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Bishkek
July 21, 2008 No.162

Law of the Kyrgyz Republic

On the Social Services Contracting

The present Law regulates the general principles, legal and organizational basis of formation,
arrangement/placement and execution of the social services contracting aimed at the realization
of social programs (projects).
The present Law is directed to increase the e fficiency of spending the state budgetary funds
allocated for solution of social and economic probl ems, and improvement of the quality of social
services

Article 1. The basic concepts used in the present Law

In the present Law the following basic concepts are used:
the social program (project) – a set of organizational, economic and technical measures
directed to the achievement of the goals in th e field of education, science, information, public
healthcare , sports, preservation of the envir onment; youth, demographic, gender policy; social
protection; human rights protecti on activities; culture and other so cially significant spheres;
The social services contracting – the form of realization of social programs (projects) and the
separate activities di rected to the solution of social and economic problems and rendering of
services, backed at the cost of the state budgetary funds;
The state customer (further – customer )– state bodies and organs of local self-government
that are authorized to conclude contracts on perf ormance of the social services contracting and
responsible for performan ce of social programs;
The authorized state bodies- ministries and agencies/departmen ts of the Kyrgyz Republic and
their territorial departments whose terms of refere nce cover the issues on social development.
competition on performance of social services contracting (further – competition) – the form
of arrangement/placement of social services co ntracting by defining its executor, offered the
most efficient methods of performance of the social program in its submitted social project.
The executor of the social services contracting (further – the executor) – a duly registered
noncommercial organization (except political parties, trade unions and religious associations),
which have concluded a contract with the customer on performance of the social services
contracting;
The contract on performance of the social services contracting – the contract concluded
between customer and executor with a view of en suring the state’s needs in social sphere in the
procedure established by the pres ent Law and other normative lega l acts of the Kyrgyz Republic;

Article 2. The legislation on the soci al services contracting

The legislation of the Kyrgyz Republic on the social services contracting is based on the
Constitution of the Kyrgyz Republic, and consists of the present Law and other normative legal
acts of the Kyrgyz Republic.
If the international treaty which has entered into legal force in the established procedure contains
other rules, other than those pr ovided for by the present Law then the rules of the international
treaty shall apply.

Article 3 . The purposes of the social services contracting.

The purposes of the social services contracting are:
– solution of socially significant problems not covered or covered not enough by activities of
state bodies;
– involvement into the social sphere additional human, materi al, financial resources from non-
governmental sources;
– increasing of executo rs’ responsibility for target spending of the allocated funds;
– increasing of addressing th e social protection measures;
– creation of the legal mechanisms for effective and permanent rendering of social services to
population;
– promotion of competition among the executors of social services contracting and increasing of
social services’ quality
– efficient usage of state funds
– creation of market on rendering the social services

Article 4. Principles of conducting of social contracting process.

Conducting of social contracting process shal l be carried out accroding to the following
principles:
1) legality, fairness and transparency of the proc esses of the social services contracting;
2) equal and free access to information on social contracting;
3) increasing of efficiency of social programs’ realization;

4) providing the opportunities for citizens of the Kyrgyz Republic to participate in solution of
social problems;
5) development of the social partnership
6) consideration of the personal individuality an d specific needs of the recipients of social
services
7) freedom of selection of social servi ces in conjunction with the social needs
8) ensuring the equal opportunities and nondiscri mination with respect to access and provision
of social services
9) rapprochement of the organiza tions that render social services with recipients of social
services
10) promotion of competition in rendering the social services

Article 5. Spheres of realization of the social services contracting.

Realization of social servi ces contracting is carried out in the following directions:
1) achievement of goals in the field of educa tion, science, information, physical training and
sports;
2)health protection of citizens, prop agation of a healthy way of life;
3) environmental protection;
4)support of youth policy and children’s initiatives;
5) solution of problems of demography
6) solution of gender problems
7) support of vulnerable groups of people
8) rendering assistance to orphan children, children from incomplete and multi-children families
9) assistance in citizen’s recruitment
10) protection of rights and interests of citizens and organizations
11) development of culture and art;
12) protection of historical and cultural heritage;
13) strengthening of the public accord;

14) other socially significant directions which are not contradi cting the legislation of the Kyrgyz
Republic

Article 6. Performance of the social services contracting

Social services contracting shall be performe d by noncommercial organizations by execution of
state social programs (projects) and separate activities directed to the solution of social and
economic problems.
Noncommercial organizations underta king activities in the fields stipulated in Article 5 of the
present Law are admitted to participate in competition.

