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Rules of Public Procurement in Kazakhstan to Change: Emphasis on Quality and Automation

in Politics / Kazakhstan - by


The Mazhilis deputies on April 3, 2024, approved in the first reading a draft law on state procurement along with related bills. The Minister of Finance, Madi Takiyev, highlighted that the draft law aims to enhance the quality of procured goods and services, simplify and further automate the procedures of state procurement, and establish a unified procurement platform.

Takiyev emphasized that the quality of procured goods and services greatly depends on the reputation and qualifications of the supplier. To improve supplier qualifications, purchases will be made among providers with corresponding reputations, utilizing various databases to gather supplier information.

Furthermore, the draft law proposes automatic supplier selection based on a combination of price and quality criteria for all types of procurement. To streamline procurement processes and reduce bureaucracy, the draft also introduces a new mechanism for handling complaints.

In an effort to address prolonged procurement procedures, the duration of the tender process will be reduced from approximately two months to one month by eliminating certain stages.

Additionally, the draft law includes provisions aimed at reducing corruption risks and preventing emergencies. Potential suppliers, their directors, or founders will be barred from participating in state procurement if they have committed previous corruption offenses.

In another development, deputies also approved amendments in related bills regarding changes in legislative acts on procurement issues and revising laws to address excessive legislative regulation.

The amendments focus on establishing administrative liability for procurement organizers for failing to bring a claim to court in a timely manner regarding a supplier's dishonest participation in state procurement due to providing false information. The amendments also expand the grounds for holding customer officials accountable for not providing or delaying the submission of information on a supplier's evasion from contract conclusion by failing to provide contract performance security.

The upcoming changes in Kazakhstan's procurement regulations will shift towards an automated system for supplier selection, emphasizing non-price criteria such as qualifications and reputation over low cost. Deputy Ruslan Kozhasbayev previously shared insights on these and other novelties.