23.11.2015 Public-private partnership should become the main mechanism of social Infrastructure development
Various forms of public-private partnerships have to be used in different spheres of the state economy. PPP should become the primary mechanism for development of the state infrastructure, including the social sector, the President said at the enlarged session of the Government, reports 24KZ.
Active work in this direction has already started in the east of the country, the questions of financing by the international development institutions are being worked on. The investors are offered to participate the projects for the construction and exploitation of the multifunctional hospital with 300 beds in Ust-Kamenogorsk and the children’s hospital with 200 beds in Semey.
In addition, it is intended to repair the central heating system in the big cities. But the main contract in the social sphere has already been signed. For the first time in Kazakhstan the construction of 11 kindergartens simultaneously will start in the east of the country at the beginning of 2016. It will guarantee the preschool education for more than 3 thousands kids.
The source of information: 24KZ (http://24.kz/ru/)
20.11.2015 Law on public-private partnership signed in Kazakhstan
The PPP Law - signed by President of Kazakhstan Nursultan Nazarbayev - was adopted in order to create a common legal framework to regulate public-private partnership projects, which could enhance the investment prospects of this vehicle for private businesses.
As The Law Society reports, public-private partnerships can also be used to implement projects in any sector of the economy. The state can be represented in such projects by either government or quasi-government entities.
The participants of PPPs include: (i) the state (ii) entrepreneurs and (iii) financial organizations that provide project financing. The Law stipulates the conditions for sources of financing for PPP projects, the reimbursement of expenses to subjects and income generation.
The Law also stipulates that a private partner may be selected on the basis of (i) a tender or (ii) direct discussions. It also defines the qualification requirements that a potential private partner must satisfy in order to participate in a tender process, the conditions for a tender process and the procedure for the conclusion of PPP agreements.
Although long-term cooperation with the state was possible in one form or another before the adoption of the PPP Law, it was quite complicated to formalize such cooperation and could require compliance with various laws on public procurement, state-owned property, strategic assets and facilities. The PPP Law has standardized and simplified this procedure, which should help to attract investment in Kazakhstan. Moreover, the procedure has been substantially streamlined for PPP projects involving the modernization of existing assets of private companies or the use of intellectual property.
The source of information: The Law Society (http://www.lawsociety.org.uk/)