Article 7. Formation of the social services contracting

Formation of the social services contracting sh all be made by state customer on the basis of
features of each social programs. The state customer shall:
– work out a description of terms/conditions of social contracting which allocation will be
determined by conducting a competition;
– conclude contracts with executors on pe rformance of the social contracting;
– maintain financing the realization of project by executor of social contracting;
– supervise the course of realization of the social contracting and conduct assessment of its
quality.

Article 8 . Financing of programs(projects) realized under the social services contracting.

Financing of the social contracting shall be carried out at the cost of the state(republican) and
local budgetary funds of the Kyrgyz Republic in the form of grants.
Resources for financing of programs (projects) under social services contracting must be
annually stipulated in the state(republican) budget.
Organs of local self-government shall have a righ t to stipulate the resources for financing of the
programs (projects) under the social services contracting in their annual local budget.
The budgetary resources stipulated for realization of the programs (projects) under the social
services contracting, shall be used for the purposes and according to the procedures established
by the present Law and other normative legal ac ts of the Kyrgyz Republic, and also in
compliance with a contract on performan ce of social services contracting.

Article 9. Arrangement/Placement of a social services contracting.

Arrangement/placement of a social contracting shall be made in the form of open public
competitions.
The certain competition commissions shall be formed for organizing and carrying out a
competition on social programs (projects). The structure of competition commission shall be
approved by the state customer that responsible fo r realization of the appropriate social program.
The procedures for carrying out a competition shall be defined by the regulation approved by
Government of the Kyrgyz Republic.
The informational report on competition shall be pub lished in the state and official languages in
mass media, the number of printed copies of which will allow receiving the sufficient knowledge
by all possible applicants enga ged in such activities.

Article 10. Formation of the competition commissions

Competition commissions shall be annually formed for organizing and carrying out the
competitions on social programs (projects).
The authorized state bodies form competition commissions for state(republican) programs
(projects), and also for regional/local programs (projects) which are contemplated to be realized
in the territories of two or more oblasts of the Kyrgyz Republic.
Territorial departments of the authorized state bodies shall form territorial competition
commissions for programs (projects) financed at the cost of state(republican) budget if the
realization of those programs (projects) will be carried out solely in the territory of their
responsibility.
Organs of local self-government shall form competition commissions for programs (projects)
financed at the cost of local budge t if the realization will be carried out in th e territory of their
responsibility.
The competition commissions shall consist of representatives of customer and independent
external experts. The number of members of competition commission shall be determined by the
customer. However, the number of independent external experts sh all not be less than 50% of the
total number of members of commission.
The candidatures of the independe nt external experts shall be proposed by the nongovernmental
organizations. The nongovernmental organizations shall have a right to forward written
proposals relating to competition commissions’ stru cture (the candidatures of the independent
external experts) from the moment of publication an announcement about competition.
If the number of proposed independent extern al experts exceeds required quantity of the
competition commission’s structure the customer ha s the right to select the independent external
experts by means of open sort itions, conducted with the part icipation of the nongovernmental
organizations that proposed the candidatures for the competition commission.

Article 11. Competition requirements.

Participants of competitions can be noncommerc ial organizations which undertake the activities
in the fields stipulated in Article 5 of the pres ent law and have not less than one year experience
in the announced field of competitive program (project).
Participant of competition shall have own bank account.
Several participants (irrespective of form of ownership) can form joint project group on a
contractual basis and subm it the joint application for participation at competition. In this case in
the application and project proposal the distribution of the responsibilitie s between participants
in realization of a project and inputs of each participant should be identified.

12. Revelation and elimination of the conflict of interests during the selection of winner

The procedures/mechanisms of selection of comp etition’s winners shall provide fair estimation
of candidates in order to avoi d the allocation of the budgetary funds of social services
contracting on an arbitrary basis, in cluding on political or personal motives.
If the member of the competition commission has direct or indirect interest to any participant
(existence of a conflict of interests) he/she is obliged to disclose it to other members at the
meeting of the competition commission and declare that he/she will not vote and take part at
discussions of project proposal of the given participant.
The decisions of the competitive commission adopted with existence of the conflict of interests
of members can be cancelled by the court. The appropriate petition/writ can be submitted to the
court by the participants or any interested party not later th an one month from the date of
adoption of decision by competition commissi on. In case of cancelling the competition
commission’s decision, adopted with existence of the conflict interest, by the court the contract
on performance of social services contracting (if concluded) nullifies and the competition
commission conducts new selections of the winne r of competition. However, the member of the

competition commission who has hidden the existence of conflict of interest will be made
answerable according to the legislation of Kyrgyz Republic and the participant the victory of
which was abolished by the court decision will not be allowed to participate at the competition.

