At a Government session chaired by Prime Minister Olzhas Bektenov, Vice Minister of Finance Dauren Kenbeyil reported on new measures aimed at supporting domestic production within the public procurement system. According to him, the Law "On Public Procurement" came into force on January 1, 2025, introducing a set of mechanisms to promote the development of domestic producers of goods, works, and services (GWS).

One of the key initiatives, as the Vice Minister noted, is the expansion of the list of exceptions from the national treatment regime. This support tool for local manufacturers has already demonstrated positive results.

Procurement from SMEs according to an approved list is also provided. This approach guarantees orders for local companies and strengthens the sector’s resilience.

Another measure is the conclusion of off-take contracts through single-source procurement.

The public procurement rules also include direct support provisions for domestic producers:
– priority rights for companies listed in the national registry,
– exemption from all forms of financial guarantees,
– reduced penalty rates,
– mandatory use of local materials in construction and installation works,
– and discount preferences for contractors.

As emphasized by Dauren Kenbeyil, all these steps aim to stimulate local production and ensure a higher share of Kazakhstani content in regulated procurement.

Additionally, the Vice Minister highlighted the effectiveness of the new public procurement model, as reflected in contract volumes and increased participation by domestic companies.

"Currently, six Government Resolutions on national regime exemptions are in effect, covering 4,834 GWS items. In the first five months of this year, 845,000 contracts were signed totaling 5 trillion tenge. Among them, 534,000 contracts were concluded with SMEs, and 96,154 contracts with domestic producers. For comparison, during the same period last year, 660,000 contracts worth 2.4 trillion tenge were signed, including 39,538 with SMEs and 62,838 with domestic manufacturers," Kenbeyil stated.

He added that efforts to support domestic suppliers will continue alongside the adopted measures.

In particular, the following amendments to the public procurement rules have been developed and will soon be approved:

• Increase in advance payments for local manufacturers from 30% to 50%

• Extension of delivery periods from 15 to 60 calendar days

• Reduction of payment terms from 30 calendar days to 10 business days

• Provision of a 3% conditional discount for local producers

• Waiver of financial sustainability requirements for certain domestic suppliers

• Automation of the process for including domestic manufacturers in the national registry

According to the Ministry of Finance, the registration process for the national producer registry is fully automated. The launch of the system into industrial operation is scheduled for Q4 2025. This will not only reduce corruption risks but also ensure equal access to procurement preferences.

#Finance #Government session #Industry

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