RESOLUTION OF THE CABINET OF MINISTERS OF THE REPUBLIC OF AZERBAIJAN

on approval of the "Public-Private Partnership Rules"

 

Guided by the eighth paragraph of Article 119 of the Constitution of the Republic of Azerbaijan, with the purpose to ensure the implementation of the second part of the Decree No. 1919 of the President of the Republic of Azerbaijan dated December 27, 2022:

On the application of the Law of the Republic of Azerbaijan No. 691-VIQ “On Public-Private Partnership” dated December 9, 2022; 

On the approval of the “Regulation on the Ministry of Economy of the Republic of Azerbaijan” by the President of the Republic of Azerbaijan; 

On the abolition of the below listed decrees:

Decree No. 867 of the President of the Republic of Azerbaijan, dated April 20, 2016 “On the changes to Decree No. 504, dated December 28, 2006, “On ensuring the activity of Ministry of Economy of the Republic of Azerbaijan and “On the measures related to the improvement of activities of the Ministry of Economic Development of the Republic of Azerbaijan”, changes to Decree No. 911, of the President of the Republic of Azerbaijan, dated December 30 , 2019 “On changes to the Decree 111, dated February 20, 2014” and on application of the of the Law No. 177-VQ of the Republic of Azerbaijan, dated March 15, 2016 on “Regulations on the Special Financing of Investment Projects related to Construction and Infrastructure Facilities” and abolition of Decree No. 1149, dated December 7, 2016 “On the approval of "Regulation on the Terms of Implementation of Investment Projects Related to Construction and Infrastructure Facilities under the 'Build – Operate - Transfer' Model by Investors, Requirements placed on investors according to the types of construction and infrastructure facilities, specificities and conditions of concluded contracts, and determination of the value of goods and services to be obtained as a result of investment" the Cabinet of Ministers of the Republic of Azerbaijan hereby resolves:

 

  1. The "Public-Private Partnership Rules" be approved (attached).
  2. It shall be determined that projects with a potential total value exceeding AZN 30 (thirty) million are to be implemented under the public-private partnership framework based on the Law of the Republic of Azerbaijan on “Public-Private Partnership”.
  3. This Resolution may be amended in accordance with Article 3.5 of the "Regulations on the Preparation, Approval, Adoption, and Publication of Regulatory Legal Acts of Executive Authorities" approved by the Decree No. 2328 of the President of the Republic of Azerbaijan dated October 6, 2023.

 

Ali ASADOV

The Prime-minister of the Republic of Azerbaijan

Baku city, March 18, 2024 

No. 167 

 

 

Approved by the Resolution No. 167 of the Cabinet of Ministers of the Republic of Azerbaijan Dated March 18, 2024.

 

Public – private partnership

RULES

 

1. General provision

 

These Rules were prepared in accordance with Article 1.1.3 of the Law of the Republic of Azerbaijan "On Public-Private Partnership" (hereinafter - the Law) and define the organizational and legal basis for the implementation of public-private partnership.

 

2. Concepts

 

2.1. The basic concepts used for the purposes of these Rules convey the following meanings:

2.1.1. Estimated total cost of the project - the aggregate of all financial resources required for the complete implementation of the project to achieve the target purpose of the public-private partnership project, including capital investments, with the primary portion allocated to the establishment (restoration) of infrastructure in projects that do not involve infrastructure, as well as operational (current) expenses.

2.1.2. Feasibility study - the assessment of the feasibility of calculations concerning the project's estimate value, i.e., the determination of the composition and quantity of resources required for its implementation, including labor force, materials, and equipment, from the perspective of their availability.

2.2. Other concepts used in these Rules express meanings defined by the Law and regulatory legal acts of the Republic of Azerbaijan.

 

3. Identification of public-private partnership projects

 

3.1. Public-private partnership projects are defined in the following ways:

3.1.1. preparing a list of public-private partnership projects;

3.1.2. proposing and accepting projects as a private initiative.

 

4. Preparation of a list of public-private partnership projects

 

4.1. The competent body determines public-private partnership projects based on existing strategic documents (state programs, strategies, concepts and national action plans), based on the criteria of their significance, economic efficiency and financial risks that may arise during their implementation, as well as the distribution of these risks between the public partner and the private partner. Taking into account paragraph 4.2 of these Rules, the list includes projects that have a primary feasibility study and based on the results of such a feasibility study, can be implemented in the form of a public-private partnership.

