On Monday, August 21, at 15:00, the Government press center will host a briefing on the progress of implementing the first priority “Accelerated technological modernization of the economy” of the Presidential Address “Third Modernization of Kazakhstan: Global Competitiveness”.

The speakers are Minister of Investments and Development Zh. Kassymbek, Minister of Energy K. Bozumbayev, Minister of Information and Communication D. Abayev, First Deputy Minister of Foreign Affairs M. Tileuberdi.

Live broadcast of the press conference will be available at primeminister.kz and on social networks: Facebook, Vkontakte, Twitter, Periscope and Odnoklassniki, as well as in the mobile application on Android and iOS and on the official YouTube channel.

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Today Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev met with Minister of Foreign Affairs of Bolivia Fernando Huanacuni Mamani, who is in Astana on a working visit.

The meeting discussed bilateral trade and economic cooperation in the energy sector, culture, science and education. The sides expressed interest in creating and implementing joint investment projects in petrochemical, agricultural, transport industries, in developing environmentally clean technologies and in the renewable energy sector.

According to Fernando Huanacuni Mamani, Bolivia is prepared for developing partnership not only in the gas sector, but also in the field of rare-earth metals and nuclear industry.

Bakytzhan Sagintayev also expressed interest in deepening bilateral cooperation, and in turn thanked Fernando Huanacuni Mamani for supporting Kazakhstan in holding the international exhibition EXPO 2017.

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During today’s briefing at the Government press center, Deputy Minister of Investments and Development Roman Sklyar spoke about how the Nurly Zher housing construction program influenced costs for housing.

Thus, according to him, since the launch of the program, Kazakhstan is showing a significant decrease in the cost of housing in the construction market.

“In the regions, they are building housing at a price of up to 140 thousand tenge per m2, and in Astana, Almaty and the western regions of the country - up to 180 thousand tenge per m2,” – the Deputy Minister explained.

Lyazzat Ibragimova, Chairman of the Board of Zhilstroysberbank of Kazakhstan JSC, also spoke about the influence of the Nurly Zher program on the construction market.

“Since 2004, 44 to 59 thousand apartments were annually commissioned in the country. And only the last two years show a big breakthrough. In 2015, 79 thousand apartments were commissioned, in 2016 - 89 thousand, and in the 5 months of 2017 - 37 thousand new apartments,” – L. Ibragimova said.

She also stressed that as a result of inflation targeting and de-dollarization processes, the price of real estate was fixed in tenge and the market is not showing signs of its growth.

“We in Zhilstroysberbank in the five months of 2017 have financed 76% of the volume of issuance of mortgages and see that price increase is not observed both in the primary and secondary markets. I think this is a unique moment to use the tools provided within the program,” – she said.

In addition, she noted that higher class housing is equally in demand.

Another component of the Nurly Zher program is the Housing Guarantee Fund. This is a subsidiary of the Baiterek holding, created to guarantee the risks of completion of construction and to enable Kazakhstanis to participate in equity construction in a civilized way.

L. Ibragimova reported that September 1, 2017, will launch the implementation of the first project through this fund. That will be 100 apartments in the capital’s Millennium Park residential complex. Investors of Zhilstroysberbank will be able to buy housing at a price of 290 thousand tenge per square meter. A credit line without collateral will be opened specially for them.

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Concessional lending mechanisms for mortgage loans are currently being implemented under the Nurly Zher State Program. This was reported by Deputy Minister of Investments and Development Roman Sklyar during the briefing at the Government press center.

Roman Sklyar reported that in order to reduce the market rate for mortgage loans for the population, the state, through the Kazakhstan Mortgage Company, reimburses the mortgage expenses of STBs after a 30% down payment.

Taking into account the subsidies, the final rate for the consumer is 10%, while loans are subsidized for the purchase of housing in new buildings. In the cities of Astana and Almaty loans are issued in the amount of up to 20 million tenge, in the regions - up to 15 million tenge. In 11 regions of the republic, lending to the population at a preferential rate is already in progress.

To date, 10 banks are planning to begin implementing the program, and 3 are already actively implementing the mortgage, at present they are accepting applications from citizens to receive it.

Within the framework of the Nurly Zher program, it is also planned to build housing meant for mortgage for the investors of Zhilstroysberbank and those on Akimats' waiting lists. Citizens who have stable incomes will have the opportunity to purchase their own housing through the savings system. At the same time, a low threshold for the initial contribution and minimum interest rates for loans are provided. To date, 6140 apartments meant for mortgage have been built out of the planned 15 thousand.

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6.2 million square meters of housing have been commissioned this year within the framework of Nurly Zher. This was reported by Deputy Minister of Investments and Development Roman Sklyar during the briefing at the Government press center.

