Frequently Asked Questions

In practice of public procurement with a view to simplify procurement and support entrepreneurs during the quarantine the following rule is applied: in case of equal tender proposal, preference shall be given to local companies. Does WKO company have such privileges in KPO procurement?

KPO complies with the state request regarding the support of Kazakhstan producers, namely a) show a preference for Kazakhstan producers and b) use single source procurement if applicable (without tendering). The use of territorial priorities is unconditional and is not applied in KPO practice.

Has the Contract Strategy of KPO changed after crisis? If so, how?

KPO complies with the state request regarding the support of Kazakhstan producers, namely a) show a preference for Kazakhstan producers and b) use single source procurement if applicable (without tendering).

Did the crisis affect the choice of foreign and Kazakh companies? Will foreign companies be replaced by Kazakhstani?

Everywhere where there is sufficient number of Kazakh tenderers, KPO invites only Kazakh companies.

Is it possible for a supplier/producer to form a consortium with an international company to participate in a long-term contract with the purpose of localization and bringing the technologies in-country?

Absolutely ‘’Yes’’ KPO encourages this. It is a good way of combining international know-how and technology with local investment and involvement of local suppliers/producers for more complex activities.

Is there target percentage of LC in the supplied goods? Min/Max LC for the tender?

There is no mandatory % LC target set up in KPO, % is dependant on categories of goods, services, works KPO buys and can vary from 0% to 100%.

Is KPO planning to introduce the principle from a single source (procurement from a single source) for local equipment manufacturers?

KPO TP already has this mechanism. Recent revisions of TP make this mechanism easier to deploy by KPO team.

According to tender procedures, does it mean that KZ companies can be awarded a contract even if they provided not the lowest price in tender compared to international tenderer, in case all are technically acceptable?

Yes, Conditional Bid Reduction can be applied provided key conditions are met. The list of Priority Goods admitted for application of Conditional Bid Reduction will be published in KPO site.

Is a conditional discount granted only for goods (e.g. transformers) or for all line of products (e.g. electrical equipment)?

The conditional discount is granted for particular Goods within the Bid which shall be proved to be of Local Origin.

How % of Local Content will impact on % of a conditional discount? How many percent of LC shall be in GOODS in order to get CONDITIONAL DISCOUNT of 10%?

The availability of a certificate (CT-KZ) for Kazakhstan goods provides a 5% discount. The amount of a discount up to 10% shall be calculated depending on LC level. The discount shall be applied provided that both Kazakhstan and foreign producers participate in tender for making chances equal in evaluating quotations. If only Kazakhstan Producers participate no Conditional Bid Reduction is applied and Tenderers are treated equally.

Will a conditional discount be applied in case of procurement carried out not directly with KPO but through an EPC-Company (General Contractor)? What is required for using this instrument with respect to General Contractor?

Changes in the procedure (conditional discount) shall not apply to goods and services procured through EPC-Companies, only for KPO direct procurement. For EPC-Companies KPO proposes a list of goods to be procured from Kazakhstan producers and a list of local companies. The procurement process is controlled by EPC-Companies, not by KPO.

I manufacture (or plan to manufacture) goods in Kazakhstan, where should I submit my proposal for a Trial Order/Long Term Contract for investment, etc.?

Generally, KPO will notify the market (in particular registered vendors) when it is ready to place a trial order or an early tender with localization factor. However, suppliers can make sure that KPO includes them in the contact list by registering as a vendor in KPO vendor database, clearly highlighting the capabilities to produce locally

Supplies should also check KPO's Internet site and review the annual and mid-term term procurement plans published there. If the supplier/producer has access to new technology which it believes would assist KPO, please do get in touch and send e-mail to (LCD@kpo.kz) and MIVQ@kpo.kz if you are not registered with KPO vendor database

If a producer fails a trial order, will it get another chance?

The purpose of trial orders is to make sure the relevant goods meet KPO technical specifications and KPO wants the trial order to be ultimately successful. So if the reason for failure can be overcome, yes it will be in everybody’s interests to remedy the fault and hold another test.

How are you defining Kazakhstani companies, and does this apply to services as well?

Please see attached list of definitions

list of definitions.pdf

We have a contract with KPO for 4 years; the contract is due to expire next year. In the presentation KPO mentioned the possibility of a long-term contract for 10 years. Is it possible to extend our current contract?

The extension of the contract depends on a specific case – KPO need for such goods, fulfillment of contractual obligations relating to LC by contractor, availability of competition in the local market, readiness of the producer to increase % of LC etc. The purpose of contract delivery is to increase the % of LC compared to the achieved.

During the tender, does KPO require non-foreign companies to establish a joint venture?

For some tenders this requirement is mandatory, for some not.

How can we get information about KPO’s Local Content Development Program? Roadmaps for local manufacturing development?

You can address your request to KPO Local Content Department via e-mail LCD@kpo.kz.

How to justify the LC level for the goods that have not earlier been produced and absence of a certificate for submitting commercial offer and mastering the production?

In such cases a trial order or early tender system or delay in a certificate provision may be applied.

We are planning to create a JV with foreign company. How can we present it to KPO?

Please send your proposal to KPO Local Content Department via e-mail LCD@kpo.kz and MIVQ@kpo.kz.

We are a new company, in the process of receiving a building license of the 1st category and creation a consortium with a large foreign company (based on a memorandum) operating in Kazakhstan. Will the consortium be accepted by KPO?

Please send your proposal to KPO Local Content Department via e-mail LCD@kpo.kz.

We would like to do the blending and localization of chemicals. Will KPO support?

Please send your proposal to KPO Local Content Department via e-mail LCD@kpo.kz.

We want to do localization of consumables for the oil and gas industry. We are looking for a foreign partner. Is it important for KPO that our foreign partner already worked globally with Shell and ENI or will it be possible with a foreign manufacturer who has not worked globally with Shell and ENI?

No, it is not important for KPO for foreign partner to have previous experience working globally with Shell and ENI.

Digitalization Contract Strategy? Could you tell? We are in the process of creating a joint venture with an Australian company that is strong in creating digital doubles and digital maintenance solutions, will it be possible to conduct an online presentation for KPO of the relevant departments (Project delivery managers, engineering managers, integrity and operational directors)?

Please send your proposal to KPO Local Content Department via e-mail LCD@kpo.kz.

We are producers of Casings and tubings. We can provide 100% local content with Premium connections. Do we have any chance to have contract with KPO?

Please send your proposal to KPO Local Content Department via e-mail LCD@kpo.kz and MIVQ@kpo.kz.

Who is KPO Director of Local Content?

For any Localization proposals please send e-mail with detailed info to LCD@kpo.kz

Could you please tell about the Status of the Kazakhstani company – does LLP companies, but with foreign participation, have admission to Tenders?

JV’s or LLPs with foreign participation are allowed to tender.

For KPO the defined term of Kazakhstan Supplier is the citizens of the Republic of Kazakhstan and/or legal entities set up in compliance with legislation of the Republic of Kazakhstan where a minimum of ninety five percent of their overall headcount are Republic of Kazakhstan citizens;