ANNOUNCEMENT 04 May 2009In May 2009, the government of Kazakhstan announced a change in the access to public tenders.
NUMBER OF INTERVENTIONS
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
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.