European PPP Center

Issue 16

Kazakhstan Public-Private Partnership Center
2 December 2008

In August this year Kazakhstan established its specialized PPP unit called Kazakhstan Public-Private Partnership Center.

This move followed amendments introduced in July 2008 to the Concession Law of Kazakhstan which had been adopted in July 2006. In Kazakhstan concessions and PPPs are often used as interchangeable terms, while sometimes concession is understood as a type of PPP.

Recent amendments to the concession legislation of Kazakhstan were mainly aimed at improving procedures of selecting and granting concessions, ensuring attractiveness of concession projects for private parties, including additional types of state support measures for concessionaires, developing the institutional system in Kazakhstan further.

The only shareholder of the Kazakhstan PPP Center is the Government of the Republic Kazakhstan represented by the Ministry of Economy and Budget Planning of the Republic of Kazakhstan.

The major reason for creating such specialized body in Kazakhstan was to ensure transparency, competency and due diligence of concession projects selection process, and also to accumulate advanced knowledge and experience in the sphere of PPP.

Main activities of the Kazakhstan PPP Center include economic evaluation of concession projects at each stage of their preparation including evaluation of:

  • investment proposals;
  • feasibility study;
  • bidding documentation;
  • bids of potential concessionaires;
  • concession agreements.

In Kazakhstan key responsibility for preparation of concession projects is owned by line ministries which may attract transaction advisors. In this context the Kazakhstan PPP Center plays the role of external independent Government “counselor” that should ensure the balance of interests of the state, business and end-users.

Moreover, after the concession agreement is signed the Center continues to keep track of the project and monitors the course of its realization and the dynamics of inherent risks.

Apart from guiding specific projects throughout their lifecycle the Kazakhstan PPP Center also has important functions of developing methodologies for project preparation and appraisal, preparing recommendation for institutional development, and capacity building of state and other bodies in the sphere of PPP.

At this moment the Kazakhstan PPP Center consist of 45 highly qualified specialists (including administrative staff) and is open for cooperation with PPP units in other countries, international organizations, consulting companies, and all other interested parties.

Key milestones of PPP development in Kazakhstan prior to founding the Kazakhstan PPP Center are as follows:

  • July 6, 2005 – the first concession agreement on “Construction and Operation of New Shar Station – Ust-Kamenogorsk Railway” was signed;
  • December 28, 2005 – the concession agreement on “Construction of South Kazakhstan – Aktobe oblast Interregional Electric Power Line” was signed;
  • July 7, 2006 – the Law on Concessions was adopted;
  • 2007 – concession agreements on “Passenger Terminal of International Airport in Aktau City”, “Yeraliyevo-Kuryk Railway”, “Electrification of Makat-Kandyagash Railway” were signed;
  • 2008 – concession agreements on “Gas Turbine Power Plant in Kandyagash City in Aktobe Oblast”, “Korgas-Zhetigen Railway” were signed;
  • July 5, 2008 –the Law on Concessions and other secondary legislative acts were amended;
  • July 17, 2008 – the Resolution of the Government on setting up the Kazakhstan Public-Private Partnership Center in the form of joint-stock company is adopted;
  • August 12, 2008 – official registration of the Kazakhstan Public-Private Partnership Center.

Source: Kazakhstan PPP Center
Tel.: + 7 7172 51 70 70
Web: (to be launched in January 2009)

Eurovignette revision will remove truckers’ licence to pollute
20 November 2008

The revision of the Eurovignette Directive will put an end to the privileged situation of road transport, politicians and experts agreed at a high level event hosted by the European rail sector in Strasbourg on 18 November. Currently Member States are legally prevented from charging trucks the true costs of their environmental impact. This distorts competition in the transport sector, as other modes, such as rail, can already be charged for their external costs, in addition to track access charges.

The dinner debate on the revision of the Eurovignette Directive was attended by several leading Members of European Parliament as well as national and European officials. Transport currently produces 27% of all CO2 emissions within the EU-27, of which road transport is responsible for a massive 72% - a fact that makes firm actions on reducing CO2 emissions from road vehicles extremely urgent.

Speaking at the event, Saïd El Khadraoui, the European Parliament’s rapporteur on the revision of the Eurovignette Directive, welcomed the Commission’s initiative, including the proposal to earmark revenues to develop more sustainable mobility. He said that this was a much needed first step to bring the road sector in line with other modes. As a rapporteur he will call for the Directive to encompass a broader range of external costs: “In addition to costs of congestion, local air pollution and noise as proposed by the Commission, the revised Eurovignette directive should also allow Member States to charge trucks for their CO2 emissions,” he said.

Marc Papinutti, Director of Transport and Infrastructure at the French Ministry of Ecology, Sustainable Development and Land Planning, reconfirmed that the current French EU Presidency is aiming to achieve substantial progress on the revision of the Directive in order to make an agreement possible before the end of the current legislative period in June 2009. An agreement in first reading is also strongly supported by the rail sector. Michael Clausecker, Director General of UNIFE said: “Although we would prefer a more ambitious directive, including CO2 emissions and accident costs, given the urgency of the situation, we will support the European Commission, Council and Parliament to achieve an agreement at first reading.”

Mathias Hellriegel, a leading legal expert in the use of regulation to tackle climate change, pointed out that the Commission’s proposal does not oblige Member States to apply external cost charging: “The revised Eurovignette would simply enable national governments to put the correct price tag on road transport, bringing it into line with other modes, such as aviation and maritime which are being brought into the Emissions Trading Scheme,” he said. “Laws should apply to all competitors in a market equally in order to allow prices to reflect true costs,” he added. Johannes Ludewig, CER Executive Director, agreed: “The fact that road is protected, while rail as the greenest mode of transport already accounts for its external costs through specific legislation and indirect participation in the European Emissions Trading Scheme, slows down much needed modal shift from road to rail. If the EU’s climate change goals are to be taken seriously, greenhouse gas emissions from the transport sector must be reduced. Trucks must be charged for their impact on the environment,” he said.

EIM Secretary General Michael Robson highlighted the potential benefits of the Eurovignette revision: “The Eurovignette will not lead to a significant increase in prices of goods. However, the directive will send a price signals to make polluters finally pay.”

Source: EIM Rail

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