Brief Summary Of The Major Novelties Of The Draft PPP Law In Kazakhstan
A draft Law of Kazakhstan 'On Public-Private Partnership' (the 'Draft PPP Law') has been prepared as per initiative of the Ministry of Economy and Budget Planning of Kazakhstan and, to the best of our knowledge, is now under the consideration of the relevant state authorities and the Parliament of Kazakhstan.
These are the key developments associated with the Draft PPP Law:
In general, the Draft PPP Law is rather generic so it is not clear why it is needed as a separate legal act in the first place, if there is already existing Concession Law that provides for concept of "PPPs' and legal framework for implementation of PPPs and many provisions of the Draft PPP Law duplicate provisions of the Concession Law, Investment Law and other laws of Kazakhstan. Ostensible purpose of adoption of this Draft PPP Law is to secure the basic concepts, principles, types of public - private partnerships, as well as creating the necessary legal basis for the further development of public - private partnership in the Republic of Kazakhstan. The Draft PPP Law provides a concept of the "public-private partnership" that is different from current definition in the Concession Law where it is currently defined as a "form of cooperation between the state and subjects of private business that is directed toward financing, construction, reconstruction and/or exploitation of social infrastructure and vital objects". The Draft PPP Law as a 'public-private partnership' understands 'a form of cooperation between the state and private business entities, based on the pooling of resources (cash and (or) other property, other knowledge, experience, skills) and the allocation of risks (including risks of financing, construction ensuring availability of or demand for objects of public-private partnerships or appropriate public services and associated risks), carried out in accordance with the contract through competitive procedures agreement on public-private partnership aimed to finance capital investments and (or) scientific research and (or) development activities, as well as creation, reconstruction and (or) the operation of objects of public-private partnerships to address the public and other socially significant problems'. Definition of PPP in the Draft PPP Law is, evidently, broader and, unlike current definition of PPP in the Concession Law, makes it clear that not any relations between State and private business, but only relations based on (i) pooling of resources and...
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