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. Sultanov: The privatization process continues in an orderly manner – 397 facilities have been sold

by April 10, 2018 Legal

Today’s Government meeting chaired by Prime Minister Bakytzhan Sagintayev has covered the progress of privatization.

Minister of Finance Bakhyt Sultanov reported on the results of the implementation of the Comprehensive Privatization Plan for the first quarter of this year. According to him, at present the web portal of the State Property Register contains full information on 877 facilities of the Comprehensive Privatization Plan for 2016-2020.

In total, with regards to the Comprehensive Privatization Plan, 482 facilities were put up during its implementation, of which 397 facilities were sold for a total of 199 billion tenge. In addition, 274 facilities are in the process of reorganization and liquidation. Thus, to date, taking into account the reorganized and liquidated facilities, the level of implementation of the Comprehensive Privatization Plan is 76%, � Bakhyt Sultanov said.

In the current year, 265 facilities are planned for sale, including 40 facilities in the first quarter. According to the Ministry of Finance, as of the end of the quarter, 45 facilities were put up, of them 20 facilities worth 19 billion tenge were sold. A decision was made to liquidate 10 facilities.

Of the total number of 71 top-priority facilities to be privatized, 13 have been sold for the amount of 95 billion tenge. With regards to 7 assets of NWF Samruk-Kazyna, a decision was made on a package sale in conjunction with parent companies. 40 top facilities are planned for sale this year.

In pursuance of the instructions of Prime Minister Bakytzhan Sagintayev given at the meeting of the Government of the Republic of Kazakhstan on 16.01.2018, regarding the elimination of violations that slow the course of privatization, information on these violations was published on the Internet news websites. Also on the banner “The Second Wave of Privatization” of the web portal of the State Property Register, a separate column is highlighted in red, which shows facilities and sellers who committed violations.

In addition, the Ministry of National Economy proposed a block of amendments to the Law “On State Property”, which improve the process of privatization.

In general, the process of privatization continues in an established manner, the tasks and objectives of privatization are defined. The Ministry of Finance, in turn, through the implemented electronic monitoring system, constantly monitors the privatization process and, if necessary, takes appropriate measures, � Bakhyt Sultanov summed up.

Minister of National Economy Timur Suleimenov, in turn, dwelled on proposals aimed at improving the effectiveness of the implementation of the Comprehensive Privatization Plan. These are the strengthening of post-privatization control, the introduction of changes to the law “On State Property” in the part of granting the right to sell assets subject to privatization for no less than the starting price to a single participant in the first auction, the possibility of transferring social facilities under national and quasi-public ownership to the private sector using PPP mechanisms.

According to the instruction of the Head of State given within the framework of this year’s Address, work continues on inventorying assets of the state and quasi-public sector. The results of this work will be presented in August 2018, following which the list of facilities of the Comprehensive Plan will be updated, � Timur Suleimenov summed up.

Deputy Director of the Samruk-Kazyna Fund Alik Aydarbayev told about the work carried out by the Fund within the framework of the Comprehensive Privatization Plan.

According to him, within the framework of implementation of the resolution of the Government of the Republic of Kazakhstan, the Fund plans to sell 214 assets, of which, as of April 1 of this year, 76 assets were sold for a total of 122.88 billion tenge, 64 assets were transferred for liquidation or reorganization.

61 assets are planned to be sold by the end of 2018. 11 of them have been sold since the beginning of the year, contracts are being finished up for 16. Another 16 passed the state commission and were put up for sale, 18 were prepared for going through the state commission.

As a result, by the end of 2018 the number of enterprises within the fund should be reduced to 300. Before 2020, 7 large assets are planned to be sold (Kazakhtelecom, Kazatomprom, Air Astana, KazMunayGaz, Samruk-Energy, Kazpost, and KTZ), 3 of which are already preparing for possible IPO / SPO transactions (Kazakhtelecom, Kazatomprom, Air Astana).

Chairman of the Board of NMH Baiterek Aidar Arifkhanov reported on the sale of Baiterek assets. To date, out of 17 companies of the holding included in the Comprehensive Privatization Plan, 5 were sold to private investors, 6 companies are being liquidated. Negotiations are ongoing on the remaining 6 assets.

Chairman of the Board of NMH KazAgro Nurlybek Malelov noted that within the framework of the sale of assets, it is planned to place 3 subsidiaries and 18 affiliated companies of KazAgro in the competitive environment.

In 2018, it is planned to sell 3 assets from the list of Top-68 to strategic investors, � Nurlybek Malelov said.

During the consideration of the issue, comments were added by Akims of North Kazakhstan region K. Aksakalov, Akmola region � M. Murzalin, the city of Astana � A. Issekeshev.

Source: Government of the Republic of Kazakhstan