Kazak gov’t seeks to privatize state companies

/By AzerNews/

By Laman Sadigova

Privatization of state companies in Kazakhstan, scheduled for 2016-2020, will help to improve their profitability, said Olzhas Khudaibergenov, Head of the Center for Macroeconomic Research of Kazakhstan.

To improve the profitability of the companies, such actions as staff reductions, increasing prices of services, maximum zeroed internal corruption and inefficiency are necessary, Khudaibergenov said.

He added that most likely, the demand for state companies’ shares would be sufficient since the crisis decreased the market prices of privatized objects, and the state demonstrates a desire to implement privatization in any case.

Regarding the nationality of investors interested in the privatization of state-owned companies, Khudaybergenov believes it will be mostly Kazakh businessmen, who can participate in this process, both through companies located in the country, as well through those that are registered abroad.

“Basically, I think, they (investors) will be from Russia and China,” he said.

Kazakhstan Gharysh Sapary company, Kazgeology company, International center for cross-border cooperation Khorgos, the Astana international airport,the Korkyt Ata International Airport, Kazakh railways, KazMunaiGaz oil and gas company, Kazatomprom nuclear company, Samruk-Energy company, Tau-Ken Samruk mining company, Kazpost JSC and Air Astana airline are planned to be transferred to the competitive environment through IPO.

Kazakhtelecom JSC, Qazaq Air airline, Pavlodar Airport, Aktobe International Airport, Atyrau International Airport, Aktau international sea trade port are also planned to be transferred to the competitive environment.

Among KazMunayGas’s subsidiaries, KMG International N.V., which owns the assets in Romania, the Atyrau refinery, Pavlodar Petrochemical Plant, PetroKazakhstan Oil Products (Shymkent refinery), Kazmortransflot National Maritime Shipping Company and others are also planned to be transferred to the competitive environment.

Among Kazakhstan Temir Zholy’s subsidiaries, Kaztemirtrans JSC, Passenger Transport company, Tulpar Talgo company, producing passenger carriages, JSC Lokomotiv Kurastyru Zauyty, producing locomotives and JSC Electric Locomotive Kurastyru Zauyty, producing electric locomotives are planned to be transferred to the competitive environment.

Astana Solar company, Kazakhstan Solar Silicon company, Caustic company, Housing Construction Savings Bank of Kazakhstan, Food Contract Corporation