At the selector government session chaired by the Prime Minister Askar Mamin, the issue of developing local content within the framework of the Economy of Simple Things program was considered. Minister of Industry and Infrastructure Development Beibut Atamkulov reported on the development of Kazakhstani content in construction.

According to the minister, the building materials industry is actively developing. In the volume of the manufacturing industry, the share of this sector is 6%. Today, 1,965 enterprises with over 29 thousand employees are engaged in the production of construction products in the republic.
“The demand for construction products is increasing with the development of the construction industry. The volume of construction work over the past 11 years (from 2008 to 2019) has increased by 2.5 times (from 1.7 trillion to 4.4 trillion tenge). The growth impulse of the construction industry is due to large-scale investments within the framework of the Nurly Zher, Nurly Zhol State Programs, the Employment Roadmap, SPIID, the implementation of large social and cultural events,’’ Atamkulov said.
Due to the dynamic development of the construction industry, the production of building materials increased 3.3 times.
According to monitoring data, the average annual loading capacity of operating enterprises is about 56%.
Today, topical issues hindering the development of the construction industry:
- high share of imports for some building materials;
- underutilization of production facilities;
- no guarantee of product sales;
- low awareness of trading platforms.
In order to support the development of the construction industry, it is envisaged:
- To create new projects for import substitution;
- To introduce new mechanisms to stimulate the development of the construction industry;
- To create an online platform ‘’Building Materials Marketplace";
- To develop investment passports for the main imported building materials;
- To introduce regulatory incentives for local content in construction.
As the head of the department noted, these measures will increase the utilization of enterprises' capacities, ensure the sale of products and the growth of production volumes.
Today, in the construction of residential and industrial buildings, social facilities, infrastructure, the market demand for construction products of basic materials is 934 billion tenge.
“Domestic enterprises produce construction materials for 586 billion tenge, imported for 348 billion tenge. To meet the market demand, 33 new projects are being implemented, of which 8 are import substitution projects. As a result of the implementation of these projects, it is planned to reduce the share of imports by 15% and increase the use of products of Kazakhstani content in housing construction up to 90%,” Atamkulov said.
Currently, during the construction of facilities, 11 types of building materials are most in demand: glass, polyethylene pipes, dry building mixtures, fittings, ceramic tiles, thermal insulation materials, ceramic refractory bricks, sanitary ware, wallpaper, roofing materials, paint and varnish products.
“Of course, many of the listed building materials are produced in the country, but not in such volumes to fully cover the market demand. This year we plan to launch 8 import-substituting projects for the production of 5 types of building materials (glass, polyethylene pipes, dry building mixtures, fittings, ceramic tiles) with a production volume of 103 billion tenge, which will reduce the share of imports in the domestic market by an average of 15%,’’ said Atamkulov.
Additionally, it is planned to implement projects for the production of thermal insulation materials, ceramic refractory bricks, sanitary ware with a production volume of 61 billion tenge, this will reduce the share of imports for these types of building materials by 8%.
“With the implementation of all planned projects for the main types of building materials, we plan to reduce imports by 23%. In general, the implementation of new import-substituting projects is being worked out jointly by SWF Samruk Kazyna JSC with large construction companies through the introduction of various new procurement mechanisms, including the conclusion of offtake contracts and direct contracts,’’ the minister said.
Along with this, in order to reduce the cost of products, the creation of a special information platform "Marketplace" for online trade in domestic building materials is being considered. This online portal will also allow in real time using computer vision technologies to monitor the progress of construction of each facility and the development of funds by akimats.
“This will reduce the cost of materials by 15% and ensure the transparency of the building materials market. With the support of the state, the online platform will provide an opportunity to sell construction materials at a fixed cost,” the minister said.
In the future, as Atamkulov emphasized, it is planned to develop investment passports for the main imported building materials, which will include market research of products, raw materials, the location of the project, a description of the equipment used. Investment passports will make it possible in reality to determine the prospects and economic feasibility of deploying the production of certain building materials.
