Business representatives can participate in PPP projects by investing 20% ​​from their own funds — Tursynbaev

Vice President of Kazakhstan Public-Private Partnership Center Talgat Tursynbaev told about the legislation in the field of public-private partnership, what conditions of cooperation are currently created for private business within the framework of PPP and what role does the Kazakhstani PPP Center play.

The legislation in the field of public-private partnership is structured in such a way that it provides for measures not only to protect the private sector, but also state interests.

“According to the innovations introduced now into this legislation, the threshold for private participation of a private partner in PPP projects has been increased,” added Tursynbaev.

According to him, earlier, when entering the project, a private partner could invest only borrowed funds, for example, attracting money from second-tier banks, equity capital, etc. Now, a threshold of 20% of own participation is set, which allows, first of all, to reduce budget costs in terms of the return of remuneration for attracted funds. Secondly, it makes it possible to screen out: when implementing large projects, not every company can provide 20% of its own participation.

This requirement allows the most experienced companies to participate in PPP projects, which have their own material and technical base and the basis for the subsequent provision of high-quality services to the population.

“In 2006, Kazakhstan adopted the Law on Concessions. Later, in 2015, the Law of the Republic of Kazakhstan ‘On Public-Private Partnership’ was adopted. Concessions are understood as large infrastructure projects, capital intensive, requiring a lengthy planning process. In our country, under the Law ‘On Concessions,’ three agreements have been concluded, which take the lion's share of state obligations,’’ said the vice-president of Kazakhstan Center for Public-Private Partnership JSC.

At the moment, the central authorized bodies are planning several concession projects under the Law "On Concessions". However, the main flow of projects goes through public-private partnerships.

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