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New enterprises, road construction, housing — development of industrial sector of Kazakhstan

Thursday, 04 June 2020, 01:29:18

Ministry of Industry and Infrastructure Development is currently responsible for implementing three key government programs. They are the program of industrial development, Nurly Zhou State Program of Infrastructure Development, and Nurly Zher State Program of Housing Construction. Each of these programs is aimed at increasing the welfare of the people and the self-sufficiency of the Kazakhstani economy. This was described in detail by the Minister of Industry and Infrastructure Development Beibut Atamkulov at a reporting public meeting.

Income of manufacturing workers over past five years increased by average of 50%

For industry 2019, the year ended very successfully. Its share in the GDP of the economy was 27.5%, of which 11.4% was represented by manufacturing.

As of May 1, 2020, more than 22 thousand enterprises operate in industries, employing over 1 million people. Since 2010, on the initiative of Elbasy, the State Program of Industrial and Innovative Development has been implemented in the country.

“Despite criticism from society, we still need to admit that it was this program that laid the foundation for the development of manufacturing in the country. For five years, the gross value added of the manufacturing sector amounted to 30.6 trillion tenge. According to the results of last year, the indicator amounted to 7.8 trillion tenge, which is 87% more than the level of 2015,” Atamkulov said.

Manufacturing enterprises produced for 45 trillion tenge

The physical volume index of the manufacturing industry by the end of 2019 increased by 4.4%. Positive dynamics continued in the current year. According to the results of four months, the physical volume index amounted to 107%.

For reference: According to the results of 2019, high growth rates are demonstrated by such manufacturing industries as: mechanical engineering (by 20.9%), production of light industry (by 13.5%), pharmaceutical products (12.2%), drinks (by 10.2%), production of coke and oil products (5.9%), metallurgy (4.1%).

According to the results of January-April 2020, the following sectors show growth: light industry (by 13.9%), pharmaceuticals (by 24.2%), production of building materials (by 15.6%), engineering (by 25.4%), oil refining (by 1.5%).

Over five years, the manufacturing industry attracted more than $18.7 billion of foreign direct investment

According to the minister of industry and infrastructure development, labor productivity in the industry increased by 11.7%. Exports of processed products over the years of the program amounted to $73.2 billion.

“Annually, projects are launched under the Industrialization Map. In 2015-2019, 556 projects were launched for about 5.2 trillion tenge, about 85 thousand permanent jobs were created,’’ Atamkulov informed.

For reference: Significant projects of the second five-year plan:

1) KAZ Minerals Bozshakol LLP, construction of the Bozshakol Mineral Processing Plant, Pavlodar region (430.5 billion tenge);

2) KAZ Minerals Aktogay LLP, construction of the Aktogay Mineral Processing Plant, East Kazakhstan region (728 billion tenge);

3) Bakyrchik Mining Enterprise LLP, construction of a mining and processing complex, East Kazakhstan region (133.8 billion tenge);

4) Aktobe Rail and Beam Plant LLP, construction of a rail and beam plant, Aktobe region (76.6 billion tenge);

5) LLP YDD Corporation, a plant for the production of ferrosilicon, Karaganda region (32 billion tenge).

At the same time, in 2020, according to akimats, it is planned to commission 160 projects worth 1.1 trillion tenge with the creation of more than 17 thousand permanent jobs.

“Given the dynamics of the macroeconomic situation, these values ​​will be adjusted in the future. During the years of industrialization, a significant shift has occurred in the development of each manufacturing sector. For example, in light industry, by stimulating small and medium-sized businesses in a specific way, we were able to practically revive this industry,” said the head of the department.

Currently, the country produces fabrics, carpets, children's and adult clothes, hosiery, shoes, hats and much more, while they are not inferior in quality to imported products, sometimes even surpass them. More than 1 thousand companies operate, employment is 17.9 thousand people. It is in this industry that the most developed segment of the value chain has formed, that is, from processing to finished products. A solid foundation has been formed in the chemical industry.

So, due to the restoration and modernization of chemical enterprises, as well as the introduction of new investment projects under the Industrialization Map, the range of products has expanded.

“Now we produce previously non-manufactured products — caustic soda, sodium hypochlorite, detergents, new types of paints and varnishes, explosives, agrochemicals, etc.,” said Atamkulov.

