PPP projects worth over 1 billion KGS in Kyrgyzstan will be awarded through an open tender

The Kyrgyz Cabinet of Ministers has amended the rules governing the implementation of public-private partnership (PPP) projects through direct negotiations. The new regulations were established by a resolution dated April 30 and primarily apply to large-scale projects valued at over 1 billion KGS.

Direct negotiations are now officially considered an exceptional mechanism and may only be used in specific cases. For example, if a project tender has failed twice due to a lack of participants, or if only one investor is technically capable of implementing the project—due to unique technologies, infrastructure, or exclusive rights.

If a project worth more than 1 billion KGS does not meet these conditions, it must be implemented only through an open tender.

The authorities have also restricted the use of direct negotiations for projects involving direct budget financing. Such projects will undergo exclusively competitive procedures. At the same time, conditional state commitments—such as minimum revenue guarantees or state guarantees—are permitted, but they must be separately approved by the Ministry of Finance.

In addition, the new rules tighten requirements for potential investors. Participants will now be required to demonstrate experience in implementing infrastructure projects, financial stability, and the availability of necessary resources. The project initiator is also required to demonstrate the availability of its own funds or financing amounting to at least 5% of the total investment.

To increase transparency, the authorities have mandated the publication of key information regarding the progress of direct negotiations: from the receipt of applications and the list of participants to the results of the evaluation and information about the winner.

The National Investment Agency under the President of Kyrgyzstan will oversee the implementation of the new rules. Together with the Ministry of Finance, the agency must bring its internal documents into compliance with the new regulations within one month.