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LEGAL REGULATION OF ELECTRONIC TENDERS IN THE REPUBLIC
OF UZBEKISTAN
Mutalipova Lola Farxadovna
Master's student of the Tashkent State University of Law
https://doi.org/10.5281/zenodo.16352831
Abstract:
Electronic tenders (e-tenders) have become a cornerstone of
public procurement reform in Uzbekistan, serving as tools to enhance
transparency, efficiency, and economic policy goals. This article examines the
legal regulation of e-tenders in the Republic of Uzbekistan, combining a
theoretical analysis of the concept and principles of electronic tendering with a
comparative assessment of international best practices from jurisdictions such
as South Korea, the European Union, and the United States. It traces the
evolution of Uzbekistan’s procurement legislation – notably the 2018 and 2021
public procurement laws – and how these reforms have progressively aligned
national practice with global standards. The thesis highlight significant progress
in digitising tender procedures and embedding principles like competition,
openness, and sustainability into law.
Keywords
: electronic tenders; public procurement; Uzbekistan,
transparency, UNCITRAL, KONEPS, European Union.
Public procurement frequently experiences inefficiencies and corruption,
highlighting the importance of transparent and competitive practices.
Internationally, electronic procurement (e-procurement) has addressed these
issues effectively, as evidenced by the European Union (EU) and South Korea,
achieving considerable transparency and cost savings. Uzbekistan has actively
pursued similar reforms, transitioning to comprehensive electronic tender
systems from 2018 to 2021. Despite substantial budgetary savings and
improved transparency, challenges like direct contracting and enforcement gaps
persist.
These efforts have already borne fruit. According to the Ministry of
Economy and Finance, the number of contracts awarded through electronic
platforms rose from 0.5 million in 2019 to 1.8 million in 2024, with a total value
of UZS 248 trillion, and the budgetary savings from e-procedures reached UZS
13.9 trillion (approximately 12% of initial contract prices). E-tendering has thus
emerged not only as a budgetary savings tool but also as a lever for broader
policy goals, including curbing corruption and advancing “green” procurement
initiatives.
Concept and Principles E-tendering
entails digital procurement
procedures via authorized platforms, including electronic notification,
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submission, evaluation, and awarding of contracts. Uzbekistan’s Public
Procurement Laws of 2018 and 2021 clearly define e-procurement and embed
principles such as transparency, competition, proportionality, and anti-
corruption. These principles align closely with global norms from UNCAC and
UNCITRAL, providing a robust legal framework to minimize corruption risks and
subjective decision-making.
Electronic tender refers to a procurement method in which competitive
bidding procedures are conducted through digital platforms, replacing or
supplementing traditional paper-based tenders. In essence, an e-tender is a form
of public competition for contracts, carried out online under defined rules to
select the supplier offering the best terms. Uzbekistan’s 2018 Public
Procurement
Law
(Law № 472,
9 April 2018) provided one of the first legal definitions of a tender in national
legislation, defining it as a two-stage procurement method involving a
preliminary qualification round followed by a comparison of price proposals.
This definition underscored the competitive nature of tenders and mandated
public transparency of the process.
The 2021 Public Procurement Law of Uzbekistan (Law № 684, in force from
July 2021) explicitly enshrined a comprehensive set of principles for
procurement, building on the earlier law. While the 2018 law emphasised basic
“contestability and objectivity” (a rudimentary form of competition principle)
and transparency, the 2021 law expanded the list to incorporate principles of
full competition, personal accountability, life-cycle cost consideration, and
sustainable procurement. This shift marked a maturation of the legal framework
from focusing solely on procedural fairness to embracing strategic goals.
Notably, the introduction of a sustainability principle in the 2021 law (Article
11¹) requires consideration of economic, environmental, and social impacts
throughout the contract’s life cycle. This means procurement decisions should
account for long-term costs and benefits, such as energy efficiency,
environmental friendliness, and social value, rather than only immediate cost.
The inclusion of sustainability aligned Uzbekistan’s approach with global trends
– for example, the 2011 UNCITRAL Model Law on Public Procurement
recommended integrating environmental and social criteria
1
, and the EU’s 2014
procurement directives encourage life-cycle costing.
International Best Practices
Uzbekistan’s procurement reforms have
drawn from international best practices. The UNCITRAL Model Law provides
1
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guidance emphasizing transparency and competition. The EU's mandated e-
procurement directives illustrate significant cost reductions and enhanced
transparency, influencing Uzbekistan’s adoption of a unified electronic platform.
South Korea’s KONEPS system, integrating all procurement stages digitally and
notably improving transparency and efficiency, served as a key benchmark for
Uzbekistan’s electronic procurement reforms.