4.2. When compiling the list, the following projects are taken into account:

4.2.1. projects for which the source of funding is not determined within the framework of strategic documents;

4.2.2. projects for which the source of funding has been determined within the framework of strategic documents, but funding has not been started.

4.2.3. projects that have been suspended for more than a year, although their financing has already begun.

4.3. Projects that have already been financed through loans, financial assistance and grants, or the source of financing of which is determined by a specific loan, financial assistance or grant, are included in the list of public-private partnership projects based on an agreement with the organizations providing the relevant loans, financial assistance or grants.

 

5. Private initiative of the applicant

 

5.1. Any individual (applicant) who meets the requirements set forth in Article 11 of the Law may propose private initiatives related to the implementation of projects under the public-private partnership framework, as per Article 10.1 of the Law, which are not included in the list of public-private partnership projects.

5.2. The proposal submitted under private initiative must include the following information and be accompanied by documents:

5.2.1. Applicant presenting the private initiative;

5.2.1.1. In case of a natural person - surname, name, patronymic, address, copy of the identity card, Tax Identification Number (TIN), if applicable, Taxpayer Identification Number (TIN) (analogous information for foreign natural persons);

5.2.1.2. In case of a legal entity - name of the legal entity, copy of the extract from the state register of legal entities dated no more than 15 (fifteen) days before the submission of the proposal and the date of removal from the state register of legal entities (analogous documents for foreign legal entities, in this case, the date of removal from the state register of legal entities may be no more than 30 (thirty) days before the submission of the proposal);

5.2.1.3. Documents and information regarding the participant(s) and ultimate beneficial owner(s) of the applicant if the applicant is a regulated market participant, except in cases where the applicant is a natural person, as specified in sub-clauses 5.2.1.1 and 5.2.1.2 of these Rules;

5.2.1.4. If the applicant presenting the private initiative is a regulated market participant - a document confirming this, individuals owning 20% or more of the capital of the applicant, as well as such individuals, and the ultimate beneficial owner(s) of the applicant as specified in sub-clauses 5.2.1.1 and 5.2.1.2 of these Rules;

5.2.2. Documents confirming that the person presenting the private initiative meets the requirements specified in Article 11 of the Law;

5.2.3. name and description of the project;

5.2.4. proposed duration of the public-private partnership;

5.2.5. initial technical-economic substantiation of the project; 

5.2.6. sources of project financing, including the preliminary agreement of a bank or credit institution to consider the issue of financing the project, if the project is to be financed with the funds involved;

5.2.7. state support and guarantees stipulated in the Law, which are required to be given to a private partner for the implementation of a public-private partnership project;

5.2.8. draft public-private partnership agreement;

5.2.9. preliminary design and cost estimate documents.

5.3. The private initiative is submitted to the authorized body electronically through the "Public-private partnership projects" section on the official website of the authorized body.

5.4. Within 60 (sixty) days from the date of private initiative submission, the competent body shall verify the compliance of the project with the requirements of Article 8.3 of the Law, make one of the following decisions and provide an official response to the applicant within 2 (two) working days electronically or by the registered mail:

5.4.1. accepting the private initiative to the next stage;

5.4.2. conditional acceptance of the private initiative to the next stage;

5.4.3. rejection of a private initiative if it does not meet the requirements of the Law, including the criteria established by Article 8.3 of the Law.

5.5. If the documents or information to be submitted by the applicant can be obtained from the relevant state body (institution) through the Electronic Government Information System, those documents or information are not required from the applicant. In cases where it is not possible to obtain such documents or information through the Electronic Government Information System, their submission is requested from the relevant state body (institution) with the consent of the applicant or is provided by the applicant.

5.6. Depending on the characteristics of the project, the competent body requests information from the applicant on the main terms of other contracts to be concluded within the framework of the public-private partnership project in order to make the decision mentioned in clause 5.4 of these Rules.

5.7. When the competent body adopts the decision mentioned in sub-clause 5.4.1 of these Rules, it places the summary of the project on its official website and in the database provided for in Article 35.1 of the Law (hereinafter - the database) or publishes it in the media within 10 (ten) days.

5.8. The conditional acceptance of the private initiative implies making reasonable changes to the conditions proposed by the applicant.

5.9. If the private initiative is accepted with reservations (changes), the reservations (changes) must be indicated in the response sent to the applicant according to clause 5.4 of these Rules.

