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IMPACT OF INTERNATIONAL CORPORATE GOVERNANCE STANDARDS ON PPP
PRACTICE IN CIS COUNTRIES
Ibragimova Mokhinur Sanat qizi
Master's student of Tashkent State
University of Law
Email:
mokhinuribragimova2002@gmail.com
Abstract:
The thesis analyses the impact of international corporate governance standards on
legal and practical implications of public-private partnerships (PPPs) in the Commonwealth of
Independent States (CIS) countries. Based on a scientific method, the coordinate system of CIS
corporate and PPP laws with the global governance principles, including the G20/OECD
Principles of Corporate Governance and associated best practices, is examined. The research
concludes that the implementation of global accepted standards of corporate governance, which
feature greater transparency, accountability and investor protections, influences PPP structures in
CIS states positively. These standards have been used to inform legislative reforms (e.g. model
PPP laws), and corporate law enhancements that enhance investor confidence, equitable risk-
sharing, and the rule of law in PPP projects. Nevertheless, the study also provides the
implementation challenges which include enforcement gaps and international norms that should
be adjusted to fit in the local legal contexts.
Keywords:
Corporate governance, Public-Private Partnership, CIS countries, Corporate law,
International standards, Transparency, Investor protection
Аннотация:
В статье анализируется влияние международных стандартов корпоративного
управления на правовые и практические последствия государственно-частного
партнерства (ГЧП) в странах Содружества Независимых Государств (СНГ). На основе
научного метода исследуется система согласования корпоративного законодательства
СНГ и законодательства о ГЧП с глобальными принципами управления, включая
Принципы корпоративного управления G20 / ОЭСР и связанные с ними лучшие практики.
В исследовании делается вывод о том, что внедрение общепринятых мировых стандартов
корпоративного управления, которые характеризуются большей прозрачностью,
подотчетностью и защитой инвесторов, положительно влияет на структуры ГЧП в
государствах СНГ. Эти стандарты использовались для обоснования законодательных
реформ (например, типовых законов о ГЧП) и усовершенствования корпоративного
законодательства, которые повышают доверие инвесторов, справедливое распределение
рисков и верховенство закона в проектах ГЧП. Тем не менее, в исследовании также
рассматриваются проблемы реализации, которые включают пробелы в правоприменении
и международные нормы, которые должны быть скорректированы с учетом местного
правового контекста.
Ключевые слова:
корпоративное управление, государственно-частное партнерство,
страны СНГ, корпоративное право, международные стандарты, прозрачность, защита
инвесторов
Annotatsiya
: Maqolada korporativ boshqaruvning xalqaro standartlarining Mustaqil Davlatlar
Hamdo‘stligi (MDH) mamlakatlarida davlat-xususiy sheriklikning (DXSH) huquqiy va amaliy
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121
oqibatlariga ta’siri tahlil qilingan. Ilmiy metod asosida MDH korporativ qonunchiligi va DXSH
to‘g‘risidagi qonunchilikni global boshqaruv tamoyillari, jumladan, G20/IHTT korporativ
boshqaruv tamoyillari va ular bilan bog‘liq ilg‘or tajribalar bilan uyg‘unlashtirish tizimi tadqiq
etilgan. Tadqiqotda korporativ boshqaruvning umume’tirof etilgan jahon standartlarini joriy etish,
ular ko‘proq shaffoflik, hisobdorlik va investorlarni himoya qilish bilan tavsiflanib, MDH
davlatlarida DXSH tuzilmalariga ijobiy ta’sir ko‘rsatadi, degan xulosaga kelingan. Ushbu
standartlar qonunchilik islohotlarini (masalan, DXSH to‘g‘risidagi namunaviy qonunlarni)
asoslash va korporativ qonunchilikni takomillashtirish uchun qo‘llanilgan bo‘lib, ular
investorlarning ishonchini oshirish, risklarni adolatli taqsimlash va DXSH loyihalarida qonun
ustuvorligini ta’minlaydi. Shunga qaramay, tadqiqotda huquqni qo‘llashdagi bo‘shliqlar va
mahalliy huquqiy kontekstni hisobga olgan holda tuzatilishi kerak bo‘lgan xalqaro normalarni
o‘z ichiga olgan amalga oshirish muammolari ham ko‘rib chiqiladi.
