At the Government session chaired by Prime Minister of the Republic of Kazakhstan Olzhas Bektenov, the issue of the development and digitalization of the housing construction sector was considered.

Reports on ongoing work in the construction industry were presented by Deputy Prime Minister – Minister of Artificial Intelligence and Digital Development Zhaslan Madiyev, Minister of Industry and Construction Yersayin Nagaspayev, First Deputy Chairman of the Management Board of Baiterek National Managing Holding JSC Nurbolat Aidapkelov, and akims of the Turkestan, Kostanay, West Kazakhstan, and Mangystau Regions were also heard.

“At the extended Government session, the Head of State identified the main goal of our work — achieving real results that directly affect the quality of life of our citizens. Undoubtedly, the construction sector is one of the key drivers of achieving this objective. Last year we managed to maintain positive growth rates and sustainable development of the sector at the level of 16%. More than 20 million square meters of housing were commissioned. 185 thousand families improved their housing conditions. It is necessary to continue work to ensure housing affordability while maintaining the pace of construction this year as well,” Olzhas Bektenov emphasized.

The Government has adopted a set of measures aimed at simplifying citizens’ access to state support mechanisms. Otbasy Bank has received the status of a national development institution and plays a key role in the implementation of housing policy. The transition to a digital format has minimized the human factor and increased transparency in housing registration and distribution.

Mortgage programs “Nauryz” and “Nauryz–Zhumyssker” are being developed, with more than 8.5 thousand loans issued totaling 233 billion tenge.

The Prime Minister also instructed government agencies to ensure the implementation of housing commissioning plans, while paying attention to creating a comfortable urban environment and ensuring the advanced development of engineering and utility infrastructure.

Despite the growth in construction volumes in major cities such as Astana and Almaty, support for single-industry towns and rural areas should not be overlooked.

In this regard, the Ministry of Industry and Construction, together with the Baiterek holding and regional administrations, was instructed to intensify the implementation of regional programs aimed at providing citizens with affordable housing.

The Head of Government also focused attention on the quality of construction works.

“In his Address to the Nation, the Head of State emphasized that the growth of construction volumes must not come at the expense of safety and quality. Last year more than 63 thousand official complaints regarding construction quality were received. The new Construction Code is aimed at resolving these issues. It will ensure systemic modernization of the entire sector, transitioning from outdated norms to international standards, as well as digital and automated technologies,” Olzhas Bektenov emphasized.

Within the framework of the Code, state control has been strengthened: construction supervision authorities and emergency services are required to participate in the commissioning of facilities, which will reduce the risks of accidents and fires.

Requirements in the field of shared-equity construction have also been tightened — without the appropriate permits and state guarantees, developers will not be able to attract funds from equity holders, and banks will not be able to issue mortgages.

The document also provides for increased seismic safety requirements and stronger control over amendments to detailed planning projects in order to prevent dense and illegal construction, as well as shortages of schools and hospitals.

Special attention has been given to the digitalization of the construction sector. A unified construction portal will integrate systems according to the “one-stop-shop” principle, increase transparency, and reduce bureaucracy and processing times.

The Prime Minister instructed the Ministry of Industry and Construction and the Ministry of Artificial Intelligence to launch a pilot project of AI modules for project expertise by the end of July this year.

Also, by 1 June this year, the regional administrations of the Mangystau and Kyzylorda Regions, the Abai Region, the West Kazakhstan Region, and the North Kazakhstan Region were instructed to continue transferring master plans and detailed planning schemes to the Urban Planning Cadastre and accelerate the implementation of all sector digitalization projects.

Following the meeting, Prime Minister Olzhas Bektenov issued several instructions regarding the development and digitalization of the housing construction sector.

1. Develop new approaches to the development of commercial mortgages of second-tier banks

In order to reduce the burden on state programs, it is necessary to develop and expand the volume of accessible commercial mortgage products.

The Ministry of Industry and Construction, together with the National Bank and other government agencies, must develop new approaches to further development of commercial mortgages of second-tier banks and other housing provision instruments.

At the same time, Otbasy Bank should focus more on supporting vulnerable groups of the population.

2. Update and adopt regulatory acts under the Construction Code

The Ministry of Industry and Construction was instructed to ensure the updating and adoption of regulatory acts under the adopted Construction Code by 1 July this year, as well as continuous support of these norms during their implementation.

3. Ensure the timely launch of 38 new construction sector projects

With the annual increase in construction volumes, demand for construction materials is also growing. In order to prevent shortages and price increases, as well as to support domestic production, projects for the production of necessary construction materials and equipment are being implemented.

It was noted that 38 such projects are planned to be commissioned in the country this year.

The Ministry of Industry, together with the Baiterek holding, must ensure their timely launch.

Overall coordination and control have been assigned to First Deputy Prime Minister Roman Sklyar.

#Olzhas Bektenov #Construction #Government session #President's instruction

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