South Korea
is widely regarded as a pioneer in electronic government
procurement, and its Korea Online E-Procurement System (KONEPS) is often
hailed as the “gold standard” for e-tenders. Launched in 2002 by the Public
Procurement Service (PPS) of Korea, KONEPS is a unified one-stop e-
procurement platform that handles the entire public procurement cycle
electronically. It connects over 60,000 public organisations with around 700,000
suppliers in a single digital marketplace. KONEPS integrates numerous functions
– e-registration of vendors, e-catalogues, e-bidding, e-contracting, e-payment, e-
invoicing, and even e-learning for procurement officials – all within one system,
and is interoperable with tax, treasury, and banking systems.
The European Union
has been another key reference point for
Uzbekistan’s e-tender reforms, even though Uzbekistan is not an EU member. EU
public procurement law is encapsulated in directives that bind member states to
common principles and procedures, and these directives have influenced many
countries’ procurement regimes worldwide. The EU’s 2014 procurement
directives (notably Directive 2014/24/EU on public procurement) place strong
emphasis on the digitalisation of procurement processes, transparency at all
stages, and the consideration of life-cycle costs and social value in awarding
contracts. Since October 2018, EU law has required that all member state
procurement above certain thresholds be conducted electronically – including e-
notification, e-access to documents, and e-submission of bids – thereby
mainstreaming e-tendering across Europe. Furthermore, the EU regulatory
framework mandates robust anti-corruption mechanisms, such as conflicts of
interest rules and obligations to exclude bidders guilty of certain offences.
Evolution of Uzbekistan’s Legislation Uzbekistan’s
e-procurement
journey commenced with the 2018 Public Procurement Law, laying down
foundational principles and digital processes. Identified loopholes led to
comprehensive reforms in 2021, mandating complete electronic procurement
procedures, enhancing transparency, and introducing accountability
mechanisms. Subsequent reforms from 2022 to 2025 expanded e-procurement
to incorporate sustainability criteria and local production support, further
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leveraging electronic platforms to achieve broader economic and environmental
goals.
Challenges and Future Reforms.
Although Uzbekistan’s electronic
procurement system has advanced significantly, critical implementation issues,
particularly persistent direct contracting practices, remain problematic.
Effective enforcement through intensified audits, strengthened sanctions, and
increased public oversight is required. Addressing institutional capacity
constraints and enhancing technological infrastructure remain priorities to
bridge existing digital divides. Legal enhancements and integration of advanced
digital tools (AI, blockchain) will further support continuous improvements.
In conclusion, Uzbekistan’s journey in e-procurement law reflects a broader
lesson: digital tools, when underpinned by a strong legal framework, can
significantly transform public administration, but the human and institutional
elements are equally crucial. The legal regulation has set the stage for
transparent and efficient electronic tenders; now, consistent enforcement and
capacity building will determine the extent to which these ideals are realised in
day-to-day procurement. If the current trajectory continues, Uzbekistan is well
on its way to achieving a procurement system that not only saves money and
reduces corruption, but also earns the confidence of citizens and the business
community. The case of Uzbekistan may thus serve as a valuable example for
other developing countries seeking to harness e-procurement as a lever for good
governance and economic development in the digital age.
References:
1.
UNCITRAL Model Law on Public Procurement (2011) – United Nations
Commission on International Trade Law, providing a template for modern
public procurement legislation, including provisions on electronic procurement.
2.
Law of the Republic of Uzbekistan “On Public Procurement” (2018) – Law
No. ZRU–472 dated 9 April 2018, the first procurement law establishing legal
foundations for tenders in Uzbekistan.
3.
Law of the Republic of Uzbekistan “On Public Procurement” (2021) – Law
No. ZRU–684 dated 22 April 2021, effective July 2021, which replaced the 2018
law and introduced expanded principles (competition, transparency,
sustainability, etc.) and mandated fully electronic procedures.
4.
Directive 2014/24/EU on Public Procurement – European Union directive
of 26 February 2014, which modernised EU procurement rules, emphasising full
e-procurement, life-cycle costing, transparency and SME access.
5.
KONEPS (Korea Online E-Procurement System) – PPS, Republic of Korea.
An integrated national e-procurement platform launched in 2002. Noted for
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processing the entire procurement cycle electronically and yielding annual
transaction cost savings of about USD 8 billion (USD 6.6 billion for businesses,
1.4 billion for government) while reducing bid processing time from 30 hours to
under 2 hours.
6.
World Bank and ADB E-Procurement Guidelines – International financial
institutions’ guidelines and assessments (e.g. E-Procurement Readiness
Assessment, e-GP Guidelines) used in planning Uzbekistan’s e-procurement
reforms, contributing to aligning national legislation with global best practices.
