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Public procurement localisation
On 28 May 2009 the Government of the Republic of Kazakhstan approved Decree No. 787. It contains Model Procurement Rules. They are to cover the procurement of goods, works and services undertaken by national managing holdings, national holdings, national companies and organizations, fifty and more percent of the shares of which directly or indirectly belong to national managing holdings, national holdings, and national companies ("the Companies"). The affected sectors are identified on the basis of the main sectors, in which these Companies operate.
Art. 12 of Decree No. 787 contains explicit local content requirements:
For procurement of goods, works and services customers:
1) establish in the procurement documents conditional price decrease to Kazakhstani producers of goods, works and services;
2) apply conditional reduction of prices in the review of applications of Kazakhstani producers of goods, works and services and the selection of the tender winner;
3) in case of equal price offers of the procurement participants, preference is given to local producers of goods, works and services.
The Model Procurement Rules oblige procurement customers to provide information on the local content in the procurement of goods and services to the authorised body in the field of state regulation of trade and industrial policy in the form and within the deadlines set by them.
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