Kalit so‘zlar:
korporativ boshqaruv, davlat-xususiy sheriklik, MDH mamlakatlari, korporativ
huquq, xalqaro standartlar, shaffoflik, investorlarni himoya qilish
Introduction
Public-Private Partnerships (PPPs) are gaining significance in the CIS region as a way of
infrastructure development and delivery of public services, particularly as governments look to
ways of mobilizing private investment to drive economic development. Meanwhile, the standard
of corporate governance the mechanism through which companies (even those used in PPPs) are
directed and controlled has cropped up as a major determinant of the achievement of PPP
undertakings. Corporate governance International corporate governance principles, including the
G20/OECD Principles of Corporate Governance, advocate trust, transparency and accountability
in corporations [1]. It is estimated that following these standards increases investor confidence
and helps to increase access to capital, which is crucial in large PPP projects [2]. In the case of
CIS countries which were based on centrally planned economies, both the corporate law and the
PPP practices have been strategic to align to international norms of global governance in order to
attract foreign investment and in order to have sustainable development.
Over the past years, a significant number of CIS countries have been engaged in legal reform
processes aimed at introducing international good practice in corporate governance, as well as
PPP regulation. This involves reforming corporate legislations, the embracing of corporate
governance codes and the enactment of specific PPP laws. It is noteworthy that in 2014, the CIS
Inter-Parliamentary Assembly (under the aegis of the European Bank for Reconstruction and
Development) produced a Model Law on Public-Private Partnership [3]. The principal aim of
this Model Law was to align the regulations of the CIS countries on PPP and to rationalize them
in line with the international best practice and the demand of the international financial
institutions to enhance the bankability of PPP projects [4]. Since PPPs are usually associated
with intricate contractual relations and large long-term investments, incorporating effective
corporate governance principles can ensure the distribution of responsibilities and safeguarding
of the rights of stakeholders, as well as reduce corruption or project failure risks.
The given thesis is dedicated to the interaction of the international corporate governance
standards and the PPP practice in the CIS countries, and the corporate law perspective
thereof. It examines the integration of principles of good governance into the legal
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structures that govern PPPs and corporate bodies in the region and their effects on the
reality of PPPs implementation. It relies on legislation, international guidelines, and
scholarly research analyses to formulate its conclusions, therefore, being both innovative
and evidence-based. With the analysis illustrating successes and pointing at remaining
issues, the thesis will help enhance the understanding of how corporate governance reforms
may improve the outcomes of PPP in transition economies.
Aim and Objectives of the Research
The
aim
of this research is to analyze the influence of international corporate governance
standards on the practice of public-private partnerships in CIS countries. In pursuit of this aim,
the study addresses several key objectives:
Find international corporate governance standards applicable to PPPs: This involves
describing international principles and guidelines (e.g. OECD standards) that indicate best
practice expectations regarding transparency, accountability, board duties and rights of
stakeholders in corporate entities [5]. particular integrity standards related to state-owned
enterprises (SOEs) are given special consideration because of the high possibility of their
engagement in CIS infrastructure projects.
Study the integration of these standards into the CIS legal systems: The study overviews
the process of modernization of corporate law and PPP legislation in CIS countries to meet
international best practices. It includes examining model laws, national laws and corporate
governance codes that have been adopted in the area, and evaluating them against internationally
accepted standards.
Evaluate the impact on PPP practice:
The study analyzes whether and how the
alignment with international governance standards has improved PPP outcomes. It looks at
factors such as investor interest, risk allocation, project transparency, and legal safeguards in PPP
agreements. For example, the CIS Model PPP Law has been credited with encouraging foreign
investment by guaranteeing fair treatment of investors and clear risk-sharing arrangements [6].
