LAW OF THE REPUBLIC OF KAZAKHSTAN

of October 31, 2015 No. 379-V ZRK

About public-private partnership

This Law determines legal conditions of public-private partnership, its methods of implementation and governs the public relations arising in the course of preparation and project implementation of public-private partnership, the conclusion, execution and termination of the contract of public-private partnership.

Chapter 1. General provisions

Article 1. The basic concepts used in this Law

In this Law the following basic concepts are used:

1) the potential private partner - the individual entrepreneur applying for participation in tender (auction) or in direct negotiations on determination of the private partner, particular partnership, consortium or the legal entity, except for the state legal entities, and also limited liability partnerships and joint-stock companies, fifty and more percent of shares in the authorized capital or voting shares of which directly or indirectly belong to the state;

1-1) potential private partners - the individual entrepreneur applying for participation in tender (auction) or in direct negotiations on determination of the private partner, particular partnership, consortium or the legal entity, except for the state legal entities, and also limited liability partnerships and joint-stock companies, fifty and more percent of shares in the authorized capital or voting shares of which directly or indirectly belong to the state;

1-2) program public-private partnerships - projects implementation of public-private partnership within concepts of development of industries (sphere), national projects according to developed and approved according to this Law by procedure for determination of the private partner, the standard tender documentation and the standard agreement of public-private partnership;

2) the private partner individual entrepreneur, particular partnership, consortium or the legal entity, except for the state legal entities, and also limited liability partnerships and joint-stock companies, fifty and more percent of shares in the authorized capital or voting shares of which directly or indirectly belong to the state, signed the agreement of public-private partnership;

2-1) accounts, intended for transfer of compensation of investment costs, - the bank account opened for the private partner by the creditor with restriction of its right to making of account transactions on it before approach or accomplishment by it of the conditions defined by the agreement of financing under concession of monetary claim and (or) the agreement of public-private partnership;

3) the organizer of tender (auction) or direct negotiations - the state body performing the organization and carrying out tender (auction) or direct negotiations on determination of the private partner according to the competence established according to this Law;

3-1) concession treaty (concession, the agreement of concession) - the agreement of public-private partnership signed between the state partner (concedent) and the private partner (concessionary) and providing receipt of payment by the concessionary from consumers for provision of goods, works and services within implementation of this project of public-private partnership (payment from consumers);

4) payment for availability - the money payment performed at the expense of budgetary funds according to the agreement of public-private partnership for providing operational and quality characteristics of object of public-private partnership, and also availability of the specified object to consumers proceeding from individual technical and economic parameters of object of public-private partnership;

5) state partner - The Republic of Kazakhstan on behalf of one or several state bodies given authority regarding realization of state policy in the field of public-private partnership, or public institutions, the state companies and (or) limited liability partnerships, joint-stock companies, fifty and more percent of shares in the authorized capital or voting shares of which directly or indirectly belong to the state, signed the agreement of public-private partnership;

6) public-private partnership - the form of cooperation between the state partner and the private partner corresponding to the signs determined by this Law;

6-1) web portal state-private партнерства-информационно-коммуникационная the platform intended for centralized collection, processing, storage of electronic information resources in the field of public-private partnership, determination of the private partner, monitoring of projects implementation of public-private partnership, ensuring availability of information in the field of public-private partnership;

6-2) operator of the web portal of public-private partnership - the legal entity determined by the central authorized body by state planning;

7) advisory support of projects of public-private partnership - the services rendered by legal entities on support of projects of public-private partnership, including development of the competitive (auction) project documentation of public-private partnership, the draft agreement of public-private partnership, including consulting services in negotiation process between subjects of public-private partnership;

8) the project of public-private partnership - set of the consecutive actions for implementation of public-private partnership realized during the limited period of time and having complete nature according to this Law and the budget legislation of the Republic of Kazakhstan;

9) compensation of investment costs on the project of public-private partnership - the money payments for the account of budgetary funds directed to compensation of certain amount of investment costs according to the agreement of public-private partnership;

10) compensation of operating costs on the project of public-private partnership - the money payments for the account of the budgetary funds directed to expense recovery of the private partner, connected with operation of object of public-private partnership according to the agreement of public-private partnership;

