The Prime Minister of Kazakhstan

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B. Sultanov: Privatization process continues in an established order — 397 objects sold

10 April 2018, 12:18
Photo: primeminister.k

Today during the meeting of the Government chaired by the Prime Minister Bakytzhan Sagintayev, the process of privatization was reviewed.

Minister of Finance, Bakhyt Sultanov, reported on the results of the implementation of the Comprehensive Privatization Plan for the first quarter of this year. According to him, at present the web portal of the State Property Register contains full information on 877 objects of the Comprehensive Plan of Privatization for 2016-2020.

"In total, according to the ComrehensivePrivatization Plan, 482 objects were put up for the expired period of its implementation, of which 397 objects were sold for a total of 199 billion tenge. In addition, 274 facilities are in the process of reorganization and liquidation. Thus, to date, taking into account the reorganized and liquidated facilities, the implementation of the Comprehensive Privatization Plan is 76%," said Bakhyt Sultanov.

In the current year, 265 objects are planned for implementation, including 40 objects in the I quarter. According to the Ministry of Finance, the results of the quarter show 45 put up objects, 20 of them were sold for 19 billion tenge. A decision was made to eliminate 10 objects.

Of the total number of 71 top-priority objects to be privatized, 13 have been sold to date with a selling price of 95 billion tenge. On 7 objects of Samruk-Kazyna SWF, a decision was made about "package" sale in the structure of parent companies. 40 top facilities are planned for the implementation this year.

In pursuance of the instructions of the Prime Minister Bakytzhan Sagintayev given at the Government meeting on 16.01.2018, on the elimination of violations that slow the course of privatization, information on these violations was published on the Internet sites of the media. Also on the banner "The Second Wave of Privatization" of the web portal of the State Property Register, a separate column is highlighted in red, which shows objects and sellers who committed violations.

In addition, the MNE RK proposed a block of amendments to the Law "On State Property" to improve the process of privatization.

"In general, the process of privatization continues in an established manner, the tasks and objectives of privatization have been defined. The Ministry of Finance, in turn, through the implemented electronic monitoring system, constantly monitors the privatization process and, if necessary, takes appropriate measures," Bakhyt Sultanov summed up.

Minister of National Economy, Timur Suleimenov, in turn, dwelled on proposals aimed at improving the effectiveness of the implementation of the Comprehensive Privatization Plan. These are the strengthening of post-privatization control, the introduction of changes to the law "On State Property" in the part of granting the right to sell privatization objects at least the starting price to a single participant in the first auction, the possibility of transferring social objects of republican and quasi-public ownership to the private sector using PPP mechanisms.

"According to the instruction of the Head of State, given within the framework of the Address of the current year, work continues on inventorying objects of the state and quasi-public sector. The results of this work will be presented in August 2018, following which the list of objects of the Comprehensive Plan will be updated," Timur Suleimenov summed up.

Deputy Director of the Samruk-Kazyna Fund, Alik Aidarbayev, told about the work carried out by the Fund under the Comprehensive Privatization Plan.

According to him, as part of the implementation of the Governmental resolution, the Fund plans to sell 214 assets, of which, as of April 1, 2010, 76 assets have been sold for a total of 122.88 billion tenge, 64 assets were transferred for liquidation or reorganization.

By the end of 2018, 61 assets are planned to be sold. 11 of them have been sold since the beginning of the year, on 16 assets, the conclusion of contracts is being completed. Another 16 passed the state commission and put up for sale, 18 – prepared for the passage of the state commission.

As a result, by the end of 2018 the number of enterprises within the fund should be reduced to 300. By 2020, 7 large assets are planned to be implemented (Kazakhtelecom, Kazatomprom, Air Astana, KazMunaygaz, Samruk-Energo, Kazpost, and KTZh), 3 of which are already preparing for possible IPO/SPO transactions (Kazakhtelecom, Kazatomprom, Air Astana).

Chairman of the Board of Baiterek NMH, Aidar Arifkhanov, reported on the implementation of the Baiterek objects. To date, of 17 holding companies included in the Comprehensive Privatization Plan, 5 have been sold to private investors, 6 companies are on liquidation. On the remaining 6 assets, negotiations are in progress.

Chairman of the board of KazAgro National Manager Holding, Nurlybek Malelov noted that within the framework of the implementation of the objects, it is planned to transfer 3 subsidiaries and 18 affiliated companies of KazAgro to the competitive environment.

"In 2018, it is planned to sell 3 assets from the list of Top-68 to strategic investors," Nurlybek Malelov said.

During the consideration of the issue, akims of North Kazakhstan region – K. Aksakalov, Akmola region – M. Murzalin, Astana – A. Issekeshev, made their comments.