The Government of Astana, the capital city of Kazakhstan, has presented nine concession projects in transport infrastructure and healthcare.

The Government has recently addressed the importance of the use of PPPs mechanisms. During a conference held at the City Hall, the Government has stressed out the importance of cooperation and implementation of local projects in the framework of PPPs.

Astana Innovations JS, a company funded in 2011 for the implementation of the Kazakhstan program for accelerated industrial-innovative development, manages the nine PPP projects.

Three of the concessions are the following parking projects: Kabanbay Batyr Avenue (6 floors), Orynbor Street (3 floors: 1 ground floor and 2 underground floors), Dostyk Street (6 floors). The cost of the facilities is approximately KZT2 billion (US$6 million). The duration of the concession is approximately 30 years, the construction will take 14 months and the operating period will last 28 years. A bid for the selection of concessionaires for these projects was announced by the capital's Office of Passenger Transport in March.

In 2019, it is also planned the commission of two bus stations in the capital, designed for 9,000 passengers a day, which will be located in the vicinity of Abylay Khan Avenue and Kobda Street, and along Tlendiyev Avenue and Beysekova Street. The concession term is 30 years, the construction will take about two years, the operational period will be 28 years. Bidding for the selection of concessionaires was announced on March 16, 2016. Opening of envelopes with bidding offers will be held on May 16.

In addition, three outpatient clinics in Ondiris, Koktal and Zheleznodorozhniy residential areas, as well as the Municipal Polyclinic 1 on Seyfullin Street, will be constructed and commissioned. The volume of investments is approximately KZT1 billion (US$3 million) for each facility. The concession period is 20 years, and the construction period is 9 to 12 months. The capitals Office of Healthcare is planning to make an announcement of the bidding this month.

Additionally, it is planned to develop and implement construction and operation of sports facilities in the city schools territories, two electrical substations and greenhouses in the framework of PPP. It is also planned to build five kindergartens, two of which are designed for 360 children, the rest are for 240 children. They will be primarily located on the left bank of the city. The volume of investments is expected in the amount of 1 billion tenge for each facility.

According to sources, Andrey Lukin, the Deputy Mayor of Astana, said:

"In recent years, a lot of work has been carried out to improve the investment attractiveness of PPP projects. Since the beginning of this year, the Government has instructed each region to implement at least five projects in the framework of PPP. The Mayors Office of the capital is open for both, domestic and foreign private sector representatives. Administration of the capital on its part intends to do everything possible for the successful cooperation and implementation of local projects under the PPP. In particular, we are planning to attract investment in infrastructure projects through PPP schemes, including social orientation"

According to sources, Aliya Bikeyeva, the Head of the PPP Development Office of Astana Innovations JSC, added:

" Financing of projects is suggested to be provided entirely at the expense of the concessionaires. It includes 10% from its own funds, 90% can be borrowed funds. The main income of the concessionaires will be provision of parking spaces for rent. In addition, the project provides recovery of investment costs of the concessionaires at the level of 100% of the cost of the concession facility construction. These recovery payments will be divided in phases within the duration of a certain time period."