Politics • 06 May, 2019

About 1,300 PPP projects worth 3 trillion tenge concluded in Kazakhstan

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At the Government meeting chaired by the Prime Minister Askar Mamin, issues of developing public-private partnership were considered. It is reported by the press service of PM.

Minister of National Economy Ruslan Dalenov reported on the impact of public-private partnerships on the country's economy, as well as on the measures taken to enhance public-private partnership.

According to him, in recent years, investment through public-private partnerships has increased. This contributed about 0.2% to GDP growth.

As of May 1, 2019, the total number of projects is 1,285 for 2.9 trillion tenge. Including already concluded 548 contracts worth 1.5 trillion tenge. At the preparation stage, there are 737 projects worth 1.4 trillion tenge. The largest number of projects is in the areas of education, healthcare, energy and utility services, culture and sports.

At the republican level there are 25 projects, including 9 contracts concluded, 2 projects at the tender stage and 14 at the planning stage.

The leaders in the number of contracts concluded are East Kazakhstan, Pavlodar regions and the city of Almaty.

As Dalenov noted, in order to activate the public-private partnership and to simplify the procedures, a new tool is provided by law — a public-private partnership program. Now, public-private partnership procedures can be provided for in sectoral government programs.

As part of the State Program of Education Development for 2016–2019, projects for the construction of dormitories at universities and colleges are being implemented.

The minister of national economy announced the creation of the Factory of Prepared Projects, where the planned and ongoing projects will be placed in a single format and in a single database in open access for potential investors. In addition, the latest recommendations of international experts are being implemented. Together with the international expert community, legislative amendments are being developed to reduce currency risks, provide international arbitration for large projects, expand opportunities for consortia, and simplify procedures for reimbursement of private partner costs.

Minister of Industry and Infrastructure Development Roman Sklyar, in turn, reported that in the sectors supervised by the MIID RK under the PPP mechanism, there are 32 projects at the implementation and development stage, including 10 republican projects and 22 regional projects.

In the housing and utilities sector in the regions, 20 projects are at the implementation and development stage.

Sklyar also emphasized that in the systems of heat, water, and water disposal, the share of the public sector is over 90%. Meanwhile, a complex of legislative, financial and other necessary measures is being developed to ensure the investment attractiveness of this sector.

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