The editorial team at FBRK continues to examine the largest state procurements of Kazakh ministries in 2024.
We have previously looked at the procurements of the Ministry of Agriculture, the Ministry of Ecology, the Ministry of Finance, the Ministry of Energy and the Ministry of Digital Development. Today, we will focus on the most expensive procurements of the Ministry of National Economy (MNE).
The Ministry of National Economy of the Republic of Kazakhstan is a key agency, shaping the state's economic policy and coordinating strategic planning. Its remit includes the development of entrepreneurship, public-private partnerships (PPPs) and attracting investment.
How are the budget funds of this important ministry distributed?
An analysis of the largest state procurements in 2024 shows a clear focus on entrepreneurship development and PPPs. Notably, the largest contracts have been concluded through direct contracting with companies that have state participation.
The largest item of expenditure – 700.6 million tenge – has been allocated to financial agency services, which monitor the subsidisation and guaranteeing of projects under national programmes. This is followed by information and consulting services for entrepreneurs, with a budget of 590.2 million tenge.
Considerable attention has been paid to expert work in the field of PPPs. The examination of documentation on budget investment and PPP issues has been allocated 311.7 million tenge. An additional 144 million tenge has been allocated to research on the development of the institutional environment for PPPs. This is particularly relevant in light of the recently approved comprehensive development plan for PPPs in the social sphere for 2024-2028.
Support for entrepreneurship also accounts for a significant share of expenditure. 408.6 million tenge has been allocated for consulting services on accounting, legal issues and business plan development. A further 181.8 million tenge has been directed towards developing the "Men Käsipker" project, which includes support for entrepreneurial initiatives and the development of women's entrepreneurship.
In contrast to the previously analysed ministries, where a significant portion of funds was directed towards digitalisation and the development of IT infrastructure, the Ministry of National Economy has focused its spending on working with businesses and developing public-private partnerships.
This approach reflects the specific nature of the agency's objectives, aimed at directly developing the business environment and attracting private investment into state projects.
We remind you that in July last year, the FBRK editorial team published a series of analytical articles on the draft PPP agreement for the introduction of an intelligent control system on highways (ICSH). We have also repeatedly reported on the "Sergek" intelligent public and road safety system project, which regularly finds itself at the centre of high-profile scandals.
To be continued…