The conditions for business participation in public-private partnerships are becoming more attractive

Speaking at a meeting with the Astana business community, Yuliya Yakupbaeva, Deputy Chairman of the Board of NCE RK Atameken, noted that in the past two years, a full inventory of state assets was carried out within the framework of privatization, including at the initiative of the National Chamber. To date, some of the objects have been reorganized, some are in the process of liquidation. The list of privatization is expanded.

"Along with this, the so-called" insoluble residue" was formed out of 6,000 objects, mainly the social sphere. These objects, taking into account their social importance and business interest in these areas of activity, have the potential for the development of PPPs", - said Yuliya Yakupbaeva.

Over 10 years of the existence of the PPP legislative framework, 116 public-private partnership agreements have been concluded. Leaders in this area are the East Kazakhstan, Aktobe and Kostanay regions. The basis of PPP projects are socially oriented industries - education, health, culture and sport, housing and communal services, construction of social housing. More than 400 projects are at the stage of preparation now

At the same time, according to Yuliya Yakupbaeva, PPP tools have great potential, but they are being implemented slowly.

"For significant progress in the issue of PPP it was necessary to solve 4 main problems: to ensure a long-term order, simplify the procedures for preparing and approving PPP projects, close investor risks and solve the issue of project financing. Thanks to the instructions of the Prime Minister of the Republic of Kazakhstan, given in May, the serious joint work of Atameken with MNE has been done. There is considerable progress on a number of issues", - the deputy chairman of the National Chamber of Entrepreneurs noted.

For example, within the framework of the draft Budget Code, amendments were introduced, providing for a long-term state order over 3 years in the framework of PPP projects. The process of developing and approving projects has been reduced by eliminating the concept of the project. These amendments will significantly reduce the time required for the preparation of projects at the regional level and, accordingly, the costs of businessmen.

"PPP projects have been introduced in the DKB-2020 and may apply for subsidies. There was an opportunity to take into account currency risks. Here it was also possible to legislatively fix the possibility to take them into account in the contract. Now we need to develop a specific order. We understand that the state can not completely take over. Therefore, NCE sent a proposal to the MNE: if the rate increases by more than 15%, the investor is asked to refund 15% of the initial rate at the time of signing the contract", - Yakupbaeva said.

Today, together with the MES and the National Bank, the National Chamber of Entrepreneurs discusses the issues of financing and pledges for PPP projects.

"The two main risks in the event of termination of the contract: during the construction phase and during the operation phase. In particular, in case of termination during the construction phase, the law provides for the possibility of a refund to a private partner. But there is no order of return. We propose to develop such an order. In order to close the risks of creditors, the National Bank of Kazakhstan insists on the unconditional guarantee of the LEB or the state for the construction period. In order to ensure the continuity of the project and the fulfillment of the project obligations in the event of termination of the contract already during the operational period, we offer a tripartite agreement between LEB, STB and the private partner, and the private partner replacement mechanism. The agreement will ensure the return of funds to the state, and the replacement of a private partner will contribute to the fulfilment of the obligations of the private entrepreneur to creditors and the state partner", - said Yuliya Yakupbaeva.

As an alternative, we have proposed a financing model based on a tripartite agreement since last year. The essence of the contract is to close the risks during the construction period and to solve the financing issue, since the main difficulties arise precisely during the erection of the facility - lack of collateral, lack of funds.

"In general, PPP has been developing very actively since this year, new challenges are emerging. In the regions there is a specificity. Each specific project requires an individual approach. There is a need to monitor the situation centrally. Therefore, we proposed to create a Council for monitoring PPP projects within the framework of the meeting of the Economic Policy Council of the Nur Otan party faction", - Yuliya Yakupbaeva summarized.