The President of the Republic of Kazakhstan voiced, in his Message as of 15 January, several important issues and tasks which should be solved in the nearest future. We believe that there are a few tasks which may be of interest for investors.
First of all, the matter concerns the instruction assigned to the Government and Samruk-Kazyna National Holding to carry out analysis of all PPP companies in order to draft the list of companies which are subject to privatisation and approve the full privatisation programme for 2014-2016. A number of national companies have been commenced working on this matter a few years ago however, these coming years promise to be the years when real steps and arrangements will be undertaken. It is also expected that the programme, containing the list of companies for privatisation, will be made public in the first quarter of 2014.
It is known, that many entities, including former public undertakings after mass privatisation in nineties as well as national companies after public assets restructuring in early 2000s, were found owning health resorts, housing, service centres, lands, secondary production, numerous subsidiaries – so called, non-core assets. Non-core assets, per se, are assets involved in company’s accessory activities. But, the notion of non-core assets through the lenses of the assigned task is much broader – covering activities which must not be operated in a public or “quasi-public” sector. Such activities must be “in the market” in every sense of the word.
For instance, Samruk-Kazyna Group holds companies specialising in construction, IT, services, social sphere (kindergartens, sport centres, health resorts), housing, transportation and logistics and even ore and subsoil use along with other areas.
Thus, the Committee on State Property and Privatisation of the Ministry of Finance of the Republic of Kazakhstan, and all national companies (Samruk-Kazyna, Baiterek) are completing the monitoring process and they are about to list the assets (companies, objects) subject for disposal. Terms and conditions of privatisation (direct sale to investors, public auction, or trust managing transfer with subsequent disposal) will be made public very soon. Experts, therefore, are expecting interesting deals within 2014-2016.
Another task, that promises a significant investment inflow, is the instruction to build the fourth petroleum refinery and a nuclear power plant. Such topics had been hovering in the “corridors of power”, and the issue has already been resolved if judging by the tone the instruction voiced in the President’s Message. Another matter at issue is the time, place and sources of investment. Some investors (India, China) have already expressed their interest and proposals.