25th

place in the rating of the World Bank DOING BUSINESS
in terms of doing business

№7

to protect minority investors

№4

to enforce contracts

№18

by the indicator "Registration of property"


KAZAKHSTAN SIGNED 47 BILATERAL INVESTMENT AGREEMENTS AND 1 MULTILATERAL

Agreement on the Encouragement and Reciprocal Protection of Investments

The investor is provided with full and unconditional protection of rights and interests, which is provided by the Constitution of the Republic of Kazakhstan, this Code and other regulatory legal acts of the Republic of Kazakhstan, as well as international treaties ratified by the Republic of Kazakhstan.

The investor has the right to compensation for harm caused to him as a result of the issuance by state bodies of acts that do not comply with the laws of the Republic of Kazakhstan, as well as illegal actions (inaction) of officials of these bodies, in accordance with the civil legislation of the Republic of Kazakhstan.

The Republic of Kazakhstan guarantees the stability of the terms of contracts concluded between investors and state bodies of the Republic of Kazakhstan, except for cases when amendments to contracts are made by agreement of the parties.

In accordance with the Entrepreneurial Code of the Republic of Kazakhstan dated October 29, 2015 No. 375-V ЗРК

PROTECTING BUSINESS AND INVESTMENTS PROJECT

The project is implemented by the Agency for Civil Service Affairs and Anti-Corruption of the Republic of Kazakhstan

As part of the project, the investor receives:

  • anti-corruption support at all stages of the Project implementation;
  • information on corruption risks in the industry, region and in the country as a whole.
COOPERATION WITH OECD

On June 21, 2017, the Republic of Kazakhstan joined the OECD Declaration on International Investment and Multinational Enterprises, and became an associate member of the OECD Investment Committee.

Together with OECD experts, two reviews of the investment policy of Kazakhstan were carried out and work was done to improve the investment climate in accordance with the organization's standards. Kazakhstan's accession to the OECD Declaration on International Investment and Multinational Enterprises, as well as associate membership in the OECD Investment Committee, is an indicator of the high level of the business environment, competition and investor protection in the Republic of Kazakhstan.

According to the Agency for Civil Service Affairs and Anti-Corruption of the Republic of Kazakhstan



FOREIGN INVESTORS’ COUNCIL UNDER THE PRESIDENT OF THE REPUBLIC OF KAZAKHSTAN (FIC) is an advisory body which is headed by the President of the Republic of Kazakhstan.

Working body – Investment Committee of the Ministry for Investment and Development of the RK.

The main and objectives of the FIC

Development of recommendations and proposals on key aspects of the investment policy and the economic development of the country, including:

  • Determination of the main directions of Kazakhstan’s investment policy; 
  • Improving the investment climate in Kazakhstan;
  • Improving the legal framework of the RoK for investment;
  • Facilitation of the foreign companies in economic diversification, industrialization of the industrial sector, the development of small and medium-sized businesses;
  • Further integration of Kazakhstan’s economy in the global economic processes; 
  • Strategies to attract more foreign investments to Kazakhstan’s economy;
  • Implementation of the large investment programs and projects having the international importance.

Terms of membership: investing in the economy of Kazakhstan the direct investments worth at least $500 million for investors operating in the area of subsoil use, and at least $125 million to investors in other sectors of the economy. Currently, the structure includes 33 international organizations.

Decree of the President of the Republic of Kazakhstan «On the Establishment of the Foreign Investors' Council chaired by the President of the Republic of Kazakhstan»

A consultative - Advisory body under the Government of the Republic of Kazakhstan.

The purpose of the coordination Council - is to develop proposals on attracting investments to the Republic of Kazakhstan.
The Chairman of the coordination Council is the Prime Minister of the Republic of Kazakhstan.

The main task of the coordinating Council is to develop proposals for:

  1. improvement of the investment climate of the Republic of Kazakhstan;
  2. increase of efficiency of interaction of the Central state and local Executive bodies, subjects of quasi-public sector of the Republic of Kazakhstan in questions of attraction of investments;
  3. coordination of the activities of the Regional investment hub and government agencies to work with investors, including the formation of a single base of investment projects.

Decree of the Government of the Republic of Kazakhstan “On Strengthening Measures to Attract Foreign Investment in the Republic of Kazakhstan”
The Regional Council for investment promotion and improvement of the investment climate in Nur Sultan is an Advisory body under the akimat of Nur Sultan.

The purpose of the Regional Council is the creation of a favorable investment climate, the implementation of state policy in the field of investment activity, consideration of the placement of productive forces in the territory of Nur Sultan, related to the implementation of investment projects.

The Chairman of the Regional Council is the mayor of Nur Sultan.

The Main tasks of the Regional Council are:

  • taking measures to improve the investment climate in the region, promoting the economic and social development of Nur Sultan;
  • assistance in the implementation of investment projects in the territory of Nur Sultan;
  • approval of the provision of land plots from state ownership to the applicant of the investment project within the framework of investment contracts;
  • assistance in creating the necessary conditions for the implementation of a unified investment policy, in ensuring the proportional socio-economic development of the territory of Nur Sultan;
  • making proposals to the investment Committee of the Ministry of foreign Affairs of the Republic of Kazakhstan to determine priorities in the implementation of investment policy, taking into account the economic, financial and other opportunities of Nur-Sultan.

