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Transfer to the trust management of state property, as well as the acquisition of transport services

About the project

Contract type

Public-private partnership agreement providing the trust management of state property

Project initiator

“State Property and Privatization Committee” RSE of the Ministry of Finance of the Republic of Kazakhstan

Sector

Complex administrative and managerial services

Purpose of the project implementation

- improving labour conditions for public servants;

- increasing the performance of public servants through the transfer of non-profile functions of property maintenance into the competitive environment;

-  timely and effective settlement of unforeseen problems of property maintenance by abandoning the procedures of public procurement of goods/works/services;

- increasing the quality of the property maintenance services through good management;

Implementation period

2019 – 2025

Projected cost of the project

KZT 3,6 bn.

Performance indicators

Maintenance of 34 real estate properties, with the area of 36 thous. sq. m.

Expected result

- increasing the labour productivity of public servants due to the transfer of unusual functions for the maintenance of property into the competitive environment;

- growth of small and medium business by economic branches: construction (major and current repair);

Involvement of the Center in the Project

Development of tender documentation for the Project, advisory support for the Project at the tender stage, assistance in signing of the PPP agreement.

The Project provides the transfer of the republican property (34 property assets) in 4 cities of regional significance and 15 district centers of the East Kazakhstan region held on the balance of the Republican State Enterprise “East Kazakhstan Department of State Property and Privatization of the State Property and Privatization Committee of the Ministry of Finance of the Republic of Kazakhstan” to the trust management, where the Private partner undertakes obligations on procurement/provision of goods, works and services, in particular on the current repair in administrative buildings, repair of equipment and utility networks required for servicing and maintenance of the republican property and support of the activities of the territorial subdivisions of departments of the Ministry of Finance of the Republic of Kazakhstan in the East Kazakhstan region.

After signing of the PPP Agreement, “East Kazakhstan Department of State Property and Privatization of the State Property and Privatization Committee of the Ministry of Finance of the Republic of Kazakhstan” will remain the owner of the republican property (34 PPP facilities), and the Private partner will become the balance holder.

The right to dispose the Property is not transferred as part of the trust management, the right to use is also limited to the intended purpose of real estate property.

In order to finance current repairs and to cover current expenses within the framework of trust management of the republican property, it is planned to attract private and borrowed funds of the Private partner. Within the framework of the baseline scenario of the project implementation, the costs incurred by the Private partner at the investment stage of the Project implementation will be compensated at the operating stage. The amount of own funds for the current repair should be at least 10%.