Why These Rules Are Different

Kazakhstan’s nuclear procurement does not follow the standard state procurement law that governs most public sector purchasing in the country. It operates under a purpose-built regime enacted specifically for the complexity and sensitivity of nuclear construction.

Readers of our September 2026 alert will recall that this was always the plan. The intergovernmental agreement signed by Russia and Kazakhstan on 28 May 2026, which governs the entire Balkhash NPP project, explicitly committed Kazakhstan to establishing a dedicated procurement procedure for its nuclear operator outside the standard procurement rules. The Rules are the fulfilment of that commitment.

Kazakhstan Nuclear Power Plants LLP (KNPP) is the National Operator and the Rules cover KNPP and every company in which KNPP directly or indirectly holds more than 50% of voting shares. Any project company or subsidiary created for the Balkhash NPP or any future nuclear plant falls within scope. Everything connected to nuclear project design, construction, commissioning and operation falls under the Rules.

The Rules were reviewed and agreed by six government bodies before being signed: the Competition Protection Agency, the Ministry of Finance, the Ministry of Industry and Construction, the Ministry of National Economy, the Financial Market Regulatory Agency and the Ministry of Artificial Intelligence and Digital Development. This is not a technical instrument. It is a deliberate policy framework for a national programme.

1. The Registry: The Only Way In

The single most important thing to understand about the Rules is straightforward. You cannot participate in any NPP project procurement unless you are on the Registry.

The Rules require that all procurement for NPP project implementation including pre-project work, design, surveys, construction, installation, turnkey works and technical supervision must be conducted exclusively among suppliers registered in the Registry of Suppliers of Goods, Works and Services for NPP Projects. A supplier who is not registered cannot submit a bid regardless of their experience or financial standing.

The Registry qualification criteria and application process will be set out in separate rules on its formation to be approved by the Nuclear Energy Agency. Those rules have not yet been published. The practical step for any prospective participant right now is to monitor when those rules appear and begin the process immediately. The Registry is the entry point to the entire nuclear procurement market in Kazakhstan and early engagement will matter.

2. Who Gets Excluded and for How Long

The Rules set out clear grounds for exclusion from NPP procurement. A supplier is barred if it or its subcontractors or consortium members appear on any of four lists: the new NPP-specific blacklist created by the Rules themselves; the general state procurement blacklist; the Samruk-Kazyna unreliable suppliers list; or the court-confirmed bankruptcy register. Suppliers connected with terrorism financing or registered in tax haven jurisdictions are also excluded.

The NPP blacklist is new and specific to this sector. The Rules place a supplier on it for 24 months in four situations: providing false information during procurement; refusing to sign a contract after winning a tender; failing to post contract performance security on time; and a court judgment establishing non-performance of a procurement contract.

Twenty-four months is a significant penalty on a programme of this duration. Being blacklisted at any critical phase of the Balkhash project could close a supplier out of the market entirely for that phase. The Rules also include a reconciliation commission process through which a supplier can apply for early removal from the blacklist. That mechanism will matter in practice.

3. How KNPP Chooses Suppliers

The Rules give KNPP three ways to select a supplier: a price quotation request where suppliers compete on price; a tender in one of four forms being open, two-stage open, closed or two-stage closed; and single-source direct selection. KNPP chooses the method itself with no requirement to justify the choice externally.

The closed tender route is available for procurement involving state secrets or other legally protected confidential information. Given the sensitivity of nuclear technology and the intellectual property framework in the IGA this option will be relevant for a number of technically specialised categories. The Rules require KNPP to first obtain a signed non-disclosure agreement from any supplier before providing tender documentation for a closed tender. A supplier who refuses to sign does not receive the documentation.

4. Single-Source Selection: Broader Than You Might Expect

The single-source route in the Rules is not a narrow emergency procedure. It covers 17 specific grounds and is a substantive procurement option directly relevant to the Balkhash project.

The two most important grounds for nuclear project participants are these. First, direct single-source selection is permitted for the supply of technological equipment, construction and installation works and engineering, scientific and consulting services directly connected with the design, construction and commissioning of nuclear energy facilities. Second, it is permitted for procurement in execution of ratified international treaties including intergovernmental agreements. The Russia-Kazakhstan IGA of 28 May 2026 falls squarely within this second ground.

Both of these grounds require a prior decision of the Nuclear Energy Agency. For the other 11 grounds KNPP’s own executive body decides without any external approval.
One additional requirement applies to any single-source procurement from a supplier whose founders are registered in a tax haven jurisdiction. Such a procurement requires prior compliance sign-off from KNPP’s own compliance function. The supplier must disclose all founders with more than 10% ownership and all beneficial owners with more than 25%.

5. One Qualifying Bid Is Enough

The Rules provide that a tender or price quotation process is valid even if only one qualifying bid is received. In that case the contract is concluded on the terms the single qualifying bidder proposed subject to the procurement budget.

