Strict procurement regulations prevent subsoil users from purchase of Kazakh producers
NCE RK "Atameken" is sure: it is necessary to move from bureaucracy to the industrial cooperation
The National Chamber of Entrepreneurs of Kazakhstan "Atameken" at the meeting discussed the issue of stimulating demand for products of domestic manufacturers in the procurement of subsoil users and industrial enterprises.
"We have analyzed the need of major industrial companies and subsoil users of solid minerals in domestic production. They were quite willing to respond, to provide figures on procurement plans for 2016. We have seen that only a small circle of companies has significant figures", - said the executive secretary of NCE RK Evgeniy Bolgert.
"According to the data presented by subsoil users and industrial enterprises, the demand for light industry products is more than 1.36 billion tenge, the chemical industry - about 6 billion tenge, packaging companies - more than 852 million tenge, the furniture industry - 308 million tenge", - said the Acting Secretary of the Committee the manufacturing industry NCE RK Tolegen Moldakhmetov.
Bolgert added that the big industrialists happy to buy goods and services from domestic producers. However, there are certain requirements, according to which they carry out the purchase. Sometimes these rules turn against the policy of the Kazakh content. "Procurements of every major subsoil user are strictly regulated, much like public procurement. There's all painted over, zabyurakratizirovano. They have only two possibilities to carry out the direct purchase from domestic producers when the share of Kazakh content in the goods or services exceeds 50% or when the manufacturer is located in one of the single-industry towns. In other cases, Kazakhstani producers compete with foreign ones on equal terms", - he said.
The difficulty is that there are manufacturers that even if they wanted, they couldn’t exceed 50 per cent of the Kazakh content as they purchase raw materials from abroad. In this case, a subsoil user would be happy to buy a product or a service from a local producer, but has no right to give it priority, because it is contrary to the rules of procurement.
"We want to analyze on how many headings are these requirements applied, that is, when the domestic producer works in Kazakhstan, employs local personnel, but due to objective reasons can’t produce products with the Kazakh content of more than 50%", - said Bolgert.
Executive Secretary of NCE added that NCE will formulate clear proposals for adjusting procurement rules for subsoil users.
"We have agreed to hold such meetings with industrialists on monthly basis. We agreed on the fact that strict regulation of procurement – it is a tool that, in principle, does not give a serious effect on the development of local content. In our view, development cooperation would be a more effective", - he concluded.
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