Summary

The Law on Public–Private Partnership establishes the legal foundation for cooperation between the state and private investors through civil-law agreements. It defines the procedures, principles, and institutional mechanisms governing the preparation, financing, and implementation of partnership projects. The law operates in close interaction with the Law on Investment Activity and the Law on Foreign Investments, ensuring a unified legal regime for both domestic and foreign participants. This article outlines the key technical features of the PPP framework, emphasizing its contractual structure, investment integration, and regulatory guarantees.

Keywords

Public–Private Partnership (PPP); Turkmenistan; Civil Code; Law on Enterprises; Economic Modernization; Investment Law; Legal Reform; State–Private Cooperation; Infrastructure Development; Eurasian Legal Model.

The Law on Public–Private Partnership defines PPP as a mutually beneficial cooperation between the state and private entities, formalized through a civil-law contract for a fixed term.
Under Article 3, the partnership functions as a legal relationship rather than a separate corporate entity, combining the state’s regulatory authority with the private partner’s financial and operational capacity.
This design allows for flexible and project-specific arrangements while maintaining public accountability.

The law provides a detailed framework covering every stage of project development.
It defines the roles of public and private partners, establishes procedures for project initiation, evaluation, and approval, and regulates the tender process for partner selection.
Each PPP agreement must include essential conditions such as risk allocation, financial responsibilities, performance standards, and procedures for amendment or termination.
Oversight functions are assigned to the Cabinet of Ministers and the Ministry of Finance and Economy, ensuring compliance with legal and fiscal requirements.

From an investment perspective, the PPP mechanism directly corresponds with the provisions of the Law on Investment Activity. That act defines investments broadly—as all types of assets directed toward economic or social benefit—and guarantees equal protection of rights for all investors.
In this sense, PPP projects are a practical application of those investment principles, serving as structured instruments for channeling both public and private funds into development sectors such as infrastructure, energy, and social services. Financing may involve public budget allocations, private loans, or mixed funding arrangements, all of which must comply with investment and financial regulations.

When private participation involves international investors, the Law on Foreign Investments becomes relevant. It provides national treatment, guarantees legal protection, and allows the repatriation of profits under Articles 8, 19, and 21. Foreign investors in PPP projects enjoy the same rights and obligations as domestic participants but are also subject to mandatory state expertise—a technical and legal review ensuring compliance with safety, environmental, and economic standards.
Thus, the PPP framework is harmonized with the investment regime to ensure transparency and predictability for both domestic and foreign capital.

In its overall design, the PPP law integrates three essential elements:

1. Contractual foundation — projects are governed by civil-law agreements;
2. Investment linkage — financing and ownership relations correspond to investment legislation;
3. Regulatory supervision — the state maintains oversight through centralized administrative bodies.

This combination provides a coherent legal environment where partnership projects operate within a single, consistent investment and public law framework.

Conclusion

The Law on Public–Private Partnership serves as a bridge between public administration and private enterprise, uniting state regulation with market-based investment principles. By coordinating with the investment and foreign investment laws, it establishes a stable legal environment for financing, project execution, and investor protection. Through this integration, PPP becomes not only a contractual tool but also a key component of the national investment system—ensuring legal certainty, shared responsibility, and effective development outcomes.