In accordance with KPO's obligations under the Final Production Sharing Agreement (FPSA), $10 million per annum is committed to the development of social infrastructure projects within the Western Kazakhstan Oblast. In 2009, a Joint Operating Committee of the Karachaganak Project formed by the authorised body of the Republic of Kazakhstan and Karachaganak parent companies jointly took a decision to increase the annually allocated amount from US$10 to US$20 million starting from 2009. In 2008 and 2009, an additional $10 million was committed for each year specifically to Aksai development on a number of identified projects.
To date, the total amount of investment by KPO into local infrastructure development has exceeded US$244 million. Over the 40 year life of the FPSA, this is expected to exceed some $500 million. This funding is primarily utilised for health, education, culture and sporting facilities. A number of new schools and kindergartens have been constructed, as well as hospitals, roads and public utilities.
The Western Kazakhstan Oblast Akimat selects social and infrastructure projects in accordance with the needs of the region, and after approval by the Joint Operating Committee, which consists of senior representatives from five Parent companies and the RoK Authorities, a phase of project documentation design commences. Once the design is completed, the KPO Contracts and Procurement Department initiates a competitive tender process with subsequent contract award. Сontracts for all social infrastructure development projects are awarded to Kazakh companies.
The KPO Social Projects Department monitors the construction process to ensure that the contractors meet KPO quality requirements and health, safety and environment standards.
Once projects are completed and handed over to a State committee, the facilities are transferred to the State Communal Property Department for ongoing management.
KPO has been recognised on a number of occasions for its social contribution to the Oblast and the Republic of Kazakhstan. In 2006, KPO was awarded with the ‘Golden Prometheus' Award. In 2008 and 2009, the company was presented with the ‘Paryz' Award for social projects implementation. In 2010, the Golden Paryz Award for achievements in social development was presented to KPO by the President of the Republic of Kazakhstan, Nazarbayev N.A.