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Public procurement in construction sphere to be simplified in Kazakhstan

28 December 2017 16:09 (UTC+04:00)
Public procurement in construction sphere to be simplified in Kazakhstan

By Kamila Aliyeva

State purchases in the construction sector in Kazakhstan will be substantially simplified starting from January 1, according to the press service of the Kazakh Finance Ministry, Kazinform reported.

According to the order of the Minister of Finance, changes in the rules for the implementation of public procurement are introduced from the new year. Mainly, the changes concern public procurement in the construction sector.

“The sphere of construction refers to the licensed types of activity, and only companies that have an appropriate license participate in the procurement, upon receipt of which they confirmed the possession of the relevant material and labor resources, participate in procurement. In this regard, the rules are amended to establish that the relevant license, issued in accordance with the legislation on permits and notifications, is a document confirming the possession of material and labor resources for public procurement of works in the construction sector,” the ministry said.

Currently, despite the high competitive environment in procurement in the construction sector -- 7-8 companies for one tender -- in 80 percent of cases, purchases are recognized as failed due to the rejection of their applications. The reason for the massive deviation of orders for procurement in construction is the design and estimate documentation, which require an unjustified large number of supporting documents.

The proposed amendments are introduced in order to simplify and reduce corruption risks of public procurement of works in the construction sector.

The order of the Minister of Finance and the comparative table of changes are posted on the web portal of public procurement.

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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva

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