Modernization of Kazphosphate LLP and KazAzot JSC allowed to increase the production of phosphate fertilizers by four times, and nitrogen by two times. This covered the need for phosphate fertilizers fully in the domestic market, and in nitrogen — by 50%.

“Today we have great prospects for the production of potash fertilizers. Now we are looking for investors in this area,” the minister said.

For four months of this year, more than 23 thousand cars were produced in Kazakhstan

In mechanical engineering, the most dynamically developing industry is the automotive industry. In 2019, more than 50 thousand cars were produced.

“This year we are launching yet another production line for the production of cars at the Hyundai Trans Kazakhstan LLP company, located in Almaty, with a capacity of 30 thousand cars per year,”  Atamkulov said.

This year, the Republic of Kazakhstan began to implement the third five-year plan. Taking into account the experience of two five-year plans, the program laid down the main new approaches.

First. The emphasis is placed on efficient manufacturing sector enterprises focused on saturating the domestic market with quality products and exporting.

Second. There is a transition from the industry principle to the production of specific priority goods of medium and high technological complexity.

Third. Counter obligations and business responsibilities are identified.

Fourth. It is planned to proactively integrate into global value chains.

“At the same time, taking into account the pandemic and the current situation in the world, according to the instructions of the Head of State, this year we will carry out work on updating the industrial program. Also, for the legislative support of industrial development, by the end of the year, a draft Concept for the bill on Industrial Policy will be developed,’’ the minister said.

In 2020, the activity of several manufacturing industries was reoriented.

“The coronavirus pandemic has made adjustments to the lives of each of us. During the state of emergency, we had to review the activities of many companies, enterprises and organizations. In order to ensure the internal need for protective equipment, the activities of some manufacturing industries were reoriented,” Atamkulov said.

For example, ethyl alcohol producers were reoriented to the production of disinfectants, due to which the daily production volume reached 170 thousand liters. Manufacturers of sewing products have established the production of masks, increasing production by 5 times from 200 thousand pieces to 1 million per day.

“We also began to produce a line of household chemicals, including cleaning products for the home. In order to restore economic growth, the government adopted a Comprehensive Plan by the end of 2020, which provides for a number of measures to support manufacturing enterprises,” said the head of the department.

Within the framework of the program for preferential lending to the sectors of the Economy of Simple Things, 268 projects worth 219 billion tenge were approved. To finance priority projects under the Economy of Simple Things, the total funding for the program was increased by 400 billion tenge and increased to 1 trillion tenge.

Today there are over 550 subsurface use contracts.

Based on the West Australian model, at the end of 2017, a new Code of the Republic of Kazakhstan “On Subsoil and Subsoil Use” was adopted in the field of subsoil use. To date, more than 300 thousand blocks with an area of ​​650 thousand square km have been put up to provide the right of subsoil use for exploration of solid minerals, more than 630 exploration licenses have been issued.

At the end of 2019, 68 subsoil use contracts were concluded

In total, 554 contracts are in effect today.

“The first pool of 17 amendments to the Subsoil Code aimed at resolving urgent procedural issues was introduced in December 2019 to address issues of the industry on the recommendations of business entities, Atameken National Chamber of Entrepreneurs, associations and citizens of the Republic of Kazakhstan,” Atamkulov said.

To further improve the legislation, a draft Concept has been developed, which will soon be sent to all interested parties for consideration and approval.

Also, in 2020, work will continue on the creation of the National Data Bank Information System, which will provide subsoil use rights, geological information online and the creation of a single R&D information platform.

At the same time, work will continue to implement the standards of the Extractive Industries Transparency Initiative, including the disclosure of beneficial owners of contracts.

Total volume of transit traffic by all modes of transport increased by 27.6%

The main task of the transport industry is to integrate the national transport system into the global transport network to realize the country's transit potential.

“I want to note that in general the industry is developing dynamically. Five years ago, our country launched the first comprehensive Nurlt Zhol State Infrastructure Development Program for 2015-2019. Last year was the final year, the results are not bad,” the minister said.

At the end of 2019, the transport sector showed positive growth dynamics. The volume of transport services increased by 5.1%.

To implement new tasks for the further development of transport infrastructure, in December 2019, the Government approved the Nurly Zhol State Program for 2020-2025.

