28.06.2021

P u b l i c - P r i v a t e   P a r t n e r s h i p s   i n   K a z a k h s t a n :   E v o l u t i o n   o f   t h e   G o v e r n m e n t   P o l i c y   a n d   R e a l i t y   o f   P P P   D e p l o y m e n t  

Annotation
This article examines PPP development in Kazakhstan from 1991 to the time of writing. Article reviews evolution of the PPP legislation and approaches used to develop a PPP-enabling environment in order to draw lessons for the country’s future policy. This article describes evolution of the PPP concept in the country and provides analysis of gaps and deficiencies in the current PPP policy and legislation.

The PPP definition and the scope of PPP activity has evolved significantly in the nation’s legislation and legal literature since 1991. Author distinguish the following five stages of the PPP development in Kazakhstan: Stage One—PPP legal framework for foreign investors only (1991-1993); Stage Two—Lack of PPP-specific legal framework and “pilot” projects (1994-2005); Stage Three—The formation of legal and institutional frameworks (2006-2015); Stage Four—Active PPP deployment: the focus being on quantity (2016-2018); Stage Five—Adjustments to the PPP framework: stricter requirements (2019-present).

In this article, the author examines the first two stages from 1991 to 2005, paying attention to the actions of the government, Policy Goals at the Stage One and Stage Two, assessing the implications for further policy development of public-private partnerships in the state. The author concludes that at the end of the first stage, unlike the first law on concessions, all PPP-related laws thereafter have been applicable to both domestic and foreign investors, as the government realised the importance of treating all investors equally. Stage Two also showed that Kazakhstan needs more effective PPP policy instruments for the implementation of projects in the utilities sector.

Read more→ Part 1| Part 2

Author: Shaimerden Chikanayev, Partner of GRATA International, Kazakhstan.

Locations
Location:
Almaty, Kazakhstan
Industry:
Banking & Finance
Practice area:
Finance and Securities
International Trade, Customs and WTO
Project Finance & Public-Private Partnership (PPP)
Restructuring & Insolvency
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