APPLICATION OF PPP MECHANISMS IN THE DEVELOPMENT OF THE REGIONAL INFRASTRUCTURE
Keywords:
PPP mechanisms, PPP projects, legislation, regions, local executing authoritiesAbstract
The development of every region and every country is closely linked to the undertakings relating to the betterment of the transport, energy, and social infrastructure. One of the effective mechanisms in improving the multiple-end infrastructure is the public-private partnership. This mechanism is being extensively applied in most of world’s countries.
The main strategic document of the country: The strategy "Kazakhstan-2050" paid a special attention to issues of the application of the PPP mechanism. Creation of an effective private sector of the economy and development of PPP has been highlighted in one of the directions of the economic policy of the new course – comprehensive economic pragmatism on the principles of profitability, return on investment and competitiveness. In addition, the priority of the application and development of PPPs was noted in the direction of practical scientific research work of medical universities, in the creation of a PPP network for the development of higher and secondary education. The task of the Kazakhstan-2050 Strategy to determine the legal framework for PPPs, to introduce the most advanced tools and mechanisms for such a partnership, has practically been fulfilled with the introduction in the legislation from 2013 to 2016 of a number of conceptual changes aimed at increasing the attractiveness of PPP projects and their wide application, particularly, in the regions. In 2015, a new PPP Law was adopted, thereby starting a new round of PPP development in Kazakhstan.
The study explores the issues relating to the implementation of the PPP mechanisms in the Republic of Kazakhstan. It presents an in-depth analysis of the international empirical practices as well as those in Kazakhstan. Moreover, it portrays the existing legislation on implementing the PPPs. Based on the analysis; the paper presents the key conclusions on using the PPP mechanisms for the purposes of the regional infrastructure development.
