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Monday, September 16th, 2019

Comprehensive Privatization Plan implementation reaches 77.4%

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Minister of Finance Bakytzhan Sultanov and Minister of National Economy Timur Suleimenov have reported on the course of privatization during the Government session. They have presented results concerning the implementation of the Comprehensive Privatization Plan for 2016-2020. According to Bakytzhan Sultanov, taking into account the reorganized and liquidated objects, implementation of the Comprehensive Privatization Plan reaches 77.4%.

104 objects have been planned to be put up for sale in the first half of this year. In fact, 89 objects have been put up. 15 objects have been decided to be reorganized and liquidated. 39 objects amounting to 36 billion tenge have been sold, B. Sultanov reported.

Out of 63 top objects of the Comprehensive Plan, to date 15 have been, amounting to 110.5 billion tenge.

This year 39 top facilities are planned to the realization, of which 8 are exhibited in the first half of the year, including 2 sold objects. The remaining facilities are at the stage of pre-sale preparation and negotiations with potential buyers, the Minister of Finance said.

The Minister noted that there were problems with four top facilities of the country’s property, because the state bodies had failed to implement the necessary measures for the sale or recommendations of the privatization commission. These are the objects of the Ministry for Investment and Development, the Ministry of Defense and Aerospace Industry, the Ministry of Culture and Sport and the Ministry of Education and Science.

As a result, there is a risk of unrealization of these 4 objects this year, although the Ministry of Finance has repeatedly indicated to state bodies the need to speed up the privatization procedures, B. Sultanov explained.

Also the Minister added that there are problems slowing down the course of privatization in some regions of the country. It is about 12 objects, including 4 objects where the Governor’s Office of Almaty region (3) and SEC Astana (1) delay the pre-sale preparation and evaluation of the objects; 6 objects in the part of delaying liquidation measures Governor’s Office of East Kazakhstan region (1), Mayor’s Offices of Almaty (1) and Astana (1) cities, Samruk-Kazyna (3); in terms of 2 objects a road map with a plan of measures for privatization has not yet been adopted – Aktobe region (1), SEC Astana (1).

In regards to 35 objects, sellers did not correct road maps concerning the timing of the auction, as well as there are no relevant measures or they are not timely executed, the Minister of Finance stated.

On top of all of this, Bakytzhan Sultanov noted that additional 38 objects of the municipal property and the SEC will be included in the list of privatization objects according to the results of the inventory.

In this connection, the Minister gave some instructions to the central state and local executive bodies, national holdings and companies, which includes to speed up the sale of the Comprehensive Plan’s objects; to take measures in order to eliminate problems identified by monitoring results; to exercise constant control over the realization of the implementation schedules of the facilities; to take the necessary measures for subordinate top facilities for their timely listing for sale or the implementation of recommendations of privatization commissions by the Ministries for Investment and Development, Defense and Aerospace Industry, Culture and Sport, Education and Science; to make a proposal for punishment of responsible executors in case of not timely execution of the Roadmap activities for 9 months.

In turn, Minister of National Economy Timur Suleimenov stressed that at the meeting of the Security Council of Kazakhstan held on May 30, 2018 the Head of State instructed to ensure the implementation of the Comprehensive Privatization Plan for 2016-2020 until the end of this year.

However, according to the Sales Schedule for 2018, 62 objects of privatization put up for sale account for the fourth quarter of this year (including 47 objects in December), which puts at risk the failure to fulfill the instructions of the Head of State upon completion of the privatization program until the end of 2018, T. Suleimenov said.

In this regard, according to him, it is necessary for the Ministry of Finance of Kazakhstan, in conjunction with the state bodies, national holdings and companies, to review road maps of privatization and postpone the sales dates for September-October of this year.

It should be noted that according to the Comprehensive Plan of Privatization for 2016-2020, 502 objects out of 887 objects were put up for sale, 421 of them totaling 216 billion tenge were sold. 266 facilities are at the stage of reorganization and liquidation.

Source: Kazakhtan 2050

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