Senate ratifies Agreement on mutual recognition of bank guarantees for public procurement

Senators have ratified the Agreement on mutual recognition of bank guarantees for public (municipal) procurement, Kazinform News Agency reports.

The goal of the law is to create legal framework for mutual recognition of bank guarantees between the Eurasian Economic Union member states, which will enable to simplify and facilitate the participation of suppliers in public procurement in the territory of other EAEU member states.

“The objectives of the law are to ensure the implementation of the Agreement signed between the EAEU member states, through the creation of legal norms, which will let ensure use of bank guarantees, issued by the resident banks to participate in the public procurement of other EAEU member state. The law also defines the requirements to the banks which may issue such guarantees as well as the mechanisms of introducing the register of bank guarantees,” a statement reads.

The ratification of the Agreement will let ensure unimpaired access for the potential  suppliers of one EAEU member state to the participation in public procurement process in other EAEU member state as well as to enhance cooperation in procurement on a long-term and stable basis.

Earlier, the Senate ratified the Amendment to Article 1 of the Agreement Establishing the European Bank for Reconstruction and Development to enable a limited and incremental expansion of the geographic scope of the Bank’s operations to Sub-Saharan Africa and Iraq.