5.10. If the competent body accepts the decision to accept the private initiative to the next stage with reservations, it negotiates with the applicant on those conditions (changes) within the next 30 (thirty) days, and the results of the negotiations are communicated to the competent body and the applicant within the next 10 (ten) days and formalized with a protocol between. The authorized body informs the applicant about the summary of the private initiative changed as a result of negotiations within 2 (two) working days from the day of signing the protocol and places it on the official website and database or publishes it in the media within the next 10 (ten) days.

5.11. If consent for amendments to the project is not obtained, the competent body makes a decision not to proceed to the next stage of the private initiative, which is recorded in the minutes of the meeting. The applicant is informed on this decision within 2 (two) days from the date of signing the protocol. The summary of the amended private initiative is published on the official website and database, or through media channels, within 10 (ten) working days from the date of signing the protocol.

5.12. The summary of the public-private partnership project, which must be posted on the official website and database of the authorized body, must reflect the information specified by clause 14.1 of these Rules (except for the sub-clause 14.1.4).

5.13. Within 60 (sixty) days after the authorized body publishes the summary of the private initiative, other persons can express their intention to participate as a private partner in the implementation of that public-private partnership project by applying to the authorized body in accordance with the procedure established by Clause 5.3 of these Regulations.

5.14. In the event that at least two other persons notify the authorized body of such intention, the authorized body shall make a decision to submit the project to the competition in accordance with the requirements of the Law and take measures to prepare the project for the competition.

5.15. If there is no person who expressed the intention to participate as a private partner in the implementation of the public-private partnership project or only one person expressed the intention, the competent body makes a decision to conduct direct negotiations under equal conditions with the person who put forward the private initiative and the other person who expressed the intention to participate.

5.16. When the proposal made on a private initiative is related to the activities of state bodies (institutions), enterprises, departments and organizations in relevant fields, the competent body must receive the opinion of those state bodies (institutions), enterprises, departments and organizations on the proposal made on a private initiative.

5.17. When the public-private partnership project submitted as a private initiative is submitted to the competition, the person who submitted the private initiative has the right to participate in the competition.

 

6. Requirements for applicants

 

6.1. In order to participate in the implementation of the public-private partnership project, applicants must meet the requirements established by Article 11 of the Law.

6.2. Applicants' application for participation in the public-private partnership competition should include the following information and attach documents:

6.2.1. applicant:

6.2.1.1. in the case of an individual - surname, first name, patronymic, address, copy of ID card, PIN code, TIN, if any (similar information for foreign individuals);

6.2.1.2. in the case of a legal entity - the name of the legal entity, its charter and a copy of the extract from the state register of legal entities no later than 15 (fifteen) days before the date of application (similar documents for foreign legal entities, in this case, the date of the extract from the state register of legal entities is no later than 30 (thirty ) can be the previous date);

6.2.1.3. documents and information about the applicant's participant (participants) and ultimate beneficial owner (owners), specified in sub-clauses 6.2.1.1 and 6.2.1.2 of these Regulations, except for cases where the applicant is a legal entity whose shares are traded on a regulated market;

6.2.1.4. if the applicant is a legal entity whose shares are traded on a regulated market - a document confirming this, persons who own 20 percent or more of the applicant's capital and such persons, as well as the last beneficial owner (owners) of the applicant, in accordance with documents and information specified in sub-clauses 6.2.1.1 and 6.2.1.2 of these Rules;

6.2.2. documents confirming that the applicant meets the requirements set forth in Article 11 of the Law.

6.3. If the documents or information to be submitted by the applicant can be obtained from the relevant state body (institution) through the Electronic Government Information System, those documents or information are not required from the applicant. In cases where it is not possible to obtain such documents or information through the Electronic Government Information System, their submission is required from the relevant state body (institution) upon request with the consent of the applicant or is provided by those persons.

 

7. Approval and change of the list of public-private partnership projects

 

7.1. The authorized body applies to the Cabinet of Ministers of the Republic of Azerbaijan for the approval of the list of public-private partnership projects for each year, including the inclusion of new projects in the list, the removal of projects from the list, and the change of projects in the list. The list of public-private partnership projects planned for the next calendar year should be submitted to the Cabinet of Ministers of the Republic of Azerbaijan by June 30 of the current calendar year. The list of public-private partnership projects is approved by the Cabinet of Ministers of the Republic of Azerbaijan. When it is necessary to include new projects in the list, to remove projects from the list, as well as to make changes in the list, the competent body applies to the Cabinet of Ministers of the Republic of Azerbaijan.

