A system of control and coordination of the state’s financial obligations at various stages of PPP projects has been established by the Resolution of the Cabinet of Ministers “On Approving the Procedure for Managing the Fiscal Obligations of the State Arising from Public-Private Partnership Projects” (the “PPP Resolution”). PPP Resolution introduces changes in the management of the state’s financial obligations in PPP. It states that the critical success factor for PPP projects shall be the availability of sufficient budgetary funds to cover the state’s direct and contingent obligations. The Ministry of Economy and Finance performs functions related to these obligations’ accounting, coordination, and management. The coordination process involves presenting the calculation of fiscal obligations to the state partner, after which the Ministry of Economy and Finance reviews the obligations within 10 working days. Projects with a cost exceeding $10 million are submitted for approval to the Cabinet of Ministers.
by Rohin Pujari
