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17 April 2019

Decree on attracting investors to health care based on PPP

President of the Republic of Uzbekistan Shavkat Mirziyoyev signed the Resolution “On measures for the development of public-private partnership in the health sector”, which is aimed at creating a legal mechanism for introducing PPP into the health sector, since at present this area is not fully regulated.

The decree determines that:

  • PPP projects in the field of medicine are launched on the basis of an agreement between a public and private partner. This may be the design and construction of clinics or the provision of goods and services;
  • will select a private partner on the basis of a tender or direct negotiations;
  • the term of the agreement is determined by the partners, but it can not be less than three years and more than 49 years;
  • land plots allocated to entrepreneurs, medical and other equipment, buildings and structures built by them are transferred to the state partner at the end of the agreement validity period.

The state partner in turn is the Ministry of Health of the Republic of Uzbekistan.

An interested entrepreneur who intends to build a hospital, laboratory building or equipment, can contact the Ministry of Health, and it is obliged to consider this initiative. For the legislation of Uzbekistan, this practice will be new, but it is applied all over the world.

In addition, entrepreneurs will be able to receive preferential loans, but only for the purchase of modern imported medical equipment and inventory. Loans will be allocated for eight years, including a three-year grace period. Investors will be required to make private investment.

The first tenders are scheduled for this summer. Depending on the objects and companies, tenders will be either closed or open.