Roman Sklyar reported that since the beginning of the year, 6.2 million square meters of housing was commissioned via all sources of financing, which is 61% of the Nurly Zher program annual plan. Leading positions in housing construction are held by Astana (1680.2 thousand sq. M.), Almaty (981.6 thousand sq. M.), Mangystau (592.7 thousand sq. M.) and South Kazakhstan regions (348.9 thousand sq. M.). Commissioning of individual housing prevails in Mangystau, Kyzylorda, Atyrau and West Kazakhstan regions.

According to the results of 7 months, 445.2 billion tenge was directed to housing construction, of which 75.8 billion tenge is government investment. At the expense of public funds, 8829 apartments (541 300 square meters) were built. By the end of the year, it is planned to finish construction of 16 176 apartments (948 200 square meters).

Within the framework of the program, 25 billion tenge was allocated to Akimats this year and construction began of almost 6 thousand rental apartments, half of which is to be complete by the end of the year. Rental housing will be provided to the most socially vulnerable groups, which do not have the opportunity to purchase housing. Rent for 1 square meter, without the right to buy, will be around 100 tenge.

Another important direction of the Nurly Zher program is the support of individual housing construction. The state ensures that the infrastructure is brought to the land allocated to citizens for further construction. Annually 80 billion tenge is allocated for networking, of which up to 50% is planned to be used to bring engineering networks to the areas of individual housing development. On average, this will allow annually bringing networks to about 40 thousand land plots in the course of 15 years.

According to the results of the first half of the year, out of the planned 60 thousand land plots, 23 500 plots have already been provided with networks. A pilot project for the construction of individual houses in a single architectural style has been launched in 4 regional centers. The cost of such housing is 120 thousand tenge per square meter, due to the use of up to 90% of domestic building materials.

Within the pilot project, the right to buy out a finished house is granted to citizens who are on the waiting list for a land plot. This housing may be bought out by the person on the waiting list at the expense of their own funds or loans of the Zhilstroysberbank at 5% per annum.

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On Thursday, August 17, at 10:30, the Government press center will host a press conference on the progress of the implementation of the Nurly Zher Housing Construction Integrated Program for 2017-2031.

The speakers are Deputy Minister of Investments and Development Roman Sklyar and Chairman of the Board of Zhilstroysberbank of Kazakhstan JSC Lyazzat Ibragimova.

Live broadcast of the press conference will be available at primeMinister.kz and social networks: Facebook, Vkontakte, Twitter, Periscope and Odnoklassniki, as well as in the mobile application on Android and iOS and on the official YouTube channel.

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Today at Ukimet Uyi Prime Minister Bakytzhan Sagintayev held a meeting with representatives of SANY Group headed by its President, Yi Xiaogang.

The meeting discussed issues of cooperation in machine-building, as well as construction and the development of transport and logistics centers.

For reference:

SANY Group was founded in 1989 and is one of the first private engineering companies in China. The company’s main activities involve development, production and sale of construction and special equipment. It is the largest machine building company in China, and fifth largest in the world.

It occupies a leading position in the Chinese market in the following types of construction equipment: concrete mixers, machinery for ports, excavating machinery, large-capacity cranes, machinery for the coal industry, road machinery, machinery and equipment for pile work. The corporation has 6641 own registered patents.

The Group’s new activities involve wind and solar energy, oil equipment, construction, coal chemistry, banking and insurance services.

Its centers and production bases abroad are located in Germany, USA, Brazil and India.

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The implementation of integrated measures within the framework Agro-Industrial Complex Development State Program for 2017-2021 allowed increasing the level of processing and export of domestic agricultural products. This was reported by First Deputy Minister of Agriculture Kairat Aituganov during the briefing at the Government press center.

Kairat Aituganov reported that for the comprehensive development of agricultural processing, extensive analysis was carried out in 4 months and the database of processing enterprises was formed for the first time. It includes an assessment of the current state, capacity, year of commission, type of equipment, loading, volume and product range, as well as constraining problems.

For the development of 9 priority types of processing, calculations have been made and a Placement Plan for agro-processing enterprises has been developed, including for each region and district.

Regarding the issue of financing the Plan, several options were also considered to reduce the burden on the budget. Analysis showed that credit resources are needed, first of all, to replenish working capital; secondly, to modernize and construct new enterprises.

To solve this problem, it is proposed to subsidize the interest rate of loans from financial institutions in these areas. This approach was discussed with the Association of Financiers of Kazakhstan and banks. They expressed their readiness to work according to the proposed scheme.

At present, work on formalizing the Plan is being completed, after which its implementation will launch in all regions of the country. This will increase the gross production of processed products from 1.9 to 3 trillion tenge and create 7 thousand jobs.