To date, since 2019, 11 meetings of the Regional Coordination Council for attracting investors in Nur-Sultan have been held under the chairmanship of the akim of the city A.S. Kulginov, within which 86 projects (including FEZ projects), of which 66 projects accompanied by Astana Invest for a total amount of about 202 billion tenge with the creation of about 6,000 thousand permanent jobs.

Requirements for the application for investment preference

1. Application for investment preferences provision is accepted and registered in the form established by the authorized body for investments, if available:

a) certificate of state registration (re-registration) of the legal entity;

b) the copies of the charter of the legal entity, certified by the signature of the head and seal of the legal entity;

 If the legal entity shall be a private business entity, the documents affixing a seal shall not be required

c) business plan of investment project, drawn up in accordance with the requirements established by the authorized body;

d) documents confirming the size (cost) of the government grant-in-kind requested by the legal entity of the Republic of Kazakhstan and preliminary approvals of its provision;

e) copies of the passport or identity document of the attracted foreign worker (with translation into the Kazakh or Russian), the employment contract concluded between the employer and the attracted foreign worker (with translation into the Kazakh or Russian), documents confirming his qualifications and (or ) education (with translation into the Kazakh or Russian).

1-1. Application for investment preferences provision within the framework of a special investment project implementation is accepted and registered in the form and in the manner established by the authorized body for investments.

Entrepreneur Code of the Republic of Kazakhstan




SEZ «Astana – new city» (2 conditional sub-zones)

Total area

7 018,72 ha

Validity

until 2027

Number of participants

199

Management body

«Management company of the special economic zone «Astana-Technopolis» JSC

Administrative business center

Area

6 420,62 ha

Number of projects

127

Volume of investments

2,149 trillion KZT

Industrial park №1

Area

598,1 ha

Number of projects

72

Volume of investments

230 billion KZT

Produced products in the amount of

1 550 billion KZT

Fullness of the territory (in %)

95

Industries

Manufacturing industry (with a few exceptions);
Warehousing and auxiliary transport activities;
Construction of various facilities;
More

Interactive map of industrial park №1 of the special economical zone «Astana - new city»


SEZ «Astana - Technopolis» (3 conditional sub-zones)

Total area

631,92 ha

Validity

until 2042

Number of participants

9

Management body

JSC «Management company of the special economic zone «Astana-Technopolis»

Nazarbayev University

Area

151,32 ha

Number of projects

8

Volume of investments

5,56 billion KZT

Services rendered in the amount of

228,5 billion KZT

Vodno-Zelenyi boulevard

Area

47,5 ha

Number of projects

1

Volume of investments

328,5 billion KZT

Industrial park № 2

Area

433,1 га

Number of projects

0

Volume of investments

0

Industries

26 activities in industries such as:

  • Food production;
  • Production of building materials;
  • Logistics;
  • Research and development;
  • Healthcare and pharmaceuticals;
  • Production of machinery and equipment;
  • Information technology;
  • Construction.
More

The application form for carrying out activities as a participant of the SEZ
Application for activities as a participant in the SEZ
On the approval of the rules and selection criteria for projects

Requirements to applicants

An applicant applying for an activity as a participant of special economic zone must have financial assurance in the amount corresponding to the feasibility study

Financial support for a participant in a special economic zone shall be formed in the following ways:

  1. money;
  2. bank guarantee;
  3. a guarantee;
  4. a pledge of property;
  5. insurance contract.
A participant in the special economic zone shall have the right to choose any of the methods of financial support, including by combining several methods.
+3. СЭЗ.png

Who cannot be participant of SEZ

  1. subsoil users;
  2. organizations producing excisable goods, except for organizations engaged in the production, assembly (assembling) of excisable goods, provided for by subparagraph 6) of Article 462 of the Code of the Republic of Kazakhstan «On taxes and other obligatory payments to the budget» (the Tax Code);
  3. organizations and individual entrepreneurs, applying special tax regimes;
  4. organizations, applying (having applied) investment tax preferences - under the contracts, concluded with the authorized investment body until January 1, 2009;
  5. organizations, implementing (having implemented) an investment priority project and an investment strategic project in accordance with the legislation of the Republic of Kazakhstan on investments;
  6. organizations, operating in the field of gambling business.
At the same time, in relation to the special economic zone, the boundaries of which fully or partially coincide with the sections of the customs border of the Eurasian Economic Union, foreign individuals and legal entities shall also not be the applicants.