“In the next 6 years, we are planning the construction and reconstruction of 10 thousand km of roads (including 3.8 thousand km of rolling projects), as well as major and medium repairs of 11 thousand km of roads of the republican network,” Atamkulov said.

According to the minister, the department faces ambitious tasks: to bring the share of national roads in good and satisfactory condition to 100%, increase the length of roads of I and II technical category to 60%, the share of toll roads to 45%, with 100% provision of roadside service facilities.

“We plan to increase railway transit by 49% from 18 to 26.9 million tons. We will increase container transit by 2 times and bring to 1.6 million containers in 2025. Passenger traffic will increase by 35% from 8.1 to 11 million people a year. The implementation of all the planned projects will create 550 thousand jobs. As a result, labor productivity in the transport industry will increase by 20%, and the volume of investments will increase 3 times,” Atamkulov explained.

According to the results of this year traffic will be opened on 2.6 thousand km of Kazakhstan roads

Providing high-quality, high-speed and safe roads is a key objective of infrastructure development.

Following the results of last year, traffic was opened in sections with a total length of 641 km.

  • Temirtau - Karganda - Balkhash - Kapshagay (1,056 km) — 61 km (Karaganda - Temirtau and bypassing Karaganda);
  • Corridor Center - East (914 km) — 249 km (180 km - Nur-Sultan - Pavlodar, 69 km - Pavlodar - Semey);
  • Kokshetau - Petropavlovsk - Russian border (260 km) — 16 km (7 km access to the city of Kokshetau, 9 km - Petropavlovsk - border the Russian Federation);
  • Beineu - Akzhigit (85 km) — 85 km;
  • Taskesken - Bakhty (187 km) — 18 km;
  • Schuchinsk - Zerenda (80 km) — 80 km;
  • Kandyagash - Makat (359 km) — 26 km;
  • Zhetibay - Zhanaozen (73 km) — 73 km.

In order to eliminate the defects, 1.1 thousand km of republican and 3.5 thousand km of local roads of regional and district significance were repaired by major and medium repairs.

“As a result of this work, 88% of the national roads were brought into good and satisfactory condition. A similar indicator on local roads was 71%. The share of roads of I and II technical category in the republican network increased to 34% (8.2 thousand km),” Atamkulov said.

In this year repair work has already covered 9.5 thousand km of national and local roads (construction and reconstruction — 4 thousand km and repair — 1.5 thousand km of the republican network, local network repair — 4 thousand km).

Construction and reconstruction is carried out on 4 thousand km of roads of the republican network (Karaganda - Balkhash - Kapshagay, Aktobe - Atyrau - Astrakhan, Taldykorgan - Ust-Kamenogorsk, Kalbatau - Maykapshagay, Kokshetau - Petropavlovsk - Kurgan, Uzynagash - Otar - Merl, Merzan - Kostal - Kurban - Merl Denisovka, Usharal - Dostyk).

For reference: In accordance with the order put before the government at the end of 2020, it is planned to open traffic on road sections with a total length of 2.6 thousand km

  • Taldykorgan - Ust-Kamenogorsk (763 km) — 763 km;
  • Karaganda - Balkhash - Kapshagay (955 km) — 645 km (363 km - Karaganda - Balkhash, 282 km Balkhash - Kurty);
  • Aktobe – Atyrau - Astrakhan (725 km) — 279 km (60 km Atyrau - Astrakhan, 219 km Kandyagash - Makat);
  • Kalbatau - Maykapshagay (415 km) — 415 km;
  • Merke - Burylbaital (266 km) — 266 km;
  • Usharal - Dostyk (184 km) — 60 km;
  • Uzynagash - Otar (96 km) — 56 km;
  • Kokshetau - Petropavlovsk - Kurgan (260 km) - 67 km (60 km - Petropavlovsk - Kurgan, 7 km entrance of Kokshetau);
  • Kostanay - Denisovka (114 km) — 60 km (Rudny - Denisovka).

Overhaul and medium repairs covered 1.5 thousand km, of which 1.1 thousand km will be completed

According to the minister of industry and infrastructure development, today there are 1,815 roadside service facilities, of which 894 (49%) comply with the requirements of the National Standard.

The ministry, together with the regional akimats, within the framework of a cooperation agreement, is working to increase roadside service facilities that meet the National Standard.