Identify challenges and propose improvements:
The final objective is to identify
gaps or difficulties in implementing corporate governance standards within the PPP context (e.g.
enforcement issues, cultural and institutional barriers) and to suggest recommendations for
enhancing corporate law and PPP practices in line with international standards.
Research Methods
To accomplish the goals set above the research applies the comparative and analytical approach.
The first step is a comparative legal analysis, which is the law and regulations concerning
corporate governance and PPP in CIS countries in comparison with international standards.
Important documents are the G20/OECD Principles of Corporate Governance (most recent
revision 2023) [7], the OECD Guidelines on Corporate Governance of State-Owned Enterprises
(last revised 2024), and the EBRD/UNECE Model PPP Law [8]. Such an analysis assists in
identifying a degree of normative consent and pointing out disparities.
Second, the study applies the formal legal approach in interpreting pertinent laws and policy
documents used in the CIS jurisdictions (such as PPP laws, company laws and investment codes).
As an example, a PPP is described in Article 3(1) of the Law of the Republic of Uzbekistan “On
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Public-Private Partnership” (2019) as a legally formalized collaboration during a specific period
between a public partner and a private partner, founded on the joint concentration of their
resources to realize a PPP projectfile-4gacec3x8j5halr1tapbik. Such legal definitions are looked
at against the possibility of whether they capture the principles of governance, such as, clarity of
roles and mutual accountability.
Also, the systemic approach is used to comprehend the functionality of corporate governance
mechanisms (including boards of directors, disclosure requirements, and stakeholder protections)
in the context of PPP projects structures. A significant number of PPPs are structured to include
the formation of special purpose companies or consortia, and therefore the control of such
entities in accordance with corporate law is vital. The study examines case studies and reports
(such as those produced by international financial institutions) to identify how governance
weaknesses or strengths have impacted the performance of PPP projects. Lastly, the results are
synthesised and conclusions about causal relationships (such as between the implementation of
an OECD-aligned corporate governance code and the improvement of foreign involvement in
PPP projects in a country) are derived through analytical means.
Throughout the research,
reputable sources
such as OECD publications, World Bank and
EBRD reports, and academic journals are used to ensure a scientific and up-to-date foundation.
All sources are properly cited to maintain academic integrity and allow verification of facts.
International Corporate Governance Standards Relevant to PPPs
Internationally established standards of corporate governance can be seen as a guideline or blue
print on how companies (and consequently PPP project entities) are supposed to be governed to
reach fairness, transparency and efficiency. Most influential framework is the G20/OECD
Principles of Corporate Governance that can be regarded as the international standard in this
field [9]. These principles address quite a wide governance areas, namely: protection of
shareholder rights, fair treatment of shareholders (minority and foreign investors included),
transparency and disclosure of information, duties of the board of directors, and role of
stakeholders in corporate governance. First introduced in 1999 and last revised in 2023, the
OECD Principles have been endorsed by the G20 and widely adopted as a benchmark by both
developed and emerging economies. For CIS countries, which have sought to integrate into
global markets, aligning corporate governance regimes with such principles has been key to
attracting investment and fostering stable business partnerships.
The other relevant standard is the OECD Principles of Corporate Governance of State-Owned
Enterprises (SOEs). High state participation in strategic industries is characteristic of many CIS
economies, and state-owned enterprises regularly either form PPPs with the privately owned
businesses or rival them in competing to get PPP contracts. According to the OECD SOE
Guidelines (last updated in 2024), a distinction between the owner role and the regulatory role of
the state, a fair playing field between SOEs and privately owned companies, the minority
shareholder protection, and high standards of transparency and accountability in state-owned
enterprises are advised. These guidelines can help governments to limit the risk of conflicts of
interest and unnecessary political influence in PPP projects that include SOEs, which would
positively affect the outcomes of governance. To take a few examples, the guidelines note that
SOEs ought to compete on a level playing field and not have concealed subsidies or regulatory
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benefits when bidding in PPP projects, and that the boards of such enterprises ought to be
independent and professional, free of day-to-day political influence. The recommendations apply
particularly well to CIS countries, where governance of SOEs is one aspect of the economic
reform.
