Economic News in Brief

Chairman of the Board of the Development Bank of Kazakhstan (DBK) Bolat Zhamishev and Chairman of China Development Bank (CDB) Zheng Zhijie discussed the most promising areas of cooperation between the two financial institutions at Aug. 27 talks in Astana. Zhamishev and Zhijie expressed mutual interest in the speedy implementation of the general agreement to open a $500 million credit line, which was concluded between the two banks in May. DBK said that loans totaling $300 million on the previously-signed three loan agreements with CDB were fully utilised, namely to finance the implementation of projects in the areas of electric power, metallurgy, transport and textiles. In addition, during the meeting, Zhamishev informed his Chinese counterpart about funding opportunities in Kazakh projects in non-oil sectors of the economy and infrastructure. The current portfolio of potential projects of DBK exceeds 1 trillion tenge (US$5.5 billion).

 

“Samruk Kazyna intends to privatise its assets in conditions of maximum transparency,” Deputy Chairman of the Board Yelena Bakhmutova said at an Aug. 29 public meeting for potential investors centering on the participation in the privatisation programme for 2014-2016. “As it is known, in accordance with the request of the head of state Samruk Kazyna will wholly or partially sell 106 assets in a competitive environment in 2014-2020. Of those, 64 companies are planned for sale in 2014, one of which will enter the people’s IPO; the other companies should be sold through a bidding process,” she said. As Bakhmutova said, the Samruk Kazyna National Welfare Fund is committed to the privatisation of its assets in conditions of maximum transparency and based on this reasoning, the sale of assets is being held through the web portal gosreestr.kz, the electronic trading platform of state property. “Only a part of the fund’s assets will be sold through a two-stage tender and only if it somehow poses a threat to national security. Notification of the auction with all necessary information about the assets will be published on the web portal of the state property,” she added. According to her, Samruk Kazyna began to systematically inform the public about the programme since its inception and will continue this campaign until the last asset is sold. Currently, the group of companies within the Samruk Kazyna privatisation sold three objects for the sum of 835.8 million tenge (US$4.6 million). At the same time, the companies were sold at a price that exceeds the total estimated costs by 1.8 times.

 

The national railway company Kazakhstan Temir Zholy realised assets within the second privatisation wave. At an Aug. 29 meeting with the heads of the Samruk Kazyna group of companies, three railway enterprises were presented to potential investors, the company’s press service reported. Kazakhstan Temir Zholy started implementation of a comprehensive plan of privatisation for 2014-2016, developed in accordance with the assignment of the head of state. Kazakhstan Temir Zholy vice president for economy and finance Almas Lepesbayev provided information on the activity of Yertys Service LLP in Pavlodar, Kazykurt-South LLP in Shymkent and Bas Balkhash 2004 LLP in Balkhash. Yertys Service LLP and Kazykurt-South LLP are noted to be operating on the market in preparation of a rolling stock for loading oil freights. The enterprises have all the necessary capacities for steaming, washing, preparing cars for loading oil and oil products, carrying out the current uncoupling repair of freight cars and preparing tanks for repair. Maintenance of locomotives is a primary activity of Bas Balkhash 2004 LLP. Hundreds of locomotive units are annually brought to the enterprise for service and repair, with more than 250 delivered in 2013. Besides, the staff of the company is engaged in production of spare parts for a traction rolling stock and renders services in survey, repair and maintenance of wheel couples. The indispensable condition of selling the enterprises to potential owners is the preservation of a profile of activity and workplaces, providing performance of obligations according to the collective agreement signed for one year with the labour collective. Lepesbayev assured potential investors of Kazakhstan Temir Zholy of its readiness for mutually beneficial cooperation and hoped for success in the privatisation campaign implementation.

Get The Astana Times stories sent directly to you! Sign up via the website or subscribe to our Twitter and Telegram!