Purchasers (Procuring Organizations)
Within the context of public procurement in Kazakhstan, the following entities can act as purchasers:
- Governmental bodies;
- Government institutions;
- State enterprises;
- Legal entities where fifty percent or more of the voting shares (equity participation) belong to the state and legal entities affiliated with them.
As of the beginning of 2023, Kazakhstan counts over 18,000 such purchasers.
Purchasers in the sphere of public procurement in Kazakhstan are responsible for procuring goods, executing works, and providing services using transparent and competitive procurement mechanisms. Purchasers must ensure compliance with legislation during the procurement process and also oversee the adherence of acquired goods, works, and services to established quality standards at optimal prices.
Kazakhstani procurement legislation mandates fairness, transparency, and competitiveness in the procurement process, as well as equal conditions for the participation of all potential suppliers in procurements.
Public procurement operates based on the Principles of:
- Optimal and efficient spending of funds used for public procurement;
- Providing potential suppliers with equal opportunities to participate in the public procurement procedure, except in cases provided for by this Law;
- Fair competition among potential suppliers, preventing collusion among procurement participants;
- Openness and transparency in the public procurement process, including respecting suppliers’ legal rights to commercial confidentiality (until the conclusion of public procurement results);
- Supporting domestic goods producers, as well as domestic work and service suppliers, as long as this does not contradict international treaties ratified by the Republic of Kazakhstan;
- Holding public procurement participants accountable;
- Preventing corrupt practices;
- Procuring innovative and high-tech goods, works, and services;
- Respecting intellectual property rights contained in procured goods.
In line with the legislation, purchasers face disciplinary, administrative, criminal, and civil liability for violations in the procurement sector.
Legislation on public procurement DOES NOT APPLY to:
- Procurements by the “Samruk-Kazyna” fund, as well as all subjects of the quasi-state sector;
- Procurements of services from healthcare entities for the provision of medical assistance within the guaranteed volume of free medical care; drugs and medical devices within the guaranteed volume of free medical care and for the compulsory social health insurance system;
- Procurements of accreditation body services, services, and goods for student nutrition; state educational order services;
- Procurements by natural monopoly entities;
- Procurements by the National Bank of the Republic of Kazakhstan.
Centralized Procurement Organizations
In the context of centralizing public procurement at different levels of government administration (republican, regional, cities of republican significance and the capital, district akimat, city, district within a city) for a specified list of goods, works, or services, legal entities are established, responsible for organizing centralized public procurements.
Note: “Akimat” is a local executive body in Kazakhstan, akin to a city or district administration. The term is specific to Kazakhstan and other Turkic-speaking regions, so it might not have an exact equivalent in English and is typically transliterated.
Responsible institutions
Management of Local Government Administrations (Akimats) in Kazakhstan
Functions and tasks
Akimats (local executive bodies) are part of the unified executive branch system of the Republic of Kazakhstan. They are responsible for implementing national policy set forth by the executive branch while also considering the interests and developmental needs of their respective territories.
The jurisdiction of these local executive bodies includes:
- The development of territorial plans, economic and social development programs, local budgets, and ensuring their execution.
- Managing municipal property.
- Appointing and dismissing local executive leaders and making decisions on other matters related to the organization of local executive bodies.
Akimats and their structural subdivisions (independent departments and directorates) are responsible for the economic, social, and cultural matters of their regions, coordinating the work of budgetary organizations in collaboration with the state. They serve as primary contracting authorities for public procurement, plan and formulate budgets, and organize economic activities.
They also set goals for law enforcement agencies concerning crime prevention, public order maintenance, and ensuring road traffic safety.
In the sphere of public procurement, Akimats and their subdivisions act as Contracting Authorities..
They publish procurement notices, conduct competitive bidding processes, enter into contracts with suppliers, and oversee contract compliance. The Akimats can also establish requirements and criteria for participation in procurement, based on their specific needs and objectives.
Typically, the main divisions of Akimats (Local Government Administrations) include:
- Office of Digitalization and Archives
- Office of Religious Affairs
- Office of Public Development (Domestic Policy)
- Office of Agriculture and Land Relations
- Office of Employment Coordination and Social Programs
- Office of State Architectural and Building Inspection
- Office of Natural Resources and Environmental Regulation
- Office of Entrepreneurship and Tourism
- Office of Labor Inspection
- Office of Public Procurement and Municipal Property
- Office of Economic and Budgetary Planning
- Office of Passenger Transportation and Roads
- Office of Construction, Architecture, and Urban Planning
- Office of Education
- Office of Health
- Office of Culture
- Office of Energy and Public Utilities
- Office of Physical Culture and Sports
- Office of Veterinary Services
They also handle inquiries from citizens and organizations related to public procurement.
For example:
- The Office of State Architectural and Building Inspection checks the quality of construction, major repairs, and compliance with project specifications, as per Chapter 20 of the Kazakhstan Administrative Offenses Code, which relates to violations in architectural, urban, and building activities and housing relations.
- The Office of Labor Inspection reviews labor disputes, including those related to government contracts, as outlined in Chapters 87, 88, and 89 of the Kazakhstan Administrative Offenses Code.
Additionally, regional departments of authorized state agencies that have the authority to draft administrative protocols also accept inquiries. For instance:
- The Department of the Committee for Industrial Safety under Kazakhstan’s Ministry of Emergency Situations accepts inquiries regarding the performance of public procurement works without certification for the installation, technical maintenance, and repair of elevators, as per Article 463 of the Kazakhstan Administrative Offenses Code.
