Kazakhstan: Local content requirement in public procurement law
Description
The Republic of Kazakhstan adopted changes and amendments to the Law on public procurement # 156-IV from 4 May 2009 (entry into force on 5 May 2009) introducing a 'local clause' in the public procurement law for goods - 20%, services and construction - 15%, thus limiting the purchase of foreign goods, services and works.
A company with more than 50% foreign shareholding is considered as foreign and therefore excluded from participation in public procurement tenders, unless it fulfils all of the following criteria making it a 'national producer':
· the company is resident in Kazakhstan,
· the company produces finished products in Kazakhstan,
· the company uses no less than 85% of local workforce.
Despite these rules, local branches of foreign companies created as a public limited company (LTD) in accordance with national regulations are refused access to public procurement tenders.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | |
| Is there any evidence that alternatives to the proposed measure were considered? | |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | |
| Was such evidence identified? | |
| Is such evidence publicly available? | |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? |
Date Discovered:
Implemented: Yes
Date of inception: 5 May 2009
GTA Evaluation: Red
Source:
The changes and amendments of the Law on public procurement # 156-IV from 4 May 2009. Available from < http://www.kazpravda.kz/index.php?uin=1152771799&act=archive_date&day=7&... >
Government Response:
- 527 reads
