KZTO 819,00 (-0,10%)
Shares of KazTransOil JSC (KASE) 819,00 (-0,10%)

Procurement system and local content

An efficiently functioning procurement system plays an important role in the sustainable development of «KazTransOil» JSC business. The Company is aware of the importance of timely provision of all separate business units with high-quality goods, works and services (GWS) to implement daily operations and strategic objectives. The corporate procurement system is based on the principles of transparency, competitiveness, optimal spending of funds, and the acquisition of high-quality GWS. Moreover, in order to increase the process transparency, a mechanism for standardizing procurement contracts is used.
Procurement activities of «KazTransOil» JSC carried out on the e-procurement portal (Information e-purchasing system 2.0). This portal provides for a full cycle of procurement activities namely planning the needs of GWS, procurement, conclusion of contracts and their execution. The holder of this procurement portal is «Samruk-Kazyna Contract» LLP - the authorized body of «Samruk-Kazyna» JSC. All registered legal entities and individual entrepreneurs can participate in the procurement of «KazTransOil» JSC and in the procurement of other controlled companies of «Samruk-Kazyna» JSC. Registration on the e-procurement portal is available for both residents and non-residents.
When selecting suppliers, «KazTransOil» JSC is guided by the Procedure for Procurement by the «Samruk-Kazyna» JSC and legal entities with fifty or more percent of voting shares (participatory interests) directly or indirectly owned by «Samruk-Kazyna» JSC on the right of ownership or trust management approved by Resolution of the Board of Directors of «Samruk-Kazyna» JSC (Minutes dated March 3, 2022 No. 193).
Procurement management of all Company's BUs carried out by the Contracts and Local Content Development Department.

In accordance with Article 73 of the Procurement Procedure, certain GWS may be subject to a special procurement procedure - out of e-procurement portal. Information on planned purchases carried out using a special procedure is reflected in Annex 1.
Local Content Development (in-country values)
Local content is an indicator of the technological industrial and innovative development level of Kazakhstan, which is a share in value terms of Kazakhstani goods, works and services used to implement activities by enterprises in the territory of the Republic of Kazakhstan.

As part of the unified state policy implementation to support domestic producers, «KazTransOil» JSC continues to ensure the maintenance of local content share in the total scope of its purchases.
Annually, when planning purchases, special registers are monitored, according to which special attention is focused on the priority of purchases, in order to increase the indicator of local content in goods.
Moreover, producers are provided with preferences, such as announcements of purchases only with priority among the fund's producers, an advance payment of 30% of the contract amount, the purchase of goods as part of the implementation of the New Production Project, by concluding an off-take contract.
In 2023, the total share of local content in the procurement of GWS of «KazTransOil» JSC amounted to 72%, including 56% for goods, 75% for works and services.

Purchases carried out without using the procurement web portal (using a special procedure) (Download | View in new window)
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