Implementation of President’s instructions: Commission to be created in Kazakhstan to investigate road projects implemented over past 10 years

On July 14, during the extended government session, the Head of State Kassym-Jomart Tokayev set a number of important tasks for the Government for the near future. The Minister of Industry and Infrastructure Development of Kazakhstan Kairat Uskenbayev reported on measures for their implementation.

First of all, the minister spoke about the work carried out to upgrade the fleet of agricultural machinery.

According to him, as part of the execution of the order of the Head of State, together with the Ministry of Ecology, Geology and Natural Resources, the issue of introducing a mechanism for preferential lending for the purchase of domestic agricultural machinery using the funds of the Extended Producer Obligations Operator (EPR) is being worked out.

“In addition, within the framework of the current program of leasing financing, it is planned to renew the fleet of agricultural machinery. In 2022, 3.5 billion tenge is provided for the implementation of this program, including mixing - 7 billion tenge,” Uskenbayev reported.

Turning to the issues of production of mineral fertilizers, Uskenbayev noted that today the development of industry for phosphorite deposits is carried out by three subsoil users. The total production volume amounted to 4 million tons. There are 4 deposits for potash fertilizers, of which three are in the West Kazakhstan region and one in the Aktobe region.

“This year we will launch projects that by 2026 will completely cover the need of the domestic market for phosphorus and nitrogen fertilizers,” Uskenbayev assured.

As for industrial cooperation and relocation of production, today there are 62 projects within the framework of industrial cooperation with the Russian Federation with the creation of 24.9 thousand jobs for a total of $22.2 billion.

14 projects have been implemented, 11 are under implementation. 14 projects are being worked out. Taking into account partial relocation, 23 projects worth $8.9 billion are being worked out with the creation of 12.6 thousand jobs. All projects are focused on the production of goods of medium and upper processing.

“In the field of subsoil use, 509 contracts and 1,738 licenses are in force under TPI. All contracts and licenses were analyzed. Hearings were held on 263 TPI contracts, as a result of which 58 contracts were terminated, and 5 contracts are in the process of termination. 78 notifications about elimination of violations were sent. 118 licenses revoked. Work continues. An interim report on the results of the audit will be submitted in August this year,” Uskenbayev reported.

As part of the reform of the road industry, according to the minister, the following measures will be taken:

First. JSC NC KazAvtoZhol will be merged with Kazakhavtodor LLP. The draft resolution will be submitted to the Government in August this year.

Second. A commission will be set up to investigate the implemented road projects over the past 10 years.

The commission will include representatives of the Ministry of Finance, the Ministry of National Economy, the AZRK, the Ministry of Justice, the prosecutor's office and the Atameken NCE and deputies. The draft resolution will also be submitted to the Government in August this year.

Third. Projects within the framework of IFIs are implemented according to the FIDIC principle. The same principle will be applied to other projects.

Fourth. In autumn, the relevant law will include norms to strengthen the personal responsibility of all participants in the construction process. To do this, we will introduce EPC contracts to eliminate the possible risks of implementing projects according to FIDIC rules.

“All instructions of the President are under special control and will be executed in a timely manner,” Uskenbayev assured.

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