of the state’s fiscal obligations;
• Ministry of Economy and Finance within 10 working days:
• reviews the state’s fiscal obligations in PPP projects worth over $1 million, agrees, rejects or returns for revision;
• projects over US$10 million are sent to the Cabinet of Ministers for approval;
• the public partner notifies the private partner of the decision.