At the same time, to solve the issue of increasing the export of food products, Food Contract Corporation JSC was transformed into an operator for selling all agricultural products in foreign markets. Now it is engaged not only in grain, but also in other types of agricultural products.

In the current year, 43.4 billion tenge is planned to be allocated to purchase 850 thousand tonnes of agricultural products. At the same time, oilseeds and mutton purchased for export will be pre-processed at domestic plants, thereby increasing their load.

As a result, agricultural products amounting to 880 million USD were exported in the first 5 months of this year and the growth amounted to 4%. The volume of export of processed products increased 7.6%.

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Within the framework of implementing the AIC Development State Program for 2017-2021, a number of effective measures were taken on increasing the quality of domestic grain. This was reported by First Deputy Minister of Agriculture Kairat Aituganov during the briefing at the Government press center.

Kairat Aituganov reported that due to unfavorable weather conditions and the development of diseases in grains in recent years, there has been a decline in grain quality. Also, due to the abolition in 2014 of subsidizing elite seeds and setting minimum standards for their subsidization, farmers have ceased to acquire quality seeds, since the subsidies paid at minimal rates did not cover their expenses.

To remedy this situation, a number of systemic measures were adopted this year, namely: subsidies for original and elite seeds were restored, minimum standards for seed subsidies were eliminated, seed industry financing was increased twofold - from 3.7 billion to 7.2 billion tenge in the framework of the same budget through a review of priorities.

As a result, in 2017 sowing of quality seeds increased 1.5 times. The use of elite seeds has grown 68%, and the use of low-quality seeds has decreased 1.6 times.

In turn, the analysis of the material and technical base of seed farms revealed the need to update 370 units of seed-growing equipment. In order to radically improve the situation in the investment subsidy program, an increase in the cost recovery standard for seed-growing equipment to 50% is envisaged from 2018, currently it is 25%. This will allow a full renewal of seed-growing equipment in the next three years.

Also, the First Deputy Minister dwelled on the issue of fertilizer application. The former fertilizer subsidy mechanisms did not stimulate their use in the required amount. And as a consequence, application did not exceed an average of 10% of the demand. In this connection, since 2017, a new fertilizer subsidy scheme has been introduced, setting specific standards in absolute terms.

To date, 309 thousand tonnes of fertilizers were purchased, which is more than the volume of 2016, which was 261 thousand tonnes. At the end of the year, fertilizer application for the first time in the last few years will amount to 14% of the demand.

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Implementation of the new AIC Development State Program for 2017-2021 in Kazakhstan created the necessary conditions for establishing agricultural cooperatives and further developing agriculture in general. This was reported by First Deputy Minister of Agriculture Kairat Aituganov during the briefing at the Government press center.

Kairat Aituganov reported that a number of measures have been taken in order to fulfill instructions of the Head of State on establishing the agricultural sector as a new driver of the economy within the framework of the AIC Development State Program.

Thus, all 65 types of subsidies were revised, 11 inefficient ones were eliminated, and criteria were changed for 40. As a result, the annual savings will amount to 25 billion tenge, and the changed criteria will increase production by an average of 29% without increasing the budget.

The criteria applied in the previous scheme of investment subsidies did not allow small and medium-sized farmers to participate in the program. These "distortions" have been eliminated, this year the coverage of small and medium-sized producers has increased twice.

Along with subsidies, the credit policy of NMH KazAgro has also been revised. For the first time loans for spring-field work were provided to final borrowers at 6% per annum. For comparison, in previous years, the interest rate was 9-10%. At the same time, lending started a month earlier. Microcredits through the "Fund for Financial Support" are also provided at 6%, whereas earlier this indicator reached 14%.

In addition, since last year, comprehensive measures have been implemented to involve small and medium-sized farms in agricultural cooperation. Since the beginning of the year, as of August 1, 517 cooperatives have been established covering more than 53 500 personal subsidiary, small, medium-sized farms and family feedlots.

Self-employed and unemployed citizens created 10 286 privately owned feedlots for 110 572 heads of cattle. Seminars on the basics of cooperation were held in all 160 rural districts.

A scheme has been introduced for the purchase of modular milk receiving and slaughtering stations without collateral and an initial contribution for agricultural cooperatives, and a mechanism for guaranteeing loans is provided for cooperative members. As a result of these measures, 36 thousand tonnes of milk and 10 thousand tonnes of meat were stored.

In addition, crop areas are being diversified. Areas for demanded crops are increased by 905.5 thousand hectares. Diversification carried out this year will allow increasing production of mixed fodders 1.2 times, oilseeds - 1.3 times, domestic sugar - 1.4 times.

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