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Kazakhstan to apply mechanism for signing trilateral agreements with subsoil users

Oil&Gas Materials 15 December 2020 16:29 (UTC +04:00)

BAKU, Azerbaijan, Dec. 15

By Nargiz Sadikhova - Trend:

Kazakhstan will introduce mechanism for signing of trilateral agreements with participation of state authorities, Atameken National Chamber of Entrepreneurship and subsoil users to promote local entrepreneurs, Kazakhstan’s Minister of Industry and Infrastructural Development Beibut Atamkulov said, Trend reports citing the press office of the government.

Atamkulov said that in order to further develop domestic market taking into consideration country’s liabilities before World Trade Organization, measures to develop local manufacturing are underway. Thus, a special procedure for acquisition of goods, works and services will be in force in public procurement by the end of 2020; On November 30 this year, an Agreement of Intent to establish an International Center for the Development of Oil and Gas Engineering was signed; in 2021, a mechanism for concluding tripartite agreements will be introduced.

The agreement will contain obligations on the use local content in procurement goods, upon fulfillment of which subsoil users will be able to purchase goods without applying the rules of the regulated procurement procedure.

These measures will shorten the time for purchasing goods, as well as eliminate restrictions when choosing a supplier.

For the implementation of these proposals within the framework of the draft law on public procurement, appropriate amendments are made to ‘On Subsoil and Subsoil Use’ code of Kazakhstan.

These measures will allow in the future to conclude agreements with subsoil users to stimulate domestic production.

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