11) the business plan to the project of public-private partnership - the document developed by the potential private partner in case of direct negotiations, providing the description of the purposes, project tasks of public-private partnership, sources of cost recovery and receipt of the income, receivers of benefits from project implementation of public-private partnership, measures of the state support including the description of object of public-private partnership and (or) the services rendered within the service contract;

12) the company of public-private partnership - the legal entity whose exclusive purpose is project implementation of public-private partnership, the legal entity founded jointly by the state partner and the private partner, or acting, whose single members are the state partner and (or) the private partner;

13) objects of public-private partnership - the building, constructions and (or) the equipment, property complexes, results of intellectual creative activities which are created (including are under construction and are in case of need designed) and (or) are reconstructed, and (or) modernized, and also operated within project implementation of public-private partnership;

13-1) creation of object of public-private partnership - the activities for creation of intangible and tangible assets provided by the agreement of public-private partnership, including by designing, construction new and (or) changes (expansions, upgrades, modernization, reconstruction, capital repairs) the existing objects (buildings, constructions and their complexes, communications), installation (dismantle) of the related processing and engineering equipment;

13-2) operation of object of public-private partnership - the activities for target use of object of public-private partnership provided by the contract of public-private partnership with production and provision to consumers of goods, works and services or in technical and (or) field service of object of public-private partnership, including ensuring readiness for its target use by the operator or the third parties according to the agreement of public-private partnership;

14) subjects of public-private partnership - the state partner and the private partner, and also the other persons participating in the project implementations of public-private partnership provided by this Law;

15) the Center of development of public-private partnership - the legal entity created according to the decision of the Government of the Republic of Kazakhstan for implementation of activities in the field of public-private partnership;

16) the agreement of public-private partnership - the written agreement establishing the rights, obligations and responsibility of the parties of the agreement of public-private partnership, concluded for the purpose of the solution of one or several social and economic tasks by creation and operation of object of public-private partnership;

16-1) State Treasury - department of the central executive body to which functions of authorized body on treasurer budget implementation are assigned;

16-2) bodies of the State Treasury - territorial subdivisions of the State Treasury;

17) the operator - the legal entity who is not the private partner, performing within project implementation of public-private partnership operation of object of public-private partnership together with the private partner;

18) No. 172-VIII ZRK is excluded according to the Law of the Republic of Kazakhstan of 15.03.2025

19) No. 172-VIII ZRK is excluded according to the Law of the Republic of Kazakhstan of 15.03.2025

20) the service contract - the agreement of public-private partnership providing rendering services with use of object of the public-private partnership belonging to the private partner on the property right including taking into account the features established by the legislation of the Republic of Kazakhstan;

Action of paragraphs of the tenth and eleventh subitem 1 does not extend to projects concerning which before Date of Introduction in operation of this Law the tender documentation is approved or the conclusion of the authorized person about availability of need of project implementation of public-private partnership is issued

21) the direct agreement - the written agreement signed between the state partner, the private partner and the creditor of the private partner for project implementation of public-private partnership.

Article 2. The legislation of the Republic of Kazakhstan in the field of public-private partnership

1. The legislation of the Republic of Kazakhstan in the field of public-private partnership is based on the Constitution of the Republic of Kazakhstan and consists of the Civil code of the Republic of Kazakhstan, this Law and other regulatory legal acts of the Republic of Kazakhstan.

2. If the international treaty ratified by the Republic of Kazakhstan establishes other rules, than those which contain in this Law then are applied rules of the international treaty.

3. Features of legal regulation of public-private partnership in separate industries (spheres) of economy are established by the laws of the Republic of Kazakhstan.

4. Procedures of determination of the private partner, the conclusion, execution and termination of the contract of public-private partnership, and also consumption of certain amount of goods by the state, works and services within provision of measures of the state support on projects of public-private partnership are performed according to this Law and other regulatory legal acts regulating public-private partnership without use of the provisions of the law of the Republic of Kazakhstan "About public procurements".

5. The taxation of public-private partnership is performed according to provisions of the tax legislation of the Republic of Kazakhstan.

6. The relations connected with projects implementation of public-private partnership in the field of subsurface use are regulated by this Law and the Code of the Republic of Kazakhstan "About subsoil and subsurface use".

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