The main goal of the Public-Private Partnership is the development of infrastructure in the public interests via the combination of resources and experiences of the government and business, and implementation of socially significant projects with minimum expenditures and risks while still providing services of high quality to economic subjects.

1. KAZAKHSTAN PPP CENTER
C O M P A N Y P R O F I L E

2. KAZAKHSTAN PPP CENTER
MISSION
We unite the capabilities of state and business for the benefit of people
Kusainov M. A.
Chairman of the Board of Directors,
First Vice-Minister of Ministry
National Economy of the Republic of
Kazakhstan.
ABOUT THE CENTRE OF PPP
Joint-stock company “Kazakhstani Centre of Public-private partnership” (hereinafter – the Centre
of PPP) is created in accordance with the resolution of the Government of the Republic of
Kazakhstan dated July 17, 2008 No. 693 “On creation of specialized organization on the issues
of concession”.
The sole shareholder of JSC “Kazakhstani Centre of Public-private partnership” is the Government
of the Republic of Kazakhstan represented by the Ministry of economic development and trade of
the Republic of Kazakhstan.
Oinarov A. R.
Chairman of the Board
By 2020 to have successfully implemented public-private partnership projects
accounting for 20% of total investment with state participation in the country.
- We take the responsibility and make the decisions within our responsibility;
- We do our work honestly and take pride in it;
- We find the decisions advantageous for the state, business and population of the
country;
- We act focusing on the result and long-term prospect;
- We respect ourselves and people and build long-term relations with everybody.

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ABOUT PPP
What is the Public-Private Partnership?
The main goal of the Public-Private Partnership is the development of
infrastructure in the public interests via the combination of resources and
experiences of the government and business, and implementation of
socially significant projects with minimum expenditures and risks while
still providing services of high quality to economic subjects.
In general, Public-Private Partnership is a system of medi-
um-term and long-term relationships between the government
and the private sector for the provision of socially significant
services of projection, financing, construction, reconstruction,
rehabilitation, and exploitation or servicing of objects by the
private sector on behalf of the government.
The following understanding of the PPP can be applied to
Kazakhstan. The Public-Private Partnership is an aggregate of
medium-term and long-term relationships between the
government and the private sector for the provision of socially
significant works or/and services of projection, financing,
construction, reconstruction, rehabilitation, and exploitation or
servicing of objects by the private sector in accordance with
basic principles of the PPP.
The basic principles of the PPP:
v Equality and freedom.
v Stability of the contract (the possibility of its alteration and adaptation).
v Continuity of service provision.
v Competitiveness.
v Transparency and reverse connection (feedback).
v Non-interference.
v Guarantees.
v Onerousness.
v Equality of rights (non-discrimination).
The basic features of the PPP are:
v Medium-term and long-term relationships;
v Parties in the PPP are represented by the government and the private sector;
v Interaction of the parties in the PPP are registered in the appropriate contracts;
v Mutually advantageous distribution of risks, benefits, rights, and obligations between the partners;
v Definition of the criteria of performance achievement of the PPP object by the governmental
sector.

4. PPP FORMS
Public Private Partnership
Institutional PPP implemented within the framework of legal
entities with the participation of State and private businesses
in the procedure established by the laws of the Republic of
Kazakhstan.
Contractual public-private partnerships implemented under the
concession agreements, and property rental trust management
of state assets the manner prescribed by this Act or other
laws of The Republic of Kazakhstan (types of contracts - ,
, L, , ROO, Asset management, leasing, ROT).
v Construction and operation of kindergartens;
v Construction and operation of residence halls;
v Technical management of schools;
v Construction and operation of health
facilities
v Water supply and wastewater disposal;
v Municipal solid waste treatment;
v Reconstruction and operation thermal generation
capacity and distribution networks;
v Construction of power plants (renewable energy);
v Maintenance of electric distribution networks;
v Construction and operation of roads;
v Construction (reconstruction) and operation
of railway, bus and airport terminals;
v Construction of parking.
KAZAKHSTAN PPP CENTER
Education
Healthcare
Housing and
utilities
Energy
Transportation