Outside of OECD norms, other institutions, such as the World Bank (via its PPP Knowledge Lab
and governance toolkits) and EBRD have issued guidance combining corporate governance
principles with PPP best practice. Good corporate governance has been put at the centre of the
activities by the EBRD in particular, which has observed that good governance is the key to
unlock the potential of companies to access external finance and economies to encourage the
investment of the privately owned money. Good practices in PPPs imply, e.g.: open and
competitive procedures, responsible project management and trustworthy reporting on project
performance. Corporate governance standards are also complemented by international anti-
corruption standards and transparency initiatives (such as those of Transparency International),
as it is important to ensure that the PPP contracts are awarded and delivered without fraud or
other preferences, to keep the support of the populace. In short, the most applicable international
corporate governance principles as applied to the PPP practice area concern the public and the
private partners being loyal to the principles of transparency, accountability, equal treatment, and
the rule of law, which in turn, provides an enabling environment toward sustainable PPPs.
PPP Practice in CIS Countries and Corporate Law Reforms
Over the last ten years, PPPs have become increasingly popular in the CIS region, where
governments are eager to modernize infrastructure and state-provided services but have
relatively little budgetary resources available. legal ambiguities, problems of governance and the
high-risk perceptions by investors tended to undermine early progress in the development of
PPPs in these post-Soviet states. Appreciating the need to address these challenges, CIS
countries have steadily genetic their legislative environments to PPPs - often using international
experience and best practice to guide them. The highlight was the adoption of the CIS Model
Law on Public-Private Partnership (2014) that could be used as a basis of national laws. The
objectives of the Model Law were to develop a set of common and comprehensive PPP laws in
CIS and to harmonize the national legislation with the best international practice and with the
requirements of the funders [10]. Specifically, it brought into the members states legal lexicon
modern notions of risk allocation, investor guarantees, and transparent procurement.
In response to this effort, other nations passed or revised their PPP laws. As an illustration, in
2015 Belarus and Kazakhstan enacted new PPP acts, with other neighboring countries, such as
Georgia, Kyrgyzstan, Russia, and Ukraine following suit by 2018. These laws contained a large
number of progressive provisions drawn by the Model Law and the international experience,
such as: an open and flexible definition of sectors and projects that can be subject to PPP, forms
of state financial aid, national treatment of foreign investors, and express guarantees of the rights
of private investors. The most specific clauses typically offered as part of international best
practice were non-discrimination measures against the private partner, compensation of losses in
the event of early termination, non-interference clauses to prevent unwarranted governmental
intervention into the affairs of the partner, and stabilization or grandfather clauses to insure
investors against unfavorable changes in the law. By enshrining these protections in law, CIS
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countries announced their intention to honorable and predictable PPP practices, thus enhancing
their attractiveness to local and international investors alike.
The development of corporate law in CIS countries has also been affected at the same time,
based on the necessity of improving corporate governance of both privately held firms as well as
state-owned organizations. Corporate governance codes or guidelines (in many cases on a
"comply or explain" basis for listed companies) that reflect the OECD Principles were
introduced by many states. Russia, as an example, revised its Corporate Governance Code in
2014 with the OECD assistance, and Kazakhstan published a code covering companies under its
sovereign wealth fund, to enhance the independence of boards and disclosure practices.
Moreover, there have been legal developments that have enhanced the rights of shareholders and
financial transparency. Such advances in corporate law have a direct positive impact on PPP
practice: a PPP project usually includes private corporate entities (e.g. construction companies,
operating companies) and in some cases joint ventures between state entities and private
investors. Whenever there are effective corporate governance regulations, i.e., the presence of
independent members on the div of directors, audited financial statements, and a clear fiduciary
responsibility, there is a greater likelihood that these entities will efficiently and honestly manage
the PPP projects. Good corporate governance therefore minimizes chances of mismanagement or
disagreements over the project since the decisions involving the project are not arrived arbitrarily
or through corrupt means but rather through responsive means [11].
