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PPP projects with minimal reimbursement from budget are the priority — Ministry of National Economy

Monday, 22 July 2019, 13:09:06

Currently, the Ministry of National Economy is carrying out continuous work on improving the methodology of PPP to create and maintain a balance of interests of the state and business. The Vice Minister of National Economy of Kazakhstan Madi Takiyev announced this during a press conference in the Government of Kazakhstan.

According to him, public-private partnership should maximize investment.

“The current limits should be used to attract the maximum amount of investment. This is possible if we give priority to projects with minimal reimbursement from the budget,” Takiyev said.

With this purpose, since early 2019, the Ministry of National Economy has identified three categories of projects:

  • Category I — full reimbursement of investments and operating costs of a private partner from the budget. This includes 154 PPP projects.
  • Category II — partial reimbursement of investments from the budget and from services from the market. This category includes 265 projects.
  • Category III — no refund from the budget. Reimbursement occurs at the expense of services (tariff, government order, SBP, paid services and others). This category includes 137 projects.

This measure, according to the vice minister, will relieve the burden on the budget and attract more investment.

In addition, Takiyev reported that all PPP projects and their commitments on them are monitored on a monthly basis. Already, it can be downloaded from the website of Center PPP.

As part of the request of the Head of State, monitoring and control of PPP projects is intensified, and starting next year, the evaluation of the implementation of PPP projects will be carried out in a new format.

“As part of our assessment of the implementation of PPP projects, we see where changes in legislation are needed, we work quickly with local executive bodies, sometimes to anticipate the possible negative outcome of the project, for example, termination of contracts, delays in paying obligations,” Takiyev said .

The vice minister also noted that since May 2019, on the basis of the PPP Center, services are being rendered to investors on the principle of “one window.” Such information support includes:

  • training and advisory information support for the investor;
  • selection of PPP projects of the republican or local level in the industry of interest to the investor;
  • informing potential investors about planned and also announced PPP projects;
  • working with private partners at the stage of implementing PPP projects.

“A manager is assigned to every investor who will lead him, show projects that are and are at the development stage. They help the investor get services in one place. This mechanism has been worked out,” the vice minister said.

To date, a base of more than 300 representatives of investors has been formed. A significant part of the companies that applied to the “One Window” of the PPP Center are in search of new PPP projects.


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