This research paper aims at analyzing the role of “Kazakhstan Private-Public Partnership Center” established in 2008, through the prism of the existing, as well as the newly emerging, legal framework on PPPs; the roles of the Kazakh government and key stakeholders primarily the Ministry of Economic Development and Trade, and the Ministry of Finance.
The paper also explores the risks associated with implementing PPP projects in the context of Kazakhstan, generally divided into public sector, private sector, and common risk groups. A selected number of project cases are presented to better illustrate the evolution of PPP projects before and after the PPP Center was established. The ultimate research question the paper attempts to answer is what impact the introduction of the PPP Center has made on implementing PPP projects in Kazakhstan.
Table of Contents
Introduction
I. Definitions in the PPP Context of Kazakhstan
II. Brief Overview of the PPP Legal Framework in Kazakhstan
III. PPP Center JSC
IV. Selected Project Cases
4.1 Prior to establishment of the PPP Center
4.1.1 The Shar-Oskemen railway project
4.2 After/Around 2008 establishment of the PPP Center
4.2.1 The BAKAD (Almaty Ring Road) Project
4.2.2 Construction of the Korgas-Zhetygen Railway Line
V. Analysis of Risks Applied to Concession Projects in Kazakhstan
VI. Research Findings
Concluding Remarks
Research Objectives and Themes
This paper examines the impact of the "Kazakhstan Private-Public Partnership Center" (established in 2008) on the implementation of PPP projects within the country, analyzing the interplay between government policy, legal frameworks, and associated project risks.
- The evolution and current state of the legal framework for PPPs in Kazakhstan.
- Institutional roles of the Kazakh government and the PPP Center in project governance.
- Identification and analysis of specific risks in the public, private, and common sectors.
- Case study analysis of transportation projects to assess project delivery before and after the PPP Center's inception.
Excerpt from the Book
4.1.1 The Shar-Oskemen railway project
Following the collapse of the Soviet economy, Kazakhstan inherited poor infrastructure, which necessitated a different degree of upgrading for almost every piece of infrastructure, such as roads, power plants, and the public utilities system (Chikanayev, 2012). The Shar-Oskemen infrastructure concession project has enabled to resolve several infrastructure bottlenecks across the country. The line connects the railway junction of Ore Altay (with cities of Oskemen, Ridder, and Zyryanovsk) by the shortest route with the Turksib main transit line at Shar station, further allowing East Kazakhstan region’s access to the other regions of the country. The transportation distance as compared to the pre-existing route has been shortened by 311 km, hence eliminating the need to pass double customs control and travel 82 km across Russian territory. The passenger and cargo delivery time should now be accelerated by 12–14 hours. This road project is both socially and economically significant, since it has boosted passenger volumes and favorably impacted regional competitiveness of East Kazakhstan products in the markets of the rest of Central Asia, Iran, Afghanistan etc. (Tashimov, 2008).
The project was financed through the share capital of project operator Doszhan Temir Zholy and bond issue (Appendix 5). The share capital amounted to 1.3 billion KZT and the first bond issue was 30 billion. The total value of the project was 31.3 billion KZT. Upon termination of the concession term in 2028, the facility will be transferred to state ownership. Furthermore, according to the PPP Center (In UNECE, 2009), the cost of construction for this project amounted to 24.3 billion KZT ($161.1 million).
Summary of Chapters
Introduction: Outlines the strategic "Kazakhstan-2050" goal and the establishment of the PPP Center as a response to infrastructure needs.
I. Definitions in the PPP Context of Kazakhstan: Defines PPPs and concessions in Kazakhstan, highlighting the build-operate-transfer (BOT) model.
II. Brief Overview of the PPP Legal Framework in Kazakhstan: Surveys the legislative landscape, including the Law "On Concessions" and challenges regarding legal consistency.
III. PPP Center JSC: Examines the mission, organizational structure, and short-to-long-term goals of the PPP Center.
IV. Selected Project Cases: Reviews specific railway and road projects to observe the evolution of PPP delivery in Kazakhstan.
V. Analysis of Risks Applied to Concession Projects in Kazakhstan: Categorizes and analyzes financial, institutional, demand, and policy risks inherent in the Kazakh PPP market.
VI. Research Findings: Discusses the correlation between the PPP Center’s establishment and project approval, alongside findings on legal and programmatic mismatches.
Concluding Remarks: Summarizes the progress of Kazakh PPPs and provides recommendations for streamlining decision-making processes.
Keywords
Public-Private Partnership, Kazakhstan, PPP Center, Concession, Infrastructure, BOT, Legal Framework, Investment, Risk Management, Railway, Transportation, Economic Policy, Government, Strategy Kazakhstan-2050, Development.
Frequently Asked Questions
What is the core focus of this research paper?
The paper evaluates the role and impact of the Kazakhstan Private-Public Partnership Center on the implementation and governance of infrastructure projects in Kazakhstan.
Which central topics are covered?
The research covers the legal framework for concessions, organizational oversight by the government, risk assessment in infrastructure projects, and specific case studies of railway and road construction.
What is the primary research question?
The study aims to determine what impact the introduction of the PPP Center has had on the implementation of PPP projects within the country.
What methodology does the author employ?
The author uses a qualitative research approach, incorporating secondary data analysis, legal framework reviews, and comparative case studies of infrastructure projects.
What is discussed in the main body of the work?
The body analyzes institutional structures, legislative hurdles, classification of risks (financial, institutional, and demand-related), and empirical evidence from projects like the Shar-Oskemen railway and the BAKAD project.
Which keywords best characterize this work?
Key terms include Public-Private Partnership, Kazakhstan, Concession, Infrastructure, PPP Center, and Institutional Reform.
Why are public sector risks so prominent in this study?
Public sector risks are highlighted because the government remains a primary financier and regulator, which creates unique institutional and bureaucratic challenges in the Kazakh context.
How did the establishment of the PPP Center correlate with project development?
The findings suggest a positive correlation, as a majority of large-scale concession projects were approved or implemented around the time of the Center's inception, although the Center’s flexibility remains a point of concern.
What is the significance of the "BAKAD" project case study?
BAKAD is analyzed as a groundbreaking concession project in the road sector, illustrating shifts in legal amendments and international arbitration standards in Kazakhstan.
- Arbeit zitieren
- Mergen Dyussenov (Autor:in), 2017, The Increasing Role Of The “Kazakhstan Private-Public Partnership Center" JSC in Promoting PPP Projects, München, GRIN Verlag, https://www.grin.com/document/356446
