The Government of the Republic of Kazakhstan supported the business proposals and the MES on simplification of PPP procedures
The main problems of the implementation of PPP projects were discussed in the Government of the Republic of Kazakhstan
A regular meeting of the Government of the Republic of Kazakhstan under the chairmanship of the Prime Minister of Kazakhstan Bakytzhan Sagintayev was held in Astana. Issues of implementing public-private partnerships were discussed during the meeting.
Chairman of the Board of NCE RK "Atameken" Ablay Myrzakhmetov took part in the meeting. He announced the current situation and the main problems of implementing PPP projects, as well as a number of proposals to optimize PPP procedures.
The Chairman of the Board noted that, despite the joint work done by the MNE and NCE and the changes introduced to the legislation, the procedures remain extremely complicated and confusing, and even after the reduction of the terms, the project approval takes about 200 days. At the same time, after completing all the approval procedures, often PPP projects do not find financing.
"The reconciliation of the concept takes at least 30 working days. In fact, the timing is much longer. However, after going through all these painful procedures, an entrepreneur can hardly receive financing", - said the head of the National Council.
The Chairman of the Board also voiced proposals for replacing costly concepts with more mobile documents, legalizing long-term government contracts in the framework of PPP projects, applying existing measures of state support to these projects, developing clear procedures for compensation payments in current legislation, including real costs of business in PPP projects.
"The cost of developing the concept varies from 1 to 50 million tenge. As a developer, as a rule, the PPP Support Center or subordinate organizations of the M & E. If the investor has an alternative concept, the payment for it rests on his shoulders and the money does not come back",- explained the speaker.
"The indicators put into the concept quickly become obsolete, correction requires additional costs and reconciliation. The process is often delayed, and the project loses relevance for investors. Entrepreneurs report that cases when alternative concepts are returned by the PPP Center without consideration with the wording "does not correspond to the structure" are not uncommon, "does not correspond to the notification requirements", - added Ablay Myrzakhmetov.
At the end, Ablay Myrzakhmetov asked the Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev to instruct the relevant state bodies to start implementing pilot projects on a simplified scheme of PPP.
Chairman of Atameken supported the proposal of the Ministry of Energy of the Republic of Kazakhstan to implement a simplified scheme of PPPs and suggested applying a simplified scheme to all M & E projects without sector restrictions.
According to MNE and NCE, a simplified procedure for harmonizing the documentation will make it possible to shorten the timeframe to 2-3 months, and the implementation of pilot projects in healthcare and education in each region will replenish the set of implemented PPP projects by 30 successful examples until the middle of next year.
In general, the approaches worked by NCE RK and MNE RK have received support from the regions and the Government.
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