Local Content in Investment Projects

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Support for entrepreneurship and development of the local content

 

The content of the Kazakh personnel - percentage of the annual quantities of the Kazakh personnel involved in the execution of the contract, by category of personnel with the individual percentage for each category as a proportion of foreign staff, which should decrease with years during the implementation of compulsory education and training of the Kazakh personnel;

The content of the Kazakh goods and services - the percentage of the annual value of goods and services of the Kazakh origin purchased both directly and through subcontracting by the total value of goods and services of the contractor;

Goods of Kazakhstan origin - products with a certificate of origin attesting to their production in the Republic of Kazakhstan.


The legislation

 To date, the legal framework governing the issue of local content are the laws of the Republic of Kazakhstan "On Subsoil and Subsoil Use", "On Oil", as well as the rules for purchasing goods, works and services for petroleum operations.

In order to activate the mechanism of the state regulation on the development of the local content in subsoil use projects on January 15, 2007 the President of Kazakhstan signed the Law "On introducing amendments and addenda to some legislative acts of the Republic of Kazakhstan concerning the subsoil and the oil operations in the Republic of Kazakhstan”.

The Document amended the laws "On Oil" and "On Subsoil and Subsoil Use." At the moment the legal framework governing the issue of the local content are: Laws of the Republic of Kazakhstan "On Subsoil and Subsoil Use", "On Oil", as well as the rules for purchase of goods rules, works and services for petroleum operations.
In order to activate the mechanism of the state regulation on the development of the local content in the subsoil use projects on January 15, 2007 the President of Kazakhstan signed the Law "On introducing amendments and addenda to some legislative acts of the Republic of Kazakhstan concerning the subsoil use and the oil operations in the Republic of Kazakhstan”.

The Document amended the laws "On Oil" and "On Subsoil and Subsoil Use".

Benefits
Currently, the laws "On Subsoil and Subsoil Use", "On Oil" as amended assign a mandatory use by subsoil users of goods and services produced in Kazakhstan, if they comply with standards and technical requirements of a project, during transactions; the organizers of a tender for purchase of goods and services, in determining the winner are required to conditionally reduce the price of a tender bid of bidders - Kazakh producers, to twenty percent, if products and services comply with the requirements of the tender and the established standards.