5. Models of PPP in international practice
TYPES OF PPP CONTRACTS
19
Schools
10
Schools
American
9
Schools
Indian
2
Schools
IB
12
Schools
Others
BTO BOT BOO BOOT DBFO
360,000
• Short-term and long-term partnership;
• The parties of PPP are public and private sectors;
• Interaction of the parties in the PPP are formalized in the relevant agreements;
• The mutually beneficial distribution of risks, benefits, rights and responsibilities between partners;
• Define criteria to achieve performance on the PPP project by public sector.
KAZAKHSTAN PPP CENTER
Build-
Transfer-
Operate
Build-
Operate-
Transfer
Build-
Own-
Operate
Build-
Own-
Operate-
Transfer
Design-
Build-
Finance-
Operate
DBFOT
Design
-Build
-Finance-
Operate-
Transfer
Despite to common principles and features
of PPP for all countries, there is no single
definition of PPP and classification of PPP
forms in the international practice, as well
as the standard application circuit. Each
country independently defines them for
itself based on the principle of acceptance
for its own economy.

6. KAZAKHSTAN PPP CENTER
CONCESSION LAW (since 2006)
• The Law of the Republic of Kazakhstan dated 7 July 2006 No. 167
• The law defines the legal terms of the concession, the concessionaire types of state
support and regulates public relations arising in the process of conclusion, execution
and termination of concession agreements.
MAJOR AMENDMENTS TO THE CONCESSION LAW (2013-2015)
- Availability payment, off-take contract
- Long-term rates for PPP projects
- The minimum share capital reduced to 10% of the cost of concession project
- Direct agreement, step-in-rights
- New types of contracts (BOT, BOO, O&M, DBFO etc.)
- Transparency of procedures: a two-stage tender
- Institutional support for PPP projects was developed and divided into
- National level (Kazakhstan PPP center) and the regional level (regional PPP centers)
MEASURES OF STATE SUPPORT
- Compensation of investment costs up to 100%
- Guaranteed minimum profitability
- Subsidies for operational activities
- Providing land and infrastructure
- Guaranteed off-take contracts

7. KAZAKHSTAN PPP CENTER
PPP LAW (since 2015) NOVATIONS
Expanding PPP
Ø all sectors of economy
Ø wide range of potential participants
Ø corporate management in PPP projects
Ø domination of PPP agreement
For partners
Ø private financial initiative
Ø simplifying of PPP procedures
Ø competitive dialogue from idea to entering into agreement
Ø government support
Ø financial support
Ø international arbitration
For lenders
Ø direct agreement
Ø step in right
Ø protection from sequestration
Ø hedging of currency risk
Ø termination payments
For all
Ø shareholders agreement
Ø providing services and advice by PPP center
Ø political will
Ø no bureaucracy

8. Schools
KAZAKHSTAN PPP CENTER
CONTRACT PPP
NEW TYPES
LEASING INNOVATIONS
Long-term lease
of private property
implementation of new
technologies
LIFE CYCLE
CONTRACT
INNOVATIONS
The entire life cycle of
the project (roads,
railway transport)
Service &
Modernization
JOINT VENTURE
Private
partner
Public Partner
JV
Alternative to state entrepreneurship
Public and private partnership form up
equity for lenders
The mechanism of withdrawal of the state
from the project
INSTITUTIONAL
TYPES OF PPP

9. KAZAKHSTAN PPP CENTER
GOVERNMENT PRIVATE PARTER NATIONAL COMPANIES
PAYMENTS
GOV. SUPPORT
q Land
q Government financial support
q Equity formation
q Utilities & Infrastructure
q Transfer of government property
q Funding
q Management
q Design
q Intellectual property
q Service provision
q Transfer of property
q Co-funding
q Service
· subsidies
· management fee
· availability payment
· state guarantee
· transfer IP
· provision of in-kind grants
· co-funding
· guaranteed procurements
PARTICIPANTS

10. KAZAKHSTAN PPP CENTER
FEATURES
Project was initiated by private partner
or
Project is inextricably linked with innovations
Without tender procedures
PRIVATE FINANCE INITIATIVE

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Kazakhstan Public-Private Partnership Center JSC
65, Temirkazyk St. 3th floor
Astana, 010000,
Republic of Kazakhstan
www.kzppp.kz
Tel.: +7 (7172) 701 745
Fax: +7 (7172) 701 745
kanc@kzppp.kz