List of documents for implementation of activities as a participant of SEZ

  1. The activity of a participant of special economic zone shall be carried out in accordance with the agreement on the implementation of activities.
  2. The following documents on paper and (or) electronic media shall be attached to the application for implementation of activities as a participant in a special economic zone:
    • the applicant's questionnaire in the form, approved by the authorized body;
    • certificate of state registration (re-registration) of a legal entity;
    • a copy of the document, certifying the identity of the first head of the applicant;
    • a copy of the charter of the legal entity;
    • a copy of the decision of the supreme body of the legal entity on the implementation of activities in the territory of the special economic zone;
    • a copy of the financial statements for the last reporting date, signed by the first head of the applicant or his deputy, as well as the chief accountant (accountant);
    • the feasibility study of the project that meets the requirements, established by the authorized body.
      When applying for activities as a participant in a special economic zone in the field of information and communication and innovation technologies, a project justification shall be attached;
    • an extract from the servicing bank about the movement of money in the applicant's bank accounts and a credit report from the credit bureau;
    • a certificate of the state revenue authority at the place of registration about the presence or absence of tax arrears and other obligatory payments to the budget.
If the legal entity at the time of filing is not a resident of the Republic of Kazakhstan and is not registered as a taxpayer of the Republic of Kazakhstan, then a copy of the certificate about the absence of state registration as a taxpayer in the state revenue bodies shall be submitted.

Foreign legal entities shall submit the legalized documents referred to in subparagraphs 2), 4) and 5) of part one of this paragraph, the legalized extract from the trade register or other legalized document, certifying that a foreign legal entity is a legal entity under the legislation of a foreign state with a notarized translation into the Kazakh and Russian languages.

Law of the Republic of Kazakhstan «On special economic and industrial zones»

Tax benefits

Tax

in SEZ

outside SEZ

Value added tax (VAT)




0%

12%

Land tax

19.6 KZT/m2

Property tax

1.5%

Corporate income tax

20%

Customs benefits

Exemption from customs duties on raw materials and equipment when imported into the SEZ territory  

The customs procedure of the free customs zone is applied at the SEZ 

Import into the territory of SEZ without payment of customs and tax payments 

Additional advantages

  • The availability of a ready engineering infrastructure;
  • Simplified procedure for hiring foreign labour force (for projects with investments exceeding 1 million MCI, the involvement of FLF is carried out outside quotas and without a working permit during the CMP and 1 year after commissioning);
  • Provision of free land for the entire period of existence of SEZ.
Conditions of obtaining tax benefits
  • Registration as a taxpayer on the territory of SEZ;
  • Registration as a participant of  SEZ;
  • Absence of structural units outside the SEZ;
  • Income obtained from the sale of goods, works, services from priority activities is exempted from paying corporate income tax at 100%.

Tax code of RK
Land code of RK
Law of the Republic of Kazakhstan «On Public Employment»




Recently, the abbreviation PPP has become a new trend that everyone talks about, but not everyone understands to the end what it is and what it is “eaten with”.

What exactly is this partnership, why is this tool, mechanism, form and is it beneficial and for whom. These are some of the questions that arise first.

According to the Law of the Republic of Kazakhstan, public-private partnership (PPP) is a form of cooperation between a public partner and a private partner, corresponding to the characteristics defined by this Law.

This is a partnership in which we move from the traditional understanding of “customer-supplier” to a long-term and full-fledged partnership in which all parties involved benefit.

The state partner receives an object (s) financed and managed by a private partner. Creation of new jobs, taxes and payments to the budget.

A private partner receives the right to create (reconstruction), manage a PPP facility. Providing services on the basis of this facility receives a fee and a number of countervailing measures.

The population receives quality and timely services.

The spheres of application of the PPP mechanism are different, but are limited by the sphere of responsibility of the state, such as the sphere of education (objects of pre-school, secondary, specialized secondary education and higher education), health care (polyclinics, hospitals, etc.), housing and communal services.

A typical example that has gained wide experience in many regions is the construction of pre-school education facilities. If there are limited financial opportunities on the part of the state, when applying the PPP mechanism, it is possible to build 5-10 kindergartens at the same time.

The state partner is holding a competition for the construction and management of kindergartens, providing land, bringing the necessary infrastructure. In addition, it gives the right to a private partner to provide pre-school education services with the payment of per capita financing (state order).

A private partner finances, builds, transfers to state ownership and manages (provides services to the public), receiving per capita financing, payment from parents for food (the amount of which is regulated in the PPP Agreement). A private partner also has the right to recover its investment.

The population receives quality services.

From this example, we can see that the PPP mechanism provides benefits to each of the parties and is one of the most effective mechanisms in resolving not only state issues, but also issues of the population.

Investments play an important role in maintaining and enhancing the country's economic potential. At present, the mechanism of public-private partnership is the priority way of attracting investments, both for the Nur-Sultan Mayor’s Office and for the Republic as a whole. The main instrument for implementing projects is private investment in the PPP mechanism.


In most cases, the implementation of PPP projects involves the financing, creation, operation of social infrastructure and life support facilities from private sector funds, with the use of state support, including provision of land, compensation for investment costs and other types of financial support.

In order to attract investors for the implementation of investment projects and mutually beneficial cooperation, the Nur-Sultan Mayor’s Office is operated by the Public-Private Partnership city department for investments development «Astana Invest», which as part of its activities, provides advisory support to urban PPP projects.

The functions of the PPP Department include:

  • development of all necessary documentation in accordance with PPP legislation (financial model, tender documentation, draft PPP contract);
  • provision of consulting services in the negotiation process of the PPP commission with the bidder;
  • project support prior to the conclusion of the agreement between the Mayor’s Office and the private partner;
  • search for private partners (investors);
  • holding round tables and seminars on PPP issues.












