Natural monopoly entities will invest more than 2 trillion tenge into modernization before 2021. This was reported by Deputy Minister of National Economy Serik Zhumangarin during the presentation of the bill “On Natural Monopolies” in the in the Majilis of the Parliament of the Republic of Kazakhstan.

“The Ministry has been carrying out extensive work to attract investments since 2015. Practically all natural monopoly entities switched to cap rates with a validity period of five years or more. This ensured transparency and predictability of tariffs for the population and legal entities. The total amount of expected investments for five years until 2021 is more than 2 trillion tenge,” – S .Zhumangarin said.

According to him, investments in the power transmission sector will amount to more than 500 billion tenge, in the water supply sector – more than 100 billion tenge, in the heat supply sector – more than 200 billion tenge, gas transportation – 500 billion tenge, the railroad sector – 600 billion tenge. As of January 1, 2018, 348 billion tenge was disbursed.

The Deputy Minister said that in order to attract investments from international financial organizations, the legislation provides for the application of a special procedure for regulating the activities of natural monopoly entities that attract MFI funds. In particular, such entities have advantages: a short period of consideration of an application for tariff change - 45 days instead of 180; the right to independently dispose of 30% of profit in case of meeting quality and reliability requirements for regulated services. This procedure was applied in the approval of tariffs of 6 NMEs - 4 entities in the water supply sector and 2 entities in the heat supply sector. These entities attracted more than 19 billion tenge from MFIs.

S. Zhumangarin in his speech said that the draft of a new law on natural monopolies was developed in connection with the fact that the previous law adopted in 1998 lost its systemic nature and contains a large number of references, and the procedures for regulating the NMEs are fixed in almost 79 by-laws. When developing the draft of the new law, the aim was to minimize the reference rules and to combine all by-laws into two basic documents.

KAZINFORM

Published: 08 February 2018

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