The Cabinet approved new procurement rules for state-owned enterprises: what will change

The Cabinet of Ministers of the Kyrgyz Republic has made changes to Resolution No. 301, adopted in 2022, concerning procurement for state and municipal enterprises, as well as companies in which the state owns more than 50% of the authorized capital.

The purpose of these amendments is to simplify and optimize the procurement process, as well as to increase transparency and reduce administrative barriers for state companies. The new version of the document expands the list of exceptions, clarifies the requirements for competitive procedures, and establishes updated thresholds for "the simplest procurements":

• for state and municipal enterprises — from 50,000 soms;


• for state enterprises and their subsidiaries, where the state share exceeds 50% — from 500,000 soms.

Additionally, the conditions for concluding framework agreements, the procedure for working with internal supplier registers, requirements for technical specifications, and the process for forming annual procurement plans have been detailed.

The regulatory act introduces provisions allowing international financial institutions to be considered as sources of funding for procurements, and also expands the list of services that do not require a separate competitive procedure (for example, banking services, payment system services, agency agreements, etc.).

Furthermore, the document strengthens the requirements for procurement transparency: now, customers are required to publish information in the system within established deadlines, and the appeals mechanism is linked to the internal audit of organizations.

The new rules will come into effect ten days after official publication.