Development of PPP

World practice has shown that one of alternative instruments of providing necessary financial basis for creation, modernization, maintenance and exploitation of objects in conditions of limited state resources is the mechanism of public-private partnership (PPP).

Public-Private Partnership (PPP) is usually understood as an aggregate of forms of medium- and long-term cooperation between state and business sector in order to solve socially valuable tasks on mutually beneficial conditions.  Choice of a certain way of partnership depends on economic efficiency of implementation of a particular project.

Application of public-private partnership mechanisms endows a variety of advantages as for the state, as for a business development. Private sector opens new investment opportunities and, accordingly, new sources of income, possibility to participate in major projects. PPP provides using resource and intellectual potential of the private sector in traditional spheres of state responsibility. 

In our country development of PPP has started in 2005 from signing the first Government resolution on implementation of two projects on concession scheme, as a result of which were constructed power supply lines in Aktobe region and railway link from station Shar to Ust-Kamenogorsk.

The Law “About concessions” was introduced later, on 7^th of July 2006, as a continue of these projects.  The Law includes the legal aspects, allowing the private sector to invest financial and technological resources in implementation of investment projects using the concession mechanism.

In accordance with the Law “About concessions”, first Kazakhstan PPP project was implemented in Mangistau region in a sphere of transport and logistics. 

Concession agreement between Akimat of Mangistau region and Turkish company «ATM Grup Uluslararası Havalimanı Yapım Yatırım ve Işletme limited» on the project “Construction and exploitation of passenger terminal of Aktau international airport” was signed on 10^th of December 2007. Agreement term – 30 years. 

On 31^st of October 2015 in Kazakhstan was introduced the Law “About public-private partnership”, based on international experience of implementation of public-private partnership projects, and it includes a wide range of support measures for investors, including foreign ones.

On 20^th of January 2017 was signed first PPP agreement on project “Construction and exploitation of apartment block in city of Aktau”.

On 5^th of June 2017 were signed another public-private partnership agreements between regional Department of education and private partners on implementation of 8 projects in a sphere of education for a total amount of 2 135.9 million tenge:

1. Transfer to discretionary management of kindergarten #15 in micro district 6, in city of Aktau of Mangistau region 
   
2. Transfer to discretionary management of kindergarten #55 in micro district 13, in city of Aktau of Mangistau region 
   
3. Transfer to discretionary management of kindergarten #51 in micro district 27, in city of Aktau of Mangistau region 
   
4. Transfer to discretionary management of kindergarten #52 in micro district 14, in city of Aktau of Mangistau region 
   
5. Construction and exploitation of multi-purpose sport hall at the territory of school #2 in city of Aktau of Mangistau region 
   
6. Construction and exploitation of multi-purpose sport hall at the territory of school #10 in city of Aktau of Mangistau region 
   
7. Construction and exploitation of multi-purpose sport hall at the territory of school #28 in city of Aktau of Mangistau region 
   
8. Construction and exploitation of kindergarten in residential area Mangistau-2 of Munaily district of Mangistau region
   

At the moment PPP center is implementing and initiating over 30 PPP projects in spheres of healthcare, education, physical culture and sport, housing construction, transport and logistics, power industry, agro industrial complex, public order maintenance. 

Application of PPP mechanism will allow to increase the efficiency of mutually beneficial cooperation between state and private sector, as well as increase the quality of provided services and speed up modernization of infrastructure, necessary for economy diversification.