中華民國行政院公共工程委員會全球資訊網

Question 124
Does the Law of the Republic of Azerbaijan "On State Procurement", dated 27 December 2001, provide for purchases by the state that are not consumed by the Government, i.e., for further manufacture or distribution to the population? If so, Azerbaijan is requested to indicate the types of purchases covered by such procurements.

Answer:
The Law of the Republic of Azerbaijan "On State Procurement", dated 27 December 2001, applies to all procurements of goods (works and services) by state enterprises and organizations as well as by enterprises and organizations where the state holds not less than 30 per cent share in the charter fund through the means of public funds, or loans and grants obtained from or granted by the state. The Law does not expressly mention manufacture or distribution, but it may be assumed that the state is treated in such circumstances like any ordinary stakeholder. In practice, enterprises and organizations, referred to above, engage in oil and gas production and processing, electro-energy production, communication services, transportation, health and education, and other similar public services. All procurements are made for the purpose of the above services.

Question 125
In Question 105 of WT/ACC/AZE/4 Azerbaijan was asked how often off-set arrangements are negotiated on a case-by-case basis, but Azerbaijan's response did not address this matter. Azerbaijan is requested to state clearly how often and in what situations off-sets are used in public procurement.

Answer:

The Law of the Republic of Azerbaijan "On State Procurement", dated 27 December 2001, allows the granting of advantages to domestic bidders upon the evaluation or comparison of bids. Pursuant to Articles 36.6 and 44.2, in order to choose a tender winner, the purchasing organization evaluates and compares bids in compliance with the procedures and criteria set forth in the basic tender conditions. The law does not allow application of criteria not provided in the basic tender conditions.

The procedures and the degrees of advantage available to local bidders are governed by the Resolution of the Cabinet of Ministers of the Republic of Azerbaijan No. 165 "On Approval of the Amounts of Advantages and Rules of Their Application, the Manner of Calculation of Tender Price Changes That May Affect the Conditions of Procurement Agreement, and Determination of the Sum of Divisible Parts", dated 28 October 2002.

Advantages applicable to goods:

In accordance with the abovementioned Resolution, advantages can apply if a bid contemplates the use by a bidder of more than 50 per cent of domestic materials and of more than 50 per cent of local employees. The amount of advantages applicable to domestic goods can be within 15 per cent of the price of analogous foreign goods imported under INCOTERMS CIF/CIP.

The advantages are calculated in the following manner:

Question 126
In its responses to Questions 116 through 122 of WT/ACC/AZE/7 Azerbaijan mentioned (i) the Law "On State Procurement" , dated 3 February 2002; (ii) the Decree of the President of the Republic of Azerbaijan No. 668 "On Implementation of the Law of the Republic of Azerbaijan 'On State Procurement'", dated 29 January 2002; (iii) the Resolution of the Cabinet of Ministers of the Republic of Azerbaijan No. 165 "On Approval of the Amounts of Advantages and Rules of Their Application, the Manner of Calculation of Tender Price Changes That May Affect the Conditions of Procurement Agreement, and Determination of the Sum of Divisible Parts", dated 28 October 2002.

With regard to the abovementioned legislation, Azerbaijan is requested to answer the following questions:

-Which procuring entities are subject to the abovementioned legal acts?
-Do these laws apply to all procurements or only to those where contract value is above a certain amount.
-Are there any sectors, entities, contracts which are excluded from the scope of the abovementioned legislation? If so, Azerbaijan is requested to indicate such exclusions.

Answer:
The above-mentioned legislation applies to all procurements of goods (works and services) by state enterprises and organizations as well as by enterprises and organizations where the state holds not less than 30 per cent share in the charter fund through the investment of public funds, or loans or grants obtained from the state or received under state guarantee.

The legislation regulating state procurement applies to all procurements where the stated value exceeds AZM 10 million.

Are there any sectors, entities, contracts which are excluded from the scope of the abovementioned legislation? If so, Azerbaijan is requested to indicate such exclusions. There are no such sectors, entities or contracts.

Question 127
In its response to Question 122 of WT/ACC/AZE/7 Azerbaijan indicated its willingness to become observer to the WTO Government Procurement Agreement upon accession to the WTO.
Will Azerbaijan request GPA membership and start GPA negotiations immediately after WTO accession?

Answer:
Azerbaijan intends to start negotiations on GPA membership upon WTO accession.

Question 128
Azerbaijan is requested to confirm that it will conduct public procurement in a transparent manner.

With regard to the abovementioned legislation, Azerbaijan is requested to answer the following questions:

-Which procuring entities are subject to the abovementioned legal acts?
-Do these laws apply to all procurements or only to those where contract value is above a certain amount.
-Are there any sectors, entities, contracts which are excluded from the scope of the abovementioned legislation? If so, Azerbaijan is requested to indicate such exclusions.

Answer:
The abovementioned commitments are provided for in the legislation regulating public procurement. Thus, the Law "On State Procurement", dated 27 December 2001, provides for economic, legal and organizational base for public procurement in the Republic of Azerbaijan, sets principles and rules for the effective and economical use of state funds in the process of procurement, ensures creation of equal competitive environment for all consignors (contractors) based on the principles of transparency and competitiveness.

Question 129
Does the Azerbaijan legislation grant a Most-Favoured-Nation treatment to all foreign bidders? Do all foreigners have equal opportunities to bid when a tender is open to foreign participation?

Answer:
According to Article 8 of the Law "On State Procurement", dated 27 December 2001, all resident and non-resident individuals or legal entities, or groups of legal entities, irrespective of nationality are entitled to participate in public procurement bids. Pursuant to this law bidding is subject to prohibitions imposed by the legislation regulating public procurement.

The abovementioned legislation determines the states, with which transactions are prohibited or limited pursuant to international agreements which the Republic of Azerbaijan is a party to and decisions of the international organizations, and for the states to which an applies according to resolutions of the United Nations Security Council. If the participation of a bidder in procurement transaction is prohibited for abovementioned reasons, the procurement agency must indicate the reasons in writing.