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More Kazakhstani content in domestic procurements!

- City of Shymkent
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The lack of legislative norms does not allow to punish those, who prefer Kazakh products in the foreign procurement

It is impossible to apply any sanctions against them at the legislative level. At present, only the subsoil users are obliged to buy goods that are produced in Kazakhstan. For public bodies, these standards were removed from 1st of January 2016. The issues how to increase local content in state procurements and procurements of quasi-public sector were discussed at the briefing at the Chamber of Entrepreneurs of SKR.

Relevance of the topic is due to the policy of the Government of Kazakhstan, aimed at import substitution and increase of the level of local content in the total volume of goods and services purchased by state agencies. Therefore, at the initiative of the National Chamber of Entrepreneurs of Kazakhstan "Atameken" in all regions of the country, including in the South Kazakhstan region, were established working commissions to monitor and to increase the local content.

With participation of the Chamber in the South Kazakhstan region work two commissions, one formed to monitor the procurement of state bodies and organizations, and the second - to monitor procurements of subsidiaries of the holding "Samruk-Kazyna", located in the South Kazakhstan region.

"The commission analyzes, monitors, identifies systemic problems and the reasons of non-competitiveness of our goods, offers to pay attention to the South-Kazakhstani producers, thus contributing to the promotion of local content, - said the deputy director of the Chamber of Entrepreneurs of SKR Gazizbek Natbaev. - But all this is purely advisory in nature".

The working commissions comprise representatives of the Chamber of Entrepreneurs of SKR, which held 5 off site meetings with the domestic producers. As part of the work, the commissions also conduct monitoring of design and estimate documentation (DED) on the availability of materials and equipment of domestic production, monitoring and visit of construction sites, making the project companies and customers aware of local producers, etc. As shown visits to construction sites, public authorities, who are customers, are not always interested to take measures to purchase domestic products only.

At 37-building projects (schools, kindergartens, hospitals, outpatient clinics, etc.), constructed at the expense of budget funds, have been revealed the facts, where contractors purchase and use foreign materials in the presence of local ones. This was at 10 of 37 sites.

At 7 facilities was used hot-rolled steel and rebar of Russian production, at 5 - tiles produced in Russia, at 3 facilities - Uzbek and Turkish window frames, doors of Russian production, although there are local producers. Entrepreneurs recognized that due to the high cost of energy, they often can’t compete with producers from Kyrgyzstan, Uzbekistan and China. As any company, which fulfills a public order in selection of building materials is primarily guided by the price.

Thanks to the working commissions, a number of producers received support, namely: LLP "Zerde Ceramics". It sold more than 8,000 square meters of ceramic tiles during construction of state facilities, LLP "MMC Triumph" supplied 4 new schools with window units. Almost all schools being built on the budget money were equipped with boilers of domestic manufacturer LLP "Art sapaly kurylys".

With regard to the procurement of quasi-public sector, there is currently no evidence of purchase of foreign goods. There are only facts of unjustified rejection of producers, which are in the register of producers of the holding, and the facts of non-compliance of the tender commission and the organizers of the procurement with the rules during procedures.

In general, since the beginning of this year, experts of the Chamber sent in the address of 254 domestic producers 400 ads about procurements (in the form of e-mails and SMS), assisted with participation in procurement more than 250 entrepreneurs, to which were rendered 309 services, more than 30 businesses obtained assistance with the preparation of the tender documentation.


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