Tender as a Form of Public Procurement in Uzbekistan

The modern public procurement system of Uzbekistan is based on the principles of transparency, competition, and efficiency in the use of budgetary funds. One of the key instruments for ensuring these principles is the tender — a competitive procedure for selecting a public procurement contractor, in which the winner is the participant who offers the most favorable conditions for contract execution.

According to the Law of the Republic of Uzbekistan “On Public Procurement” dated April 22, 2021, No. ZRU-684, a tender is defined as a competition providing for the determination of a contractor through a competitive procedure, as a result of which the winner is recognized as the participant who offered the optimal conditions.

A tender refers to competitive procurement methods (alongside auction, selection of the best proposals, electronic store, etc.) and is aimed at achieving a balance between the price and quality of the procured goods, works, or services.

Principles of Tendering

The tender procedure is regulated by the general principles of public procurement established by the Law:

• Openness and transparency — all information about the tender is published on a special information portal.
• Competition and objectivity — equal access of participants to information, impartiality of the procurement commission.
• Rationality and efficiency — selection of the optimal offer in terms of price and quality.
• Prohibition of corruption — elimination of conflicts of interest, transparency of procedures.
• Sustainability — consideration of social, economic, and environmental factors when selecting an offer.

Participants of Tender Procedures

The key entities are:

• Public customer — initiator of procurement, formulating requirements and conditions.
• Procurement commission — collegial body evaluating participants’ offers.
• Tender participants — legal entities and individuals, residents and non-residents of Uzbekistan.
• Contractor — the winner, signing a contract with the customer.

Stages of the Tender Procedure

1. Planning — inclusion of procurement in the annual or quarterly plan-schedule.
2. Publication of announcement — posting information on the portal with conditions and criteria.
3. Preliminary qualification selection (if necessary) — checking compliance of participants with established requirements.
4. Submission and opening of proposals — registration of applications and their formal verification.
5. Evaluation and comparison of proposals — application of criteria (price, deadlines, quality, warranty, etc.).
6. Determination of the winner and acceptance — decision-making on the optimal proposal.
7. Contract conclusion — formalization and registration in the Unified Register of Contracts.

Advantages and Limitations of the Tender Procedure

Advantages:

• High level of competition;
• Transparency and publicity;
• Opportunity to select the most advantageous offer;
• Consideration of social and environmental factors.

Limitations:

• Complexity and duration of procedures;
• Need for a qualified procurement commission;
• Risk of a formal approach to document evaluation;
• Possibility of unfair participation (e.g., collusion between participants).

Tenders as a form of public procurement in Uzbekistan play a key role in ensuring the efficient and transparent use of public funds. Their legal regulation is aimed at attracting the maximum number of participants, improving the quality of procured goods and services, as well as minimizing corruption risks. In the future, further improvement of tender procedures will be associated with the expansion of electronic systems, the introduction of international standards, and increased control by the state and society.

Stages of Tender in Uzbekistan’s Public Procurement

Stage	Content	Responsible bodies/persons	Approximate deadlines	Possible risks
1. Planning	Inclusion of procurement in annual/quarterly plan-schedule	Public customer	By March 25 (annual); by the 25th of the last month of the quarter (quarterly)	Inaccurate planning; under/overestimation of needs
2. Announcement	Posting procurement information (subject, price, conditions)	Public customer via special portal	20–30 days before application deadline	Restricted access to info; discriminatory conditions
3. Pre-qualification	Checking participants’ compliance with criteria (finance, experience, no debts)	Procurement commission	Within 5–10 days after applications	Corruption; exclusion of worthy participants
4. Submission & opening	Registration and opening of bids (envelopes/e-files)	Procurement commission (secretary)	On application deadline day	Info leakage; breach of confidentiality
5. Evaluation	Comparison by criteria: price, quality, deadlines, guarantees, eco-friendliness	Procurement commission, experts (if needed)	5–15 business days	Formalism; biased evaluation
6. Winner determination	Decision by majority vote, protocol	Procurement commission	On completion of evaluation	Collusion; conflict of interest
7. Acceptance	Official confirmation of winner	Public customer	1–3 business days	Unjustified cancellation
8. Contract conclusion	Signing contract with winner and registration in Unified Register	Public customer & winner	Within 10 business days	Refusal of winner; delays
9. Contract execution	Delivery of goods/works/services, payment, supervision	Contractor & customer	Depends on contract	Improper execution; payment delays
10. Monitoring & reporting	Execution control, publication in register	Authorized body, customer	Ongoing	False reporting; concealment of violations

 

Procurement Cases Where Tender Is Not Applicable

The Law “On Public Procurement” of Uzbekistan establishes cases where tenders are not applied, since other forms of procurement or special exceptions are used:

• Small-value procurements — if the amount does not exceed thresholds (e.g., up to 50 base calculation values (BCV) for budget customers).
• Procurements of standard goods and services of small value — goods up to 2,500 BCV and works/services up to 50 BCV (for budget customers) via e-store.
• Procurements based on lowest starting price — auction instead of tender.
• Procurement through selection of best proposals — where comparison of conditions is important.
• Procurements related to security and secrecy — defense, security, protection, elections, state secrets.
• Procurement from a sole supplier (direct contracts) — monopoly, copyrights, urgent procurements.
• Procurements financed by foreign grants or loans — if donor rules provide otherwise.

 

Procurements Allowed and Not Allowed Through Tender

Procurement category	Tender applicability	Alternative procurement method	Legal basis
Large procurements of goods, works, services	Allowed	Tender	General norm of procurement law
Technically complex procurements	Not allowed	Two-stage procurement	Art. 4 (definition)
Small-value procurements (up to 50 BCV; for budget — 25 BCV)	Not allowed	Simplified procedure	Art. 30, 51¹
Standard goods/services of small value (up to 2,500 BCV for budget)	Not allowed	E-store	Arts. 49–51
Procurements where the only criterion is price	Not allowed	Auction (price reduction)	Art. 4, Art. 30
Procurements requiring comparison of several offers	Not allowed	Selection of best proposals	Art. 4, Art. 30
Procurements for defense, security, elections, state secrets	Not allowed	Special procedures (closed)	Art. 2
Procurement from a sole supplier	Not allowed	Direct contract	Art. 30
Procurements financed by foreign credits/grants	Not allowed (if other rules apply)	Donor/IGO procedures	Art. 2