“This year we plan to build 23 gas stations with sanitary and hygienic units, as well as separately install 70 units of sanitary and hygienic units. Thus, 58% of the roadside service facilities will be brought into line with the requirements of the national standard,” Atamkulov said.

An important task of the Nurly Zhol state program for 2020-2025 is to improve the quality of the local road network and provide the country's population with a road to home. The total length of the local network is 70.9 thousand km.

A parity approach between the ministry and local executive bodies is applied to financing the development of the local network by allocating annual targeted transfers.

“This year, repair work covered 4 thousand km, 30 thousand people were involved. and by the end of the year 75% of the roads of the local network will be brought in good and satisfactory condition. And by 2025 we plan to repair more than 27 thousand km of roads of the local network, which in turn will make it possible to bring 95% of the roads of the regional and district significance in good and satisfactory condition,” the head of the department informed.

In addition, in March 2019, the Road Assets Quality Center was established.

The main objective of the Center is the examination of the quality of work and materials in the construction and repair of roads, instrumental diagnostics of the condition of roads and construction, departmental examination of technical documentation for secondary road repairs, as well as a safety audit.

According to Atamkulov, last year the Center did a lot of work, took control of the road construction and repair sections of not only the republican network, but also the local one. More than 8 thousand inspection visits were carried out. The results of the Quality Center’s work will allow by the end of this year to form a rating of bona fide contractors, technical supervision services and a road quality rating by region.

Since June 1, 2020, passenger trains are gradually resumed

Rail transport plays a special role in the development of the country's economy. At the end of 2019, railway transport transported 407 million tons of cargo (in 2018 — 397 million tons).

Revenues from transit traffic increased by 16% and amounted to 277 billion tenge (for 4 months of this year, 130.6 million tons of cargo were transported.).

And this year, despite the situation in the world related to the COVID-19 pandemic, the railway industry gives positive traffic volumes.

Last year, major changes were made to the Law on Railway Transport. The main objective and purpose of the law is to simplify subsidies for passenger transportation, prevent hidden transit of goods, protect the rights of users of access roads and tighten liability for the illegal sale / resale of tickets.

In this year the ministry is working to further improve legislation, taking into account the introduction of standards on the activities of private freight carriers on the railway.

In order to develop the country's transit potential, work is underway on a number of infrastructure projects regarding the modernization of transport corridors.

“In the framework of the Nurly Zhol program, from 2021 we will begin implementing a strategic project to modernize the Dostyk – Aktogay – Moyynty section (840 km), which will allow us to increase the throughput capacity of the section by 2 times and reduce the time for transporting goods by 1.5 times” said Atamkulov.

During the modernization of the site, more than 2,000 jobs will be created (during the period of operation 120 jobs), which provides employment to citizens of Almaty, Karaganda and East Kazakhstan regions.

Also, the ministry is currently working on a project to build a railway line bypassing the Almaty station under a 73-km public-private partnership scheme.

According to the minister, in order to renew the fleet of passenger cars through state support measures, 109 passenger cars were purchased in 2019. This year it is also planned to purchase about 100 new cars.

Along with this, the ministry is carrying out targeted work to ensure the availability of rail passenger transport for persons with disabilities.

“At present, 98 are plying 44 routes (out of 58 socially significant). specialized compartment cars and there are wheelchairs that move freely inside the car and are used for boarding and alighting. A 50% discount is also provided for travel on socially significant routes,” the head of the department said.

According to him, the overall objective is to ensure transparency in the implementation of travel documents.

So, last year there were certain problems with a shortage of travel tickets due to an increase in the facts of illegal buying and reselling by individuals at train stations.

“There have been many complaints and appeals from the public to ticket offices. To exclude such cases, in July 2019 we completely switched to the electronic ticket sales system Mobius. Now tickets in the absence of seats are purchased in order of priority on the waiting list. Through Liszt, in 2019, 98 thousand tickets were sold. This eliminates the shadow resale of tickets,” explained the minister.

All tickets returned 7 days before the train departure, unused armored seats and optional trailers are placed on the Waiting List.

It is worth noting that the passenger transportation services were completely affected by the COVID-19 pandemic and train runs were suspended throughout the country.