7.2. If all the projects listed in the list of approved public-private partnership projects are implemented, the competent body must submit a new list of public-private partnership projects in accordance with Part 4 of these Regulations.

7.3. Projects listed in the list of approved public-private partnership projects are removed from the list on the following grounds:

7.3.1. if the intention to participate as a private partner in the public-private partnership project is not reported within the period stipulated in Clause 9.2 of these Rules after the information on public-private partnership projects has been disclosed by the competent body;

7.3.2. if the public-private partnership competition does not take place or direct negotiations end without results.

7.4. After approval of the list of public-private partnership projects and (or) relevant changes made to the list, the competent body shall place the list and (or) relevant changes on the official website and database, as well as publish it in the media. The list of public-private partnership projects can also be published in reputable foreign and international media.

7.5. When determining the number of projects included in the list of public-private partnership projects, after the approval of that list, preparation of projects for competition or direct negotiations, holding the competition (or direct negotiations) and concluding relevant contracts within the period determined by the competent body and starting the implementation of the projects should be taken into account.

 

8. Identification of the public partner

 

8.1. An authorized body shall designate a state body (institution) acting as a public partner in a public-private partnership project, as well as a municipality or municipal enterprise:

8.1.1. on projects included in the list of public-private partnership projects - when the list of public-private partnership projects is prepared;

8.1.2. on projects proposed as a private initiative - when a private initiative is submitted or the project is prepared for competition (when required).

8.2. The authorized body shall determine the public partner on the basis of which state body (institution), as well as municipality or municipal enterprise, is responsible for the implementation of the relevant project. If the project falls under the authority of several state bodies (institutions), as well as a municipality or municipal enterprise, the competent body identifies the public partner based on discussions with those state bodies (institutions), as well as municipalities and municipal enterprises, or, according to Article 8.2 of the Law, the project makes a decision on joint implementation by relevant state bodies (institutions), as well as municipalities or municipal enterprises.

8.3. If the state body (institution) identified as a public partner by the competent body does not agree with its identification as a public partner, the final decision is taken by the Cabinet of Ministers of the Republic of Azerbaijan based on the request of the competent body.

8.4. If the municipality or municipal enterprise identified by the authorized body as a public partner does not agree with its identification as a public partner, the authorized body identifies another public partner or applies to the Cabinet of Ministers of the Republic of Azerbaijan to remove the project from the list of public-private partnership projects, in the manner of a private initiative. and in relation to the proposed projects, it decides not to accept the private initiative to the next stage.

 

9. Express of intention to participate in public-private partnership projects

 

9.1. In accordance with Articles 8.1 and 10.4 of the Law, the competent body shall make public the list of public-private partnership projects and the summary of the private initiative by placing it on the official website and database or publishing it in the media.

9.2. After the information on public-private partnership projects is disclosed by the competent body, every person who intends to participate as a private partner in the public-private partnership project within the period determined by the competent body in the announcement, and in the case of the summary of the private initiative, within 60 (sixty) days after its publication has the right to notify the competent body of its intention through the relevant section on its official website.

9.3. In the notification of the intention to participate in the public-private partnership project (hereinafter - the notification of intention), the following information should be indicated and documents should be attached:

9.3.1. applicant:

9.3.1.1. in the case of an individual - surname, first name, patronymic, address, copy of ID card, PIN code, TIN, if any (similar information for foreign individuals);

9.3.1.2. in the case of a legal entity - a copy of the extract from the state register of legal entities no later than 15 (fifteen) days before the date of the name, charter and private initiative of the legal entity (similar documents for foreign legal entities, in this case, the date of the extract from the state register of legal entities no later than 30 (thirty) days ago date);

9.3.2. a description of the activity of the person giving the notice of intent, as well as his experience in the implementation of projects of this type.

9.4. If the documents or information to be submitted by the applicant can be obtained from the relevant public body (institution) through the Electronic Government Information System, those documents or information are not required from the applicant. In cases where it is not possible to obtain such documents or information through the Electronic Government Information System, their submission is required from the relevant state body (institution) upon request with the consent of the applicant or is provided by those persons.

9.5. Other information that the applicant considers important may also be mentioned in the notice of intent.

9.6. A notice of intent does not obligate the notifiers to participate in a public-private partnership project, a project competition, or direct negotiations.

 

10. Determining the sequence of implementation of public-private partnership projects

 

10.1. The authorized body determines the sequence of implementation of the projects in the list of public-private partnership projects based on the importance, urgency, and interest of the projects based on the notices of intent.

