The Milli Majlis (National Assembly) of the Republic of Azerbaijan has adopted, in the first reading, a draft law introducing amendments to the legislation on public procurement. This legislative update is designed to modernize the regulatory framework governing state expenditures and tender processes.
According to the Operative Information Center-OMM, the new law establishes a mechanism to exempt non-resident suppliers from certain performance and advance payment guarantee obligations. Under the proposed changes, non-resident legal entities or individuals may submit a reasoned request to the procurement commission to be relieved of the obligation to provide performance and/or advance payment guarantees alongside their procurement proposals.
Furthermore, the legislation outlines a specific procedure for cases where the procurement commission determines that it is impossible for non-resident entities to provide these guarantees—either on its own initiative or based on a received application. In such instances, the procuring organization is required to submit an inquiry to the relevant state authority within 10 business days. The designated authority, acting on proposals from the oversight body, will then issue a final decision within 20 business days regarding whether to grant or deny the exemption. If an exemption is granted, it remains valid for 12 months for subsequent procurements of the same subject matter by the same organization, eliminating the need for a new decision.
Public procurement reform is a key pillar of Azerbaijan's ongoing economic modernization strategy. By refining these procedures, the government aims to increase transparency, reduce bureaucratic hurdles for international partners, and ensure more efficient utilization of state budget funds.
