Society • 10 April, 2018

R. Sklyar: PPP Center to be created in Kazakhstan

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Today at a press conference following the meeting of the Government, the First Vice Minister for Investments and Development, Roman Sklyar, answered journalists' questions about the implementation of PPP projects in the spheres of housing and communal services, reports primeminister.kz.

The Ministry for Investments and Development together with the regions and the EBRD, proposes a gradual, phased implementation of PPP projects in housing and communal services taking into account all possible risks and experience in the development of communal infrastructure.

"Throughout the country, 33 pilot projects have been selected. We are well aware that the great potential of PPP is in the communal sphere. These are water utilities, electric and heat networks," Roman Sklyar said.

All utilities that operate in the regions need technological updates. The PPP model, in turn, will serve to improve the health of these enterprises. In the long run, consumers will receive better utilities.

Roman Sklyar also announced the establishment of a PPP center that will help regulate relationships, find potential partners, organize joint activities with akimats, international financial organizations that can finance various projects. In addition, in the near future a model PPP agreement will be developed. This program will be launched in a pilot mode, then it will be widely distributed throughout the country.

The First Vice Minister for Investments and Development also emphasized the importance of applying existing mechanisms to support the development of PPPs in energy saving.

"Because energy saving is not only a fashionable trend for today, it is really an urgent necessity. The Committee for Construction and HCS, as well as the Institute for Energy Conservation and Energy Efficiency carried out a whole range of measures to introduce mechanisms to support the development of PPP in energy saving," Roman Sklyar said.

In a number of areas, these projects are already being implemented. Typical competitive documentation for PPP projects was drawn up.

"In addition, to date, in conjunction with Damu, a tool is being implemented to curb the interest rate on the loan for the implementation of these activities. The credit rate is reduced by 10% from the second level in the bank, which allows utilities to actively use these mechanisms," Roman Sklyar explained.

In the current year, this program to some extent will cover almost all regional centers and the work will continue on a systematic basis.

"We see an especially large volume and potential for energy saving in the networks of street lighting, in the work of industrial enterprises and enterprises in the budgetary sphere. It must be implemented. The work has been started and we are coordinating it," the First Vice Minister for Investments and Development summed up.

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