During today's plenary session, the Milli Majlis (National Assembly) of the Republic of Azerbaijan adopted a bill on amendments to the law "On Public Procurement" in its final reading.
Operative Information Center-OMM reports that the new legislation establishes a mechanism to exempt non-resident suppliers from performance and advance payment guarantee obligations.
Under the new amendments, non-resident legal entities or individuals may submit a reasoned application to the procurement commission to be exempted from the obligation to provide performance and/or advance payment guarantees alongside their procurement proposals.
Furthermore, when a single-source procurement method is applied, if 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—the procuring organization will submit a request to the relevant state authority within 10 business days.
The relevant authority, based on proposals from the supervisory body, will then make a final decision within 20 business days on whether to grant or deny the exemption for the foreign supplier. If an exemption is granted, no new decision will be required for the same supplier if the same subject matter is procured by the same organization within the following 12 months.
The public procurement system in Azerbaijan is a critical component of the country's economic governance, designed to ensure efficient use of state funds and foster competition. These legislative updates reflect the government's ongoing commitment to streamlining administrative procedures, making the Azerbaijani market more accessible and attractive to international partners while maintaining rigorous oversight standards.
