PPP is a relatively new concept in Turkmenistan, a country with abundant hydrocarbon resources, particularly natural gas.
Although Turkmenistan does not have a PPP-specific policy or legal framework in place, concession agreements are governed by the country’s Law on Foreign Concessions adopted in 1993. The law, which defines a concession as “a permission of the state to carry out a specific type of business activity on the territory”, establishes an authorized body on state property which reviews tender applications, selects the concessionaires and signs the concession agreements.
Although the law defines compensation for the early termination of contracts and also establishes government assistance to achieve concession objectives, it does not define which sectors are subject to concessions and selection processes.
With the exception of one ICT project and Production Sharing Agreement (PSA) concessions under the petroleum law, Turkmenistan does not have examples of private sector participation in infrastructure development.
The Global Competitiveness Index (GCI) is published in the Global Competitiveness Report and assesses the competitiveness landscape of 140 economies. The GCI Infrastructure Score is a component of the overall index and covers transport, electricity and telephony infrastructure.
The EBRD has developed and regularly updates a series of assessments of legal transition in its countries of operations, with a focus on selected areas relevant to investment activities. These relate to investment in infrastructure and energy (concessions and PPPs, energy regulation and energy efficiency, public procurement, and telecommunications) as well as to private-sector support (corporate governance, insolvency, judicial capacity and secured transactions). Detailed results of these assessments are presented below starting with infrastructure and energy and going into private sector development topics.