Meanwhile, in order to increase the share of local content in construction, regulation is being carried out. To date, the necessary legal framework has been created, the requirement of which is the mandatory use of Kazakhstani building materials for projects financed from budget funds. This will minimize the unreasonable replacement of domestic materials included in the design and estimate documentation for imported ones, as well as increase the efficiency and responsibility of technical supervisions and customers to comply with local content in construction projects.
In addition, a Portal has been developed, where the consolidated resource sheets of all projects that have passed the expertise are posted. To this end, changes have been made to the relevant rules that will oblige:
- contractors to use building materials and equipment of local content;
- customers to publish a summary sheet on the Portal.
That is, domestic producers can see the number of planned construction projects, as well as the volume of demand for building materials, products, structures and equipment.
Also, in the Rules for Public Procurement, amendments were made to model contracts in the field of construction, obliging to purchase materials in accordance with the Register of Domestic Producers. As of today, according to this monitoring, the share of Kazakhstani content in projects that have undergone expert examination following the results of 6 months in 2020 amounted to 90%. This is 3% higher than last year.
UNDP is guided by the national development priorities
World • 17 November, 2020
The grand opening of the bust of Abai Kunanbaiuly took place in Bucharest
Lifestyle • 10 September, 2020
Kazakhstan to adopt program for development of pharmaceutical industry
Kazakhstan • 20 August, 2020
President Tokayev pays working visit to Turkistan region
President • 20 August, 2020
Head of state holds a meeting on anti-corruption issues
President • 20 August, 2020
Distance learning to continue in Kazakhstan from September 1
Education • 19 August, 2020
Ministry of Agriculture on 430 million tenge for subsidizing
Kazakhstan • 19 August, 2020
Kazakhstan exports 30 thousand tons of fish products to 36 countries
Economy • 19 August, 2020
PM Askar Mamin instructs to create programs for developing fisheries in all regions
Kazakhstan • 18 August, 2020
Government considers implementation of measures to support employment
Government • 18 August, 2020
President Tokayev meets with Minister of information and public development
President • 18 August, 2020
Nursultan Nazarbayev receives first Deputy Chairman of the Nur Otan party Bauyrzhan Baibek
Politics • 18 August, 2020
Quarantine measures be lifted gradually in Kazakhstan
Kazakhstan • 17 August, 2020
Kazakhstan and UN sign framework program on cooperation for 2021-2025
Kazakhstan • 17 August, 2020
The Head of State receives Minister of Trade and Integration Bakhyt Sultanov
President • 17 August, 2020
The chair of JSC Zerde National Infocommunication Holding appointed
Appointment • 17 August, 2020
The President receives Minister of Industry and Infrastructure Development
President • 17 August, 2020
About 1.4 billion tons of cargo transported by road in six months in Kazakhstan
Kazakhstan • 10 August, 2020
Enbek and Employment Roadmap programs considered
Government • 10 August, 2020
Kazakh President sends a telegram of congratulations to Alexander Lukashenko
President • 10 August, 2020
PM Askar Mamin informed about SK-Pharmacy’s measures to provide drugs to combat COVID-19
Government • 06 August, 2020
Issues of Kazakhstan's access to complex of candidate vaccines for COVID-19 considered
Coronavirus • 06 August, 2020
President Tokayev had a telephone conversation with President of Lebanon
President • 06 August, 2020
2.6 million students to study in distance
Education • 06 August, 2020
The Head of State receives Minister of Education and science
President • 06 August, 2020
