The Prime Minister of Kazakhstan

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In the framework of PPP, 140 objects put into operation for the amount of 90.6 billion tenge — T. Suleimenov

10 April 2018, 11:23

At the meeting of the Government chaired by the Prime Minister Bakytzhan Sagintayev, the Ministers of National Economy, Investments and Development, Healthcare, as well as akims of a number of regions reported on the development of public-private partnership.

Minister of National Economy, Timur Suleimenov, reported that today there are 212 registered contracts worth a total of 766.4 billion tenge, of which the first quarter of 2018 signed 16 contracts for the amount of 521.5 billion tenge (2 national and 14 local).

In total, as of April 1 of the current year, 140 objects were put into operation amounting to 90.6 billion tenge, including 8 objects (1.2 billion tenge) for the first quarter of 2018. Additionally, there are 620 projects for a total of 1.6 trillion tenge at the various stages of readiness.

According to Timur Suleimenov, in the sectoral context, out of 212 contracts concluded (for 218 objects), most account for education — 52%, health care — 19%, culture and sports — 14%. Other spheres occupy 15%.

"The practice shows that the use of the PPP mechanism gave a positive result. Over the past period, if we take 140 objects commissioned, this has allowed us to decrease a one-time burden on the budget for the amount of about 90.6 billion tenge," said Timur Suleimenov.

In addition, legislative measures have been taken to develop PPP. At the end of 2017, the Law on further improvement and simplification of PPP mechanisms was adopted, which optimized the procedures, by reducing the stages from 5 to 3, which allowed to shorten the terms of coordination and examination of PPP projects from 7 to 3 months; provided a guarantee of consumption for PPP for 3 years or more; the possibility of planning standardized PPP projects, taking into account the specifics of the industry within the framework of state programs. Necessary by-laws in the implementation of this law were adopted.

Ministry together with the National Bank and the Atameken NCE has developed a number of amendments to existing legislation in terms of recognition of PPP contracts providing for the payment by the state, as collateral for the STB.

In general, the Minister of National Economy noted the positive dynamics in the development of PPP and made a number of proposals for improving the situation, among which the development of standard documentation, the completion of projects to the stage of the competition and the registration of PPP contracts.

Minister for Investments and Development, Zhenis Kassymbek, in his turn, reported that at present the mechanism of public-private partnership is at the stage of development and implementation there are 44 projects, including 4 projects in the road sector, 1 project in the field of railway transport, 2 projects in the field of civil aviation, 4 energy saving projects and 33 projects in the field of housing and communal services.

"The contract with Alsim Alarko – Makyol –SK– Korea Expressway consortium has been signed on the start of the implementation of the first major concession project in Kazakhstan for the construction of Big Almaty Ring Road (BAKAD). In May this year, construction and installation works will begin. In 2021, it is planned to complete the construction and start the operation of the road on a fee basis," said Zhenis Kassymbek.

The Minister for Investments and Development reported in detail on the work on other major PPP projects in the field of roads and railways, housing and utilities, digitalization. Zhenis Kassymbek also voiced a proposal — for the central state and local executive bodies to start the implementation of PPP projects aimed at energy saving and energy efficiency.

As the Minister of Healthcare, Yelzhan Birtanov, noted, the list of PPP projects in healthcare currently includes 175 projects, 50 of which are concluded contracts, the total amount of contracts is 33.7 billion tenge.

In the current year, 15 contracts have been concluded in 6 regions. Projects include the construction and operation of outpatient clinics, polyclinics, hospitals, medical equipment and appliances, etc. Another 125 projects are in preparation, 25 of which are at the stage of tenders and the negotiations within the Private Finance Initiative.

It is expected that the average annual growth rate of investments in the health sector until 2025 will be 9.3%.

"At the same time, the attraction of about 750 billion tenge of investments is considered within the framework of PPP. Together with measures to promote competition, improve tariff policy, digitalization, the results of implementing PPP mechanisms will be the modern effective infrastructure of healthcare organizations in the context of CSHI," Yelzhan Birtanov summed up.

During consideration of the situation in the sphere of PPP implementation, regional akims: East Kazakhstan – D. Akhmetov, Aktobe – B. Saparbayev, West Kazakhstan – A. Kulginov, North Kazakhstan – K. Aksakalov, Atyrau – N. Nogaev, deputy akim of Zhambyl region, Y. Manzhuov, as well as the deputy chairman of the Board of Atameken NCE, Yu. Yakupbayeva, made speeches.