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Ppp Forms

PPP Forms

Regulation in the current legislation

Management and maintenance contract

This form of PPP may be used in framework of existing legislation (Civil Code of the Republic of Kazakhstan) in the form of management contract

Operating and maintenance contract

This form of PPP may be used in the framework of existing legislative (Civil Code of the Republic of Kazakhstan) in the form of lease or rent

Design, build, financing and maintenance contract (concession)

A legal framework to implement a concession projects is in place – Law on Concession of the Republic of Kazakhstan. However, the Concession Law does not currently allow reimbursement of operation and maintenance costs, which renders impossible DBFO-type of contracts in Kazakhstan at this time.

A Law on Concessions was adopted in July, 2006, which serves as core PPP legislation in the Republic of Kazakhstan. Amendments to the Concessions Law were adopted on July 5, aimed to modernize the PPP mechanisms in Kazakhstan. Changes were made to the Tax, Budget and Land Codes, the Law on Concession, Law on Automobile roads, Law on Natural monopolies, Law on Railway transport, Investment Law, Law on Electric power, and Securitization law according to the following main principles:

-Expanding of types of State support2 to the concessionaire;

- Modernization of procedures of transferring the infrastructure facilities to concession;

- Strengthening of institutional framework for PPP;

- Enhancing attractiveness of concession projects in transport sector.

Therefore, there is a legal framework in place in Kazakhstan allowing implementation of certain types of concession projects.

Functions of the existing institutions of the rk on issues of the concession contracts

Name of organization

Function

Ministry of economic development and trade of the RK

- Developing a list of concession projects in accordance with State policy and taking into account of the results of economic survey and providing it to the Government of the RK;

- Review of tender documentation for the objects of concession agreements according to the following terms:

- State guarantee, concession liabilities by the Government of RK or co-financing from the State budget;

- Monitoring & evaluation of the concession projects;

Sectoral ministries and departments

- Development of the list of concession projects based of its own initiative or initiative of the private sector;

- Preparation of tender documents and concession contract, supervision of the concessionaire;

- Transfer of ownership of the concessioned infrastructure facility to the State.

Local authority

In addition to the functions of the sectoral ministries and departments:

- Negotiations with the concessionaire to protect the region’s interests;

-Development and implementation of the provisions on commission for the work with public utilities

PPP Center

- Accepting of the objects, built in the framework of the concession contract, to the State ownership;

- Financial audit of the economical activity of concessionaire managing the infrastructure facility;

- Attracting new concessionaires for project implementation in the event the previous concessionaire defaults on its obligations;

- Review and approval of concession proposals, feasibility studies, draft concession contracts, and tender documentation.

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