INVESTMENT PORTAL
of Kostanay region
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Public private partnership

Public-private partnership is a form of cooperation between the state and the private sector. In general, PPP is a mutually beneficial cooperation of state bodies and entrepreneurs in industries traditionally related to the state responsibility under the conditions of a balanced distribution of risks, benefits and costs, rights and obligations defined in the relevant agreements.

With obtaining independence in 1991, the Republic of Kazakhstan had a large stock of natural and energy resources, industrial and transport potential.

Public-private partnership was considered mainly as an element of public asset management. The main regulatory legal acts regulating these relations were the Civil Code of the Republic of Kazakhstan of December 27, 1994, the laws of the Republic of Kazakhstan of December 23, 1995 “On Privatization”, of May 13, 2003 “On Joint-Stock Companies”, of July 21, 2007 “On government procurement”.

The first legal basis regulating a public-private partnership in Kazakhstan offered investors a single instrument - a concession. The concession in the original edition was considered as a lease to a legal entity or an individual - the concessionaire - of property, land, and natural resources. In other words, the concession was determined through the prism of the lease agreement (property rental), but at the same time elements of the contract, insurance, and employment contract could be present in the concession relations.

At present, various state-owned facilities are in property leasing (rent of non-residential funds, equipment, land) or in trust management on the basis of concluded contracts.

In 2006, the new version of the Law of the Republic of Kazakhstan “On Concessions” laid down the legal framework for the implementation of investment projects using the concession mechanism.

In addition, legislation in the field of concession is being improved in the light of best international practice. Thus, in 2008 and 2010, a number of amendments were made to the legislation on concession on the procedures for transferring objects to concession, expanding state support measures and increasing the attractiveness of concession projects, abolishing the obligation to issue infrastructure bonds in the provision of certain state support measures.

Today, approaches to PPP, the levels and directions of its development in each country are different, and in many countries of the world there is still a process of formation and implementation of PPP mechanisms.

Using the PPP mechanism, it becomes possible to increase the efficiency of mutually beneficial cooperation between the state and the private sector, improve the quality of services provided, and accelerate the modernization of the infrastructure necessary for diversifying the economy.

Currently, the Law of the Republic of Kazakhstan dated October 31, 2015 No. 379-V “On Public-Private Partnership” defines the legal conditions of a public-private partnership, its methods of implementation and regulates public relations arising in the process of preparing and implementing a public-private partnership project, the conclusion, execution and termination of the contract of public-private partnership.

Public-private partnership on the method of implementation is divided into institutional and contract. An institutional public-private partnership is implemented by a public-private partnership company in accordance with a public-private partnership agreement. In other cases, public-private partnership is carried out according to the method of contractual public-private partnership.

In Kostanay region in order to create conditions for partnership between the state and business, develop and combine their potential for implementing PPP projects, as well as to increase the volume of private investment in the region’s economy and the country as a whole, in January 2016 in the structure of the joint stock company “Social -business corporation "Tobol" began work structural unit - the center of PPP.

Currently, 64 projects of public-private partnership are in various stages of readiness in the Kostanay region, 45 PPP contracts have been concluded.