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Ministry of National Economy proposes to apply the PPP principle in water supply of regional centers and major cities

by October 18, 2016 Market

Minister of National Economy of Kazakhstan Kuandyk Bishimbayev proposed at the Governments meetingto introduce the public-private partnership principle in water supply of regional centers and major cities.

To solve the problem of water supply in regional centers and major cities it is proposed to transfer the regional water utilities to a single operator, who will exercise administration work jointly with technical partner having experience and knowledge. We also consider it appropriate to involve a private partner with investment opportunities, whose expenditures will be reimbursed through the mechanisms provided by the Law On Public-Private Partnership, K. Bishimbayev informed.

According to the Minister, there is a need to develop an appropriate mechanism for the return of investment costs that will take into account the characteristics of a separate municipal enterprise of water supply.

As part of the administration by a single operator, the preparatory works on commercialization of water utilities will be carried out for further privatization. It is also possible to determine a list of PPP pilot projects from among water utilities, which have been successfully applying the loans of international finance organizations and are the most prepared for attracting the private investors. For the pilot projects implementation purposes there is a need to develop a schedule for a phased transition of water utilities to the PPP mechanism, criteria, indicators, conditions and targets of the projects, K. Bishimbayev said.

Source: Government of the Republic of Kazakhstan