FIC Working Groups: Goals, results, plans On the eve of the 25th plenary session of the Foreign Investors’ Council we asked Co-Chairs of the FIC working groups from foreign side to answer questions of our regular blitz-poll.
FIC Working Groups: Goals, results, plans
On the eve of the 25th plenary session of the Foreign Investors’ Council we asked Co-Chairs of the FIC working groups from foreign side to answer questions of our regular blitz-poll.
Murat Munbayev, Co-Сhair of the FIC Joint Operations Working Group, General Manager, Strategic Planning and Analysis, Tengizchevroil
Olga Lonovenko, Deputy Co-Chair of the FIC Operations Working Group from the foreign side, Ethics and Compliance Senior Adviser, Shell Kazakhstan Development B.V.
1. The objectives of the Joint Operations Working Group of the Foreign Investors’ Council in 2011 included improvement of Kazakhstan’s investment climate and the legislative framework, particularly in the spheres of labour, antimonopoly and renewable energy sources legislation, foreign labour regulations, natural monopoly regulations as well as promotion of power industry development, along with the human capital development and the enhancement of the environmental protection effectiveness both locally and on global level.
To achieve these objectives the Joint Operations Group defined the following targets for itself: to share its experience and knowledge at forums, conferences and roundtables, develop proposals on changes and supplements to the corresponding laws and to take part in the working groups established by the ministries, Majilis and the Senate of the Parliament of RK for discussion of such changes and supplements to the Labour Code, Foreign Labour Regulations and the Ecology Code as well as in the legislative acts on power industry, natural monopolies and regulated market.
2. In general the Joint Operations Working Group was able to deliver on its targets in 2011. The following six Working Sub-Groups were established: subgroup on education and human capital, subgroup on foreign labour work permits, subgroup on the Labour Code, subgroup on local content development, subgroup on power industry issues and subgroup on sustainable development and environment protection.
The members of the first Working Subgroup took part in the II International Conference «Human Capital Development in RK. Challenges and Resolutions» and in the Forum “Vocational Training and Business: Dialogue of Partners”.
The second Working Subgroup’s members participated in the Ministry of Labour Working Group on the development of the new Work Permit Rules, which were endorsed in January 2012.
The third Working Subgroup members participated in the working groups established by the Ministry of Labour, Majilis and the Senate of the Parliament of RK on the Labour Code discussions. The amendments to the Labor Code were adopted in January 2012.
The fourth Working Subgroup participated in the discussion of the local content development programme with the Ministry of Industry and New Technologies and with other business associations, and submitted its comments on the draft procurement Rules to the Government of RK.
The fifth Subgroup participated in the discussion of the draft amendments to the energy concerning laws as well as investment activities, natural monopolies and regulated market arranged by the Ministry of Industry and New Technologies, Majilis and the Senate of the Parliament. In April 2012, state authorities and the investors had constructive dialogue and discussed the electrical grid industry development during the Power Generating Industry Modernisation Roundtable organised by the Subgroup.
The fifth Subgroup was involved in the discussion of the environment protection regulations amendments, permitting system improvement and on the issues of internal carbon credit trading (Green House Gas emissions) within the Working Group established by the Ministry of Environment Protection.
3. The Working Subgroups established in 2011 will continue their activities in 2012 as the issues under their discussion continue to be relevant in 2012 both for the Government and foreign investors. The Human Capital Development Subgroup intends to consider issues of qualified manpower shortage, training and re-training of Kazakhstani technical specialists in the oil and gas and mining industries, as well as contribute to the labour market analysis and to the development of the National Qualifications Framework. It is also planned to participate in the Human Capital Development Conference and in the Vocational Training and Business: Partners Dialogue Forum.
Labour Issues Subgroup intends to continue its work with the Government on the improvement of the Labour Code and Foreign Labour Engagement Rules.
Local Content Development Subgroup plans to continue discussions with the Government on the enhancement of the Procurement Rules that would allow growth in local content consumption by businesses across the country. We will continue to determine foreign investors interested in establishing joint ventures in RK and consider optimization of tender and prequalification procedures in order to assist Kazakhstani manufacturers.
Subgroup on Power industry issues intends to continue developing recommendations on antimonopoly laws improvement, on legislation in the field of regulation of natural monopolies and regulated market as well as developing proposals on creating economic mechanisms to stimulate energy efficiency. Joint work on the improvement of the investment climate in the Power industry of RK will be continued in conjunction with the state authorities.
Environment Protection Subgroup plans to participate in the development of the environment legislation of RK and on creating internal market for carbon credits. It is also considering to support Kazakhstan’s initiatives under the UN International Summit on Sustainable Development “Rio+20” in Brazil.