These and other questions about the introduction of treasury support of public procurement in the construction sector were discussed at the National Chamber of Entrepreneurs "Atameken"

Public hearings were held under the chairmanship of Deputy Chairman of the Board of NCE Yuliya Yakupbaeva, involving representatives of the construction community and the Ministry of Finance of the Republic of Kazakhstan.

Yuliya Yakupbaeva noted that the announced scheme of the treasury support underwent detailed discussion at NCE with the representatives of industry associations and construction companies, as result the original cumbersome scheme was radically simplified. The roadmap for the implementation of treasury support was approved. This year, the mechanism proposed by the Ministry will be piloted in three regions - Astana, Akmola and Karaganda regions.
"During the discussion of the proposed scheme of treasury support, the business community - members of public procurement has a number of question to be discussed and resolved in working order", - said Yuliya Yakupbaeva.

Vice-Minister of Finance of the Republic of Kazakhstan Berik Sholpankulov told about the mechanism of implementation of the system of treasury support (special accounts) of public procurement in the construction sector. According to him, the purpose of implementing this system is to ensure control over the targeted use of budgetary funds and the transparency of payments between entities of construction activity.

Deputy Minister explained that the special accounts in the Treasury bodies will be opened only for the general contractors and subcontractors. Transfer of funds from the budget will be made upon approval of the Supervisor – engineering company, which will also be elected by the tender for the management of the project. Supervisor will be delegated additional powers to monitor not only the quality of construction, but also the reasonableness of the costs.

In addition, the financial flows monitoring system will include state revenue bodies, which will be involved at all stages of the payments at the level of general contractor, subcontractors, as well as through a risk management system to identify them in good faith. For transparency of payments to the final supplier of the goods and services, the authorized body offered to introduce compulsory issue of e-invoices for all parties to implement the information system "electronic invoice".

Berik Sholpankulov stressed that during the implementation of the "pilot" project will be identified the strengths and weaknesses of the treasury support of public procurement for the construction, certain amendments will be developed and introduced to the legislation of the Republic of Kazakhstan for a qualitative improvement of the construction process in the implementation of investment projects financed from the state budget.
Yuliya Yakupbaeva stressed that the National Chamber of Entrepreneurs proposes the inclusion of new tools of the scheme in the system – it is a registry of suppliers of goods (hereinafter register of service providers, Registry of subcontractors).

"The Register of suppliers of goods will include domestic producers with prices and the list of goods across regions, foreign manufacturers and authorized distributors (for domestic and imported products). In order to promptly exclude unscrupulous suppliers, the inclusion of the suppliers in the Registry would be coordinated with SRC ", - said deputy chairman of NCE.

She stressed that the criteria and mechanism for inclusion in the Register of domestic producers will be worked out with the business.
During the discussion, representatives of the business community have raised questions concerning the relationship with SRC, Supervisor, regulation of activities of SRC in implementing treasury support, criteria for their evaluation of subcontractors on the integrity, problematic issues on transfer of payments for indirect costs due to the fact that project of detailed planning  includes only direct costs for the edition of normative legal acts, providing for the amendments in connection with the introduction of treasury account, the definition of a general contractor under the current system the possibility of dumping of prices, functions of engineering companies, the formation of the Register of bona fide suppliers, etc.

"We need to work together with the Committee for Construction and Housing of MID RK to study the status and regulation of activity of a Supervisor, his accreditation as an engineering company for project management, qualification requirements and terms of reference for the implementation of Treasury support and to hold a separate meeting with the competent authority on these issues", - said Yuliya Yakupbaeva.

In addition, together with business and government the stakeholders should define approaches and criteria for the formation of the register of suppliers of goods, and in conjunction with the State Revenue Committee of MF RK - to work out the specific issues of the fiscal authority of relationships with members of the treasury support system.
To resolve the problem issues related to the quality of design and estimate documentation, we need to create a permanent working group.
The results of the work conducted in conjunction with the business community on this innovation will be announced later, assured Yuliya Yakupbaeva.