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Atameken and Samruk-Kazyna conclude 10 off-take agreements with domestic manufacturers

15 May 2019
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Atameken National Chamber of Entrepreneurs of Kazakhstan and Sovereign Wealth Fund Samruk-Kazyna JSC have signed an agreement on cooperation in domestic entrepreneurship development. The signing ceremony was attended by Chairman of Atameken Presidium of Timur Kulibayev and CEO of the Fund Akhmetzhan Yessimov.

The agreement is designed to enable manufacturing companies to conclude long-term contracts with the Fund, ensure business growth and make effective decisions to support domestic producers.

 “One of the key objectives of the procurement system development of Samruk-Kazyna JSC is to support for domestic producers. Thanks to the development of Kazakhstani producers, the Fund’s group of companies receives high-quality goods at competitive prices,” Akhmetzhan Yessimov said.

In 2019, under the program of new productions it is planned to conclude at least 10 off-take agreements. The parties are confident in the effective mechanism for concluding long-term contracts by modernization of production facilities. One of the innovations of the Chamber is creation of Single window of procurement that allows businesses to assess the market capacity, increase the transparency of procurement and minimize risks. Akhmetzhan Yessimov noted that this year it is planned to reduce intercompany purchases by another 30%.

 “I want to appeal to entrepreneurs that the current and proposed support measures are designed for a bona fide business. Entrepreneurs must come up with counter-obligations on modernization, digitalization and localization of production. I am confident that the implementation of these areas will allow domestic producers to master new production technologies, adjust production with higher value added and enter neighboring markets,” Timur Kulibayev said.

Under the agreement, a number of measures are planned to support domestic business. This year, a project office on import substitution will be created with a focus on products of the economy of simple things with the participation of the Fund's group, Atameken NCE RK and industry associations. According to the results of this analysis, Atameken will determine the import substitution potential; develop a specific strategy for support and development of Kazakhstani producers. Also, the Chamber will provide full coverage of the range of goods produced by domestic enterprises in framework of implementation of the industrial certificate. The presence of such a certificate provides for 20% of the total points in the preliminary qualification selection of potential suppliers of the Fund.

Reference:

At the beginning of the year, the Fund and Atameken approved purchasing strategies for the Cable and wire products and Special footwear categories. The estimated effect of savings in the procurement of the Fund according to these strategies will be 439 million tenge.

Also, a project has been implemented with Asia-Traffo, which manufactures high-voltage power transformers previously purchased from China, Russia and Ukraine. These projects allowed stimulating domestic investment and creating more than 200 jobs.

Earlier, the Rules for the procurement of goods, works and services of the Fund were amended to reduce the share of intercompany purchases. Thus, the number of purchases via public tender increased from 387 billion tenge to about 1 trillion tenge. In 2018, the volume of this type of procurement amounted to 90% of all purchases, or 3 trillion tenge.

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