Article 13. The executor of social contracting

Winners of competitions receive the status of executors of the social contracting and conclude
with the customer a contract on performance of the social services contracting.
The rights and obligations of the executor of the social services contracting shall be defined by
the contract on performance of the social services contracting taking into consideration
requirements established by the present law.

Article 14. The contract on performan ce of social services contracting

In order to guarantee the partners hip between the parties the terms of the social contract shall be
discussed by both parties and shall not be imposed on executor without its consent. Fair terms of
contract are the major factor for ensuring the rela tionships between parties to be constructive and
mutually beneficial.
The contract shall reflect the total sum of th e grant provided by customer to executor for
realization of social contract ing, and also the detailed budget and implementation schedule.
The contract shall envisage the rights and obligations of the customer on the one hand, and the
rights and obligations of th e executor on the other hand.
The contract shall provide the te rms of transfer of budgetary funds. At the parties’ discretion and
project features the budgetary funds can be transferred by customer to executor in one payment
or several payments by stages. However, th e conditions of the second and the subsequent
payments can be adhered to the quality and volume of performance of the contract by executor at
each preceding stage.
In order to ensure the transparency of activity carried out by executor the contract shall stipulate
its (executor’s) obligation to provide the custom er with the report on activity and the financial
report. Thus, depending on duration of program (project) terms and stages of submission of such
reports can be stipulated.
The contract shall provide the cu stomer with the right to organize financial audit of executor on
granted budgetary funds at any time and to ca rry out monitoring of executor’s performance of
social services contracting.
In the contract it is necessary to specify c onsequences for infringement of terms of social
contracting.

Article 15. State support of executors of social services contracting.

During perfomance of social cont racting by executor the state bodies and organs of local self-
government within the limits of their compet ence established by the laws of the Kyrgyz
Republic, shall provide information, advisory, me thodical, organizational technical support in
realization of programs (projects) on social services contracting.
Informational and advisory support is provided through the explanation of normative legal acts
of the Kyrgyz Republic, giving the information on activities of the state bodies undertaken with
regard to realization of social services contracting, development and realization of the state,
branch and regional programs, providing statistical datas and any other information necessary for
the realization of programs (projects) of social services contracting.
Methodical and organizational-technical support are provided by means of development of
reference and methodical material s, technical assistance in organizing seminars, conferences,
trainings and other actions concerning r ealization of the social contracting.

Article 16. Control over the execution of social contracting .

Control over the execution of social contracting shall be carried out by customer and other
authorized state bodies within the limits of thei r competence determined by the legislation of the
Kyrgyz Republic.
State bodies shall be responsible for ensuring the use of budgetary funds by executor in
accordance with the terms of contract. The cont rol over the executor’s proper use of budgetary
funds and its project activity shall be carried out by the stat e bodies with the observance of
executor’s autonomy.

Article 17. Consideration of disputes
Disputes between the executor of social serv ices contracting and state customer regarding
conclusion, execution, changing and termination of contract on performance of social
contracting, and also disputes on compensation of property or other damages shall be considered
by court in the establishe order.

Article 18. The responsibility for infringement of th e legislation on the social services
contracting.

Violation of the legislation of the Kyrgyz Republ ic on social services contracting entails the
responsibility established by the legi slation of the Kyrgyz Republic.
The executor of social contracting bears responsibility for use of the budgetary funds in
accordance with the contract on performa nce of social services contracting.
For improper use of the budgetary funds allocated for execution of social contracting executor
shall be made answerable according to th e legislation of the Kyrgyz Republic.

Article 19. The procedure of introduction into force the present Law.

The Present Law enters into legal force fr om the date of its official publication.
The government of the Kyrgyz Republic in three-month term must develop and adopt
appropriate normative legal acts with respect to implementation of the present Law.

President of the Kyrgyz Republic K.Bakiev

Adopted by Jogorku Kenesh
of the Kyrgyz Republic on June 5, 2008