Fulfillment of President's instructions: Kazakhstan plans to develop list of state support measures for single-industry towns

At the government session chaired by Prime Minister of Kazakhstan Alikhan Smailov, the implementation of the National Project "Strong Regions - the Driver of Country's Development" was considered. Reports on the directions of the project were presented by Minister of National Economy Alibek Kuantyrov, Minister of Industry and Infrastructure Development Kairbek Uskenbayev, Minister of Labor and Social Protection of the Population Tamara Duisenova.

As Minister of National Economy Alibek Kuantyrov noted in his speech, the National Project "Strong Regions - the Driver of Country's Development" will be implemented to ensure equal access of population to basic services, improve housing and communal conditions, transport connectivity and increase transit potential of the country.

The National Project is being implemented in 2 areas: "Equal access to basic services" and "Ensuring transport connectivity".

There are 4 tasks, 20 indicators and 96 measures. According to the minister, the total amount of financing of the National Project activities for 2021 amounted to 1,5 trillion tenges, including 1,1 trillion tenge from the national budget. The implementation amounted to 1.4 trillion tenge or 93 percent.

 

"In 2022, 1.8 trillion tenge is planned for the implementation of the National Project, of which extra-budgetary funds — 709 billion tenge," Kuantyrov reported.

According to him, as of Aug. 1, 2022, 528 billion tenge, or 30%, had been utilized. The implementation of the National Project in 2021 allowed to achieve the following results: the indicator of providing population with drinking water was 96%, deterioration of engineering and transport infrastructure in mono- and small towns was reduced from 57.6% to 45.5%, 17.1 million sq. m of housing was commissioned, the share of roads of national importance was increased to 90% and that of local roads - to 80%.

About 112,000 permanent and temporary jobs were created. In this case, 4 of 20 planned indicators for 2021 were not executed, including commissioning of housing, volume of transit through the territory of the Republic of Kazakhstan, container traffic in the Trans-Caspian direction and granting of budgetary credits under the project "With a Diploma – To the Village". The main reasons for non-fulfillment of indicators are increasing cost of projects and adjustment of design and estimate documentation, as well as restrictive measures against the background of COVID-19 and others.

This year, further implementation of the National Project activities to achieve the corresponding indicators is continuing. As noted by the Minister, the following activities are assigned to the Ministry of Economy under the National Project:

Modernization of villages under the "Auyl - El Besigi" project.

In 2021, 480 villages were covered. 2.9 thousand km of engineering networks and roads and more than 300 social facilities were built and repaired.

This year the national budget allocated 128 billion tenge for implementation of 1,056 projects in 576 villages, including 91 projects in the area of housing and communal services, 454 in social infrastructure and 511 in transport infrastructure. As of Aug. 1, 2022, akimats have assimilated 52.2 billion tenge or 40.8% of the annual plan. The least disbursement of funds was identified in Karaganda region.

Under the project "With a Diploma – To the Village" in 2021, 4.3 thousand specialists received budget loans for the purchase of housing.

"This year, 20 billion tenge was allocated from the national budget to purchase housing for 4,300 specialists. As of Aug. 1, 2 thousand specialists received housing," Kuantyrov reported.

According to him, in order to coordinate and take new measures for the development of rural areas, the Ministry is developing a concept for the development of rural areas.

"The concept will contain comprehensive measures for the development of infrastructure, entrepreneurship, agro-industrial complex, as well as to improve human resources, increase public access to the Internet and a number of other measures," said Kuantyrov.

The document, he said, will provide target parameters for each of the above-mentioned areas with the identification of responsible government agencies.

To develop infrastructure in mono-and small towns in 2022, 25.8 billion tenge for the implementation of 57 projects in 28 mono-and small towns were allocated.

As of Aug. 1, 2022, akimats assimilated 9.2 billion tenge or 35.8% of the annual plan. The least disbursement of funds was in Pavlodar and Almaty regions.

As Kuantyrov reported next, by the order of the Prime Minister Smailov, the Ministry is developing a road map for an integrated approach to the development of single-industry towns, as well as for the systematization and implementation of new measures.

The road map provides for the development of the Unified List of measures of state support for single-industry towns, comprehensive plans for socio-economic development, creation of industrial zones and territories of advanced development, etc.

All of the above proposals for the development of villages and single-industry towns have been sent to the relevant government agencies and regions for consideration.

