EU supports efforts of Kazakhstan’s Government to develop Public-Private Partnership Law (24/08/2010)
ASTANA, 19 August 2010 – Experts of the European Union provided support to the Ministry of Economic Development and Trade of the Republic of Kazakhstan with recommendations and comments on the draft law on Public-Private Partnership (PPP) in the span of June-July, 2010. The adoption of PPP law will help to define a legal framework to encourage foreign investment in the social sphere.
"Taking into consideration the tremendous efforts of Kazakhstan to improve its national economy in extremely sensitive sectors, such as education, health etc, it is a privilege and a challenge for our project to support the Government to improve investment climate in conformity with international standards", said Dr. George Myrogiannis, the Team leader of "Support for the Development of the Policy Dialogue and Advice Programme " project (PDAP).
PDAP is the EU financed project which provided technical assistance aimed at training public servants from agencies involved in public-private partnerships and developing pilot PPP projects in social infrastructure such as health, education and social assistance.
Kazakhstan started first few projects in PPP mainly related to the oil and gas sector and train roads. At the present time, joint projects of the Kazakhstani Government and foreign investors implemented within the framework of the Concessions Law adopted in 2006. The PPP Law can become a new milestone and attract foreign investments to the social sector crucial for further development.
International experience on public-private partnership suggests that the law must guarantee protection of investors' rights and stability of contracts. There are some other crucial factors for more effective implementation of public-private partnership in Kazakhstan, such as restitution of state property after project implementation, guaranteeing of state interests and, sinе qua non security of investments and decreasing financial risks.
The EU-funded PDAP project started in February 2008 to support Kazakhstan’s efforts in fostering reforms and increasing national competitiveness. The EU has allocated €3.5 million to establish a close policy dialogue by means of exchanging expertise, best practices, know-how and advice (PDAP). The three-year project is implemented by a consortium of companies led by DMI Associates (France) together with IBF (Belgium) and INCOM (Greece) in close cooperation with the JSC National Analytical Center under the Government of Kazakhstan.
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