Legal and Legislative Rationale
The Law of the Republic of Kazakhstan dated January 23, 2001, No. 148-II On Local Government and Self-Government in the Republic of Kazakhstan
Additional Information
- Akim of the Abay region
- Akimat of Aktobe region
- Akimat of Akmola region
- Akimat of Almaty region
- Akimat of Atyrau region
- Akimat of East Kazakhstan region
- Akimat of the city of Almaty
- Akimat of the city of Astana
- Akimat of Shymkent city
- Akimat of Zhambyl region
- Akimat of Zhetysu region
- Akimat of West-Kazakhstan region
- Akimat of Karaganda region
- Akimat of Kostanay region
- Akimat of Kyzylorda region
- Akimat of Mangystau region
- Akimat of Pavlodar region
- Akimat of North Kazakhstan region
- Akimat of Turkestan region
- Akimat of Ulytau region
Purchasing by the National Bank of Kazakhstan
Functions and tasks
The National Bank of the Republic of Kazakhstan has its own procurement policies for acquiring goods, services, and works and is not part of the government procurement system.
Legal and Legislative Rationale
On approval of the Rules for the Procurement of Goods, Works and Services by the National Bank of the Republic of Kazakhstan, Its Departments, Organizations within Its Structure, and Legal Entities, Fifty and More Percent of Voting Shares (Equity Interest) of Which Belong to the National Bank of the Republic of Kazakhstan or Are in Its Trust, and Legal Entities Affiliated with Them
Government Procurement Web Portal
support@ecc.kz forum.ecc.kz
goszakup.gov.kz/Functions and tasks
The government procurement web portal is a state information system providing a single point of access to electronic government procurement services. It facilitates the registration of participants, planning, execution, and tracking of government procurements, and provides access to information, statistics, clarifications, and helps to reduce violations in government procurements.
Purchases by Natural Monopolies
Functions and tasks
According to Subparagraph 4, Paragraph 2, Clause 1 of the “Rules for Activities Conducted by Natural Monopoly Entities,” the procedure for conducting procurements by natural monopolies is not governed by the law on government procurements. This regulatory legal act stipulates the procedure for procurements by natural monopoly entities.
Purchases by the National Welfare Fund
Functions and tasks
According to Paragraph 1, Article 1 of the Law of the Republic of Kazakhstan dated June 8, 2021, No. 47-VII ZRK “On Procurements by Certain Entities in the Quasi-Public Sector,” procurements by the “Samruk-Kazyna” fund and all entities in the quasi-public sector are not governed by legislation on government procurements. The specified legal relations are subject to regulation by the legislation of the Republic of Kazakhstan in the area of procurements by entities in the quasi-public sector.
Healthcare Procurements
Functions and tasks
According to Paragraph 1, Article 3 of the Health Code of the Republic of Kazakhstan, the legislation on public procurement does not apply to the procurement of services from healthcare providers for the provision of medical assistance within the scope of the guaranteed volume of free medical care; pharmaceuticals and medical devices within the scope of the guaranteed volume of free medical care and for the mandatory health insurance system. These legal relations are subject to regulation by the healthcare laws of the Republic of Kazakhstan.
The procurement of services from healthcare providers within the scope of the guaranteed volume of free medical care will be conducted electronically starting January 1, 2024.
In the context of centralizing pharmaceutical procurements, an LLC “SK-Pharmacia” has been established to act as the Sole Distributor in the pharmaceutical sector with the aim of consolidating state drug procurements.
According to Article 77 of the Health Code of the Republic of Kazakhstan, the primary activities of the Sole Distributor are:
- Vendor selection
- Contracting for the supply of pharmaceuticals and medical supplies
- Long-term contracting for the supply and/or storage and transport of pharmaceuticals and medical supplies
- Provisioning of pharmaceuticals and medical supplies as determined by the authorized body
- Procurement of pharmaceuticals and medical supplies, storage services, and transport services as determined by the authorized body
- Procurement of pharmaceutical services
- Procurement of services for inventory and sales of pharmaceuticals and medical supplies
- Organization of the procurement of medical supplies within the scope of the guaranteed volume of free medical care
The Code specifies that the procurement of pharmaceuticals and medical supplies intended for the provision of the guaranteed volume of free medical care (GVFMC) and medical care within the mandatory health insurance system (MHIS) is carried out in the manner and methods established by the Government of the Republic of Kazakhstan, including the use of the web portal https://fms.ecc.kz/ for the procurement of pharmaceuticals and m
Legal and Legislative Rationale
"ON PUBLIC HEALTH AND HEALTHCARE SYSTEM" Code of the Republic of Kazakhstan dated July 7, 2020 No. 360-VI ЗРК.
Approval of the Rules for the Organization and Conduct of Procurement of Medicines, Medical Devices, and Specialized Therapeutic Products within the Framework of the Guaranteed Volume of Free Medical Care, Additional Volume of Medical Care for Persons Detained in Detention Facilities and Penal Institutions, Funded by Budgetary Funds and/or in the Mandatory Social Health Insurance System, Pharmaceutical Services, and Repeal of Certain Decisions of the Government of the Republic of Kazakhstan
Education Procurements
Functions and tasks
According to Paragraph 3 of the Republic of Kazakhstan’s Law No. 319-III dated July 27, 2007, “On Education,” the legislation on public procurements is not applicable to the acquisition of accreditation services, services and goods related to student meal programs, or services under state educational contracts. These legal relations are subject to regulation by the education laws of the Republic of Kazakhstan.