What you need to know about public-private partnership

PPP projects can be:

-construction (reconstruction) and operation of educational facilities (kindergartens, schools, student dormitories);

-modernization of school canteens;

-construction and operation of sports facilities;

-construction and operation of medical organizations;

-trust management of public utilities (outdoor lighting networks);

-etc.

The list of planned and implemented PPP projects in Kazakhstan is given in the Register on the website www.kzppp.kz.

The partnership involves a mutually beneficial distribution of responsibilities, guarantees, risks and income between the participants in the process of project implementation.

The terms of the PPP are fixed by the PPP contract.

According to the method of implementation , PPP is divided into two main forms:

• institutional;
• contractual.

In turn, contract PPP has the following types:

• concession;
• trust management of state property;
• rent of state property;
• leasing;
• contracts for technology development, testing and small-scale production;
• life cycle contract;
• service contract;
• other types of contracts that correspond to the characteristics of a PPP.

Contract PPP has found application in Kazakhstan.

Public-private partnership:

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

• 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;
• creation and operation of PPP facilities;
• management of PPP projects

and ensures the quality and availability of goods, works and services within the framework of the concluded PPP contract.

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.

You can get advice about the partnership at the National Chamber of Entrepreneurs "Atameken".

In accordance with Article 28 of the Law of the Republic of Kazakhstan "On Public-Private Partnership", NCE RK "Atameken" performs the following functions:

1. participation in the tender commission to determine a private partner;
2. participation in monitoring the implementation of public-private partnership projects.

The participation of NCE RK "Atameken" in monitoring the implementation of PPP projects is carried out within the framework of the Council for Monitoring PPP Projects with the development of recommendations on:

-the results of the review of the practice and problems of the implementation of PPP projects;

-replication of successful practice in the implementation of PPP projects;

-expansion of spheres and branches of application of PPP mechanisms;

-improvement of the legislation of the Republic of Kazakhstan in the field of PPP;

-support of PPP projects;

-issues of information and methodological support for the implementation of PPP projects.

Also, NCE RK "Atameken" provides consultations, conducts seminars on PPP issues, provides legal support and protection of the rights and legitimate interests of business entities in the state bodies of the Republic of Kazakhstan.

JSC "Kazakhstan Center for Public-Private Partnership" is a center for the development of PPP.

More information about the activities of the center can be found here.

The types of activities of the PPP Center are:

• conducting research and developing recommendations on PPP issues;
• examination of tender documentation and business plans for republican PPP projects;
• evaluation of the implementation of PPP projects;
• training of specialists in the field of PPP;
• maintaining a list of PPP projects planned for implementatio

The list of objects that cannot be transferred for the implementation of PPP has been approved.

Such objects include:

-land, water (except for the right of temporary gratuitous land use), flora and fauna;

-specially protected natural territories (nature reserves, nature reserves, etc.);

-objects of cultural heritage;

-mainline railway network;

-water facilities of special strategic importance (dams, waterworks);

-medical organizations working in the field of HIV prevention;

-depositories of pathogens of particularly dangerous infections;

-etc.