Is Kazakhstan finally a rising star for public–private partnerships?
The 66 km Big Almaty Ring Motor Road concession project (a toll road around the city of Almaty), also known as BAKAD, fi nally reached a financial close on the 7th August 2020, making it the largest public–private partnership (PPP) project in Central Asia. The project is supported by the European Bank for Reconstruction and Development, the Bank of China, PGGM, Eurasian Development Bank and the IsDB.
The Kazakh gas market continues to be organized on the basis of central command and control, and quasi-monopolistic principles, with KazMunayGas (KMG) as the state owned and vertically integrated oil and gas company dominating gas production, supply and transportation through its direct and indirect subsidiaries.
Anti-crisis Economic plan
On April 24, 2020 Prime Minister of Georgia – Giorgi Gakharia, presented Anti-Crisis Economic plan. Prime Minister reviewed social programs and economic reliefs that the government of Georgia had already implemented. Prime Minister presented the following anti-crisis plan:
In 2020, Kazakhstan faces a hurricane in the form of the impact consequences of the COVID-19 pandemic and the plunge in the price of oil to a 20-year low, including, among others, decreased economic activities, devaluation of the local currency (tenge), reduced foreign direct investments in risky markets and shrinking state budgets.
The brochure provides you with the comprehensive information about the main forms of doing business in Kazakhstan, including a detailed comparison table of such forms, information on the tax structure, bankruptcy, PPP and frequently asked questions for starting and doing business in Kazakhstan.
Kazakhstan adopted relevant legislation for domestic Islamic banking transaction such as the governed Kazakh law more than ten years ago and established the Astana International Financial Center (AIFC) based on the Dubai International Financial Center’s model three years ago, Islamic finance is still in the early stages of its development and Islamic products are rarely used.
Kazakhstan, at least on the surface, seems to have a strong political will to attract investments in renewable energy projects as demonstrated by its official general policy.
GRATA International banking and finance team is pleased to provide you with a brief summary of the major changes to the legislation of the Republic of Kazakhstan in 2019 that may affect your business
PPP Boom in Kazakhstan
As of 1 October 2019, 610 public-private partnerships agreements worth 1.5 billion tenge (about 3.8 million US dollars) have been executed in Kazakhstan. While PPP remains one of the areas of great interest to both Kazakhstani state authorities and prospective investors, it seems that the Government of Kazakhstan has decided to change its policy in relation to PPPs by shifting focus from quantity to quality of PPP projects to be implemented in Kazakhstan.
PPP law initial focus of new Uzbek agency
With Uzbekistan announcing that it is establishing a coordinating agency to facilitate planning and implementation of PPPs, the new agency’s focus in its first year will likely be on helping to draft and shepherd passage of a PPP law through the country's Supreme Assembly, according to a legal adviser in Tashkent.
Investment in FEZ of Moldova through Project finance
The materials on this booklet have been prepared by Popa & Associates Law Firm, associate office of GRATA International in Moldova, for informational purposes only and are not legal advice or a substitute for legal counsel. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. You should not rely or act upon this information without seeking professional counsel.
There is no doubt that Kazakhstan needs new economic drivers to facilitate the launch of innovative new businesses, to disrupt conventional industries and to transform intellectual capital into innovative start-ups.