"In general, the activities of the National Project ‘Strong regions - the driver of the country's development’ are implemented in accordance with the approved schedule and are under the constant control of the Ministry", summarized Kuantyrov.

18.4 million Kazakhstanis were provided with access to water services last year

The Minister of Industry and Infrastructure Development Kairbek Uskenbayev spoke about the activities carried out during the implementation of the national project. According to him, the Ministry of Industry and Infrastructure Development is responsible for implementation of 88 activities within the project, aimed at achieving 14 indicators on 4 key tasks.

According to the results of the last year, the following key indicators were achieved: access to water services was provided for 18.4 million (when the plan was to provide 18.2 million people); a 100% supply of water was provided in Atyrau and Kyzylorda cities. While the plan was 74.9%, the level of sewage treatment in the cities was 75.7%.

The planned indicators on the level of provision of household heat and water meters and on the commissioning of 17 million square meters of housing were fulfilled in full (the fact is 17.1 million square meters).

"The share of roads of republican and local importance in normative condition was 90% and 80% respectively (the plan was fulfilled by 100%). At the same time, the positive results of Mangystau and Zhambyl regions should be noted, where the share of local roads in standard condition is 95%", reported Uskenbayev.

According to him, the value of the following indicators were reduced:

  • the share of passenger cars with a service life of over 25 years to 40.9%, while the plan was 42.7%;
  • depreciation of the technical fleet to 68% (the plan was fulfilled by 100%).

At the same time by the end of 2021 three indicators were not achieved.

First. The commissioning of 163.1 thousand dwellings. Failure to achieve the planned indicator of the total volume due to the difference in the base area per 1 unit of housing.

Thus, according to statistical data, under the plan of 6.8 million square meters, 7 million square meters of housing was built.

"That is, in the indicative calculation of the area per unit of housing, individual development with a plan of 140 square meters amounted to 173 square meters, which led to a reduction of housing from the planned 48.7 thousand to 40.7 thousand homes," said Uskenbayev.

In a similar situation, according to him, is the volume of apartments in apartment buildings.

It was planned to build 114.4 thousand dwellings (10.2 million square meters), where the average area of one apartment was estimated at 90 square meters. 108.7 thousand dwellings were built (9.8 million square meters) with an average area of 110 square meters per apartment.

Second. On the growth of the volume of transit through the territory of the Republic of Kazakhstan.

"Failure to achieve the planned value of 25.3 million tons is due to the introduction of strict sanitary restrictions by the People's Republic of China, which reduced the capacity of border railway crossings by 2 times," reported Uskenbayev.

Third. These circumstances also affected the achievement of the Trans-Caspian container flow increase. With the plan of 45 thousand TEU, the actual execution was about 41 thousand TEU.

"As of Aug. 1, 650.1 billion tenge was allocated for the implementation of the National Project this year, of which the national budget was 440.4 billion tenge, extrabudgetary funds were 155.8 billion tenge and the local budget was 53.9 billion tenge. The entire budget was utilized in full according to the plan," reported Uskenbayev.

In terms of achieving the objectives, the situation, according to him, is as follows.

For the task "Integrated Infrastructure Development" 79.3 billion tenge or 99% of the plan has been mastered. Funding has been secured for:

  • construction and reconstruction of water supply and sewage systems in urban and rural areas;
  • installation of integrated block-modules for water treatment in rural areas;
  • construction and reconstruction of sewage treatment facilities in urban areas;
  • storm sewers and ditches.

249.8 billion tenge was spent on the "Zhaily Turgyn Uyi" task, which was aimed at:

  • granting a budget loan to Otbasy Bank JSC for the subsequent issuance of loans at 2%;
  • development and arrangement of engineering and communication infrastructure in the areas of housing development;
  • construction (purchase) of housing of communal housing fund;
  • subsidizing a portion of the fee for rented housing for socially vulnerable groups of the population;
  • financing the construction of social credit housing from extrabudgetary funds.

For the task "Development of Internal Transport Network" 301.2 billion tenge was allocated.

The funds are aimed at the construction, reconstruction and repair of roads of national and local importance.

Under the task "Improvement of Connectivity of Territories" 19.2 billion tenge was used, aimed at:

  • construction of 40 technical fleet vessels;
  • overhaul of 3 navigation locks.

Extra-budgetary funds are used to:

  • rebuild the terminal complex of Uralsk airport in the West Kazakhstan region;
  • build a new terminal of the Almaty airport.