As the epidemiological situation improved, from June 1, passenger train runs were gradually resumed.

For reference: From May 15 to May 28, 293 thousand tickets were sold.

The renewal process is planned to be carried out in 3 stages, starting from June 1, 2020.

Stage 1: from June 1, 2020, the launch of 54 pairs of trains (5 Talgo, 31 standard and 18 suburban).

Stage 2: from June 10, 2020, the launch of 39 pairs of trains (9 Talgo, 11 standard and 19 suburban).

Stage 3: the launch of the remaining 15 pairs of trains will be considered as the state border opens and the population demands increases.

In the field of automobile transport, the main task is to increase the number of passenger and freight traffic, update the fleet of vehicles, develop road infrastructure, as well as passenger service infrastructure.

In 2019, 3.5 billion tons of cargo and 23.8 billion passengers were transported by road.

For reference: For 4 months of this year, 877.4 million tons of cargo and 5.6 billion passengers were transported by road, which is 9% and 24% less than in 2019 due to the situation related to the global pandemic and the state of emergency introduced.

According to the minister, last year, within the framework of soft loans, 23.5 billion tenge were allocated from the republican budget and 648 buses of domestic production were purchased. As a result, the depreciation of the country's bus fleet decreased to 43%. In this year further renewal of the bus fleet is planned. Conditions are being created for updating the fleet of vehicles.

In connection with the situation associated with the global pandemic and the state of emergency in the country, since March 30, 2020, to date, 17 automobile checkpoints on the state border with the Russian Federation, the Kyrgyz Republic and the Republic of Uzbekistan have been suspended. These measures have limited the geography of international freight for domestic companies.

In this regard, for the further development of the automotive industry, it is necessary to maximize the opportunities for mutually beneficial cooperation with EAEU members, which will expand international borders and ensure an increase in freight traffic to domestic companies.

“Until the end of this year, we have to approve a package of measures for the development of urban passenger transportation, take measures to ensure subsidizing of socially significant bus routes, renew the bus fleet and solve the issues of exemption from the utilization fee and the charge for the initial registration of truck tractors,’’ Atamkulov said .

For 4 months of this year seaports handled more than 2 million tons of cargo

“Over the past year, about 6 million tons of cargo were handled through our seaports of Aktau and Kuryk — this is 2 million tons of oil, 1.4 million tons of ferry cargo, more than 1.5 million tons of grain. The volume of cargo transportation on sea vessels also increased, which, according to the results of last year, amounted to 4.2 million tons and more by 40% in the indicator of 2018,” Atamkulov said.

Despite the general decline in economic activity due to the pandemic, the volume of cargo transportation in the Caspian direction is planned at the level of 2019 by the end of this year.

In order to increase cargo flow, projects are being worked out to open new sea lines with ports of the Caspian states, increase cargo transportation from the Caspian to ports on the Black Sea, and create a transport hub (container hub) based on the port of Aktau.

An additional impetus will also be given by the adoption by the end of this year of the Agreement on Shipping, signed in the framework of the Eurasian Economic Union, as well as the development of bilateral communication along the Irtysh River with Russia and China.

Over the past 7 years, transit passenger traffic increased by 45 times

Last year, more than 8.6 million passengers were transported, which is 9% more than the same indicator in 2018. The number of passengers served at the country's airports amounted to 17.7 million people, which is 12% more than in 2018.

At the end of last year, transit passenger traffic grew to 1 million passengers.

As part of the development of air transport infrastructure, the runway was reconstructed last year at the airports of Kostanay and Balkhash. Also, on May 1, 2019, the first domestic low-cost carrier Fly Arystan was launched.

Since November 2019, the open skies regime was introduced at 11 airports in Kazakhstan, within the framework of which it was planned to open 14 new international air routes.

Over the past 3 years, Kazakhstan and foreign air carriers have opened 19 new routes, including to Tokyo, Warsaw, Budapest, Helsinki and others.

