Emblem
Official Source of the
Prime Minister of the
Republic of Kazakhstan
Menu
Emblem
Close button

PPP mechanism designed for eliminating burden on budget — Aidos Kobetov

Monday, 22 July 2019, 13:25:07

Deputy Chairman of the Board of Kazakhstan Public-Private Partnership Center JSC of the Ministry of National Economy Aidos Kobetov spoke about improving the mechanism of public-private partnership in Kazakhstan at the press conference in the Government.

Kobetov noted that until 2014 there were only three large PPP projects in Kazakhstan: the Shar – Ust-Kamenogorsk highway, the international airport in Aktau, and the North Kazakhstan Electric Line.

“Starting from 2011, together with the ministry, we began the gradual introduction of the mechanisms to attract investors. First, it was an extension to all areas. Previously, only social projects and life support projects were implemented. Then they expanded to the full range,” Kobetov said.

In 2015, after the adoption of the law on PPP, the mechanism of “Private Financial Initiative” appeared. To date, out of 565 contracts concluded, 290 fall on this mechanism.

Within the framework of the BAKAD project, such fundamental changes were introduced as the use of currency risk for projects of special significance, international arbitration, a direct agreement that makes it possible to conclude contracts between a private partner, a public partner and a financing institution.

Also, according to Kobetov, the ratio of cost recovery of PPP projects from the republican budget and through private investment is 1: 1.

“In general, if you look at the breakdown, there are 9 republican PPP projects for 907 billion tenge and 556 local projects for 400 billion tenge. Of these, cost recovery is about 1.1 trillion tenge. The attracted investments are about 900 billion. Approximately 1: 1 is going on,” said the deputy chairman.

At the same time, he stressed that initially the task was to attract investors to those areas that were in charge of the state. Therefore, there were projects that are not very attractive for investors. Like any other state, Kazakhstan had to guarantee repayment and minimize the risks for the investors.

“Thanks to these accepted commitments, the number of projects has risen. But since the beginning of 2019, the ministry has begun to move from quantity to quality, made a breakdown of projects into three categories,” Kobetov said.

He also focused on the fact that today there is no task to achieve a 100% attraction of thr investment in PPP. But at the same time there is the task of unloading the budget for obligations. There are projects that do not generate an attractive level of income for the investor. But at the same time, these projects are necessary for the state. The PPP mechanism itself is focused on eliminating a one-time budget burden.

“Let's say we need to make street lighting this year, but at the same time it is necessary to invest a certain amount of money. This money is not in the budget or there is no enough money. A private partner invests this amount today, and we get this project today. But at the same time, the state reimburses these costs for a private trader in certain tranches for a certain time. If we take street lighting, later, when this object will be transferred to the state, then we will not receive the costs that we have previously spent with ordinary lamps. We get a more attractive project from a prism for budget efficiency. We are starting to save on the project itself,” said Kobetov.