10.2. The authorized body regularly analyzes the notices of intent on the projects in the list of public-private partnership projects and may change the order of implementation of the projects according to the results of the analysis.

10.3. The authorized body publishes the order of implementation of the projects in the list of public-private partnership projects on its official website.

11. Making a decision on the implementation of the public-private partnership project through competition or direct negotiations

 

11.1. After determining the sequence of implementation of the projects in the list of public-private partnership projects, the competent body makes a decision on putting the public-private partnership project out to competition or implementing it on the basis of direct negotiations.

11.2. Implementation of the public-private partnership project on the basis of direct negotiations without holding a competition is allowed in the cases defined by Article 24 of the Law. At this time, the decision of the competent body to implement the public-private partnership project on the basis of direct negotiations:

11.2.1. In the cases stipulated in Article 24.1.1 of the Law - it is accepted taking into account the opinion of the State Service for Antimonopoly and Consumer Market Control under the Ministry of Economy of the Republic of Azerbaijan;

11.2.2. In the cases provided for in Article 24.1.2 of the Law - taking into account the opinion of the relevant state bodies, as well as "On the list of items that are not allowed to be in civil circulation (excluded from civil circulation)" and "The circulation of items that may belong to certain participants of civil circulation and are allowed to circulate on the basis of a special permit on the list of provided (civilian circulation restricted) items" is accepted in relation to projects related to infrastructure creation, management and (or) provision of public services using items specified by the laws of the Republic of Azerbaijan;

11.2.3. In the cases provided for in Article 24.1.3 of the Law - it is accepted taking into account the urgency of the need to implement the corresponding public-private partnership project;

11.2.4. In the cases defined by Article 10.7 of the Law - it is accepted on the grounds defined by Article 5.15 of these Rules;

11.2.5. In the cases provided for in Article 29 of the Law - the remaining period until the expiration of the public-private partnership contract by the competent body, the degree of completion of the project, the need to ensure the continuity of infrastructure operation and (or) the provision of public services, the period for conducting a new competition and (or ) is accepted taking into account its feasibility in terms of cost;

11.2.6. It is accepted in the cases stipulated in Article 37.3 of the Law.

11.3. With the exception of the cases specified in clause 11.2 of these Rules, the competent body makes a decision to put the public-private partnership project out to competition.

11.4. In the decision of the authorized body on putting the public-private partnership project out to competition or concluding a contract based on direct negotiations, the following must be specified:

11.4.1. name and description of the project;

11.4.2. implementation of the project on the basis of the list of public-private partnership projects or on the basis of private initiative;

11.4.3. implementation of the project on the basis of competition or direct negotiations;

11.4.4. If the public-private partnership project is implemented on the basis of direct negotiations:

11.4.4.1. justification of the decision;

11.4.4.2. information about the private partner specified in sub-clauses 5.2.1.1 or 5.2.1.2 of these Rules;

11.4.4.3. the name of the state body (institution), municipality or municipal enterprise that will conclude a contract with the private partner;

11.4.5. establishment of a working group on the public-private partnership project;

11.4.6. measures to be taken according to the Law and these Rules for preparing the public-private partnership project for competition or conducting direct negotiations and their probable implementation period.

11.5. The documents that are the basis for making the decision mentioned in clause 11.4 of these Rules, including the information and documents provided for in sub-clauses 11.4.4.1-11.4.4.3 of these Rules, if the public-private partnership project is implemented on the basis of direct negotiations, are attached to that decision.

11.6. If the public-private partnership project is implemented on the basis of direct negotiations, the draft or the main terms of the contract are approved by the working group. The draft or main terms of the public-private partnership agreement are submitted to the applicant by the competent body.

 

12. Working group

 

12.1. When making a decision on the implementation of a public-private partnership project on the basis of competition or direct negotiations, the competent body must resolve the issue of organizing a working group to prepare the project for competition or direct negotiations and shall determine the state bodies (institutions), municipalities and municipal enterprises that will be involved in the work of the working group. The working group is composed of representatives of the Ministry of Economy of the Republic of Azerbaijan, the Ministry of Finance of the Republic of Azerbaijan, the Ministry of Ecology and Natural Resources of the Republic of Azerbaijan, and the Ministry of Justice of the Republic of Azerbaijan, including representatives of other institutions with which the public partner has to cooperate directly, depending on the characteristics of the project.

