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Public Procurement in Kazakhstan

Public Procurement in Kazakhstan is a central pillar of public financial management and state-led economic activity. As an upper middle-income economy located at the crossroads of Europe and Central Asia, Kazakhstan uses public procurement as a key instrument to deliver infrastructure, public services, and strategic investments across national, regional, and local levels of government.

Government tenders in Kazakhstan are governed by a unified legal framework and implemented through a fully digital, government-owned eProcurement platform. The procurement system emphasizes transparency, competition, and value for money, while supporting fiscal discipline and centralized oversight by the Ministry of Finance.

For domestic suppliers and international companies, the Kazakh public procurement market offers large-scale opportunities in goods, works, and services, particularly in transport, ICT, healthcare, industrial supply, and public infrastructure.

Country & Economic Overview

Public procurement expenditure accounts for a significant share of national economic activity and is a major channel through which public budgets and investment programs are executed.

Public Procurement Governance Framework

Kazakhstan’s public procurement system is institutionally anchored within the Ministry of Finance of the Republic of Kazakhstan.

• Public Procurement Agency (PPA): Ministry of Finance of the Republic of Kazakhstan
• Central oversight: Treasury Committee of the Ministry of Finance at the national level
• Single Purchasing Bodies: Established at regional and local levels

While the Ministry of Finance provides policy leadership and regulatory oversight, procuring entities at national, regional, and municipal levels are responsible for conducting individual procurement procedures through the unified electronic platform.

Legal & Regulatory Framework

Public procurement law in Kazakhstan is governed by the Public Procurement Law (PPL) and supporting procurement regulations. The legal framework applies uniformly across public sector entities.

Core Legal Principles

• Value for Money and efficiency in public spending
• Fair competition and equal access
• Transparency and public disclosure
• Accountability and legal certainty

Key Legal Provisions

• Life Cycle Costing (Article 31-3 of the PPL)
• Most Economically Advantageous Tender (MEAT)
• Bid securities and bid declarations
• Formal public bid opening procedures

The law defines complaint handling, standstill periods, contract award disclosure obligations, and procedures for direct contracting under specific conditions.

Procurement Procedures & Thresholds

Procurement Method	Regulatory Status
Open Competitive Tendering	Primary procurement method
Electronic Reverse Auctions	Used for standardized goods
Direct Contracting	Permitted under defined legal clauses

• Tender threshold value: Equivalent to USD 27,000
• Advertisement period: Regulated by Article 22(3) of the PPL
• Standstill period: Applicable to goods, works, and services
• Bid validity: Defined in procurement regulations

E-Procurement System in Kazakhstan

The eProcurement system in Kazakhstan is the e-Public Procurement Web Portal of the Republic of Kazakhstan, launched in 2010 and fully owned and operated by the government.

Functionality	Availability
eTendering and eQuotation	Yes
eEvaluation and Award	Yes
eReverse Auctions	Yes
Vendor Management	Yes
eComplaints and eCatalogues	Yes

The platform supports Kazakh and Russian languages and transactions in Tenge, US Dollar, Euro, and Russian Ruble. Advanced electronic signature functionality is mandatory for participation.

Procurement Market Characteristics

Public procurement in Kazakhstan covers a broad range of sectors and contract types.

• Goods procurement for public institutions and state-owned entities
• Works contracts for infrastructure and transport projects
• Services including ICT, consulting, and maintenance

The procurement market is predominantly domestic, though international suppliers participate in selected tenders, particularly in specialized goods and large-scale infrastructure projects.

Evaluation approaches include:

• Lowest-priced compliant bid
• MEAT and quality-based evaluation

Transparency, Complaints & Oversight

Kazakhstan maintains a structured oversight and accountability framework for public procurement.

• Mandatory electronic publication of tenders and awards
• Centralized complaint submission and review mechanisms
• Contract award disclosure regulated by law

Procurement statistics, tender documentation, and award data are publicly accessible through the national eProcurement portal.

Sustainability & Green Public Procurement

At present, Kazakhstan does not operate a mandatory green public procurement framework. Environmental considerations are not formally embedded as compulsory criteria in public procurement legislation.

Policy discussions and analytical work on sustainable procurement have been supported by international partners, but green procurement practices remain voluntary and limited in scope.

Social & Ethical Procurement Considerations

The public procurement framework includes limited social policy provisions.

• Specific legal provisions supporting disadvantaged groups
• No mandatory set-asides for women-owned businesses
• No formal requirement for international labor standards in procurement law

Ethical sourcing and fair-trade requirements are not explicitly mandated within the procurement legal framework.

Key Challenges & Practical Insights for Bidders

Bidders engaging in government tenders in Kazakhstan should be aware of several practical considerations:

• Mandatory use of the national eProcurement portal
• Strict electronic signature and registration requirements
• High competition in standardized goods procurement
• Detailed compliance checks during bid evaluation

Practical bidding tips

1. Complete supplier registration and eSignature setup early
2. Monitor procurement plans published on the portal
3. Carefully review legal clauses governing bid securities and validity
4. Use reverse auction strategies where applicable

Overall, Public Procurement in Kazakhstan offers a centralized, digital, and legally structured procurement environment that provides predictable access to public contracts for qualified suppliers operating in Europe and Central Asia.