"By the end of this year, 18.6 million people will have access to water supply services, the level of wastewater treatment in the cities will be brought to 77.5%, the provision of in-house heat and water meters will be brought to 76%. The volume of housing will be 15.1 million square meters," assured Uskenbayev.

According to him, the quality of roads in a standard state by the end of the year on the national network will be brought to 91% and the local network to 85%.

Modernization of ground infrastructure of airports in Shymkent and Kostanay will be carried out. Also this year the work on construction of a new passenger terminal at Almaty airport has started. Depreciation of the technical fleet will be reduced to 66%.

"Ensuring the implementation of the national project is carried out in accordance with the approved plan and is under constant control. All planned values will be fulfilled by the end of this year," assured Uskenbayev.

According to the results of 7 months of this year, 296 thousand people were employed.

In turn, the Minister of Labor and Social Protection of the Population Tamara Duisenova reported on the measures taken to increase employment and labor mobility of citizens as part of the national project.

According to her, according to the results of 7 months of this year, 296 thousand people were employed, including

  • 153,000 or 52% for current employer jobs
  • 122,000 jobs subsidized by the state
  • 20,000 jobs within the framework of national projects.

55% of all employed citizens, or 163,000 people received permanent jobs.

On the instructions of the Prime Minister Smailov, employment figures were fully digitized.

"Today the monitoring of work in the regions is carried out electronically. Regional data on employment are analyzed on the basis of income from mandatory pension contributions," reported Duisenova.

According to her, pension contribution revenues account for

    • 81% of those sent to state-subsidized jobs,
    • 65% of those employed in current jobs by employers.

And only 38% of the 20,000 citizens employed in national projects have pension contributions.

The lowest indicator in this area is 2.4% in Mangystau region, 9.2% in West Kazakhstan region, 18.5% in East Kazakhstan region.

"Akims of regions and cities should pay attention to the small number of new jobs created under the national project and the low level of pension contributions," Duisenova said.

Next, the Minister noted another important direction in the national projects — increasing labor mobility. To this end, measures for the voluntary resettlement of citizens are implemented.

"To date, 1,147 families with 3,800 residents have been resettled in the designated areas. This is 47% of the planned figures for this year. Among the resettled 540 people are compatriots who arrived from abroad (kandas)," reported Duisenova.

According to her, in the territorial division, Kostanay and East Kazakhstan regions achieved high rates of admission of Kandas and migrants, Karaganda and Ulytau regions lag behind.

About half of the resettlers or 44% are young people under the age of 29 years old with high potential for their development. In this direction, the Minister noted the effective actions of Akimats of Turkistan and Almaty regions, whose initiatives contributed to the resettlement of about 2,000 citizens.

"However, demographic changes in the country and the new geopolitical situation indicate the need to revise the migration policy. Therefore, the Ministry developed the concept of migration policy ‘Open Kazakhstan 500+,’ aimed at supporting the human resources for the country's economic development," Duisenova reported.

According to her, the main goal of internal migration is not to relocate citizens, but to attract citizens by opening jobs in labor-deficient regions and solving the interregional imbalance of the labor force.

These approaches were approved by the Supreme Council for Reforms under the President of the Republic of Kazakhstan. Currently, the draft concept is being coordinated with the regional akimats and will be submitted to the government for consideration in September.

During the meeting of the Government, the Akim of Karaganda Region, Zhenis Kassymbek, also made a report on the subject.

In the framework of the national project "Strong Regions - the Driver of Country's Development" since the beginning of the year, 47 projects in 26 rural areas worth 5.4 billion tenge, including from the national budget of 4.4 billion tenge have been implemented under the program "Auyl - El Besigi" in the Karaganda region.

"Most of the projects are new so the bulk of the funding plan was for the month of November, August-September and October. The bidding procedures have been completed. A certain amount of work has been done. The works are being performed at a good pace, all funds will be completely used by November," said the head of the region.

According to the akim of the region, since the beginning of the year, the total funding for the National Project "Strong Regions - the Driver of the Country's Development" in the region amounted to 14 billion tenge or 97.5% of the plan for the first half of the year.

Within the limits of execution of the task on complex development of infrastructure for provision of equal access of the population to basic services last year, 198 km of water supply, sewerage and 30 km of heating networks were built and reconstructed.

The akimat plans to build and reconstruct 238 km of water supply and sewerage networks this year, which will provide 98.5% of the urban population and 92.4% of the rural population with quality drinking water, or 100% of the plan.