12.2. The authorized body sends a copy of the decision on the organization of the working group within 2 (two) days by registered mail or electronically to the public bodies (institutions), municipalities and municipal enterprises mentioned in Clause 12.1 of these Rules. Public bodies (institutions), municipalities and municipal enterprises must appoint a responsible official to the working group within 15 (fifteen) days and inform the competent body about it.

12.3. The work of the working group is organized by the chairman of the working group appointed by the competent body, and the chairman leads the activity of the working group. A responsible official of the authorized body is appointed as the chairman of the working group. The chairman of the working group can propose the inclusion of new members to the working group based on the suggestions of other members or on his own initiative.

12.4. The chairman of the working group creates the secretariat of the working group. The Secretariat organizes work on the following current issues:

12.4.1. determining the agenda of the meetings of the working group;

12.4.2. sending notifications to members of the working group about the place and time of the meeting of the working group;

12.4.3. drawing up working group meeting minutes and ensuring that they are sent to members;

12.4.4. drawing up relevant written requests and adding their answers to the protocol of working group meetings;

12.4.5. drawing up a decision on the dissolution of the working group due to the achievement of the goals of the working group.

12.5. Each member of the working group represents the official position of the state body (institution), municipality and municipal enterprise that appointed that member on each issue related to the powers of the working group on the relevant public-private partnership project.

12.6. The competent body must submit all documents and information related to the relevant public-private partnership project to the working group.

12.7. The work of the working group is organized by holding meetings or sending written requests. At least 15 (fifteen) days before the meeting of the working group, all members of the working group should be notified about the place and time of the meeting. The notice must include the agenda of the meeting and documents and information for discussion and decision-making of the issues included in the agenda.

12.8. Members of the working group can participate in the meeting in person or remotely using information technologies.

12.9. The meeting of the working group is considered authorized if more than half of its members are present. If the issue to be discussed at the meeting of the working group concerns the powers of the relevant state body (institution), municipality or municipal enterprise participating in the work of the working group, the participation of the member of that state body (institution), municipality or municipal enterprise appointed to the working group in that meeting is mandatory. Decisions at the meeting of the working group are made by a simple majority of the members present at the meeting through open voting. In the event of a tie, the vote of the chairman of the working group is decisive and the chairman casts the final vote.

12.10. All meetings of the working group are recorded by the secretariat. The protocol should include the following information:

12.10.1. place and time of the meeting;

12.10.2. members of the working group participating in the meeting and the name of the state body (institution), municipality and municipal enterprise they represent;

12.10.3. information required to determine which public-private partnership project the meeting relates to;

12.10.4. meeting agenda;

12.10.5. a summary of the discussions on each issue at the meeting;

12.10.6. voting results and the adopted decision, indicating the order in which members of the working group participating in the meeting voted on each issue.

12.11. The protocols of the working group are signed by the chairman and secretary of the working group and are sent electronically to all members of the working group within 3 (three) days. Each member of the working group who participated in the meeting can submit his notes and additions to the protocol to the working group within 5 (five) working days. Such additions and notes are attached to the minutes of the working group.

12.12. Working group decisions can also be made by sending written requests to all members of the working group. In such a case, the decision of the working group is signed by the chairman based on the written answers received from the members. Written responses received from members must be attached to the decision. 

12.13. The powers of the working group include the following issues:

12.13.1. evaluation and approval of the set of conditions of the competition;

12.13.2. carrying out and evaluating work on the completion of the detailed feasibility study of the public-private partnership project, including discussing the feasibility study, asking questions to the state partner and experts who prepared the feasibility study, requesting explanations, analyzing the feasibility study clarifying the issues, identified risks, positive and negative aspects and making relevant changes in the feasibility study, requesting its re-drafting, including giving a final opinion on the feasibility study;

12.13.3. analysis and approval of draft contracts or basic terms of contracts for the implementation of the public-private partnership project;

12.13.4. other powers determined by the competent body depending on the characteristics of the project.

13. Specialists, experts, consultants and translators

 

13.1. As part of the preparation of the public-private partnership project for competition or direct negotiations, the public partner must resolve the issue of attracting specialists, experts, consultants, translators (hereinafter - experts) in relevant fields.

13.2. Persons with specialized knowledge in the relevant field should be involved as experts. Persons who know the language(s) required for the relevant project and have the necessary knowledge to translate can also be involved as translators. In public-private partnership projects that involve a foreign private partner and (or) foreign banking and credit organizations, preference should be given to involving persons accredited or certified by reputable international or foreign field organizations as experts.