Sector specific legislation and regulations which impact PPPs also display a legislative
conformity with the international standards. As an illustration, in certain CIS nations,
procurement legislation has been replaced to require competition and posting of PPP
agreements, as an embodiment of the transparency principle. The concession laws (a subset
of PPP law) were also enhanced, in order to address rights and responsibilities of the
private concessionaires. Also, most CIS governments have set up specific PPP Units or
agencies to manage project development, in line with World Bank and OECD principles of
institutional management of PPP programs. These units assist in ensuring PPP proposals
are technically appraised value-for-money and projects are managed through the life cycle,
which injects accountability analogous to corporate control. Concluding on the above,
during recent years, corporate law reforms and governance-oriented legislation have had a
substantial influence on the PPP practice in the CIS. The nations which have adopted the
changes have established stronger platforms on which the partnership projects could be
based but the quality of implementation is uneven throughout the region.
Influence of International Governance Standards on PPP Outcomes
The infusion of international corporate governance standards into CIS PPP frameworks has had
several tangible impacts on the practice and outcomes of PPP projects. Firstly, it has enhanced
investor confidence and participation
in these projects. By ensuring that PPP laws protect
investor rights (e.g. through non-discrimination guarantees and fair dispute resolution) and by
improving corporate governance in local partner companies, CIS countries have made PPP
ventures more attractive to foreign and private investors. As noted in the EBRD’s assessments,
regulatory acts based on the CIS Model Law have “stimulated the inflow of private investors,
including foreign investors, willing to invest in projects on PPP principles” [12]. This is because
aligning with international standards addresses the typical concerns investors have in emerging
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markets – such as political risk, lack of transparency, or arbitrary treatment – by creating a more
predictable and rule-bound environment.
Secondly, the quality and integrity of PPP processes have been enhanced due to observance of
international principles of governance. Transparency is a fundamental principle of good
governance. The international best practices promote transparency and free competition that
minimizes chances of corruption during PPP bidding and contracting [13]. In fact, global good
practices such as those promoted by World Bank and OECD require publication of PPP contracts
and selection criteria, and the availability of information on PPP projects to the civil society. In
CIS countries where such measures have been introduced, competitive tenders and value-for-
money results have been observed. Such as an example, the Principles for Public Governance of
PPPs by OECD state that all regulations that concern PPPs must be transparent and obvious, as
well as the process of selecting projects must be clear and fair to every stakeholder. Through
these recommendations, governments of some CIS countries have already established
independent appraisal and audit of PPP projects (generally by ministries of finance or supreme
audit institutions) thereby creating additional levels of accountability, consistent with
international practice. These are good practices that can assure that PPP agreements are merit
based and that it will be in the interest of the people during its implementation.
On another impact is risk management and financial sustainability of PPPs. The international
good practice, especially that advocated by multilateral lenders, emphasizes the need to get the
risk allocation between the public and the private partner right and to ensure that PPPs are not
used as an off-budget way to build up debt. Such standards were reflected in the CIS Model PPP
Law, which had particular provisions on fair risk sharing and compensation schemes in the event
of premature termination of contracts. Due to this, a lot of CIS PPP contracts now have well-
defined responsibilities allocation (who builds, finances, operates it etc.) and force majeure,
change in law etc. clauses to protect both parties against unexpected events. These improvements
are based on the international experience which makes the PPP projects more resilient and
bankable. The lenders feel more comfortable to fund PPPs with strong contractual structures and
the governments can make the fiscal mistakes when they fail to account fairly the PPP
commitments - another space where international governance recommendations have been
effective (e.g., IMF and World Bank guidance on fiscal transparency in relation to PPP).
