Updated Rules for Procurement of Goods, Works and Services by Subsurface Users Have Become Effective

New provisions for procurement of goods, works and services by subsurface users have become effective after publication of Resolutions of the Government of RoK No.133 and No.134 dated 15 February 2013.

Pursuant to mentioned Resolutions of the Government of RoK, there were approved Rules of procurement of goods, works and services within the subsurface operations through public information system “Register of goods, works and services, used within the subsurface operations and its producers” and Rules of procurement of goods, works and services within the subsurface operations use.

These Rules have been developed in accordance with the Law “On Subsurface and Subsurface Use”.

These Rules are aimed to regulate the procedure for procurement by subsurface users within the subsurface operations and specify certain provisions for solid minerals producers as well as for hydrocarbons producers.

The rules provide for following major innovations:

• Placement of tender documents in state information system – “Register of GWS used in subsurface operations and their producers”;

• Electronic procurement in electronic form;

• Procurement from a Single Source from Kazakhstani producer – sole supplier, registered in the database of GWS and its suppliers, which is formed and maintained by the National Institute of Development of Local Content;

• Long-term procurement contracts, if the procurement of such GWS is provided by the relevant procurement programs, etc.

The Rules also updated the procedure of procurement of an Open tender, which shall be carried out in two stages.

Stage 1:

• Advertisement on Open tender in the system and printed periodical publication;

• Collection of tender applications;

• Opening of tender applications;

• Consideration of tender applications for compliance with the requirements of tender documentation;

• Protocol on admission to an Open tender.

Stage 2:

• Quotations submission;

• Consideration of quotations;

• Announcing the tender winner;

• Protocol of results;

• Contract executing.

In general the Rules are focused on supporting local producers, to increase their competitiveness and to be prepared for the integration processes in the world economy.

The present review includes only brief information about introduced changes. Should you need additional information, do not hesitate to contact us. In addition, we are currently conducting the trainings on the practical application of the Rules. Please contact our lawyers on this question: Victoriya Trofimovich (vvt@signumlaw.com) and Abylkhair Nakipov (amn@signumlaw.com).

Information contained in this Client Update is of general nature and cannot be used as legal advice or recommendation. Please seek for a specific advice in relation to any questions. Please note that Kazakhstan and Turkmenistan are emerging economies and their legislation and legal systems are in constant development. Should you have any questions or would like to discuss subjects addressed in this Client Update please contact us.