To diversify the economy 14 anchor projects totaling 214.3 billion tenge are being implemented in five single-industry towns, creating 2,806 jobs.

"In 2021, 245 specialists received budget loans for the purchase of housing under the project "With a Diploma – To the Village" in the amount of more than 1 billion tenge. This year, 338 specialists will receive loans worth 1.5 billion tenge, currently 122 specialists received housing. In the framework of the realization of the task "Zhaily Turgyn Uyi" for the half-year, 207 thousand square meters of housing was built, leading to an increase of 15%. By the end of the year we plan to introduce 600 thousand square meters of housing," said the Akim of Karaganda Region Zhenis Kassymbek.

The head of the region also said that in order to ensure transport connectivity this year, 470 km of local roads, including in mono- and small towns will be repaired almost 40 km of roads with 28 km of the plan.

"This will bring 89% of the roads to a normal condition. In general, 6.3 thousand jobs will be created this year within the framework of the National Project ‘Strong Regions - the Driver of the Country's Development’. The work on implementation of the National Project continues," summed up Zhenis Kassymbek, the akim of Karaganda Region.

In turn, Akim of North Kazakhstan region Kumar Aksakalov reported on the results of employment of migrants from other regions of Kazakhstan.

More than 11 thousand citizens have arrived in the region since 2016. North-Kazakhstan region showed leading results, accepting the most displaced families among other regions of arrival.

"Since 2016, 3.7 thousand out of 4.6 thousand able-bodied people were employed. 490 families opened their own business and received grants and loans worth 270 million tenge. Thus from businessmen for 5 years it was received about 100 million tenge of tax deductions," the head of region reported at session of the Government.

According to the plans of the regional Akimat, it is planned to accept 2,556 people in 2022. Since the beginning of the year, 1,320 people or 52% of the quota have already arrived, including 500 able-bodied people.

From words of the North Kazakhstan Region Akim, for today 51 people are employed as teachers, 30 people are medical workers, 45 people are mechanics and veterinarians, 174 people are employed in the sphere of services and trade. With the rest the work on employment continues.

At the same time about 200 people expressed their readiness to start their own business. It should be noted that for support of business ideas of resettled citizens, 3 billion tenge were envisaged. As the head of the North Kazakhstan Region noted, at the moment 100 people have already received state grants. 

"At the same time, to increase the mechanism of control it is proposed to increase the period of validation to 3 years. This will allow more effective use of state support measures," concluded his report Akim of North Kazakhstan region Kumar Aksakalov.

At the meeting of the Government, Deputy Akim of West Kazakhstan region Bakytzhan Narymbetov also reported on on the current state of the road bed in the region.

The length of roads in West Kazakhstan Region and regional roads is 4,762 km, of which only 39% or 1,875 is in standard condition.

"Taking into account the lowest indicator of local roads in the country, with your support and the relevant ministry the amount of funding this year compared to previous years has increased by more than 2 times and amounted to about 27 billion tenge and 60 projects will be implemented, 360 km of roads to 94 rural settlements will be covered by repair work," said the Deputy Akim of West Kazakhstan region.

To increase the share of local roads in good condition up to 95% by 2025, Akimat of the region developed and on the stage of designing more than 100 projects totaling 92 billion tenges. And with the annual appropriate funding it is planned to achieve the goal.

"As you know, the main road construction materials — crushed stone, bitumen, are transported from the neighboring regions, which significantly affects the cost of projects, due to the significant transport component. In order to reduce the cost of projects and to cover a larger length of roads with road works, the repair with the use of new technologies is envisaged. This allows reducing the cost of projects by up to 40%," said Narymbetov.

According to the head of the region, the annual increase in funding of the road sector has a positive impact on the increase in the number of local contractors. 

"For example, if before 2012 there were 4 road construction companies, today there are 10 of them," said the akim.

Akim of the region also noted that the quality of work and materials of the implemented projects are thoroughly tested by an independent state laboratory of the National Center for the Quality of Road Assets, for which from the local budget allocated 119 million tenge.

"To present day, about 100 km of new pavement has been laid on the local road network. More than 1,000 main workers are involved and in addition 132 workplaces are opened, also more than 500 special equipment and 14 asphalt plants are used on 60 projects. By the end of the year we plan to increase the share of local roads in good condition from 39% to 50%," summed up Bakytzhan Narymbetov, the Deputy Akim of West Kazakhstan Region.

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