Moreover, the effect of corporate governance standards could be observed in the governing of
PPP project companies. Several PPPs involve the creation of a special purpose vehicle (SPV) -
which is simply a corporation that will construct and run the project. Such entities are also
required to practice good corporate governance: i.e. through a competent board, sound internal
controls and regular reporting as defined by international best practice. Some of the prominent
CIS PPP projects have made provisions to incorporate independent directors or third party
monitors into the governance of the SPV in order to safeguard the public interest. Although still
not standard practice, this is a trend that aims at the realization that corporate governance and
PPP success are connected: a PPP in which the governing structure of the private partner is
ineffective (e.g. lacks transparency, checks and balances) has a higher likelihood of experiencing
problems such as cost overruns or failure to meet contract specifications. On the contrary, in case
a PPP company is professionally managed and with accountability, the association with the state
is likely to be trouble-free and fruitful.
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Lastly, taking the international standards helps the CIS countries to enhance their
international image and legal compatibility as well. As an example, when the corporate
governance system of a CIS country is compatible with OECD principles, foreign OECD-
based companies will feel more comfortable to partner under rules with which they are
familiar and arbitral tribunals or courts will regarded the PPP agreements as emdiving
common principles, which can also be relevant in dispute resolution. As OECD observes, to
enjoy the maximized benefits of global capital markets, countries have to ensure that their
corporate governance systems are credible and internationally understood and founded on
internationally recognised principles [14]. And the same can be said about PPP regimes
convergence with international standards is a good indication of reliability. Other countries
such as Georgia and Kazakhstan have been very aggressive in marketing their reformed
PPP laws and investment climate improvements (such as corporate governance reforms) in
the international forums and this has resulted in the increased deal flows in the
infrastructure.
Challenges in Implementation and Ongoing Developments
Nevertheless, regardless of the evident progress, certain difficulties and peculiarities of applying
the international corporate governance standards to the PPP context of the CIS countries exist. A
key problem is enforcement and practice that falls behind the law. Many countries have revised
their laws on paper but the reality of the situation is that the governance provisions can be
irregularly enforced. To take some examples, a PPP law can mandate transparent tender
procedures, and local officials may not be trained or motivated to follow them fully, so non-
competitive awards may persist in some situations. Likewise, corporate governance codes in CIS
tend to be non-binding recommendations, with no strict adherence by some companies (in
particular, unlisted companies or those owned by the state). That disjuncture between formal
rules and business culture implies that corruption and political interference have not yet been
fully eradicated in PPP practices. It is reported that PPP contracts in some cases continue to be
awarded to politically affiliated companies, or that state-owned companies in CIS have implicit
backing that undermines healthy competition. To deal with these problems, it is not enough to
have legal regulations, but more powerful institutions are needed: independent regulators,
empowered audit bodies, and civil society monitoring activity.
The other obstacle is the capability of the institutions of governance. Good corporate governance
and PPP management require professionals, judges that know how to interpret complicated
contracts, regulators that are capable of benchmarking projects, board members that serve the
interest of the company and the people. There are CIS countries with capacity limitations,
particularly, smaller economies or those at the beginning of the reform process. This capacity has
been developed through technical assistance offered by international organizations (such as the
EBRD Guidelines on PPP and toolkits) which focus on practical guides to PPP project appraisal,
procurement, and monitoring. An excellent and extensive example is the PPP Regulatory
Guidelines Collection by the EBRD, which takes into account internationally accepted principles
and can be deemed as a reference by governments creating PPP projects. These are great
resources whose utilization is dictated by political goodwill and administrative stability in
beneficiary nations.
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There is also the problem of adapting the international standards to the local context which is
continuing. CIS countries are not monolithic - they vary in legal tradition (some more civil law,
others mixed), economic organization and culture of governance. As such, a practice in corporate
governance, which is effective in one setting (perhaps, a very advanced market), may have to be
revised to apply in another. To give an example, the principle of having a number of independent
directors on boards is good, however, in a small economy with limited number of experienced
directors, it may result in the same people being on many boards, and the question marks on their
independence may appear. Similarly, full division of government functions as owner and
regulator of infrastructure (as encouraged by OECD SOE guidelines) may not be possible in
jurisdictions where regulatory institutions are yet to develop. Certain CIS governments have
proposed their own innovative solutions, such as the gradual enhanced transparency or the
gradual governance reforms of state companies to strike the balance between the international
best practice and the local reality.
