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LAW OF THE REPUBLIC OF KAZAKHSTAN

of October 31, 2015 No. 379-V ZRK

About public-private partnership

(as amended on 19-04-2023)

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;

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 determined 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 partner performing the organization and carrying out tender (auction) or the direct negotiations on determination of the private partner, except as specified, providing measures of the state support and (or) implementation of payments from the government budget when as the organizer of tender (auction) or direct negotiations the central state body or local executive bodies of areas, cities of republican value and the capital according to the competence established by this Law acts;

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 which state bodies act public institutions, the state companies and 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;

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 determining the rights, obligations and responsibility of the parties of the agreement of public-private partnership, other terms of the contract of public-private partnership within project implementation of public-private partnership;

17) the operator - the legal entity if necessary determined by the private partner in coordination with the state partner, not being the agreement party of public-private partnership, performing the activities connected with agreement performance of public-private partnership;

18) the contract of lifecycle - the agreement of public-private partnership providing complete cycle of works on designing, construction, creation, reconstruction, upgrade and operation (including repair and content) object of public-private partnership, realization of manufactured goods, works and services, and also the obligation on ensuring compliance of object of public-private partnership to the established technical and operational indicators during all duration of the agreement of public-private partnership;

19) the operator of industry - the system operator, the national company on subsurface use, the National operator of infrastructure, National railway company, National carrier of freights, National carrier of passengers, the National operator on management of highways, other legal entities performing functions of the national operator or operator in certain industry (sphere) of economy according to the laws of the Republic of Kazakhstan;

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 are performed according to this Law and other regulatory legal acts regulating separate types of 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 sphere of subsurface use are regulated by this Law and the Code of the Republic of Kazakhstan "About subsoil and subsurface use".

Article 3. Main objectives and principles of public-private partnership

1. The main objectives of public-private partnership are:

1) creation of conditions for effective interaction of the state partner and the private partner for the purpose of ensuring sustainable social and economic development of the Republic of Kazakhstan;

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