Public-private partnership is understood as a form of cooperation between a public partner and a private partner, aimed at implementing projects, on a balanced distribution of rights and obligations, risks, costs and benefits.

High interest with public-private partnerships, with its various schemes and mechanisms of application, is determined by the fact that it allows more efficient use of public resources and opportunities, partially freeing up public resources and opportunities for other projects and offers conditions for public institutions to achieve a better price ratio and quality by improving risk sharing, innovation, improving the use of assets and management practices.

So, for example, the benefits of the project through the PPP mechanism are:

  1. Long-term contract. The main feature of PPP is the implementation of the project in the medium or long term (from 3 to 30 years, depending on the features of the PPP project), which gives great maneuverability in conducting activities both for business and for the state. The state does not lose transaction costs, as it would be in the case of annual public procurement, and business can plan activities from three years, which, given the high share of uncertainty in the economy, is a comparative advantage over competitors.
  2. Improving the quality of the goods, works and services provided. Foreign experience in implementing PPP projects indicates that the quality of services provided under PPP is higher than when implementing an established model of public procurement. The private sector is motivated to receive excess profits due to the flexibility of the structure, speed of decision-making, as well as ease of management. All these qualities of a private partner are saved in PPP, which allows to improve the quality of public services provided by introducing a private manager. Whereas, often in the case of a project implemented through public procurement, the price is the only lever of influence on the project, and in competitive procedures the supplier with the lowest price wins at the expense of quality.
  3. Balanced risk sharing. The optimal distribution of risks is the main principle of any PPP scheme. The optimal distribution of risks means that certain risks that are more cost-effectively managed by public sector entities are attributed to the public partner, and other risks more effectively managed by private sector entities are attributed to the private partner (up to the full transfer of risks to the private sector) . For example, planning risks are better managed by government agencies, while operational risks can be better managed by individuals. This ensures that the project risks should be handled by the most competent parties in this, thereby reducing the cost of the project and mitigating the risks themselves. Whereas in public procurement, prior to the conclusion of the contract, the risk is borne by the state partner, and after that by the supplier providing goods, works and services.
Summarizing the above, it should be noted that, depending on the scale and laboriousness of the goals and tasks set for the state, state bodies independently determine in which cases to apply certain instruments for the implementation and provision of public services.
Many people know and understand what PPP is, what are the forms and types of PPP contracts, but not everyone knows that there are two types of initiatives: state and private financial initiative (PFI).

What is the difference between these initiatives: a state initiative is the case when a state partner initiates a PPP project, prepares all the necessary documentation for the competition and the choice of a private partner.

PFI is an initiative of a potential private partner (PPP) and it is to prepare an appropriate business plan. According to PPP legislation, the determination of a private partner on the basis of direct negotiations (PFI) is carried out in the manner and is applied in cases when:

1) a PPP project is initiated by PPP in relation to an object owned by him or on a long-term lease;
2) the PPP project is inextricably linked with the exercise of exclusive rights to the results of intellectual creative activity owned by PPP.

In the city of Nur-Sultan, a number of projects can serve as such an example: “Photo and video recording of the agricultural complex“ Sergek”, “Transport service of the Akimat of Nur-Sultan city”, “Paid parking space of the city of Astan” and others.

The essence of the PFI is that PPP, having developed a business plan in accordance with the legislation of the PPP, submits it for consideration to the Akimat of Astana. In turn, the branch office of the Akimat of Nur-Sultan, having reviewed either agrees or makes a number of adjustments by providing an appropriate opinion.

At the same time, in order to comply with the competitive environment, notices with the main technical and economic parameters of the project are posted. In the absence of alternative proposals, the state partner and PPP will switch to direct negotiations.
Akimat of Nur-Sultan city in search of investors for the implementation of public-private partnership projects

In order to attract potential private partners to planning projects in the field of cultural infrastructure using the PPP mechanism, the mayor's office of Nur-Sultan notifies about the request for expression of interests of potential private partners to collect project implementation options:

- Transfer to the trust management of the triumphal arch " Mangilik El»;

- Transfer to the trust management of the Ethno-memorial complex "Map of Kazakhstan "Atameken".

The projects are supposed to be transferred to the trust management of the triumphal arch "Mangilik El" and the Ethno-memorial complex "Map of Kazakhstan "Atameken" for their subsequent operation.

Basic parameters:

Triumphal arch "Mangilik El":

Exhibition hall:

ground floor with a total area of 118.2 sq. m. (room – 84 sq. m.);

third floor (two galleries are located) with a total area of 111.3 sq. m. (room-45.9 sq. m., room-38.1 sq. m.)

Observation deck:

equipped with fixed panoramic binoculars;

the total area of 215.8 sq. m.

Underpass:

possibility of placing mini boutiques and installing LED screens;

total area – 2012.2 sq. m.

underground passage – 907.4 sq. m.

Ethno-memorial complex "Map of Kazakhstan "Atameken":

the total area of land plot of 4.3 hectares;

the area occupied by the layout of 1.7 hectares;

one-storey building with a total area of 765.3 sq. m., built in 2001.

the total number of layouts is 416.

The project implementation period will be determined by the tender documentation.

