32 pilot PPP projects in housing and communal services under implementation in Kazakhstan

The Head of State in his Address to the People of Kazakhstan "New Opportunities Under the Fourth Industrial Revolution," set the task of modernizing the housing and communal infrastructure on the basis of public-private partnership.

According to Nursultan Dzhienbayev, in 2017, in pursuance of the Address of the Head of State, the Committee on Construction, Housing and Utilities Services of the MID RK jointly with KazCenter HCS, intensified the work on the introduction of PPPs into the infrastructure and housing complex of Kazakhstan. A list of pilot PPP projects was drawn up from all regions (32 projects). Among them are the reconstruction and construction of sewage treatment facilities in Kapchagay city of Almaty region, construction of a desalination plant in the village of Kuryk, Mangistau region, construction of sewage treatment facilities in Astana and transfer to trust management of the Kyzylorda Su Zhyuesi state utility company.

The process of commercialization is in full swing in the sector, and attraction of extrabudgetary funds to the sector through the PPP mechanism is especially urgent.

At the same time, Nursultan Dzhienbayev stressed that taking into account the important social and strategic importance of housing and communal infrastructure objects, it is necessary to introduce PPP mechanisms only in commercially attractive sectors of the industry for profitable projects with the generation of profit.

"Recently, the Government has taken a number of measures to increase the investment attractiveness of the sector. Tariff regulation is being improved, repayment financing is being introduced," Nursultan Dzhienbayev said.

At present, KazCenter HCS, in conjunction with the MNE RK, is working to update the information on the status of ongoing projects and the problems of their preparation in order to develop a strategy on infrastructure modernization based on PPP.

Nursultan Dzhienbayev noted that, in accordance with the legislation of Kazakhstan, all questions on initiation and preparing of an examination of the implementation of PPP projects are within the competence of the akimats. In this work, according to the head of KazCenter HCS, it is necessary to strengthen the measures taken by local executive bodies. In particular, in the support of PPP projects.

In conclusion, the proposals of KazCenter HCS on the development of public-private partnership in the housing and communal services were voiced. Thus, the department proposes coordination of PPP implementation processes in the industry, creation of a single operator of the industry, the main functions of which will be making amendments to the legislation of the Republic of Kazakhstan related to further reform of the housing and communal services sector, development of standard documentation for PPP projects in the sector, development of a database of housing and communal infrastructure for potential investors and monitoring the implementation of PPP projects.

Source: primeminister.kz