The Bank strives to ensure the transparency, openness, and efficiency of procurement procedures, which are carried out in accordance with the Law of the Republic of Kazakhstan "On Procurements of Certain Entities of the Quasi-Public Sector" dated June 8, 2021, and the Rules for Procurements by Certain Entities of the Quasi-Public Sector, Excluding the National Welfare Fund and Organizations of the National Welfare Fund, approved by the Ministry of Finance of the Republic of Kazakhstan No. 1253 dated November 30, 2021.

In the process of organizing and conducting procurements, the Bank actively uses modern information systems that provide automation of procurement procedures, including when conducting procurements by way of tender, auction, request for price proposals, single-source procurement, and through an electronic store. The use of digital tools contributes to increasing efficiency, reducing administrative risks, and ensuring equal access for procurement participants.

The procurement strategy centers on nine distinct core pillars:

1)      Optimal and cost-effective capital allocation.

2)      End-to-end transparency while respecting supplier trade secrets prior to final tender decisions.

3)      Fair market competition and proactive prevention of collusion among vendors.

4)      Total accountability for all participating parties.

5)      Absolute zero-tolerance for corruption.

6)      Support for domestic manufacturers and service providers (within frameworks ratified by international treaties of the Republic of Kazakhstan).

7)      Sourcing of advanced, high-tech, and innovative market options.

8)      Equal participation opportunities for prospective vendors unless explicitly modified by national law.

9)      Protection of intellectual property rights embedded within acquired products

The Bank carries out procurement of goods and services from a large number of enterprises with state participation. Such purchases individually constitute insignificant amounts and are usually carried out on a commercial basis. Selection criteria in accordance with the legislation of the Republic of Kazakhstan are applied to potential suppliers of goods, works, and services.

The key metrics of procurement activities are presented in the table below:

In addition, the Bank discloses performance indicators for the Procurement Plan and the Long-Term Procurement Plan, calculated using information on the local content of goods, works and services confirmed by supplier reports and reflecting actual payments made. As such reports may be submitted in subsequent reporting periods, the calculation may include information relating to contracts concluded both during the reporting year and in prior years. Due to differences in the calculation methodologies applied, the indicators presented in this table are not directly comparable with those disclosed above

Further detailed procurement information, including the breakdown by goods, works and services, as well as local content indicators, is presented in the ESG Databook available on the Bank’s official website at hcsbk.kz under “Sustainable Development / ESG Reporting.”