Skip to Content

Thursday, February 21st, 2019

B. Sultanov: 421 targets were privatized in Kazakhstan during the half-year


Today’s meeting of the Government of the Republic of Kazakhstan under the chairmanship of Prime Minister Bakytzhan Sagintayev covered the process of privatization.

According to Minister of Finance B. Sultanov, data for the first half of this year shows that out of 887 privatization targets of the Comprehensive Plan 502 were put up for privatization, 421 of them were sold for the amount of 216 billion tenge. There are 266 facilities in the process of reorganization and liquidation; the level of implementation of the Comprehensive Privatization Plan, taking into account the reorganized and liquidated targets, is 77.4%.

104 privatization targets were scheduled for the first half of this year. In fact, 89 were put up and 15 were deemed to be subject for reorganization and liquidation. Of the targets put up, 39 were sold for a total of 36 billion tenge, � Minister B. Sultanov reported.

In addition, of the 63 top-end privatization targets of the Comprehensive Plan, 15 have been sold for the amount of 110.5 billion tenge. 39 top-end targets are planned to be sold this year, of which 8 were put up in the first half of the year, including 2 sold. The remaining facilities are at the stage of pre-sale preparation and negotiations with potential buyers.

B. Sultanov also specified that, based on the results of the inventory, additional 38 facilities under communal ownership and SECs will be included in the list of privatization targets, for which the relevant sellers urgently need to take measures to compile and submit to the Roadmap Register.

In general, the privatization process is in line with sales schedules. Until the end of this year, 87 facilities are to be put up, including 20 facilities under republican ownership; 31 municipally owned facilities and 36 assets of the quasi-public sector, � B. Sultanov added.

In his turn, Minister of National Economy T. Suleimenov said that within the framework of the ongoing work on the implementation of the Comprehensive Privatization Plan for 2016-2020, in conjunction with the Fund, a package of amendments to the Law “On the Securities Market” is being developed to ensure that the Fund’s companies are put up for IPO.

The changes are aimed at removing legislative restrictions that impede the public offering of shares of national companies that are members of the Fund group. To date, the amendments are under consideration by state bodies and the National Bank, � T. Suleimenov said.

Meanwhile, T. Suleimenov noted the expansion of the list of organizations subject to privatization. Thus, according to the instruction of the Head of State given within the framework of this year’s Address New Development Opportunities in the Conditions of the Fourth Industrial Revolution, work continues on inventorying the state and quasi-public sector facilities. The Ministry drafted a resolution providing for the introduction of amendments to the Comprehensive Privatization Plan for 2016-2020, in terms of increasing the number of organizations subject to privatization by 38. At present, the draft resolution is being approved by the state authorities.

Deputy Chairman of the Board of JSC National Welfare Fund Samruk-Kazyna A. Aydarbayev informed that within the framework of the implementation of the Comprehensive Privatization Plan, as of July 1, 2018, the Fund sold 80 assets worth 139.78 billion tenge, and 64 assets was are subject to liquidation or reorganization.

JSC Transtelecom, LLP Aktau Oil Equipment Plant, Kazakh Academy of Transport and Communications named after M. Tynyshpayev (Almaty), as well as 8 of its subsidiaries, including colleges in different regions of the country, KazMunayGas-Service (Georgia), Borjomi Likani International, Kaskor-Trans Service, SemurgInvest TemirZholy were sold in 2018. Pre-sales preparation and evaluation of such large assets as airports in Aktobe, Atyrau and Pavlodar are underway. With regards to Kazmortransflot and KBTU, approaches have been coordinated and tenders are expected to be held soon, � A. Aydarbayev said.

In addition, special attention is paid to the possible IPO of the largest national companies. 3 out of 6 candidate companies are already preparing for possible IPO deals, such as Kazakhtelecom, Kazatomprom and Air Astana.

Chairman of the NMH Baiterek JSC A. Arifkhanov said that the holding includes the sale of 7 subsidiaries of JSC “Investment Fund of Kazakhstan” (IFK), 8 subsidiaries of JSC “National Agency for Technological Development”, as well as JSC “National Agency for Technological Development” and JSC Zhilstroysberbank of Kazakhstan.

To date, the procedure for privatizing the assets of the Investment Fund of Kazakhstan is almost complete. Of the 7 privatized assets of IFK, 5 has been sold, liquidation procedures are being carried out for 2 assets, � A. Arifkhanov said.

According to him, in order to find an investor for Zhilstroysberbank, the financial consultant conducts negotiations with 11 international companies. It is expected that the pre-investment expertise on privatization will be continued in accordance with changes in the market and the introduction of the necessary amendments to the Law “On Housing Construction Savings”, scheduled for September 2018.

Chairman of the Board of NMH KazAgro R. Kurmanov said that within the framework of the Comprehensive Privatization Plan, the holding plans to sell 20 assets.

In 2018, it is planned to sell 3 assets from the list of TOP-68 to strategic investors: KazAgroFinance JSC, KazAgroProduct JSC, and Kazagromarketing JSC. With regards to 17 affiliated organizations of the Holding, shares in 5 companies were sold: LLP AgroExport LTD, LLP AgroTradeExport, MCO Makhambet, MCO Zhiger Yesil, and LLP KazBeef LTD, � R. Kurmanov reported.

Source: Government of the Republic of Kazakhstan