Article 9. Sources of financing for the public-private partnership project, cost recovery for public-private partnership entities and revenue generation for public-private partnership entities The Law on Public-Private Partnership

Home / RLA / Article 9. Sources of financing for the public-private partnership project, cost recovery for public-private partnership entities and revenue generation for public-private partnership entities The Law on Public-Private Partnership

Article 9. Sources of financing for the public-private partnership project, cost recovery for public-private partnership entities and revenue generation for public-private partnership entities The Law on Public-Private Partnership

1. Financing of a public-private partnership project may be carried out at the expense of:

1) private partner's own funds;

2) funds borrowed in accordance with the procedure established by the legislation of the Republic of Kazakhstan;

3) state budget funds;

4) funds of quasi-public sector entities;

5) other means not prohibited by the legislation of the Republic of Kazakhstan.

2. The sources of cost recovery for public-private partnership entities and income generation for public-private partnership entities are:

1) sale of goods, works and services within the framework of the public-private partnership agreement;

2) subsidies from the state in cases established by the legislation of the Republic of Kazakhstan;

3) compensation of investment costs for the public-private partnership project;

4) compensation of operating costs for the public-private partnership project;

5) remuneration for the management of a publicly owned public-private partnership facility, as well as rent for the use of a public-private partnership facility;

6) Availability fee.

2-1. Full reimbursement of the costs of the private partner is carried out exclusively for public-private partnership projects, if the operation of the social infrastructure and life support facility does not ensure a return on investment by the private partner, such projects are projects of public-private partnership of social infrastructure and life support.

Social infrastructure and life support facilities include facilities, complexes of facilities used to meet public needs, the provision of which is entrusted to government agencies in accordance with the legislation of the Republic of Kazakhstan, including healthcare, education, culture, sports, telecommunications, communications, public safety, transport infrastructure, gas, electricity, heat and water supply and sanitation, waste management.

2-2. Service contracts do not provide for compensation of investment costs and/or co-financing.

3. Financing of a public-private partnership project using project financing is carried out in accordance with the legislation of the Republic of Kazakhstan on project financing and securitization, taking into account the provisions of this Law.

4. The procedure for reimbursement of costs to subjects of public-private partnership is determined by the budget legislation of the Republic of Kazakhstan.

Payment of compensation for investment costs under the public-private partnership project is carried out after the public-private partnership facility is put into operation in equal shares for a period of at least five years, in accordance with the public-private partnership agreement. - Excluded by the Law of the Republic of Kazakhstan.

At the same time, it is prohibited to postpone the payment dates for compensation of investment costs established by the public-private partnership agreement to earlier periods, except in cases of early commissioning of the public-private partnership facility, without shortening the total period for payment of compensation for investment costs and while maintaining the uniformity of payments for compensation of investment costs, subject to the conditions of paragraph Article 49 of this Law.

The Law of the Republic of Kazakhstan dated October 31, 2015 No. 379-V SAM.

This Law defines the legal conditions of a public-private partnership, its methods of implementation and regulates public relations arising in the process of preparing and implementing a public-private partnership project, concluding, executing and terminating a public-private partnership agreement.

President

Republic of Kazakhstan

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