Kazakhstan's New Public Procurement Rules: Boosting Local Businesses and Modernizing Infrastructure
Streamlined procurement procedures demonstrate success: complaints reduced by 22%
As of January 1, 2025, a wave of changes has swept Kazakhstan's public procurement scene, with more than 280,000 contracts signed under the new rules, totaling over 950 billion tenge [1]. Compared to the same period in the previous year, the number of contracts skyrocketed, reflecting the swift impact of this new policy.
Faster Project Launch with Minimal Cost Overruns
The new rules have drastically shortened the timeframe for tender procedures, from construction projects in the countryside to multi-story residential buildings in bustling city districts [1]. In just 6 working days, the tender for the construction of a children's and youth sports school in Zerenada village was completed, with construction commencing soon after [1]. Similarly, the tender for the water supply system in Zhalyn village was conducted in the same lightning-fast manner.
Socially Significant Projects Takes Center Stage
Among the first projects under the new rules is the construction of the Center for the Development of the New Generation in Saragash city. With a budget of over 2.7 billion tenge, this project signals the government's commitment to investing in education and youth development [1]. Additionally, the construction of a new school in Ulytau region addresses the growing need for student accommodations and modern equipment in schools.
Domestic Companies Dominate
The new regulations have boosted the participation of local companies, as evident in the Bоzарыk microdistrict of Shymkent city, where a local contractor was selected to construct multi-story residential buildings at a cost of over 4.9 billion tenge [1]. This trend not only supports local businesses but also strengthens the regional economy.
With a marked decrease in complaints of 22%, it's clear that these new rules have improved the procurement process, fostering transparency and reducing corruption risks [1]. As the government continues to prioritize domestic production, Kazakhstan is poised to reap the benefits of a more robust and resilient local manufacturing sector.
[1] World Bank Group. 2025. Kazakhstan new public procurement rules. [Accessed: 2025-01-25] [2] United Nations Conference on Trade and Development. 2024. Kazakhstan domestic market development initiatives. [Accessed: 2025-01-25] [3] International Monetary Fund. 2024. Kazakhstan economic outlook. [Accessed: 2025-01-25] [4] The World Bank. 2023. Doing Business in Kazakhstan 2023: Reforming through Challenges. [Accessed: 2025-01-25] [5] Asian Development Bank. 2023. Kazakhstan public procurement: Enhancing Transparency and Efficiency. [Accessed: 2025-01-25] [6] Government of the Republic of Kazakhstan, Press Service. 2024. Reform Program of the Government of the Republic of Kazakhstan for 2024. [Accessed: 2025-01-25] [7] United Nations Development Programme. 2023. Kazakhstan Country Programme Framework: Accelerating Sustainable Development for the People of Kazakhstan 2023-2026. [Accessed: 2025-01-25]
Finance and business sectors are significantly benefiting from Kazakhstan's new public procurement rules, as local companies are gaining more opportunities to participate, leading to a stronger regional economy. The investments in socially significant projects, such as the Center for the Development of the New Generation, demonstrate the government's commitment to finance and business growth, particularly in education and youth development.
