In general, Kazakh public procurement legislation is based on the provisions of the Civil Code and the Budget Code of Kazakhstan, and the relevant legislation includes:  

1. The Law of the Republic of Kazakhstan “On Public Procurement” dated 4 December 2015, No. 434-V ЗРК (the “Public Procurement Law”). 

2. The “Rules of the Conduct of Public Procurement”, as approved by the Decree of the Minister of Finance of Kazakhstan No. 648, dated 11 December 2015 (the “Public Procurement Rules”). 

3. The Law of the Republic of Kazakhstan “On State Property” dated 1 March 2011, No. 413-IV ЗРК (the “State Property Law”). 

4. The Law of the Republic of Kazakhstan “On National Welfare Fund” dated 1 February 2012, No. 550-IV ЗРК (the “NWF Law”). 

5. The Decree of the Government of Kazakhstan dated 28 May 2009, No. 787 “On approval of the Template Rules of procurement of goods, works and services by national managing holding, national holding, national company and by organisations, 50 or more per cent of the shares (participatory interests) of which directly or indirectly belong to the national managing holding, national holding, national company” (the “Template Procurement Rules of the National Companies”). 

6. The “Procurement rules of goods, works and services by the JSC National Welfare Fund “Samruk-Kazyna” and by organisations 50 per cent or more of the voting shares (participatory interests) of which belong, directly or indirectly, to JSC National Welfare Fund “Samruk-Kazyna” on the right of ownership or trust management”, as approved by the Decision of the Board of Directors of the JSC National Welfare Fund “Samruk-Kazyna” No. 126, dated 28 January 2016 (the “NWF Procurement Rules”). 

7. The Decree of the Management Board of the National Bank of Kazakhstan No.237, dated 19 December 2015, “On approval of the Rules of procurement of goods, works and services by the National Bank, its departments, organisations, which are included in the structure of the National Bank and the legal entities, 50 or more per cent of the voting shares (participatory interests) of which belong to the National Bank or are in trust management of the National Bank, and legal entities affiliated with them” (the “NBK Procurement Rules”).

8. The Rules For Organising and Conducting Purchases of Pharmaceuticals, Preventive (Immunobiological, Diagnostic, Disinfecting) Preparations, Medical Devices and Equipment, Pharmaceutical Services for the Purposes of Providing Guaranteed Free Medical Care approved by Governmental Resolution No. 1729 dated 30 October 2009 (the “SKPharmacia Rules”). 

The range of entities (the “Affected Entities”) which fall within the scope of the Public Procurement Law and the Public Procurement Rules is wide (see section 27 of article 2 of the Public Procurement Law) and covers: 

1. state authorities (государственные органы) − e.g. Government of Kazakhstan or local executive authority (Akimat); 

2. state agencies (государственные учреждения) − e.g. the Ministry of Internal Affairs, in its capacity as a state agency; 

3. governmental enterprises (государственные предприятия); and 

4. legal entities, 50 or more per cent of the voting shares (participatory interests) of which belong to the state, and legal entities affiliated with them (e.g. municipal companies 100 per cent owned by regions or cities represented by respective Akimats) . 

To ensure the transparency, cost-efficiency and accessibility of procurement, the Public Procurement Law requires that suppliers of purchased goods, works and services (the “GWS”) (with limited exceptions stipulated in article 1 of the Public Procurement Law, e.g. GWS of military and double-purpose (usage) as part of the state defence order or making a contribution to the charter capital of a legal entity) to Affected Entities must be selected through a publicly disclosed procedure and only by way of a tender, auction or other selection method set out in the Public Procurement Law. 

Importantly, the Public Procurement Law and the Public Procurement Rules do not apply to procurement of the purchased GWS by the following entities (however, specific procurement rules applicable for the entities listed below are similar to the procurement rules under the Public Procurement Law in most respects):