PPP in Healthcare Service of the Republic of Kazakhstan

 

Improving the health of nations is the country's highest priority. The foundation for the implementation of this priority is the creation and maintenance of the infrastructure and material base of healthcare institutions.

Current situation

The difficult epidemiological situation of coronavirus infection in the world and in the country revealed the need for drastic measures to strengthen the material and technical support of domestic healthcare. According to the Ministry of Health of the Republic of Kazakhstan[1], only 72.5% of state medical organizations are equipped with special machines. Medical equipment is 37% depreciated, and slightly more than half of all medical equipment is 100% used. There are 272 health care organizations in need of overhaul. The country also has a very low number of beds, with an average of 200 beds per organization. In addition, according to the Organization for Economic Cooperation and Development (OECD), hospitals in Kazakhstan are not adapted to the mobile changes in health care[2].

Governmental support

The Ministry of Health established the national project "Quality Accessible Health Care for Every Citizen: A Healthy Nation" at the country level. The program provides a system of measures aimed at solving the problems of health care, and outlines the range and scope of investment in medical infrastructure facilities. According to the national project the country will be fully equipped with the necessary equipment for all medical organizations; 50% of the hospital beds will be upgraded; the outdated infrastructure will be replaced; and 20 modern multifunctional hospitals will be opened.

Implementation of healthcare infrastructure projects within PPP

According to the Kazakhstan PPP Center, as of November 2021, 834 projects have already been launched in the country, of which 174 are in the health sector. Of these, 21% of projects were implemented, which in financial terms amounted to KZT 61.3 bln[3]. The PPP mechanism will make it possible to attract non-state investors who will interact with the state on the basis of long-term contracts. Participation in such a project enables private businesses to invest in the construction, reconstruction, modernization, operation and management of infrastructure facilities.

Kazakhstan Project Preparation Fund LLP plays a key role in advising support in national PPP projects. With the participation of KPPF through the PPP mechanism, two large-scale projects will be implemented: construction of hospitals in the cities of Turkestan and Almaty that meet high international standards. As part of the projects, KPPF will assume the role of general consultant to the Ministry of Health of the Republic of Kazakhstan and will participate in direct negotiations between the parties to the contract.

In Turkestan, the construction will be the first national PPP project in healthcare sector.

Implementation of projects will be subject to an institutional model: when a private partner builds and operates the facility, and the state acts as a guarantor of medical services.

It is expected that by 2025 about one and a half trillion tenge will be attracted to the health infrastructure, which will accelerate the pace of socio-economic development of the country.

 

[1]  https://www.gov.kz/memleket/entities/dsm/documents/details/adilet/P1900000982?lang=ru

[2] http://www.rcrz.kz/files/nauka

[3] https://kzppp.kz/projects