Proposals for the request for expressions of interest for this project should be submitted to the address: Nur-Sultan, Beibitshilik str., 11, 7th floor, room 744.

Deadline for submission of proposals: accepted until December 31, 2020.

For more information, please contact the state Department of culture of Nur-Sultan by phone 8 (7172) 55-67-76 Mardenova A. and the City investment development center "AstanaInvest" by phone 8 (7172) 64 72 12 Sharipov A.


Akimat announces a competition to select private partners for the PPP project " Creation and operation of smart street lighting in Astana»

On January 15, 2019, the Akimat of Astana city, represented by the state enterprise "Management of fuel and energy complex and municipal services of Astana city", 010000, the Republic of Kazakhstan, Astana, Beibitshilik str. 11, announces a competition to select private partners for the public-private partnership project "Creation and operation of smart street lighting in Astana city".

The object of the PPP project:

Smart street lighting system in Astana, the creation and operation of which is provided by the tender documentation.

All potential participants who meet the qualification requirements specified in article 32 of the Law of the Republic of Kazakhstan "on public-private partnership" and the tender documentation for the choice of a private partner are allowed to participate in the competition.

The list of necessary documents and requirements for potential participants to participate and provide to the organizer of the competition are specified in the tender documentation.

Package copies of the tender documentation can be obtained from 8-30 to 13-00 hours and from 14-30 to 18-00 at the address Republic of Kazakhstan, Astana, Beibitshilik str. 11, KAB 606a from the moment of publication of this announcement of the competition.

A package of copies of the tender documentation is provided free of charge.

Competitive applications for participation in the competition, as well as documents for qualification, sealed in envelopes, are submitted by potential participants to the courier in the state institution "Management of fuel and energy complex and municipal services of Astana" at the address: Republic of Kazakhstan, Astana, Beibitshilik str. 11, office No. 606a.

The deadline for submission of documents confirming the compliance of a potential private partner with the qualification requirements is up to 12.00 hours inclusive of Astana time on February 5, 2019.

The deadline for submission of competitive applications for participation in the competition is up to 12.00 hours inclusive Astana time on February 22, 2019.

Opening of envelopes with competitive applications will be carried out at 15.00 o'clock on time of Astana on February 22, 2019, to the address the Republic of Kazakhstan, Astana, Beibitshilik str. 11, office No. 611.

*Reference information can be obtained in LLP "City center for investment development "AstanaInvest" by phone 8 (7172) 64 72 07, +77052925719.

Astana city Mayor's Office in search of investors for the implementation of public-private partnership projects

Astana city Mayor's Office in order to attract potential private partners invites to discuss (competitive dialogue) projects in Astana in the field of education using the PPP mechanism:

  • the transfer to trust of state schools with the construction of extensions (or a new facility);
  • provision of school meals in educational institutions (schools, kindergartens).

Competitive dialogue is organized to form optimal solutions for the technical, financial, legal and other necessary parameters of the projects, taking into account the needs and capabilities of each of the potential private partners concerned.

* Detailed information is available at the «City's Center of Investment Development  «ASTANA INVEST» LLP by phone  8 (7172) 64 72 12, 8 (775) 474 47 77 - Askhat Sharipov.


Astana city Mayor's Office announces private partner selection tender for the project «Transfer to the trust management of State Public Enterprise «Liberal arts college» of Astana city Education Office»

August 29, 2018 Astana city Mayor's Office represented by Astana city Education Office, 010000, Republic of Kazakhstan, Astana, Beybitshilik strt, 11 announces private partner selection tender for the project «Transfer to the trust management of State Public Enterprise «Liberal arts college» of Astana city Education Office».

Objects of the PPP project:

  • Object №1– property complex (the land plot and the educational building, hostels of State Public Enterprise «Liberal arts college» of Astana city Education Office located on it).
  • Object №2 - new educational building for 1000 seats, in this case it is possible to operate a building owned by private partner.

The tender are allowed all potential participants who meet the qualification requirements specified in art. 32 of the Law of the Republic of Kazakhstan «About public private partnership» and tender documentation.

Required documents list and requirements for potential participants for participation and presentation to the organizer of tender are indicated in the bidding documents.

Tender documentation copies can be received from 8.30 a.m. to 1 p.m. and from 2.30 p.m. to 6 p.m. at the address: Republic of Kazakhstan, Astana city, Koshkarbaeva strt, 1/2, office № 302, «City's Center of Investment Development  «ASTANA INVEST» LLP from announcement publication date. Tender documentation copies are free.

Applications for participation in tender, as well as documents for qualification selection sealed in envelopes are represented by potential participants to Astana city educational office at the adress: the Republic of Kazakhstan, Astana city, Beybitshilik strt, 11, office #119.

Documents submission deadline, confirming the compliance of potential private partner with qualification requirements – until 3.00 p.m. inclusively on the time of Astana city, September18, 2018.

Tender applications submission deadline – until 1.00 p.m. inclusively on the time of Astana city, October 3, 2018.

Opening of competitive applications envelopes will be carried at 3 pm on the time of Astana on October 3, 2018, at the address: Republic of Kazakhstan, Astana city, Beibitshilik strt.,11, office # 119.

