Public-private partnership: what is it

Инструкция

Public-private partnership:

The form of cooperation between a public partner and a private partner, corresponding to the following characteristics:

  • availability of investment and operational periods in the public-private partnership project
  • building relations between a public partner and a private partner by concluding a public-private partnership agreement;
  • medium-term or long-term implementation period of the public-private partnership project (from five to thirty years, depending on the specifics of the public-private partnership project);
  • joint participation of a public partner and a private partner in the implementation of a public-private partnership project;
  • pooling the resources of a public partner and a private partner for the implementation of a public-private partnership project;
  • implementation of investments by a private partner for the implementation of a public-private partnership project.

The main objectives of the PPP are:

  • creating conditions for effective interaction between the public partner and the private partner in order to ensure sustainable socio-economic development of the Republic of Kazakhstan;
  • attracting investments into the state economy by combining the resources of a public partner and a private partner for the development of infrastructure and life support systems of the population;
  • improving the availability and quality of goods, works and services, taking into account the interests and needs of the population, as well as other interested parties;
  • increasing the overall innovation activity in the Republic of Kazakhstan, including promoting the development of high-tech and knowledge-intensive industries.

The state provides support to the entrepreneur - private partner in the form of:

  • provision of in-kind grants in accordance with the legislation of the Republic of Kazakhstan;
  • co-financing of PPP projects;
  • guarantees of consumption by the state of a certain volume of goods, works and services produced during the implementation of the PPP project;

participates in the following forms:

  • provision of land plots in accordance with the land legislation of the Republic of Kazakhstan;
  • granting the right to use objects of state property;
  • provision of engineering and transport communications of the PPP facility;

and also provides compensation for investment and operating costs for a PPP project, remuneration for the management of a PPP facility owned by the state, etc. in accordance with the legislation on PPP.

The entrepreneur , for his part , participates in the following forms:

  • financing of PPP projects;
  • design, construction, creation, reconstruction, modernization and (or) operation of PPP facilities;
  • management of PPP projects.

The private partner is obligated to:

ensure the targeted use of funds allocated for the implementation of the public-private partnership project;

ensure the quality and availability of goods, works, and services under the concluded PPP agreement.

In addition to own funds, sources of financing for PPP projects can be:

  • borrowed funds;
  • state budget funds in the amount stipulated by the terms of the contract;
  • funds of quasi-public sector entities;
  • other means not prohibited by law.

PPP is regulated by law.

Дата обновления - 29.04.2026
Справочная информация
On public-private partnership Law of the Republic of Kazakhstan Law No. 379-V LRK dated October 31, 2015.
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