For reference: In order to respond in time and prevent the further spread of coronavirus infection in the Republic of Kazakhstan, the State and Interdepartmental Commissions decided:

  • step by step, starting from Feb. 3, 2020, temporarily suspend 440 flights per week on international routes (from 442 to 2 frequencies) on 97 routes or 99% of all international flights (except Uralsk — Frankfurt and Atyrau — Amsterdam);
  • starting from March 22, 2020, phased-out suspension of 45 domestic routes that operated 540 flights a week (77 per day), complete termination from April 1 to May 1, 2020;

According to Atamkulov, during the coronavirus pandemic, the civil aviation industry became one of the most affected sectors of the economy, therefore, in order to reduce losses and bankruptcies of domestic airlines and airports, the government adopted a package of state support measures for tax breaks.

“For 4 months of this year the number of passengers carried amounted to 1.7 million passengers, this value is 23% less than the same period last year, the number of passengers served was 3.3 million passengers, and the number of transit passengers amounted to 120 thousand people,” the minister informed.

After improving the situation with the spread of the coronavirus pandemic, the ministry will work to resume and open new international air routes.

“This year we plan to launch a new international airport in Turkistan on the development of air transport infrastructure. Today, reconstruction of the runway of the airport of Ust-Kamenogorsk has begun,” Atamkulov said.

Also, the construction of a new airport terminal in Shymkent and the reconstruction of the airport terminal of the Uralsk city will continue. As part of the development of domestic tourism, if funding is allocated, reconstruction of two more airport runways in the cities of Urjar and Usharal will begin.

Since the beginning of this year about 25 thousand dwellings were commissioned

In order to improve the quality of life of the population, the ministry is implementing the Nurly Zher housing program.

“Over the past three years, 36.8 million square meters of housing or more than 330 thousand dwellings were built as part of the program. The rate of commissioning housing per inhabitant reached 0.71 square meters. This is the highest indicator among the countries of the Commonwealth of Independent States and is close to the level of developed countries. Last year, 13.1 million square meters were built. meters of new housing. 116 thousand families have improved housing conditions,’’ the minister informed.

Eleven thousand families in socially vulnerable situations and 3 thousand working youth in megalopolises are provided with social rental housing. About 10 thousand families purchased social credit housing at an affordable price. Five thousand families were able to purchase housing under the terms of the Baqytty Otbasy program. These are large families, single-parent families and families with disabled children.

This year, the implementation of the adopted directions continues. It is planned to build 15 million square meters of housing (150 thousand dwellings) and to cover with state support over 39 thousand families.

“Since the beginning of the year, residential facilities with an area of ​​3.1 million square meters have already been commissioned, this is about 25 thousand dwellings. This year, on behalf of the Head of State, we are launching a Shanyrak pilot project to solve housing issues for the waiting list. For this, 390 billion tenge is allocated, of which 180 billion tenge for the construction of 15 thousand apartments of social credit housing in the regions. 210 billion tenge are channeled through Housing Construction Savings Bank for lending to the waiting list under the terms 5-10-20 for the purchase of primary housing,” the head of the department said.

The program 5-10-20 is intended for the waiting list, who are next in line in akimats and have incomes of about three living wages for each member, that is, about 10 thousand tenge. The threshold amount of lending is provided in the cities of Nur-Sultan, Almaty and their suburban areas — not more than 18 million tenge. In the cities of Atyrau, Aktau, Aktobe, Shymkent, Turkestan and the Karaganda region — no more than 15 million tenge, in other regions — no more than 12 million tenge.

At the same time, to support the construction complex, measures are being taken to develop the domestic construction industry. Today, the market demand for construction products of basic materials in the construction of residential and industrial buildings, social facilities, infrastructure is 934 billion tenge.

“Domestic enterprises produce construction materials in the amount of 586 billion tenge, and imports 348 billion tenge. 33 new projects are being created for import substitution, of which 27 projects are being introduced in 2020. As a result, we plan to reduce the share of imports by 25% and increase the use of Kazakhstani content in housing construction to 90%,” Atamkulov said.

More than 300 projects are being implemented to ensure public access to quality drinking water.

One of the main things for the population is comfortable living conditions and quality utilities. To ensure public access to quality drinking water in cities and villages, 315 projects are implemented in the amount of 111 billion tenge.

For the modernization of housing and communal services and the existing housing stock, projects worth 19.2 billion tenge are being implemented.

In the current situation, the urgent task is the issue of reimbursement to citizens of the settlements where quarantine is introduced, the costs of utilities.

So, the categories of recipients are defined, according to the treatment of which today refunds of payments for utilities are made at the rate of 15 thousand tenge monthly for April and May.