Positive trend observed in fight against COVID-19 in Kazakhstan
Coronavirus • 05 August, 2020
Kazakh President instructs MFA to ensure citizen's safety in Lebanon
President • 05 August, 2020
Dozens killed, thousands wounded in Beirut
World • 05 August, 2020
E-commerce in Kazakhstan increased by one and half times
Economy • 28 July, 2020
Epidemiological situation in Kazakhstan stabilizing
Coronavirus • 28 July, 2020
29% decrease in CVI cases recorded since introduction of quarantine
Coronavirus • 28 July, 2020
Head of state speaks over phone with Uzbek President
President • 28 July, 2020
Over 2 thousand projects worth half a billion tenge approved under Economy of Simple Things
Economy • 23 July, 2020
Production of building materials in Kazakhstan increased 3.3 times
Kazakhstan • 23 July, 2020
Number of ambulance calls reduced by 23% in two weeks
Medicine • 22 July, 2020
Kazakhstan reaches stabilized level of epidemiological situation
Coronavirus • 22 July, 2020
Askar Mamin introduces First Vice Minister of Digital Development Bagdat Mussin
Appointment • 22 July, 2020
Investments - key to sustainable and high-quality economic growth
Economy • 22 July, 2020
Production in manufacturing industry grew by 4.8%
Kazakhstan • 20 July, 2020
National Bank to use all available instruments to keep inflation within range of 8-8.5% in 2020
Economy • 20 July, 2020
President holds a conference call on the fight against coronavirus
President • 20 July, 2020
About 281 thousand Kazakhstanis employed through the e-labor exchange in 2020
Society • 19 July, 2020
Over 22 million electronic services provided in Kazakhstan during pandemic
Technology • 15 July, 2020
Kazakhstan to introduce reference system of Export Guides
Kazakhstan • 15 July, 2020
Production in manufacturing industry grew by 4.8%
Kazakhstan • 15 July, 2020
National Bank to use all available instruments to keep inflation within range of 8-8.5% in 2020
Economy • 15 July, 2020
Ministry of Finance speaks about optimization of costs of state bodies
Government • 14 July, 2020
Joint plan of Government and National Bank to be adopted in Kazakhstan
Government • 14 July, 2020
Medicines supply to reach over 600 thousand packs per month
Medicine • 14 July, 2020
Government gives 42,500 tenge for loss of income
Society • 14 July, 2020
375 people died from coronavirus infection
Coronavirus • 13 July, 2020
Turkey sends humanitarian aid to Kazakhstan
Coronavirus • 13 July, 2020
Kazakhstan mourns Covid-19 victims today
Kazakhstan • 13 July, 2020
Operations Headquarters on COVID-19 keeps situation in regions under control
Coronavirus • 10 July, 2020
Government's anti-crisis measures: Restoring economic growth and supporting SMEs
Kazakhstan • 10 July, 2020
Aigul Shaimova appointed vice minister of national economy
Appointment • 10 July, 2020
28K people hospitalized with pneumonia in Kazakhstan
Coronavirus • 08 July, 2020
President Tokayev: Work on providing citizens with medicines continues
President • 08 July, 2020
1109 new cases of coronavirus confirmed in Kazakhstan
Coronavirus • 08 July, 2020
How the main city of Kazakhstan developed
Kazakhstan • 08 July, 2020
Russian doctors arrive in Kazakhstan
Coronavirus • 07 July, 2020
Nursultan Nazarbayev marks his 80th birthday
Елбасы • 07 July, 2020
Experts on Islamic finance and fintech industry in post-pandemic era
Coronavirus • 07 July, 2020
State Commission approves measures to stabilize epidemiological situation
Coronavirus • 07 July, 2020
SMEs can apply for new loan deferral — Madina Abylkassymova
Business • 24 June, 2020
PM Askar Mamin instructs to ensure readiness for heating season
Kazakhstan • 24 June, 2020
Government adopts measures to improve business climate in Kazakhstan
Government • 24 June, 2020
4 more new medical masks production enterprises to launched in Kazakhstan
Coronavirus • 23 June, 2020
Askar Mamin instructs to take measures to develop engineering
Government • 23 June, 2020
Similar news