The reason behind poor roads and long construction of schools and hospitals in Kazakhstan is not just incompetence but also flawed legislation on public procurement. A new law was introduced on April 3, 2024, aiming to address these issues. The existing Law on Public Procurement, adopted in 2015, has faced criticism for its lengthy processes, endless appeals, and lack of transparency.
The President of Kazakhstan has called for a change in the current system, leading to the development of a new bill by the Ministry of Finance. The bill was approved in the first reading on April 3, 2024, during a plenary session. The key innovation proposed is the shift towards automatic supplier selection in public procurement, using a rating-point system to eliminate human bias.
Already implemented in certain sectors like design, construction, and supervision, this automated system matches potential suppliers based on various government databases without the need for a competitive commission. The decision-making process is final and cannot be challenged, aiming to streamline procedures and reduce corruption risks.
The new law will extend this system to other types of purchases, allowing for some emergency procurements without a bidding process. For instance, rural administrations can make purchases up to a certain limit from a single source for urgent needs, enhancing efficiency in critical situations.
Furthermore, the bill introduces provisions for preventing emergencies and accepting sole bids when there are no alternatives available. This flexibility aims to facilitate procurement in remote areas where limited options exist, ensuring timely delivery of essential goods and services.
In conclusion, the proposed reforms in the public procurement system in Kazakhstan seek to enhance transparency, efficiency, and responsiveness to emergencies. By introducing automated supplier selection, simplifying procedures, and allowing for single-source procurements in specific cases, the new law aims to improve public service delivery and reduce corruption risks.