“In general, the measures taken will increase the indicator of the population’s central water supply to 87.7% in villages and 97.5% in cities, as well as reduce the wear of communal networks to 55% and the proportion of houses requiring repairs to 22.2%,” noted the minister.

In addition, May 11, 2020, the president announced the introduction of a new ideology for reforming housing policy. The basic principle of the new housing policy is the availability of income and savings.

To do this, it is proposed:

  • to reform the existing priority system in akimats and develop clear criteria for the concept of “needing housing” to ensure equal access for all citizens to receive housing with the transfer of the accounting function to Housing Construction Savings Bank;
  • rebrand the housing construction savings bank and rename it to OTBASY BANK, creating on its basis the Center for First Housing.

“The proposed reform will create an equal and understandable environment where every working citizen can purchase housing. In order to increase the effectiveness of the management system for supervised sectors in 2019, we created the Project Management Department, the main tasks of which are the introduction of project management mechanisms and tools that cover all government projects, programs and strategic initiatives,” Atamkulov said.

This is not only about the SPIID, Nurly Zhol or Nurly Zher programs all the projects and initiatives implemented by the ministry are consolidated in a single system that allows not only keeping orderly records, but also reducing the unproductive burden on employees and contractors.

The minister also answered topical questions of the population regarding the development of various areas of the industry. So, when asked about the safety of elevators, Atamkulov said that now akimat experts have been given the status of state inspector for state supervision in the field of industrial safety at social infrastructure facilities.

Together with elevator associations, qualification and legal requirements to the persons certified for the right to work in the field of industrial safety have been created and agreed upon.

“Particular attention is paid to the issue of updating elevators in residential buildings. To date, the Ministry has approved 232 projects totaling 8.6 billion tenge. The implementation of all these measures in the complex will increase the reliability and safety of elevators for citizens,” the minister said.

When asked about the refund of money for a plane ticket, Atamkulov said that airlines were instructed to issue a refund of tickets without penalty and in full for flights during the state of emergency.

“Now it takes a certain amount of time and the airlines will necessarily return all tickets in the order of priority. There are also many intermediaries for the purchase of airline tickets, including aggregators aviata.kz, tickets.kz, travel agencies, etc., with which tickets are bought. I want to say that these companies are not under the control of our ministry and are subjects of private entrepreneurship. Moreover, there are cases when these aggregators are registered outside the Republic of Kazakhstan. Therefore, according to the current legislation, it is necessary to contact the judicial authorities to resolve civil issues with the said mediators,” he explained.

When asked about the shortage of coal, the minister emphasized that this year the heating season was completed successfully. In the past heating period, the municipal sector and the population were fully provided with coal products, about 11 million tons of coal were shipped, including about 8 million tons for the population.

To conduct the next heating period for 2020-2021, the ministry, together with local executive bodies, draws up a plan for the demand for coal products for household needs and the population, broken down by monthly demand by region.

Regarding the launch of international flights, a number of ministries were instructed to begin work on organizing activities to study the resumption of international flights in the following areas:

  • stage I in accordance with the classification of the level of the epidemiological situation according to COVID-19: China, South Korea, Azerbaijan;
  • stage II is determined by the level of epidemiological safety and it includes the following countries: Turkey, UAE, Germany, Thailand and the Czech Republic.

“Now we are working with the aviation authorities of these states on the possibility of restoring flights, and we are also working on the issue of coordinating the movement of our citizens and foreign citizens across state borders, as in some countries there is a ban on entry and exit. The chief sanitary doctor of the Republic of Kazakhstan monitors the situation in these countries and will take appropriate measures if the epidemiological situation worsens. I want to note that flights will not start immediately, but will be resumed as all authorities agree and depending on the epidemiological situation,” Atamkulov explained.