On the legislative level, things are constantly getting better. According to the most recent
developments, some CIS countries are improving their PPP legislation so that it would be more
in line with sustainable development goals (SDGs) and ESG (environmental, social, governance)
standards, following the global trends. This also includes the incorporation of standards of
corporate social responsibility and environmental governance in PPP contracts (e.g. obligatory
disclosure of environmental impacts, community consultation, etc.) which may be regarded as a
way of corporate governance being extended to a wider stakeholder governance. Corporate law
is changing too; recent amendments have frequently been aimed at tightening audit provisions,
increasing the remedies available to minority shareholders and promoting transparency
(including requiring the company accounts to be prepared in relation to international financial
reporting standards). These changes are indirect contributors to PPP success as they ameliorate
the overall atmosphere of governance and trust.
Conclusion and Recommendations
Conclusively, international corporate governance standards have had a profound effect on the
PPP practice in the CIS countries, which has mostly been positive. The CIS countries have
achieved progress in establishing a more favourable secure environment enhancing public-
private partnership by updating the legal framework according to the international principles.
The conformity to principles such as the OECD Principles of Corporate Governance has served
to safeguard investors and reduce the cost of capital of PPP projects as it brought in more
confidence in the governance systems. The trend of integrating good practices into PPP
legislation, spearheaded by transparency, accountability, equitable risk-allocation and project
protection of stakeholders has started to bear fruits with more bankable and viable projects being
developed as illustrated by the surge in foreign investment infrastructural developments and the
successful closure of some complicated PPP transactions in certain jurisdictions. In addition, the
focus on corporate governance of state entities means that the entry of the business sector in
partnership with the public sector will be subject to rules that will facilitate efficiency and
prevent conflict of interest.
But the process is not completed yet. In order to achieve the maximum benefits, CIS countries
are to pay attention to the enhanced implementation of governance standards. This may involve
steps like: making PPP units and regulator bodies more independent and better able to handle
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their mandates; making companies involving themselves in major PPPs obligate to follow
corporate governance codes (such as by insisting on some standards of transparency as a
condition of bidding); and improving the judicial and arbitration systems to handle PPP disputes
so contract terms (including those relating to governance issues) are fairly executed.
International organizations can maintain a supportive role in terms of expertise and training and
forums to share knowledge. To take some examples, regional cooperation and the resulting
experience could be expanded through the Eurasian Economic Union or CIS forums on corporate
governance and PPP, to share lessons learned and begin to harmonize approaches.
Regarding corporate law, it is suggested that CIS legislators and policymakers: (1) make sure
that company laws and securities laws include high disclosure and accountability standards,
which will govern PPP project companies and their sponsors; (2) include special governance
provisions in PPP agreements, including stakeholder engagement provisions and independent
audits; and (3) harmonize domestic law with international investment protections, so that foreign
partners in PPPs have redress and reassurance (many of these protections are already embodied
in the PPP model provisions, such as stabilization clauses). Also, the transformation of the
principle of openness enshrined in international guidelines can be put into practice by
implementing digital technologies in transparency (such as e-procurement systems and
publiclyavailable databases of PPP projects).
To conclude, the CIS countries can benefit significantly by enhancing the assimilation of the
international corporate governance standards in the corporate law and practice of PPP. This
integration does not only contribute to economic growth through attracting investment and
seeing to it that projects are completed in an effective manner, but also promotes the rule of law
as well as confidence in these countries by people. The scientific examination proves that
corporate governance is not an abstract issue but a realistic principle of fruitful collaborations
between the state and the entrepreneurs. With the ongoing governance reforms, the PPP
frameworks in the CIS are set to further mature to provide infrastructure and services that suit the
needs of the society, as well as safeguard the interest of all the partners in the venture.
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