Today’s Government meeting chaired by Prime Minister Bakytzhan Sagintayev has reviewed the progress of the privatization of state owned facilities for the current year. Minister of Finance Bakhyt Sultanov reported that in total, the Comprehensive Privatization Plan for 2016-2020 includes 877 facilities. As of October 1, 411 facilities have been put up for auction, of which 291 were sold for a total of 112.7 billion tenge.

The sold facilities include: 23 nationally owned facilities for the amount of 8.3 billion tenge, 162 facilities under communal ownership for the amount of 33.1 billion tenge, and 106 quasi-state sector facilities for the amount of 71.3 billion tenge. In addition, 211 facilities are in the process of reorganization and liquidation.

Thus, the implementation of the Comprehensive Privatization Plan, taking into account the reorganized and liquidated facilities as of the current date, is at 74.3%.

In total, in 2017, it is planned to sell 473 facilities, of which 251 facilities have been put up for auction, 112 facilities have been sold for the amount of 55.6 billion tenge. 155 facilities are being reorganized and liquidated. Thus, 107 facilities remain to be sold off before the end of the year.

The analysis of the effectiveness of sales shows that with a balance value of 96 billion tenge, the sale of 291 facilities amounted to 112.7 billion tenge.

Regarding the sale of top facilities in 2017, 24 facilities were to be sold off, including 20 national holding facilities and four nationally owned facilities.

Of these, as of the current date, 6 are sold off and 11 are at auction - these are eight facilities of the Samruk-Kazyna NWF and three assets of the Baiterek NMH.

Additionally, work is underway on the following four top nationally owned facilities:

- Independent consultants were involved to evaluate and assess the facilities of Astana Konak Uyi JSC, National Scientific Medical Center JSC, and KazMedTech JSC, and the assessment is currently being finalized.

- Astana International Airport JSC is being reorganized by merging Kokshetau Air Company JSC; a draft resolution of the Government of the Republic of Kazakhstan on the type of privatization has been developed.

First Deputy Minister of National Economy Ruslan Dalenov reported that in order to ensure efficiency and acceleration of the process of transferring Samruk-Kazyna assets to the competitive environment, the Law "On the National Welfare Fund" was amended.

In addition, according to the instructions of the Head of State, amendments were made to the Budget Code and the Law "On State Property", providing for the transfer of funds from the privatization of national property to the National Fund, as well as the transfer of assets of national holding companies and national companies to the competitive environment.

Based on the results of the inventory of the subordinate organizations of state agencies, lists have been created of facilities that will remain in state ownership and in the quasi-state sector, as well as those subject to liquidation. The list of organizations maintained in state property consists of 6523 organizations, of which 85% are social organizations.

At present, state agencies assign a status for each organization in the State Property Register: "to keep in state ownership permanently / temporarily", "liquidate", "reorganize", "privatize". In the future, the list of organizations retained in state property will be reviewed as PPPs and the competitive environment develops.

Thus, the measures taken have made it possible to legislatively speed up the process of privatization of the quasi-public sector facilities, and also helped streamlining the organizations that are kept in state ownership, which will allow developing standard contracts in the framework of PPP.

The Government meeting has also heard the reports of Chairman of the board of the KazAgro NMH Nurlybek Malelov, Deputy Chairman of the Baiterek NMH Aydar Arifkhanov, and Managing Director for legal support and risks of the Samruk-Kazyna NWF Gani Bitenov.

Published: 17 October 2017



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