Milli Majlis (National Assembly) has given final approval to separate rules for procurements carried out by certain legal entities in Azerbaijan using other financial resources, and to the requirement that procurement contracts be formalized electronically, except when the supplier is a non-resident.
“Operative Information Center-OMM” reports that a draft amendment to the Law “On Public Procurement” was discussed at the parliament’s first meeting of today’s autumn session.
The proposed amendments are aimed primarily at excluding procurements by the legal entities listed in subparagraph 3.2.8-1 of the law from its scope when they are financed from sources other than specified financial resources.
The new subparagraph 3.2.8-1 covers procurements by an entity designated by the relevant executive authority, state enterprises under its management, companies with state ownership stakes and public legal entities. The provision also applies to procurements by legal entities in which those bodies are founders or participants, in proportion to their ownership stakes. The law will not apply to these procurements when they are financed from other sources. The exception does not apply when procurement is financed from the state budget or the budget of the Nakhchivan Autonomous Republic, including targeted budget funds, budget loans, subsidies, loans secured by state guarantees, state grants or aid, or funds from extra-budgetary state funds.
An amendment to Article 3.2.8 would exclude the legal entities covered by subparagraph 3.2.8-1 from its scope and define them as a separate category. Under the new Article 3.10-1, the rules governing their procurement of goods, works and services will be approved by a body designated by the relevant executive authority. Contracts for procurements covered by subparagraph 3.2.8-1 must be concluded and submitted electronically through the information system. Procurements in which the winning supplier is a non-resident, as well as those specified in Article 15.3 of the law, are exempt from this electronic requirement.
After discussion, the draft was put to a vote and passed at third reading.
