Turkmenistan does not have a PPP-specific policy or legal framework in place. The country’s Law on Foreign Concessions was adopted in 1993 and despite certain positive features, is not regarded as a sufficiently solid legal basis for the development of private sector participation in infrastructure.

The law was criticized as being too vague as far as most important areas are concerned. Sectors that may be subject to concessions are not clearly defined and seem to be limited to natural resources, and there are provisions discriminating against domestic investors. Furthermore, selection procedures are not specified and provisions on dispute settlement privilege domestic courts. That said, a number of positive elements, for example provisions regulating compensation for early termination or the general principle of government assistance in achieving objectives of concession agreements should be noted. Overall, the law has room for improvement. With the exception of one telecom project, Turkmenistan does not have examples for private sector participation in infrastructure development.

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