Procurement And National Suppliers

Procurement And National Suppliers

Published at www.gratanet.com on 29 April 2015

  1. Introduction

    As many other countries the Republic of Kazakhstan (the "RoK") during many years takes relevant measures to protect interests of national suppliers of goods, works and services ("GWS").

    Such protection becomes of importance taking into consideration volumes of GWS procurement conducted in Kazakhstan. Below are publicly available official data regarding volumes of procurement in 20131.

    Quasi-public procurement means procurement of:

    companies of JSC National Wealth Fund Samruk-Kazyna's ("Samruk") group, i.e. companies which are for ≥ 50 % of voting shares (equity) (in)directly owned by Samruk); and companies and organizations, which are for ≥ 50 % of voting shares (in)directly owned by national: managing holdings (except Samruk), holdings, and companies2. Systematically important enterprises mean 98 Kazakhstan enterprises referred to in the list of organizations which GWS procurement are subject to monitoring for Kazakhstan content (the list is approved by the RoK Government Decree (the "GD") dated 20 March 2009 No. 366).

    For the purposes of protection of interests of the national suppliers of GWS the lawmakers introduced the concepts of "national suppliers" and "local content" as described below.

  2. Status of National Supplier

    In 2008-2010 legislative acts of Kazakhstan were supplemented by such new notions as "national (Kazakhstani) supplier of works, services" and "national (Kazakhstani) manufacturer of goods3 (jointly "national suppliers").

    The RoK citizens and Kazakhstani legal entities which ≥ 95 % of employees are the RoK citizens have the status of a national (Kazakhstani) supplier of works, services.

    The RoK citizens and Kazakhstani legal entities which manufacture goods, for which a CT-KZ certificate is issued have a status of a national (Kazakhstani) manufacturer of goods. Such certificate4 is issued with regard to goods totally manufactured or which passed substantial processing on the RoK territory (i.e. which passed the last substantial processing of the goods sufficient for making the good have its characteristic features).

    According to subsoil use legislation5 national suppliers are entitled to a 20% conditional discount when they participate at tenders held by subsoil users.

    Example: if a bid is given for 100 million tenge, taking into account the conditional discount, the price of the national supplier's bid will be considered as...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT