Armenia does not have a PPP law, however PPPs are conducted under general investment and sector specific laws. Investment Programs Management under the Ministry of Economy is in charge of developing PPP regulations. Its work seems to be in the very early stage, as no publications are yet available. For now, responsibility for planning and oversight is spread across sector specific ministries and regulators and central strategic coordination is restricted. Armenia’s Public Procurement Law (2011) calls for opening bidding or competitive dialogue as the norm, but allows direct negotiation on a limited basis. Rules are established for transparency, oversight and appeal. The Centre for Procurement Support (within the Ministry of Finance) provides training and oversight.

Also Armenia’s business environment is characterized by cartels with strong political connections. They may therefore be potential for political distortion in decision making, given the lack of strong independent institutional oversight for PPPs. Several major transport, water and energy infrastructure projects have been procured as PPPs. And financial support is likely to come from international organizations, which also help to conduct project evaluation. At the sub national level, ADB has been funding a project to develop a framework for commercialization of urban infrastructure in Yerevan, which includes enabling PPPs.

Overall, even though Armenia has built the confidence of international investors through several well-established PPP projects, a well coordinated regulatory and oversight framework is not yet in place.

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