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Beibut Atamkulov on implementation of President's Address: Mechanism for subsidizing rent to be approved by the end of 2020

Monday, 07 September 2020, 16:27:18

At a briefing in the government, Minister of Industry and Infrastructure Development Beibut Atamkulov clarified issues regarding the execution of the instructions of the Head of State, voiced in the Address dated Sep. 1, 2020.

Atamkulov informed about the mechanism for subsidizing rent. To implement the Address of the Head of State, by the end of December 2020, proposals will be developed to introduce a mechanism for subsidizing rent.

“International experience has shown that the rental housing market is highly developed in developed countries and accounts for 30% of the total housing stock, while in Kazakhstan it is only 1.7%,” the minister said.

Currently, about 530 thousand people are registered in Kazakhstan in need of housing.

Here it is proposed to subsidize a part of the rental cost of the dwelling. Atamkulov specified that the amount of subsidies will be 70-80% of the rent.

The targeting of support will be determined by Otbasy Bank from among those on the waiting list according to the following criteria:

  • income of up to 1 minimum living wage (32,668 tenge) per family member;
  • lease term up to 5 years with renewal upon confirmation of the status of needy;
  • the average area of ​​rented housing is 60 square meters (from 40 to 80 sq. m);
  • for each region the cost of rent per square meter will be determined.

To date, the mechanism is being worked out with government agencies.

The final parameters of this mechanism will be determined by the Nurly Zher State Program and approved by the Resolution of the Government of the Republic of Kazakhstan by the end of 2020.

President Kassym-Jomart Tokayev instructed to reconstruct and provide service to all republican roads until 2025. As Atamkulov noted, the total budget of the Nurly Zhol program for 2020-2025 is 5.5 trillion tenge. The budget of the road industry is 3.5 trillion tenge. At the same time, the program provides 2.1 trillion tenge for the construction and reconstruction of highways of republican significance.

“Until 2020, 13 thousand km of roads of the republican network were reconstructed. Within the framework of the Nurly Zhol program, 11 thousand km will be built and reconstructed, of which 4 thousand km of roads of the republican network are underway this year,” Atamkulov said.

Until 2025, in accordance with international standards, the condition of 24 thousand km of the republican road network will be improved, of which 60% will be transferred to the I-st ​​and II-nd technical categories.

Also, by 2025, roadside service facilities will comply with international standards throughout the republican road network with a length of 24 thousand km.

Funding from the republican budget for the construction and operation of roadside service facilities is not provided.

The construction of roadside service facilities will be carried out in cooperation with local executive bodies.

“651 sites have been allocated for creating the infrastructure of roadside service facilities. We work in conjunction with businesses and local executive bodies. All relevant conditions — allotment of plots, exits to them are asphalted, sites are asphalted. We assume that the corresponding facilities will be built by 2025. The national standard, level, class category, which is not lower than the international level, has been determined,” the minister said.

Atamkulov spoke in more detail about the results of the utilization collection in Kazakhstan.

According to him, the utilization fee and the measures taken by the Government, first of all, stimulate the production of agricultural machinery in Kazakhstan.

“We, by stimulating the production of agricultural machinery in Kazakhstan, create new production facilities, new jobs in Kazakhstan, create competence, qualified jobs. Aug. 28, 2020, an agreement was signed with a leading German company. We have been working towards this for almost 10 years. A very serious market. The agricultural machinery market has a lot of competitors. Many brands are ‘jostling’ here in the market. This year we have already set a plan. We are starting to assemble 200 combines. This required support from the government. Akimat supported in the special economic zone with areas, infrastructure. Starting next year, we have delivered a program for gradual localization from 20% to 40%,” the minister said.

A leasing scheme for their agricultural products is offered to domestic producers. Under this plan, 22 thousand units of agricultural machinery will be replaced in Kazakhstan. The plan is scheduled for the next three years.

“I would like to note once again that there will be a lot of disputes over the utilization fee. First of all, we support our domestic producers,” the minister concluded.

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