Kazakh privatisation on schedule, says committee chairperson

ASTANA – Kazakhstan’s second privatisation wave is 77.4 percent complete. As of July 1, results show 502 of 887 state-owned enterprises were put up for sale and 421 sold for 216 billion tenge (US$620.24 million).

Bakhyt Sultanov. Photo credit: primeminister.kz.

Fifteen of 63 top-ranking resources of the 2016-2020 Comprehensive Privatisation Plan were sold for 110.5 billion tenge (US$317.3 million), including two national company objects worth 11.5 billion tenge (US$33.02 million) and 13 national holding objects worth 99 billion tenge (US$284.25 million).

The selling prices exceeded estimated value by 1.4 percent. Twenty-nine national property objects were sold for 26 billion tenge (US$74.65 million), 229 communal property objects for 49 billion tenge (US$140.69 million) and 163 national holding and company objects for 141 billion tenge (US$404.84 million).

“The bulk of the funds, approximately 65 percent, from the sale of objects is made up by the selling price of national companies and holdings. These are mostly proceeds, approximately 132 billion tenge (US$378.99 million), from the sale of Samruk Kazyna assets,” said Ministry of Finance State Property and Privatisation Committee Chairperson Kalymzhan Ibraimov at a recent Central Communications Service briefing.

Another 266 facilities are at the reorganisation and liquidation stage due to the economic inexpediency of their sale and insolvency. One hundred and four objects were planned for privatisation in the first half of the year. Instead, 15 objects were reorganised and liquidated and 89 put up for sale, 39 of which were sold for 36 billion tenge (US$103.36 million).

Twelve object-related violations have been recorded: four for delaying pre-sale preparation and evaluation, six for delaying liquidation measures and two for not yet including objects in the roadmap.

Despite these setbacks, the privatisation process is in accordance with the sales schedule. By year’s end, 87 more objects will be put up for sale, including 20 nationally-owned objects, 31 communal property objects and 36 quasi-public sector assets.

Minister of Finance Bakhyt Sultanov noted there is growing interest from private firms and the population in the available state assets. Privatisation decisions will be made on Air Astana, Kazakhtelecom and Kazatomprom in the coming year.