Beibut Atamkulov speaks about five main areas of new 2020-2025 Nurly Zher Housing Program

At the Government session chaired by the prime minister, the implementation of the Nurly Zher State Housing Program and the project for 2020-2025 were reviewed. Minister of Industry and Infrastructure Development Beibut Atamkulov and Chairman of Baiterek NMH Aidar Arifkhanov reported on the main directions of the new state program and the plans for the future.

According to the Ministry of Industry and Infrastructure Development, the program integrates issues of heat and water supply and sanitation, modernization of the public utilities sector, house repair from the 2015–2019 Nurly Zhol State Infrastructure Development Programs and 2020 State Regional Development Program.

So, as part of the first task of implementing a unified housing policy, a ladder of housing affordability is being introduced. The determining factor will be the income of the population.

“The waiting list with incomes up to one living wage per family member (29.7 thousand tenge) is provided with rental housing without redemption (orphans, disabled people of groups 1 and 2, pensioners, etc.). The Baqytty Otbasy program will further be available to the waiting list participants with incomes up to 2 living wages (59.4 thousand tenge),” the minister said.

According to him, waiting list participants with incomes of up to 3.1 living wages (92 thousand tenge) can apply for a loan housing of akimats under the 5-20-25 program (military personnel, state employees, state employees). For citizens with incomes over 3.1 living wages, the 7-20-25 program is available.

“Those with incomes exceeding 5 living wages (148.5 thousand tenge) will be able to use existing market products (Baspana-hit, Orda, Svoy Dom) for the purchase of primary and secondary housing,” informed Atamkulov.

To ensure the transparency of housing and a unified system of accounting, the Unified Republican waiting list is being introduced. The data from this database will be used to determine the availability of housing for people on the waiting list, which will ensure targeted state support and efficient use of public funds.

The second task of the program is to provide the population with quality drinking water.

As noted by the Minister of Industry and Infrastructure Development, in urban areas at the expense of the republican and local budgets it is planned to build 4,188 km of water supply networks (2,420 km) and wastewater (1,768 km). Extrabudgetary financing, PPP mechanisms, and MFI loans will be used for network reconstruction.

“In villages with a population of less than 200 people, the water supply problem will be solved through the installation of integrated block modules for water treatment, and with a population of more than 200 people, through centralized water supply,” he said.

The issues of construction and reconstruction of sewage treatment facilities are also being addressed. It is planned by 2023 to provide 100% access to centralized water supply and attract 328 billion tenge from MFIs for the reconstruction and construction of 53 facilities, this will allow completely upgrading the sewage facilities in cities within 3 years and achieving its 100% coverage by 2024.

The third task is the modernization and development of the housing sector.

According to the ministry, the length of heat supply networks in Kazakhstan is 11,511 km, the average wear of which is 60%. 3,381 km of networks are dilapidated, that is, they need reconstruction.

It is proposed to send 240 billion tenge as part of the budget lending mechanism to replace dilapidated networks.

The fourth task includes measures for the overhaul and renovation of the housing stock.

Today in the housing stock of the republic there are more than 78 thousand apartment buildings, of which 18 thousand houses require major repairs.

In 2020-2021, it is planned to allocate 30 billion tenge to the regions, which will make it possible to repair 700 houses and 126 houses at the expense of turnover assets.

As part of the fifth task, measures are being taken to improve architectural, urban planning and construction activities by:

  • development of new and updating existing standards, standard projects, urban development projects of national importance.
  • digitization of regulatory legal acts and technical documents.

As Atamkulov emphasized, in order to establish transparency of construction processes and control the quality of construction, a unified information system E-Kurylys is being developed.

It is worth noting that in 2018, within the framework of the Nurly Zher program, 12.5 million square meters of housing or 0.68 square meters per inhabitant of the republic were commissioned, which is the highest indicator among the CIS countries.

The largest volume of housing over the years has been introduced in the cities of Nur-Sultan, Almaty, Mangistau and Aktobe regions. The annual plan for the republic is 13 million square meters. m. According to the results of 10 months, according to the financing plan, 59.3 billion tenge were transferred to the regions, 56.3 billion tenge or 96.1% were disbursed.

“The indicator of housing provision per resident has reached 21.9 sq.m. It is planned to bring this indicator to 30 sq.m by 2030,” Atamkulov summarized.

Chairman of Baiterek NMH JSC Aidar Arifkhanov said that during the implementation of the Nurly Zher state program on the construction of credit housing through the mechanism of redemption of akimat bonds since 2017, revolver bonds worth 310.9 billion tenge were purchased, of which 102.9 billion tenge — in 10 months of 2019.

“In November, additional bonds worth 5.9 billion tenge will be purchased as the akimats issue relevant orders. In order to avoid a liquidity shortage, the regions need to ensure early repayment of previously issued bonds in the 4th quarter totaling 8.3 billion tenge,” the head of the holding said.

These measures will allow to timely bring financial resources and ensure the achievement of the planned volumes of construction in the current year.

To complete problematic shared construction projects in the city of Nur-Sultan, in 2018, in accordance with the Protocol of the Council for National Fund Management of Kazakhstan, 20 billion tenge of funding or 100% of the plan was provided. Until the end of this year, at the request of the akimat, an additional 20 billion tenge will be allocated.

On the housing construction savings system for 2017 – 10 months of 2019, 108.6 thousand concessional loans totaling 1 trillion tenge were issued to the population, of which 19.1 thousand loans worth 145 were issued under the Nurly Zher state program, 3 billion tenge.

“Since July 2019, a program of preferential mortgage lending for large and low-income families at 2% per annum has been implemented. As of today, 4,650 applications totaling 47 billion tenge have been received by the Housing Construction Savings Bank, of which 3,250 loans worth 33 billion tenge have been issued. By the end of this year, 5 thousand loans for a total amount of 50 billion tenge will be issued,” Arifkhanov informed.

It is worth noting that starting from 2020, on behalf of the Head of State, the annual issuance plan will be at least 10 thousand loans.

In the direction of subsidizing commercial mortgages for the population, Kazakhstan Mortgage Company approved applications totaling 36.2 billion tenge. This made it possible to reduce the cost of monthly mortgage payments by 30% for 3.5 thousand Kazakhstanis.

In the direction of subsidizing loans to private developers, since the beginning of the implementation, the Damu Fund has signed projects for subsidies totaling 99.8 billion tenge. The cost of commercial loans for construction companies was reduced by an average of 50%. At the same time, half of the housing constructed by private developers is sold to investors of Housing Construction Savings Bank and participants of the 7-20-25 program at fixed prices.

In the direction of shared housing construction, the Guarantee Fund, with a total plan of 90.3 billion tenge, approved projects for 146.9 billion tenge. According to the head of the holding, this allowed to protect the deposits of the population for the purchase of 10.4 thousand apartments in the commercial market.

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