Why is this important
Public procurement is one of the largest segments of budget expenditures, the transparency and competitiveness of which directly determine the effectiveness of the use of public funds. Changes in this area affect the interests of businesses, government bodies, and producers, including domestic companies. Increased competition and expanded public control reduce the risks of inflated prices and limited access to procurement.
What happened
- The leader of Uzbekistan signed a decree on ensuring competition and transparency in the public procurement system.
- The Decree defines the target indicators for reforming the public procurement system until 2030, as well as the phased revision of procedures for direct contracts, electronic procurement, and control mechanisms.
- The document establishes new requirements for the development of regulatory documents, the publication of procurement documentation, and the disclosure of information on procurement results.
- A separate block of measures concerns the implementation of digital tools and the use of artificial intelligence in price formation and risk assessment.
Numbers and facts
- By 2030, it is planned to increase the share of competitive methods of public procurement to 80% of the total volume, and the total savings to 25 trillion soums.
- The goal was set to double business activity in public procurement and increase the share of domestic products to 98%.
- From January 1, 2026, the list of goods, works, and services purchased under direct contracts is canceled; offers in the electronic store will be placed for 60 days instead of 15, with a minimum delivery period of 5 days.
- Announcements about planned procurements under direct contracts must be published for public discussion within at least 3 working days, and draft procurement documents — within 2 working days.
- From March 1, 2026, an AI module for calculating the average market price must be launched on the public procurement portal; if the price deviates by more than 10% or less than 20%, the purchase will be attributed to a high risk and will serve as a basis for an unscheduled inspection.
Context
- Previously, the system allowed for a wide range of purchases under direct contracts, which raised questions about price transparency.
- The new decree establishes the rejection of such practices and introduces a multi-level control system involving relevant agencies and public discussion.
- The reform restricts the possibility of procurement without competition and strengthens the requirements for their justification and publicity.
- For businesses, this expands access to the state order and introduces clearer and more predictable participation rules.
- For the state, it enhances price control, reduces corruption risks, and strengthens the role of digital tools in oversight.
