Year of assessment | 2018-2019 |
Date of publication | April 2023 |
Country procurement volume | 19.55 billion USD (2017) |
Principal organisation | The Ministry of Finance |
Main partners | The World Bank (WB), OECD, European Bank for Reconstruction and Development (EBRD), Islamic Development Bank (IsDB), Asian Development Bank (ADB) |
Kazakhstan
Recognizing the central role that public procurement plays in public service delivery, financial management, and sustainable development, this MAPS MAIN assessment for Kazakhstan resulted in recommendations targeting the harmonization of procurement regulations, strengthening institutional capacity and coordination, enhancing procurement planning and monitoring, improving market access for suppliers, increasing transparency through e-procurement, and reinforcing accountability and integrity measures in procurement processes.

Quick facts
Background
Why was a MAPS assessment initiated?
The Government of Kazakhstan (GoK) requested the assessment to evaluate both its general public procurement system and the procurement system of the Sovereign Wealth Fund Samruk-Kazyna. The goal was to assess the efficiency, effectiveness, and regulatory framework of these systems.
Who initiated the assessment?
The assessment was initiated by the Government of Kazakhstan (GoK) in collaboration with international partners, including the World Bank, OECD, EBRD, IsDB, and ADB.
Brief description of the country procurement system
Kazakhstan's public procurement system is dual:
- The general public administration procurement system is highly decentralized, with around 23,200 procuring entities, and governed by the 2015 Public Procurement Law (PPL).
- The Samruk-Kazyna procurement system, which handles the majority of public procurement spending, operates under a different regulatory framework.
The system has been modernized with a full-fledged electronic Procurement Web Portal since 2016.
Anything else that merits mention?
Kazakhstan has undergone a significant digital transformation in procurement, moving from a manual system to an e-Procurement system launched in 2016 by the Ministry of Finance.
Were there any disruptions?
No specific disruptions were mentioned in the paragraph. However, the assessment noted some uncertainty regarding the structure and centralization of Samruk-Kazyna's procurement system.
Main results and impact
Fragmentation in the Legal and Regulatory Framework
- Issue: Public procurement regulations are fragmented across multiple legal instruments, leading to inconsistencies in implementation.
- Recommendations:
- Harmonize procurement regulations to ensure consistency across different levels of government.
- Clarify procurement rules, particularly regarding exceptions and special procurement procedures.
Lack of a Sustainable Public Procurement (SPP) Policy
- Issue: There is no standalone policy promoting sustainable public procurement, and sustainability criteria are not systematically applied.
- Recommendations:
- Introduce a comprehensive SPP policy, initially incorporating life-cycle costing principles.
- Integrate environmental, social, and governance (ESG) considerations into procurement processes.
Unclear Legal Provisions for Contract Management
- Issue: The legal framework lacks clarity on the organization of contract management responsibilities.
- Recommendations:
- Define contract management roles and responsibilities in the legal framework.
- Establish regulatory requirements for measuring contract implementation performance.
Absence of a Government Strategy for Procurement Capacity Development
- Issue: There is no overarching strategy to develop procurement capacity and professionalize the procurement workforce.
- Recommendations:
- Conduct a skills gap assessment and develop a structured procurement training program.
- Establish certification and accreditation requirements for procurement professionals.
Lack of Performance Monitoring and Evaluation System
- Issue: The procurement system lacks a performance measurement framework, making it difficult to assess procurement efficiency and effectiveness.
- Recommendations:
- Develop Key Performance Indicators (KPIs) to evaluate procurement system performance.
- Utilize data analytics to monitor procurement trends and improve decision-making.
Weak Coordination Between Procurement Oversight Bodies
- Issue: The roles of different procurement regulatory and oversight bodies are not well-coordinated, leading to inefficiencies.
- Recommendations:
- Clarify institutional mandates to avoid duplication of functions.
- Strengthen inter-agency cooperation to improve procurement governance.
Limited Strategic Planning in Procurement
- Issue: There is no structured, strategic approach to procurement planning, affecting market engagement and value for money.
- Recommendations:
- Introduce systematic market analysis to guide procurement strategies.
- Reduce the extensive use of single-source procurement by strengthening competitive procurement methods.
Barriers to Competition in Public Procurement
- Issue: The procurement system limits competition, particularly for foreign suppliers, due to registration fees and administrative barriers.
- Recommendations:
- Remove unnecessary administrative burdens on suppliers.
- Increase access to procurement opportunities for foreign and SME suppliers.
Limited Use of Value-for-Money Criteria in Bid Evaluations
- Issue: Procurement decisions are often based on lowest price rather than overall value-for-money principles.
- Recommendations:
- Introduce methodologies that integrate price and non-price factors in bid evaluations.
- Train procurement officials on value-for-money assessments and risk management.
Limited Public Access to Procurement Information
- Issue: While e-procurement has improved transparency, certain procurement data remains inaccessible to the public.
- Recommendations:
- Expand open-access procurement data platforms to enhance transparency.
- Require mandatory publication of procurement decisions and contract performance data.
Weak Civil Society Engagement in Procurement Oversight
- Issue: Civil society organizations (CSOs) have limited participation in monitoring procurement processes.
- Recommendations:
- Establish mechanisms for civil society involvement in procurement monitoring.
- Provide training and resources to CSOs to strengthen their oversight capacity.
Need for Stronger Anti-Corruption Measures in Procurement
- Issue: Existing anti-corruption frameworks lack clear enforcement mechanisms for procurement-related fraud and misconduct.
- Recommendations:
- Strengthen enforcement of sanctions for fraudulent procurement practices.
- Improve whistleblower protections to encourage reporting of procurement irregularities.