ANNOUNCEMENT 04 May 2009

In May 2009, the government of Kazakhstan announced a change in the access to public tenders.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Changes and amendments of the Law on public procurement # 156-IV from 4 May 2009

Law on public procurement of the Republic of Kazakhstan of 21 July 2007, http://goszakup.gov.kz

European Bank for Reconstruction and Development, http://www.ppi-ebrd-uncitral.com/index.php/ru/kazahstan


Inception date: 05 May 2009 | Removal date: open ended
Still in force

Public procurement access

The Republic of Kazakhstan adopted changes and amendments to the Law on public procurement # 156-IV of 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 of 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.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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