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
13 August 2020, 18:07
State Commission approves Plan for Phased Removal of Quarantine Measures from Aug. 17, 2020 
13 August 2020, 11:39
Arman Abdrasilov appointed chair of JSC Zerde National Infocommunication Holding 
12 August 2020, 18:46
Kazakhstan and UN sign framework program on cooperation for 2021-2025 
12 August 2020, 15:52
Reducing breakdown susceptibility and deterioration of electrical networks — the priority of upcoming heating season
11 August 2020, 20:34
Yeraly Tugzhanov visits business facilities in Nur-Sultan 
11 August 2020, 19:56
Interdepartmental Commission considers preparations for phased removal of quarantine measures 
11 August 2020, 13:41
According to results for 7 months of 2020, industrial production increased by 1.3% — Ministry of Industry and Infrastructure Development 
11 August 2020, 13:12
On average in Kazakhstan, daily increase in incidence of CVI decreased by almost 2 times — Ministry of Healthcare 
11 August 2020, 12:44
In January-July 2020, oil exports amounted to 42 million tons — Ministry of Energy 
11 August 2020, 10:35
Following results of 7 months in 2020, positive dynamics remains in basic sectors of economy of Kazakhstan 
11 August 2020, 10:33
In Kazakhstan, gross agricultural output for 7 months of 2020 increased by 2.5% 
11 August 2020, 10:13
Over 20 thousand applications approved under 7-20-25 program — National Bank 
11 August 2020, 09:53
Revenues of local budgets executed by 120% — Yerulan Zhamaubayev 
11 August 2020, 09:42
Prime Minister Askar Mamin instructs to submit Plan for Phased Removal of Quarantine Measures for consideration by State Commission 
11 August 2020, 09:33
According to results for 7 months of 2020, production of goods increased by 2.1% — Ministry of National Economy 
10 August 2020, 12:04
Government session to be held Aug. 11 in Ukimet Uyi 
07 August 2020, 12:45
About 1.4 billion tons of cargo transported by road in six months in Kazakhstan
05 August 2020, 20:13
Interdepartmental Commission considers preliminary results of implementation of Enbek and Employment Roadmap programs
05 August 2020, 13:01
Prime Minister Askar Mamin informed about SK-Pharmacy’s measures to provide drugs to combat COVID-19
04 August 2020, 19:52
Interdepartmental Commission considers issues of Kazakhstan's access to complex of candidate vaccines for COVID-19
04 August 2020, 11:22
2.6 million students to study in distance format from beginning of academic year — Ministry of Education and Science
04 August 2020, 10:11
By new academic year, Government will provide computers to 500 thousand students from most needy families
04 August 2020, 10:03
Positive trend observed in fight against COVID-19 in Kazakhstan
04 August 2020, 10:02
Daily increase in incidence of COVID-19 in Kazakhstan decreased on average by almost one and half times — Ministry of Healthcare
04 August 2020, 09:56
In Kazakhstan, 4,422 schools provided with high-speed Internet over 8 Mbps
03 August 2020, 16:04
Government session to be held Aug. 4 in Ukimet Uyi
03 August 2020, 14:20
New program of Housing Construction Savings Bank "Zhas Otbasy" started July 1 in Kazakhstan
03 August 2020, 14:10
In 2021, Housing Construction Savings Bank plans to issue mortgage online
03 August 2020, 14:00
Transforming Housing Construction Savings Bank into Otbasy Bank and providing Kazakhstanis with housing — interview with Lyazzat Ibragimova
03 August 2020, 10:47
Shakhmardan Baimanov appointed chair of Committee on Youth and Family Affairs of the Ministry of Information and Social Development
03 August 2020, 09:32
Anuar Dzhumadildayev appointed chair of Treasury Committee of the Ministry of Finance
02 August 2020, 17:30
Video Digest: Main events of the week, No. 71
31 July 2020, 08:29
Prime Minister Askar Mamin congratulates Kazakhstanis on Kurban Ait
30 July 2020, 18:30
Yerbol Ospanov appointed vice minister of labor and social protection of the population
30 July 2020, 17:15
Increasing yield, ensuring phytosanitary safety and training of research personnel — how agricultural science develops in Kazakhstan
30 July 2020, 16:04
Allen Chaizhunussov appointed chair of the Board of QazExpoCongress
30 July 2020, 13:09
Prime Minister Askar Mamin instructs to develop additional measures to support business
30 July 2020, 08:58
Roman Sklyar's working trip to Tatarstan: Creating joint ventures and implementing investment projects
29 July 2020, 20:56
Interdepartmental Commission takes special control over implementation of President’s instructions
29 July 2020, 16:57
Increasing lending to SMEs, providing employment and social benefits to population — Ruslan Dalenov on measures to support economy
28 July 2020, 21:37
Mortgage on favorable terms and construction of affordable housing — development of housing construction in Kazakhstan
28 July 2020, 19:03
Prime Minister Askar Mamin holds meeting on development of Kyzylorda region
28 July 2020, 11:17
During pandemic, Internet and electronic government services became the first necessity — Bagdat Mussin
28 July 2020, 10:20
E-commerce market amounted to 435 billion tenge in first half of 2020
28 July 2020, 10:13
In first half of 2020, e-commerce in Kazakhstan increased by one and half times
28 July 2020, 10:06
Epidemiological situation in Kazakhstan stabilizing
28 July 2020, 10:00
Since introduction of quarantine in Kazakhstan, 29% decrease in CVI cases recorded
27 July 2020, 14:26
Government session to be held July 28 in Ukimet Uyi
27 July 2020, 12:03
Changing approaches to provision of medical care reduced burden on bed capacity of Almaty — Nadyrov
27 July 2020, 11:37
After launch of mobile resuscitation teams in Almaty, number of deaths from COVID-19 decreased
© 2019 - 2020 Press service of the Prime Minister of the Republic of Kazakhstan.
Developed by SoftDeCo.