13.3. Experts are involved in the project on the basis of the contract concluded between the relevant expert (natural or legal person) and the public partner.

13.4. Experts are involved for the following purposes:

13.4.1. development of technical, financial, economic and other features of the public-private partnership project;

13.4.2. when required, preparation of the technical-economic justification of the public-private partnership project, as well as review of the submitted technical-economic justification and its clarification, modification, re-drafting;

13.4.3. determination of the time of the competition, preparation of the set of conditions of the competition;

13.4.4. preparation of drafts or basic terms of contracts to be concluded within the framework of the public-private partnership project;

13.4.5. giving explanations to the participants of the competition;

13.4.6. negotiating with a private partner;

13.4.7. providing opinions and references on relevant issues to the public partner or authorized body, working group;

13.4.8. translation of the set of conditions, contracts, other documents of the competition for the public-private partnership project;

13.4.9. providing expert opinions to the working group in the evaluation of proposals;

13.4.10. Assessment of the environmental impact of the public-private partnership project according to the Law of the Republic of Azerbaijan "On environmental impact assessment";

13.4.11. other purposes determined by the state partner or competent body.

13.5. Opinions, references, explanations, positions expressed by experts are of a recommendation nature.

13.6. All or a certain part of the expenses of the experts may be paid by the private partner to the public partner in cases provided for in the set of conditions of the competition or if an agreement is reached as a result of direct negotiations.

 

14. Feasibility study of the public-private partnership project

 

14.1. The preliminary feasibility study of the public-private partnership project is prepared by the public partner and the private partner, respectively, at the stage mentioned in clauses 4.1 and 5.2 of these Regulations. The preliminary feasibility study provides a general overview of the project, that is, a preliminary analysis of the proposals and indicators summarized on the feasibility of the project, including a brief summary of the following issues:

14.1.1. name and brief description of the project;

14.1.2. expected financial and economic efficiency of the project;

14.1.3. its local, regional or national importance, taking into account the financial and economic efficiency of the project;

14.1.4. financial risks that may arise during the implementation of the project and the proposed distribution of these risks between the project parties;

14.1.5. the name of the public partner;

14.1.6. estimated total cost of the project.

14.2. The detailed feasibility study of the public-private partnership project, which was decided to be implemented through the competition, is prepared in connection with the working group created for the purposes of the project after the decision has been made by the public partner. For this purpose, the public partner may involve the experts specified in part 13 of these Rules.

14.3. The detailed technical-economic justification of the public-private partnership project is carried out in technical, financial-economic, legal, term and organizational directions.

14.4. The detailed technical and economic justification of the public-private partnership project should cover the issues defined by Article 12.2 of the Law and include the implementation plan of the public-private partnership project, the technologies and processes to be applied, the impact on the environment, the socio-economic, cultural impact as a result of the implementation of the project, taking into account the impact on the infrastructure to be created, the product to be produced, the services to be provided, the demand for the work to be done, legal and political issues, the risks of project implementation and ways to prevent them, the negative and positive aspects, as well as the likely financial impact of the project implementation to the state partner or the state budget must determine its load.

14.5. The authorized body can publish instructions, recommendations and give explanations on the preparation of technical and economic justification of public-private partnership projects.

14.6. Depending on the characteristics of the public-private partnership project, the following issues should be determined at the stage of preparation of the feasibility study:

14.6.1. legal status of the land where the project will be located, purchase, lease or use of land according to the Law;

14.6.2. the infrastructure to be used, managed and created for the project. 

 

15. Preparation of the public-private partnership project for competition or direct negotiations

 

15.1. After the preliminary feasibility study of the public-private partnership project is submitted to the competent body, the competent body submits the feasibility study to the working group.

15.2. The preliminary feasibility study of the public-private partnership project is examined by the working group and, if evaluated positively, is submitted to the competent body for approval.

15.3. After the initial feasibility study of the public-private partnership project is approved, the competent body prepares the set of conditions of the competition if the project is to be put out to competition, drafts of contracts or their main conditions if the project is to be implemented on the basis of direct negotiations.

