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What does the new law on PPP give to business?

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Representatives of the competent authorities explained the key innovations of the document

The new law "On Public-Private Partnership" was adopted in November of this year. The National Chamber of Entrepreneurs of Kazakhstan played a big role in its implementation. As it was noted at the beginning of the meeting by the Deputy Chairman of the Board of NCE RK Tulemis Shotanov, until recently, the concept of PPP was narrow. "In the regions, people thought it is a concession agreement or on provision of public orders. The new law extends the opportunities of participation in this program", - he said.

Director of the Department of PPP of the Ministry of National Economy of Kazakhstan Nurym Ayazbayev, in turn, said that from January will be held seminars to inform the local executive bodies and the business community about the rules of law. "Representatives of Akmola, Kostanai, Karaganda regions and Astana city are invited to Astana on 8th of January. We plan to conduct a seminar on 14th of January 14 in the city of Kyzylorda, to which will also be invited representatives from Kyzylorda, Aktobe, Atyrau and West Kazakhstan regions. On 15th of January - in Almaty for Almaty, Zhambyl, South Kazakhstan regions. On 21st of January in Ust-Kamenogorsk for Pavlodar and East Kazakhstan regions", - he said.

Deputy Chairman of the Board of JSC "Center for PPP" Galymbek Mamraev explained that the law "On concessions" and the law "On the PPP" will be run in parallel. "The concessions covered only basic sectors (education, health, transport, energy and utilities), and PPP doesn’t have such restrictions. The projects of street lighting, parking are suitable for it", - he added.

"There are direct talks, all the projects can be initiated by both the state and private business", - said Mamraev. He also stressed that the scheme of PPP has changed, there were eliminated some stages.

He also said that in some cases, the entrepreneur can avoid competition. "There is an article in the law that regulates how suitable is a project. The first is the possession of an object by the private sector, which can be offered to the State for the implementation of the project. For example, a building of a clinic. Second, if there are exclusive rights, some innovations. They can also be promoted by the private finance initiative. This is very advantageous, because in this case it is possible to avoid competition. However, we reserve the notification mechanism", - said the head of the PPP Center.

As for participation of NCE in the public-private partnership, then, according to Mamraev, NCE will participate in the preparation of the concept of an expert opinion. "If the concept will include some conditions that are not favorable for business, then you will be able to change them. Formation of the registry of potential private partners, participation in the competition committee and participation in the monitoring of implementation - the National Chamber can interfere in all four functions", - he added.

"The important news for regional chambers – the projects less than 4 million MCI will be fully regulated by the regions. That is, the city administration itself develops, maintains examines. All clinics and many other projects are covered on this scale", - also said Mamraev.


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