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T. Suleimenov: 140 facilities worth 90.6 billion tenge were put into operation within the framework of PPP

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During today’s Government meeting chaired by Prime Minister Bakytzhan Sagintayev, the Ministers of National Economy, Investments and Development, Healthcare, as well as Akims of a number of regions reported on the development of public-private partnership.

As Minister of National Economy Timur Suleimenov noted, to date, there are 212 contracts worth a total of 766.4 billion tenge, of which 16 contracts for the amount of 521.5 billion tenge were signed in the first quarter of 2018 (2 national and 14 local).

In total, as of April 1 of the current year, 140 facilities were put into operation amounting to 90.6 billion tenge, including 8 facilities (1.2 billion tenge) in the first quarter of 2018. Additionally, at various stages of readiness, there are 620 projects for a total of 1.6 trillion tenge.

According to Timur Suleimenov, in the sectoral context, out of 212 contracts concluded (for 218 facilities), most account for education – 52%, health care – 19%, culture and sports – 14%. Other spheres occupy 15%.

Practice shows that the use of the PPP mechanism gives a positive result. Over the past period, if we take 140 facilities commissioned, it has non-recurrently reduced burden on the budget for the amount of about 90.6 billion tenge, �Timur Suleimenov said.

In addition, legislative measures have been taken to develop PPP. At the end of 2017, the Law on further improvement and simplification of PPP mechanisms was adopted, which optimized the procedures by reducing the number of stages from 5 to 3, which allowed shortening the terms of coordination and examination of PPP projects from 7 to 3 months; it provides a guarantee of use for PPPs for 3 years or more; introduces the possibility of planning standardized PPP projects, taking into account the specifics of the industry within the framework of state programs. Necessary by-laws in the implementation of this law were adopted.

The Ministry together with the National Bank and the NCE Atameken has developed a number of amendments to existing legislation in terms of recognition of PPP contracts providing for payments by the state, as collateral for STBs.

In general, the Minister of National Economy noted the positive shift in the development of PPP and made a number of proposals for improving the situation, among which the development of standard documentation, the preparation of projects for the stage of tenders and the registration of PPP contracts.

Minister of Investments and Development Zhenis Kassymbek, in turn, reported that with regards to the mechanism of public-private partnership, currently at the stage of development and implementation there are 44 projects, including 4 projects in the road sector, 1 project in the field of railway transport, 2 projects in the field of civil aviation, 4 energy saving projects and 33 projects in the field of housing and communal services.

A contract was signed with the consortium Alsim Alarko – Makyol – SK – Korean ExpressWay for the launch of the implementation of the first major concession project in Kazakhstan for the construction of Big Almaty Ring Road (BAKAD). Construction and installation works will begin in May this year. In 2021, it is planned to complete the construction and launch the operation of the road on a fee basis, – Zhenis Kassymbek said.

The Minister of Investments and Development reported in detail on the work on other major PPP projects in the field of roads and railways, housing and utilities, digitalization. Zhenis Kassymbek also voiced a proposal for the central state and local executive bodies to start implementing PPP projects aimed at energy saving and energy efficiency.

As Minister of Healthcare Yelzhan Birtanov noted, the list of PPP projects in healthcare currently includes 175 projects, contracts have been concluded for 50 of them, and the total cost of contracts is 33.7 billion tenge.

In the current year, 15 contracts have been concluded in 6 regions. Projects include the construction and operation of outpatient clinics, polyclinics, hospitals, medical equipment and appliances, etc. Another 125 projects are in the phase of preparations, of which undergoing tendering procedures and negotiations within the framework of Private Finance Initiative � 25 projects.

It is expected that the average annual growth rate of investments in the health sector until 2025 will be 9.3%.

At the same time, it is being considered to attract about 750 billion tenge of investments within the framework of PPP. Together with measures to promote competition, improve tariff policy, digitalization, the results of implementing PPP mechanisms will be modern effective infrastructure of healthcare organizations in the context of implementing CSMI, � Yelzhan Birtanov summed up.

In the course of consideration of the state of affairs in the field of implementation of PPP mechanisms, regional Akims took the stage as well: East Kazakhstan – D. Akhmetov, Aktobe – B. Saparbayev, West Kazakhstan – A. Kulginov, North Kazakhstan – K. Aksakalov, Atyrau � N. Nogayev, Deputy Akim of Zhambyl region E. Manzhuov, as well as Deputy Chairman of the Board of NCE Atameken Y. Yakupbayeva.

Source: Government of the Republic of Kazakhstan

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