 

16. The set of conditions of the competition and carrying out its changes

 

16.1. The set of conditions of the competition should include the minimum technical requirements for project proposals and information provided for in Articles 5.2, 11.2, 17.1, 19.3 of the Law. The competent body is considering adding the following to the set of conditions of the competition:

16.1.1. the possibility and conditions of final negotiations and clarifications of the competent body with the winner of the competition;

16.1.2. duration of the competition;

16.1.3. creation of a project company and its requirements;

16.1.4. provision of a guarantee by the plaintiff for the obligations of the project company;

16.1.5. provision of state support and guarantees to the private partner;

16.1.6. Reducing or eliminating the negative impact of the change in the value of the national currency of the Republic of Azerbaijan against foreign currencies on the public-private partnership project;

16.1.7. the procedure for allocating land plots to a private partner;

16.1.8. other information determined by the competent body depending on the purpose, structure and characteristics of the public-private partnership project.

16.2. The list of documents that must be attached to the applications of applicants who want to participate in the competition is also defined in the set of conditions of the competition.

16.3. If changes are made to the set of conditions of the competition after the start of the competition, the duration of the competition may be extended to the period specified in the announcement of these changes, but on the condition that the increased period does not exceed the initial duration of the competition. In the event that additional discussions on changes in the conditions of the competition are required, especially for complex or large-scale projects, the period of time that lasted until the calendar day when the need for change was determined by the working group, the change was evaluated positively or negatively and approved by the competent body is not included in the extended period. All applicants of the competition are informed about the changes made in the set of conditions of the competition within the next 2 (two) working days from the day when the change is determined as a condition of the competition.

16.4. Changes in the conditions of the competition are announced in the same way as the conditions of the competition are announced.

 

17. Detailed description of the public-private partnership project

 

17.1. In accordance with Articles 8.1 and 8.5 of the Law, a comprehensive (detailed) description of public-private partnership projects identified by the competent body or submitted by bidders should be prepared, submitted and verified. Being part of the detailed feasibility study of the public-private partnership project, a comprehensive (detailed) description of the project is prepared in accordance with clause 14.2 of these Rules and is finally included in the tender conditions.

17.2. The (detailed) description of the public-private partnership project includes the following information:

17.2.1. name of the public-private partnership project;

17.2.2. objectives of the public-private partnership project;

17.2.3. justification of project implementation in terms of economic efficiency and importance;

17.2.4. forecasts regarding the duration of the project (taking into account the service life of the infrastructure to be created, the form and volume of investment by the private partner, the period of return of funds, terms and profitability of the projects, etc.);

17.2.5. other information depending on the characteristics of the public-private partnership project.

18. Implementation of public-private partnership projects

 

18.1. Implementation of public-private partnership projects is carried out by the private partner directly or by the project company with the involvement of third parties.

18.2. The risks that may arise during the implementation of public-private partnership projects and the distribution of these risks between the parties are regulated by the public-private partnership agreement.

18.3. The conditions stipulated in the set of conditions of the competition for the public-private partnership project regarding the implementation and implementation period are repeated and (or) updated in the public-private partnership agreement. Any changes or updates related to the implementation must not contradict the expected or expected results of the implementation from the set of conditions of the competition.

18.4. The current control of the implementation of the project by the private partner is carried out by the public partner. The general evaluation of the implementation of the public-private partnership project is carried out by the competent body on the basis of monitoring.

 

19. Land plot

 

19.1. If one of the conditions of the public-private partnership agreement includes the allocation of the land plot for the implementation of the public-private partnership project, the relationship between the competent body and the private partner regarding the lease or use of land is regulated by the agreement.

19.2. When state and municipal owned lands are leased, the amount of rent shall not be less than the minimum amount of rent provided for the lease of state-owned lands determined by the Cabinet of Ministers of the Republic of Azerbaijan in accordance with the Law of the Republic of Azerbaijan "On Land Lease". Also, the amount of rent offered by the contestants should not be less than the corresponding minimum rent amount determined by the legislation.

19.3. Regardless of the form of land allocation required for the implementation of the public-private partnership project, it cannot be provided for more than 49 (forty-nine) years.

19.4. All remains, coins, precious or antique objects, buildings, groups of buildings and other remains or objects of geological, archaeological, paleontological, historical, architectural or religious interest found on the land should be under the custody and protection of the state. The private partner shall notify the competent body of such findings as soon as practicable after discovering any such findings and shall comply with the instructions of the competent body in their respect.

19.5. In projects of regional importance, the private partner must comply with the existing general norms in the field of environmental protection, as well as the special rules stipulated in the public-private partnership agreement regarding the use of the land plot and the prevention of environmental pollution related to the subsequent restoration.

 

20. Use of local resources in a public-private partnership project

 

20.1. According to Article 17.1.4 of the Law, the use of local resources (manpower, goods, work and services) within the framework of the publ