The Resolution of the RoK Government No 1141 dated 30 December 2015 ‘On certain issues related to privatization for 2016 – 2020 period’ approved the Comprehensive privatization plan and milestones for its implementation, Zakon.kz informs.
According to the document, public and affiliated entities dependent on the national controlling holdings and other legal entities that are affiliated with them, with book value exceeding 2,500,000 times the monthly calculation index established by the Law on the Republic’s Budget and effective on 1 January of the respective financial year shall be transferred to the competitive environment on a priority basis.
In this connection, it was ordered to approve the list of big entities held in the republican property which are subject to privatization on a priority basis, according to Annex 1; local executive bodies are ordered to approve the list of big entities held in community property that are subject to privatization on a priority basis, according to Annex 2; to recommend the national controlling holdings, national holdings, national companies to approve the list of major affiliated, dependent entities of the national controlling holdings and other legal entities which are affiliated to them, proposed to be transferred to the competitive environment on a priority basis, according to Annex 3.
It is recommended that Samruk-Kazyna National Welfare Fund should:
1) approve the list of subsidiaries, affiliates, proposed to be transferred to the competitive environment, in accordance with Annex 4;
2) when appropriate, in order to attract strategic investors, split the blocks of shares/stakes of legal entities referred to in Annexes 3 and 4;
3) when appropriate, with a view to economic feasibility, reorganize or liquidate, without conducting tenders, the legal entities referred to in Annex 4.
Entities held in the republican property which are subject to privatization, entities held in community property, affiliated, dependent entities of the national controlling holdings, national holdings, national companies and other legal entities which are affiliated to them proposed to be transferred to the competitive environment should:
– approve the list of entities held in the republican property subject to privatization according to Annex 5;
– local executive authorities should approve the list of entities held in community property proposed to be transferred to competitive environment, according to Annex 6;
– recommend to the national controlling holdings, national holdings, national companies, except for Samruk-Kazyna National Welfare Fund, to approve the list of affiliated, dependent entities of the national controlling holdings, national holdings, national companies and other legal entities which are affiliated to them, proposed to be transferred to the competitive environment according to Annex 7.
In addition, it is specified that local executive bodies can sell the objects set out in Annexes 2 and 6, in the form of public-private partnership, if these objects were included in the list of public-private partnership projects in accordance with the Rules of creating the list of public-private partnership projects planned for implementation, approved by the central authorized body in the sphere of state planning.
Central and local executive bodies, national controlling holdings, national holdings, national companies, as well as concerned organizations responsible for implementation of the Comprehensive Plan must take measures for the implementation of the Comprehensive Plan.
Each year, based on the annual and semi-annual results (by 10 July and 10 January) RoK Ministry of National Economy shall receive information concerning the progress of implementation of the Comprehensive Plan.
In its turn, RoK MNE, each year, based on semi-annual and annual results (by 25 January and 25 July) must provide the RoK Government with a summary concerning the progress of implementation of the Comprehensive Plan.
First Vice-Prime Minister of the RoK Mr. B. Sagintayev will personally control implementation of the Resolution.
The Resolution comes into effect from 1 January 2016.
Among the entities to be privatized first are such big companies as Air Astana, Kazpost, Kazakhstan Temir Zholy, KazMunaiGaz, Kazaktelecom. Some of them will be sold through IPO.
The list also includes companies controlled by the Government – Disaster Medicine Railway Hospitals JSC; SK-Pharmacia LLP, Kazmedtekh JSC, National Scientific Medical Centre JSC; Kazakhstan Garysh Sapary National Company JSC, Kazgeologia National Mining Exploration Company JSC, Kazakhavtodor Republican state enterprise.
Such companies as Khorgos International Centre of Frontier Cooperation JSC and Astana International Airport JSC, Park of Nuclear Technologies JSC, Almaty Sanatorium JSC, Astana Konak Uyi JSC and a number of other facilities are also subject to privatization.
