What someone needs to know about public-private partnerships Printable versionLast update: 15.09.2021
Public-private partnership (PPP) is an important tool for attracting investment for economic development.
In our material we will tell about what PPP is and under what projects can entrepreneurs become a partner of the state.
The public-private partnership is a kind of cooperation between the public partner and the private partner that has the following features:
1) building relations between the public partner and private partner by concluding a public-private partnership agreement;
2) medium-term or long-term period for the implementation of a public-private partnership project (from five to thirty years, depending on the characteristics of the public-private partnership project);
3) joint participation of the public partner and a private partner in the implementation of a public-private partnership project;
4) pooling resources of the public partner and a private partner for the implementation of a public-private partnership project;
5) attracting investment by the private partner for the implementation of a public-private partnership project.
The main objectives of the PPP are:
- creating conditions for effective interaction between the public partner and the private partner in order to ensure sustainable socio-economic development of the Republic of Kazakhstan;
- attracting investments into the economy of the state by combining the resources of the state partner and the private partner for the development of infrastructure and life support systems for the population;
- increasing the availability and quality of the goods, works and services, taking into account the interests and needs of the population, as well as of the other interested parties;
- increasing the overall innovation activity in the Republic of Kazakhstan, including promoting the development of high-tech and science-intensive industries.
The state provides for support to the entrepreneur - private partner in the form of:
- provision of government land grants in accordance with the law of the Republic of Kazakhstan;
- co-financing of PPP projects;
- guarantees of consumption by the state of the certain amount of goods, works and services produced during the implementation of the PPP project;
The state is involved in following forms:
- provision of the land plots in accordance with the land legislation of the Republic of Kazakhstan;
- granting the right to use state property objects;
- provision of engineering and transport communications for the PPP facility;
and it also provides for reimbursement of the PPP project investment and operating costs, remuneration for managing a state-owned PPP object, etc. in accordance with the legislation on PPP.
The entrepreneur, for his part, participates in the following forms:
- financing of PPP projects;
- creation and operation of PPP facilities;
- PPP project management;
and ensures the quality and availability of goods, works and services within the framework of the concluded PPP agreement.
In addition to the own funds, the PPP projects financing sources could be presented by:
- the borrowed funds;
- the funds from the state budget in the amount stipulated by the terms of the agreement
- the funds of the quasi-public sector subjects;
- other funds not prohibited by the law.
The PPP is regulated by the law.
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