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To make business on town water supply

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In Kazakhstan, the Government does not exclude the possibility of commercialization of water utilities on the principles of PPP

In Kazakhstan companies will be able to become private partners of the state with investment opportunities. Today at the Government meeting the Minister of National Economy Kuandik Bishimbayev proposed to address the issue of water supply in urban areas, "to consider the possibility of the transfer of the regional water utilities to a single operator, who would lead the management, together with the competent technical partner. The minister pointed out that, first of all, we are talking about water utilities of regional centers, in connection with which the Ministry "considers it appropriate to involve the private partner with investment opportunities", the expenses of which "will be reimbursed through the mechanisms provided by the law on PPP".

"Depending on the characteristics of individual water treatment plant, it is necessary to develop appropriate mechanism for the return of investment costs, such as reimbursement through the rate, direct compensation of investment costs, subsidies from the state, and so on", - said Kuandik Bishimbayev.

In addition, the minister said that "perhaps to define the list of pilot PPP projects from among water utilities, successfully implementing loans - water treatment plants in Aktobe, Kyzylorda, Pavlodar. In turn, it needs to "establish a timetable for a phased transition of water canals in the PPP mechanism, criteria, indicators, targets and conditions of public-private partnership projects". The MNE offered in the regions to establish state financing mainly on the development of rural water supply, urban water supply and to develop at the expense of extra-budgetary sources. After the meeting, the reporter palata.kz asked Kuandyk Bishimbaeva whether there are examples of effective management of water systems in Kazakhstan after sending them to private hands? "In Shymkent since the 90s is the private water utility company. And by the way, they have the smallest losses and they ask least of all from the budget", - said the Minister of National Economy.

The Chairman of the Development Bank of Kazakhstan, Bolat Zhamishev, also spoke on this issue, he said that the Bank is ready to finance PPP projects. Head of DBK believes that the management company should be responsible for operation and commercialization of water utilities. "She must have a corresponding investment program, and also partially involve his own money in these projects", - said Bolat Zhamishev. With regard to the rules of their financing, Bolat Zhamishev, spoke in favor of the national currency, citing the fact that the currency risk can play a disservice to the tariffs.

As a result, the issue remains open. "The Prime Minister of Kazakhstan instructed to study the issue with the local Akimat, I think that it will work out before the end of the year", - told the Minister of National Economy to palata.kz.

Zhanar Serdalina


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