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Astana Finance Days: Experts on challenges and opportunities of Islamic finance and fintech industry in post-pandemic era
30 June 2020, 17:49
Prime Minister Askar Mamin holds session of Council of Eurasian Development Bank
30 June 2020, 16:45
Prime Minister of Kazakhstan Askar Mamin held a telephone conversation with Chair of the Russian Government Mikhail Mishustin
30 June 2020, 13:18
Annual demand for IT specialists reached over 30 thousand people — Ministry of Digital Development, Innovation and Aerospace Industry
30 June 2020, 11:18
AIFC proposes to create EduTech Center and Educational IT Alliance
30 June 2020, 11:08
By 2030, educational institutions of Kazakhstan will train over 3 million specialists of new formation — Ministry of Education and Science
30 June 2020, 11:06
Reduction in shadow economy in 2019 gave additional revenue of 1.5 trillion tenge to budget of Kazakhstan
30 June 2020, 10:54
Prime Minister Askar Mamin instructs to implement large-scale project ‘’Digital Bilim” to increase digital literacy
30 June 2020, 10:32
By 2025, shadow economy to be reduced to 20% of GDP — Ruslan Dalenov
30 June 2020, 10:12
97% of entrepreneurs switched to online cash registers — Ministry of Finance
29 June 2020, 18:59
How the Year of the Volunteer implemented, what kind of support the country's media receive and how civil society develops — Aida Balayeva reports to the public
29 June 2020, 17:12
Government session to be held June 30 in Ukimet Uyi
28 June 2020, 09:56
Video Digest: Main events of the week, No. 67
27 June 2020, 10:28
Prime Minister Askar Mamin congratulates media workers on their professional holiday
26 June 2020, 18:59
Bolat Tlepov appointed vice minister of information and social development of the Republic of Kazakhstan
26 June 2020, 18:49
Daniyar Yesin relieved as vice minister of information and social development of the Republic of Kazakhstan
26 June 2020, 18:14
Results in social sphere for 5 months of 2020: Restoring employment and providing new types of support
26 June 2020, 14:14
Azhar Giniyat appointed vice minister of healthcare of the Republic of Kazakhstan
26 June 2020, 14:12
Lyazzat Aktayeva relieved as vice minister of healthcare of the Republic of Kazakhstan
26 June 2020, 14:06
Marat Shoranov appointed first vice minister of healthcare of the Republic of Kazakhstan
26 June 2020, 13:39
Daniyar Vagapov appointed deputy chair of National Bank of Kazakhstan
25 June 2020, 19:05
Prime Minister Askar Mamin holds meeting of Commission on Digitalization under President of Kazakhstan
25 June 2020, 18:24
Prime Minister Askar Mamin introduces Minister of Healthcare Alexey Tsoy
25 June 2020, 08:58
Roman Sklyar discusses development of cooperation in agriculture with German companies
24 June 2020, 18:00
Prime Minister Askar Mamin holds meeting of Council on Transition to Green Economy under President of Kazakhstan
24 June 2020, 10:25
Roman Sklyar holds meeting of Project Office for Entrepreneurship
23 June 2020, 18:59
Gabidulla Ospankulov relieved as vice minister of information and social development of the Republic of Kazakhstan
23 June 2020, 13:18
In second half of 2020, Kazakhstan will continue to reduce oil production
23 June 2020, 12:58
Small and medium-sized enterprises can apply for new loan deferral — Madina Abylkassymova
23 June 2020, 10:59
Prime Minister Askar Mamin congratulates civil servants of Kazakhstan on their professional holiday
23 June 2020, 10:24
Prime Minister Askar Mamin congratulates police of Kazakhstan on their professional holiday
23 June 2020, 10:21
Prime Minister Askar Mamin instructed to ensure readiness for heating season
23 June 2020, 10:11
Government adopts measures to improve business climate in Kazakhstan
23 June 2020, 10:08
Beibut Atamkulov on heating season: Particular attention will be paid to preparing health facilities and residential buildings
23 June 2020, 09:57
As part of preparations for autumn-winter period, country plans to repair 8 power units, 59 boilers, 44 turbines — Ministry of Energy
23 June 2020, 09:34
Production of small and medium-sized businesses amounted to 31.2 trillion tenge in 2019 — Ministry of National Economy
22 June 2020, 17:03
Government session to be held June 23 in Ukimet Uyi
22 June 2020, 15:21
Prime Minister Askar Mamin introduces First Vice Minister of Healthcare Alexey Tsoy
22 June 2020, 13:38
Ruslan Abdikalikov appointed chair of Information Security Committee of Ministry of Digital Development, Innovation and Aerospace Industry
22 June 2020, 12:15
Prime Minister Askar Mamin reports on government’s work at joint session of Chambers of Parliament
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