PUBLIC-PRIVATE PARTNERSHIP: THE STATE HAS MUCH MORE OBLIGATIONS THAN BUSINESS
The third meeting of the Council on monitoring of public-private partnership projects was held at the National Chamber, at which Council members discussed the current situation on the planning and implementation of projects.
Opening the meeting, the Council Chairman Amanzhan Zhamalov noted that the number of PPP projects is growing, however their quality often leaves much to be desired.
“Unfortunately, the implementation of PPP projects has turned into deferred obligations of the state. Now we need to analyze and find the best approach. We should not only build kindergartens in the framework of PPP. The main goal is to develop the infrastructure and improve the quality of the services provided,” - Amanzhan Zhamalov said.
According to official statistics, the number of contracts concluded since 2016 has increased 20 times, while state obligations have increased 23 times. This shows the ineffectiveness of the implementation of PPP on the state initiative. At present, the state covers much more than attracts private investment. To change this trend, it is necessary to listen to business, offering projects on a private financial initiative.
In this regard, Eldar Zhumagaziev made a proposal to the National Palace to establish criteria for the selection of PPP projects, based on the structure of compensation from the budget.
PPP is implemented with varying success due to the lack of specialists in this profile. Today the Republic of Kazakhstan has no refresher courses, there is no corresponding department at the universities. In this area there are few competent specialists, while there are as many as three regulatory bodies. At the suggestion of Yeldar Zhumagaziyev, it is necessary to identify one state body to monitor and evaluate the implementation of PPP projects.
Also, the National Chamber proposed to screen the needs of the regions in PPP projects, digitize a single database for the projects being implemented and create a virtual passport for each project, which will contain basic information about the project.
“Most PPP projects are implemented in the field of education and health care. In particular, there are many PPP projects for the operation of kindergartens. For PPP projects, we must be sure that private partners are fulfilling their obligations at the proper level. We offer to make a rating of private partners by industry. We will see leaders who are clearly fulfilling their obligations, as well as see outsiders, under whose contracts it is necessary to announce a competition to replace a private partner,” - Yeldar Zhumagaziyev said.
This proposal was supported by a member of the Council, Vice-Minister of Education and Science of the Republic of Kazakhstan Bibigul Asylova. She also told the Council participants about the ongoing work of the MES of RK on the construction of dormitories in the framework of the implementation of the Five Social Initiatives. She noted that the construction of hostels is planned on the terms of the state order to provide accomodation for students.
In addition, the meeting discussed the implementation of long-term plans for infrastructure development. The total investment requirement will amount to 1 trillion 94 billion tenge by 2025. According to Nurbol Kuzembayev, deputy Director General of the RSE on the Right of Economic Use "Republican Center for Health Development", currently 82% of the funds for infrastructure development are allocated by the state budget. However, the funds of the state budget do not fully cover the need for investments necessary to solve the problems of accidents, deterioration, and overload of healthcare facilities. In this regard, it is planned to attract private investment through the PPP mechanism.
“In accordance with the “Densaulyk” state program, the planning of the network of medical organizations will be systematized on the basis of long-term plans for the development of health infrastructure since 2018,” - Nurbol Kuzembayev said.
For the effective implementation of future development plans, it is necessary to develop a program of PPP in healthcare.
“I instruct to continue the practice of hearing the regions. The Ministry of Finance, the Ministry of National Economy, the National Chamber will work out a mechanism for ensuring the guarantee of consumption enshrined in the Law on Public-Private Partnership, as well as to develop and approve an Action Plan for implementing PPP projects by industry and region for 2019/2021 with expanding mechanisms for the use of PPP and private investment ", - Amanzhan Zhamalov summarized.
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