*Reference information can be obtained at «City's Center of Investment Development  «ASTANA INVEST» LLP by phone 8 (7172) 64 72 07, +77052925719.


Mayor’s Office announces a tender for the selection of a private partner for the public-private partnership project «Creation and operation of smart street lighting in Astana city»

On June 22, 2018 Mayor’s Office of Astana city, represented by the SI «Astana Office for the Fuel and Energy Complex and Municipal Services» (010000, Republic of Kazakhstan, Astana city, Beybitshilik Ave. 11) announces a tender for the selection of a private partner for the PPP project «Creation and operation of smart street lighting in the city of Astana».

Object of the Public-private partnership Project (PPP):

  • System of smart street lighting in Astana city, creation and operation of which is provided by tender documentation.

All potential participants who meet the qualification requirements specified in art. 32 of the Law of the Republic of Kazakhstan «On PPP» and tender documentation for the private partner selection are eligible for the competition.

The list of requirements for potential participants for attendance and providing to the organizer of the competition are indicated in the bidding documents.

The package of a copy of the competitive documentation can be received from 8-30 to 13-00 and from 14-30 to 18-00 hours at the address: Republic of Kazakhstan, Astana, Koshkarbaev Ave. 1/2, office 302, LLC «City Center for Investments Development «ASTANA INVEST» from the date of the competition announcement.

A copy of the competition documentation is free of charge.

Competitive applications for participation in the competition, as well as documents for qualifying selection, sealed in envelopes, are provided by potential participants in the envelope to the SI " Astana Office for Management of the Fuel and Energy Complex and Municipal Services" at the address: Republic of Kazakhstan, Astana, Beibitshilik St. 11 , office number 611.

The deadline for submission of documents confirming the compliance of a potential private partner with the qualification requirements is up to 15.00 hours Astana time on July 13, 2018.

The deadline for submission of competitive applications for participation in the contest is 11.00 hours inclusive in Astana on July 31, 2018.

Opening of envelopes with competitive applications will be carried out at 15 00 Astana time on July 31, 2018, at the address: Republic of Kazakhstan, Astana, 11 Beibitshilik St., office No. 611.

*Reference information can be obtained at LLC "City Development Center for Investments" AstanaInvest " by phone: 8 (7172) 64 72 07, +77052925719.

It is known that recently, when implementing investment projects, sponsorship and cooperation began to be presented as a public-private partnership (PPP). At the same time, the basic starting points, postulates by which the essence of the PPP mechanism is expressed are legislatively fixed in the form of basic principles.

PPP is a tool for attracting business resources by the state to solve various strategic or budget planning tasks that comply with the above principles. In Kazakhstan, PPP is based on strictly defined postulates.

Postulate No.1: The principle of balance

One of the main postulates is the "principle of balance". This principle refers to a mutually beneficial distribution of responsibilities, guarantees, risks and revenues between a state partner and a private partner in the process of implementing a PPP project.

The implementation of this principle in practice implies a fair distribution between the project participants, provided that risks are assigned to the party that can best manage them with minimal cost.

It should be noted that the private partner will be interested in the project if it is possible to obtain a stable income at the lowest possible level of business and legal risks, since the private partner attracts borrowed financing and is responsible to the lender.

Postulate No. 2: The principle of competitiveness

In our legislation, the “principle of competitiveness” is presented as the definition of a private partner on a competitive basis, except as otherwise provided by law on PPPs.

The "principle of transparency" in choosing a partner from among non-governmental entities is often found in the economic sphere. It is in this area that partners of public authorities appear, as a rule, as a result of competitive procedures.

Postulate No. 3: The principle of effectiveness

The “principle of performance” in the legislation on PPP is the establishment of criteria and indicators to assess the achievement of PPP results.

According to foreign experience, the reliability of obtaining a positive result is ensured thanks to the timely implementation of the project (a private sector partner is interested in completing the project as early as possible in order to minimize costs and start making profits), as well as the procedure for returning investments and compensating current costs (schedule and size) Payments are fixed before the start of the project, which protects the investor and society from the risks of understating or overstating the cost of services).

Postulate No. 4: The principle of sequence

And finally, consistency in building relationships “the principle of consistency” among the member states of the Eurasian Union only in Kazakhstan was recognized as a fundamentally important approach of partners.

This fact shows that in the legislation on PPPs, important attention is paid to the phased construction of relationships between PPP entities.

«QAZINDUSTRY» QAZAQSTAN INDUSTRY AND EXPORT CENTER» JSC

Measures to support the subjects of industrial and innovative activities, aimed at increasing labour productivity:

  • Reimbursement of expenses for increasing the competence of the enterprise - 40 % of state support , but no more than 30 million KZT in a calendar year;
  • Reimbursement of expenses for increasing the effi ciency of the production’s organization - 40% of state support, but no more than 60 million KZT in a calendar year;
  • Reimbursement of expenses for the development and/or examination of a comprehensive plan of industrial-innovative project - 40% of state support, but no more than 60 million KZT in a calendar year;
  • Reimbursement of expenses for improvement of technological processes – 40% of state support, but no more than 60 million KZT in a calendar year.
Reimbursement of part of expenses of subjects of industrial and innovative activity by promotion of domestic processed goods, works and services on the domestic market 
Reimbursement on the expenses incurred upon confirmation the appliance of domestic processed goods, works and services and quality management systems in accordance with generally recognized international standards allowed for use in the territory of Kazakhstan.