News feed
27 October 2020, 09:50
Resolving issues of providing population with clean drinking water — strategic task of Government
26 October 2020, 19:16
Prime Minister Askar Mamin chaired meeting of Interdepartmental Commission on Preventing Spread of COVID-19
26 October 2020, 17:14
Prime Minister Askar Mamin received Minister of Defense of Turkey Hulusi Akar
26 October 2020, 15:42
Government session to be held Oct. 27 in Ukimet Uyi
23 October 2020, 18:49
Issues of state information order, consolidation of state media and access to information — development of information sphere of Kazakhstan
23 October 2020, 15:41
Prime Minister Askar Mamin chaired meeting of Commission on Digitalization
23 October 2020, 15:02
Prime Minister Askar Mamin and EU Ambassadors discussed cooperation in economic recovery
22 October 2020, 18:20
Gulmira Isaeva relieved as vice minister of agriculture 
22 October 2020, 17:24
Council for Improving Investment Climate considers prospects for economic recovery in Kazakhstan
22 October 2020, 15:22
Prime Minister Askar Mamin informed about plans for development of electric vehicles production in Kazakhstan
22 October 2020, 14:54
Prime Minister Askar Mamin chaired meeting of Project Office on Entrepreneurship
22 October 2020, 12:03
Rural medical organizations presented with mobile medical complexes
21 October 2020, 09:56
Askar Biakhmetov appointed Deputy Head of the Office of the Prime Minister of Kazakhstan
20 October 2020, 14:51
Government approved project of gas supply to Almaty CHPP-2
20 October 2020, 14:38
Prime Minister of Kazakhstan Askar Mamin met with Suma Chakrabarti
20 October 2020, 13:35
Three-month supply of personal protective equipment formed in medical organizations — Alexey Tsoy
20 October 2020, 11:02
For 9 months of 2020, vaccination plan in Kazakhstan fulfilled by 100% — Ministry of Agriculture
20 October 2020, 10:27
Domestic enterprises daily produce 900 thousand masks — Beibut Atamkulov
20 October 2020, 10:17
Government considers issues of providing population with medicines
20 October 2020, 10:02
Government considers issues of veterinary and phytosanitary safety
19 October 2020, 17:13
Prime Minister Askar Mamin gave instructions on sanitary and epidemiological situation in Kazakhstan
19 October 2020, 14:36
Government session to be held Oct. 20 in Ukimet Uyi
15 October 2020, 23:56
Improving healthcare and increasing business activity — development of Almaty for 9 months of this year
15 October 2020, 15:28
Prime Minister Askar Mamin takes part in opening ceremony of Hyundai car assembly plant
13 October 2020, 13:14
Main task of clarifying forecast was to provide financial support to doctors and take proactive measures on COVID-19 — Alikhan Smailov 
13 October 2020, 13:01
Production in machine-building industry grew by 16.6% — Beibut Atamkulov
13 October 2020, 11:35
State budget expenditures executed at 99.5% — Ministry of Finance
13 October 2020, 11:13
National Bank launches remote biometric identification service for obtaining financial services
13 October 2020, 10:22
Over 9 months in Kazakhstan, investments in healthcare increased by 85.7% — Ministry of National Economy
13 October 2020, 09:49
Along with growth in real sector, recovery of activity in service sector began in September 2020 — Askar Mamin
12 October 2020, 16:34
Askar Mamin’s visit to Abu Dhabi: Kazakhstan and the UAE accommodated investment projects for $6.1 billion
12 October 2020, 16:18
Government session to be held Oct. 13 in Ukimet Uyi 
09 October 2020, 19:23
Amendments to law, social payments to electronic wallet and use of pension savings — how Ministry of Labor implements instructions of the Head of State
09 October 2020, 16:57
Prime Minister Askar Mamin presents initiatives on strengthening competitiveness of EAEU
08 October 2020, 19:06
Prime Minister Askar Mamin discusses implementation of joint projects with leadership of large Russian companies
08 October 2020, 18:44
Interdepartmental Commission adopts decisions on implementation of instructions of the Head of State
07 October 2020, 23:04
Prime Minister of Kazakhstan Askar Mamin meets with Prime Minister of Russia Mikhail Mishustin
06 October 2020, 14:58
Beibut Atamkulov: Investments in country's pharmaceutical industry grew by 5.2% and amounted to 4.1 billion tenge
06 October 2020, 14:36
National distribution system to comprehensively solve issues of reducing food chain losses and stabilizing prices — Bakhyt Sultanov
06 October 2020, 13:09
Market of Kazakhstan 100% provided with domestic freshwater fish — Ministry of Ecology, Geology and Natural Resources
06 October 2020, 12:37
Alexey Tsoy: To support domestic pharmaceutical companies, procedures for examining medicines and assessing their quality accelerated
06 October 2020, 10:53
Domestic market of Kazakhstan 100% provided with 12 commodity items — Ministry of Agriculture
06 October 2020, 10:25
Government adopts Comprehensive Plan for Development of Pharmaceutical Industry until 2025
06 October 2020, 10:08
Prime Minister Askar Mamin congratulates Kazakhstani farmers on completion of harvesting
06 October 2020, 09:56
Askar Mamin: Saturation of internal market with domestic food is a strategic task of government 
05 October 2020, 14:53
Government session to be held Oct. 6 in Ukimet Uyi
05 October 2020, 12:04
Resumption of passenger traffic between EAEU countries under quarantine discussed at EEC Council
04 October 2020, 10:19
Prime Minister Askar Mamin congratulates Kazakhstani teachers on their professional holiday
02 October 2020, 11:12
Changing approaches to attracting investments, or how investment industry of Kazakhstan adapts to challenges of the pandemic
01 October 2020, 16:59
Government considers implementation of Plan of the Nation "100 Concrete Steps’’
© 2019 - 2020 Press service of the Prime Minister of the Republic of Kazakhstan.
Developed by SoftDeCo.