For suppliers in specialised nuclear equipment categories where genuine competition is limited this removes a structural barrier. A sole qualifying bidder wins without needing to outcompete anyone.

The counterpart risk is equally important. A non-compliant bid in a single-bidder situation does not result in a re-run. The procurement fails and must restart. Getting the submission right the first time is not just best practice. It is essential.

6. Non-Resident Suppliers Pay More Bid Security

The Rules set bid security for tenders at up to 1% of lot value for resident suppliers. For non-resident suppliers the figure is 5%, specifically described as a financial standing confirmation requirement. On a large nuclear project lot this is a meaningful cash or guarantee commitment. Foreign participants should factor this into their bid preparation budgeting from the outset.

For contracts concluded under ratified international treaties the Rules provide an important carve-out: a parent company guarantee in a form agreed with KNPP is accepted as both performance security and advance payment security. For Rosatom-linked entities and other large international groups this is the practical route to providing security without drawing on local credit facilities.

7. Kazakhstani Producers Get Priority and Favourable Payment Terms

Where Kazakhstani goods producers exist in a relevant category the Rules require KNPP to give them priority in tenders and price quotation processes. This is a legal obligation not a target. If a procurement round conducted with Kazakhstani priority fails the repeat process can proceed without it.

The Rules go further and build in commercially favourable terms for Kazakhstani producers. Contracts with Kazakhstani producers must include 30% prepayment within 10 calendar days of signing. Final payment must follow within 5 working days of delivery. Total penalties for late delivery are capped at 10% of contract value. These are not negotiable positions. They are mandatory contract terms that KNPP cannot depart from.

For international participants structuring their supply chains this matters. A Kazakhstani sub-supplier or joint venture partner brings both the localisation benefit and a payment structure that is more favourable than typical international practice.

8. Delivery Timelines for Complex Equipment

The Rules require KNPP to allow Kazakhstani producers at least 60 calendar days for standard goods delivery. For complex, non-standard or safety-critical items that require custom design documentation or have long production cycles the minimum is 120 calendar days.

The 120-day minimum is directly relevant to nuclear equipment categories. For procurement planning purposes KNPP will need to begin procurement processes well in advance of when equipment is needed on site. Suppliers should not accept contract terms that compress this timeline below the statutory floor.

9. Long-Term Contracts Can Run for the Life of the Project

The Rules allow procurement contracts to be concluded for up to 10 years. For NPP project procurement there is no 10-year limit at all. The contract term is bounded only by the project duration itself.

This is a critical provision. The Balkhash NPP will take approximately a decade to build and will then operate for 60 years. Long-term supply agreements for fuel, equipment maintenance, spare parts and specialist services can be structured to run for the operational life of the plant without the normal ceiling applying.

Contract amendments under the Rules are also flexible. Price increases and decreases of up to 50% of original volume are permitted. For manufacturers whose raw material costs increase by more than 10% between signing and delivery a price adjustment mechanism is available up to twice per year. Legislative changes including tax law changes are a permitted basis for contract price adjustment.

The Bigger Picture

The Rules are not written for one project. They cover KNPP and all its subsidiaries across all nuclear projects. Kazakhstan’s Nuclear Industry Development Strategy to 2050 approved in April 2026 targets at least three nuclear power plants in operation by 2050 with a fourth under consideration. The first plant, Balkhash, is already under construction with the EPC contract signed in September 2026. A second plant called Moiynkum has been approved for the Zhambyl district. A third was proposed to be named “Bolashaq” meaning Future at a national youth forum in September 2026.

On 22 October 2026 President Tokayev met the head of the Nuclear Energy Agency and instructed that nuclear energy development be kept under special presidential control. The regulatory architecture now being built, of which the Rules are the procurement layer, is the infrastructure for an industry that will operate for the next half century.

Suppliers who understand the Rules now, engage with the Registry qualification process early and build familiarity with KNPP’s procurement function are not positioning themselves for one contract. They are positioning themselves for a programme of work that will continue long after Balkhash is commissioned.

How Unicase Can Help
Unicase has tracked the development of Kazakhstan’s nuclear procurement framework since its inception and has advised on the legal architecture within which the Rules sit including the IGA framework, the Nuclear Energy Law and the broader regulatory environment for nuclear project participants. We advise suppliers, contractors and foreign participants on Registry qualification, procurement compliance, contract structuring and the interaction between the Rules and the IGA’s own procurement provisions.

This client alert is prepared by Unicase Law Firm for general informational purposes only. It does not constitute legal advice and should not be relied upon as such. The contents reflect the state of the law and publicly available regulatory information as at October 2026. Specific legal advice should be sought before taking any action based on the matters discussed herein. Unicase Law Firm accepts no liability for any loss arising from reliance on this publication. © 2026 Unicase Law Firm. All rights reserved.