Reimbursement of part of expenses of subjects of industrial and innovative activity on promotion of goods:
  • Expenses, associated with the promotion of products abroad;
  • Expenses for direct participation in foreign exhibitions, fairs, festivals;
  • Expenses, associated with the development, translation into foreign languages and publication of a specialized catalogue for distribution abroad;
  • Expenses for maintenance of representative office, retail outlet and warehouse abroad;
  • Expenses for procedures related to registration of trademarks (brand) abroad;
  • Expenses for procedures related to certification of goods abroad;
  • Delivery of goods by rail, road, air and sea transport and the organization of transport.
Innovative grants:
  • Grant for technology commercialization - 50% of state support, but no more than 200 million KZT; 
  • Grant for technological development of existing enterprises - 70% of state support  under the license agreement and 50% for the purchase of equipment that is an integral part of the technology no more than 400 million KZT; 
  • Grant for technological development of industries - 70% of state support  under the license agreement and 50% for the purchase of equipment that is an integral part of the technology 85% for the expense of increasing technological competencies no more than 500 million KZT.
www.kidi.gov.kz
THE NATIONAL CHAMBER OF ENTREPRENEURS OF THE RK «ATAMEKEN»

Activities of the National Chamber are aimed at improving the business and investment climate, stability, development of the business environment in the country, both for domestic and foreign investors.

The main functions of NCE:
  • representation and protection of the rights and legitimate interests of entrepreneurs;
  • Public monitoring of entrepreneurial activity, business conditions in the regions;
  • participation in government programs of support and development of entrepreneurship;
  • support of the domestic industry and increase of the local content share in the procurements of organizations;
  • training, retraining, qualification upgrade, certification and attestation of personnel, the development of technical and vocational education;
  • promotion of foreign economic activity of business entities;
  • attraction of investments and diversification of the economy.

Furthermore, NCE supports the active involvement of Kazakh business in implementation of state programs. It protects interests of business community in state authorities and bodies of local government. NCE expands and strengthens links with the business community of foreign countries and supports Kazakhstani business in the framework of integration processes.

www.atameken.kz

NATIONAL CONTACT CENTER OF KAZAKHSTAN

The National Contact Center (NCC) is a voluntary, non-judicial mechanism for dealing with public complaints against businesses that violate the principles of responsible business conduct in accordance with the OECD Guidelines. This is a platform for constructive dialogue between the parties, discussing the problems that have arisen and working out ways to reach a mutual agreement.

The functions of the NCC in Kazakhstan are assigned to the Ministry of National Economy of the Republic of Kazakhstan.

NCC is a collegial advisory body. The Chairman is the Minister of National Economy of the Republic of Kazakhstan. The composition of the NCC consists of representatives of the ministries of national economy, justice, foreign affairs, labor and social protection of the population, NPP Atameken, non-governmental organizations and trade unions.

The NCC Secretariat is the Economic Research Institute Joint Stock Company.

The process of interaction between NCC and the citizens of Kazakhstan

The process of considering appeals to NCC consists of three stages:

The first stage is a preliminary assessment of the appeal.

The National Settlement Service (NSS) considers applications in three stages:

The first stage – conducting a preliminary assessment of an application.

At this stage, the NSS checks whether an application meets the NSS’s guidelines and competencies. The NSS:

• holds separate meetings with each party

• checks an application for reasonableness,

• communicates with both parties and makes a decision on the acceptance or rejection of the case for consideration.

The second stage is the acceptance of the case for processing.

The NSS consults with government bodies, representatives of the business community, labor organizations, non-governmental organizations, experts, and the OECD national contact points.

The third stage is the final assessment of the application.

The proceedings at the NSS are completed with the preparation and publication of the Final Assessment of the case.


The NSS is the guarantor of openness.

Over the past three decades, the international business environment has undergone a number of significant structural changes. Since the turn of the millennium, international investment has been the driving force behind the global economy. Thanks to it, governments have opened markets and businesses have seized new opportunities causing unprecedented economic growth.

In June 2017, Kazakhstan became an associate member of the Investment Committee of the Organization for Economic Cooperation and Development. Kazakhstan became the 48th country to join the OECD Declaration on Multinational Enterprises. After joining the Committee, the Government of Kazakhstan has made a number of commitments, including the dissemination of the principles of responsible business conduct in accordance with the OECD Guidelines.

The Guidelines are the requirements for responsible business conduct directed by governments to enterprises whose activities in any way extend beyond the borders of one country. It is a collection of principles and standards in such areas as human rights, workers' rights and occupational safety, access to information, taxation, and environmental issues.

Today, National Settlement Services operate in 49 countries, which account for about 80% of foreign direct investment. The presence of this body in a country is the guarantor of transparency in the consideration of arising disputes. This efficient, transparent, and popular mechanism is an important element of an open international investment climate.

