Kazakhstan to digitize procedures related to PPP projects
According to Kazakh Minister of National Economy, Ruslan Dalenov, public-private partnership acts as a catalyst for economic growth, as well as mutually beneficial collaboration of the State and business to improve services for the population through financing mechanisms for reducing the load on the budget, Strategy2050.kz correspondent reports.
As of 1 October 2019, there were total 1 253 PPP projects for 3.5 trillion tenge, with 615 contracts worth 1.6 trillion tenge signed.
“The biggest number of PPP projects can be found in education, health, culture and sport, energy, and housing and communal services, whereas most capital-intensive PPP projects fall on transport, infrastructure, energy and housing and communal services, education, culture and sports”, the Minister said.
To fulfill the tasks given at the 6 May 2019 government session to divide PPP projects into categories in a bid to shift from quantity to quality.
“In so doing, PPP projects are split into three categories. First, a full recovery of investment and operational costs at the expense of the budget. Second, a partial recovery of the costs at the expense of the budget. Third, no recovery, the market recovers the costs”, the Minister said.
As of 1 May 2019, the number of projects needed to be fully recovered was 32%, projects with a partial recovery and projects needed no recovery were 44% and 24% respectively.
According to the Minister, there have been improvements in the quality of PPP projects.
In the confines of the PPP Center, the office under the single window principle operates, aiming at interacting with investors, providing them information and consulting them on PPP projects, updating them on the legislative acts and concessions.
“Investors are offered package solutions, under which the State provides all permits and 49% of the funds, the investor needs to put 51% of the funds into the ready PPP project. After a certain period, the investor buys out the State’s share under the PPP treaty. Thus, the funds received are utilized for the same purposes”, Dalenov said.
According to him, such an approach will increase investment in complex projects, address infrastructure issues.
“To further improve PPP projects, all the procedures will be conducted in an electronic fashion, including planning tender procedures, registration and PPP projects’ implementation”, the Minister said.
PPP is a key to investment encouragement, with infrastructure, education, energy and housing and communal services being the most prospective areas for investment under the PPP principle.
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