More detailed information about the National Settlement Service of Kazakhstan can be found on the Ministry’s official website: https://www.gov.kz/memleket/entities/economy/activities/6109?lang=ru and on the NSS’s official website: http://economy.kz/ru/OESR/Nacionalnyj_kontaktnyj_centr/Ob_NKC/

«DAMU» ENTREPRENEURSHIP DEVELOPMENT FUND» JSC

The main instruments of implementation

Subsidizing part of the interest rate:

According to the state program, the state subsidizes part of the rate on loans for which the nominal rate does not exceed the base interest rate established by the National Bank of Kazakhstan and increased by 5 percentage points, that is. 
Today the base rate is 9% + 5% = 14% the final rate that an entrepreneur must pay, from which, depending on the direction of the program, is subsidized: 

  • up to 40% within the second direction (sectorial support for entrepreneurs operating in priority sectors of the economy and manufacturing industries), the rate on the entrepreneur will be equal to 8.4% instead of 14%; 
  • up to 30% within the third direction (reduction of currency risks of entrepreneurs), the rate on the entrepreneur will be equal to 9.8% instead of 14%.

Loan guarantees:
The guarantee is provided only for new loans issued for the implementation of new effective investment projects, as well as the projects aimed at modernization and expansion of production. 

The size of the guarantee is:
Within the second direction to the entrepreneurs realizing the activity in priority sectors of economy: 

  • no more than 85% of the loan amount up to 20 million KZT for start-up entrepreneurs; 
  • no more than 50% of the loan amount up to 360 million KZT for the current entrepreneurs. 

The term of the guarantee - no more than the term of the loan.

State grants: 
State grants for the implementation of new business ideas are provided to small business entities, including young entrepreneurs, start-ups, women, people with disabilities and persons over 50 years, free of charge in the priority sectors of the economy under the program, and manufacturing industries and certain types of services defined by the State program of industrial and innovative development. 

The maximum amount of the state grant for one small business entity for the implementation of new business ideas can not exceed 3 million KZT.

www.damu.kz




«SOCIAL AND ENTREPRENEURSHIP CORPORATION «ASTANA» JSC

Scheme of cooperation with the Investor:

Establish joint ventures:

  • Minimum participation share 9 %; 
  • Receiving dividends from JV net profit;
  • Participation in the project from 3 to 10 years;
  • Risk sharing with the investor;
  • Compensation of expenses of SEC for the land.

Agreement on joint activities (JA):

  • Minimum participation share 9 %;  
  • Obtaining profi t from the implementation of the JA, the payment of a "fi xed amount" (not less than the contribution of the SEC), established in the JVA; 
  • Compensation of SEC costs for land; 
  • Unlimited period of participation; 
  • Investor bears all risks;
  • Repurchase of SEC deposit at market value.

Agreement on joint activities of the multifunctional residential complex:

  1. Implementation of the project under the state program: obtaining 9% of commercial real estate.
  2. Implementation of the project for the investor's own money: obtaining 2.5% of the total area of construction (at the rate of 9% of the net profi t of the SEC with the target margin of the Project more than 25%).

Assets of «SEC «Astana» JSC and investor can be: cash, real estate, lands and other liquid assets.

www.astana-spk.kz


«NATIONAL COMPANY «KAZAKH INVEST» JSC

Mission:

  • Promotion of sustainable socio-economic development of the Republic of Kazakhstan by attracting foreign investment in priority sectors of the economy and comprehensive support of investment project.

Company plays the role:

  • A single negotiator on behalf of the Government of the Republic of Kazakhstan in discussing the prospects and conditions for the implementation of investment projects;

  • «One window» for investors on the provision of public services, including the provision of measures of state support to investors in the form of investment preferences, assistance in obtaining various permits required for the implementation and further operation of investment projects.
«NATIONAL COMPANY «KAZAKH TOURISM» JSC

Marketing and promotion:

  • Formation and implementation of the promotion strategy of Kazakhstan as a tourist destination; 
  • Promotion of tourist potential of Kazakhstan through traditional and digital channels of promotion within the country and abroad; 
  • Development a united tourist portal of Kazakhstan Kazakhstan.travel; 
  • Organization of exhibitions, road shows and info-tours; 
  • Attracting MICE events in Kazakhstan. 
Information and analytical support: 
  • Research and analysis; 
  • Elaboration of master plans for the development of tourist destinations; 
  • Monitoring trends in tourism on an ongoing basis. 
Digitalization of the tourism industry: 
  • Development of systems for automating various processes in the field of tourism; 
  • Carrying out projects to increase the attractiveness of the destination for tourists in terms of digitalization. 
Competency development and investment attraction:  
  • Participation in the development and implementation of basic quality standards; 
  • Incentives for creation of new tourist products and improvement of existing ones; 
  • Generation of proposals for the implementation of investment projects;
  • Generation of proposals for the implementation of investment projects.
www.qaztourism.kz
KAZAKH EXPORT EXPORT INSURANCE COMPANY JSC
Support measures:
  • Exporter credit insurance;
  • Importer's advance insurance;
  • Pre-export financing of the exporter;
  • Export trade financing;
  • Insurance on documentary letters of credit;
  • Credit insurance;
  • Leasing insurance;
  • Bank payment guarantee;
  • International factoring insurance.

www.keg.kz