GOVERNMENT. Weekly review. Market mechanisms should be used more in post-crisis period - Prime Minister

ASTANA. January 14. KAZINFORM /Muratbek Makulbekov/ The socio-economic development of Kazakhstan in 2010 was stable primarily due to the anti-crisis measures and programs timely launched by the Government in previous years. The results of the year 2010 summed up in all ministries, agencies and departments

demonstrate efficiency of the work of the state bodies and national companies in all sectors.

On Monday, January 10, the Ministry of Transport and Communications and the Ministry of Communications and Information held the sittings of the boards devoted to the results of 2010. Thus, according to Minister of Transport and Communications cargo transportation in Kazakhstan in 2010 rose by 14.8% and made 2 225.3 mln tons compared to 2009. In total, KZT 219.4 bln was spent for development of auto road sector in the republic last year. The length of the auto roads in good and satisfactory condition increased by 2%.

The Minister noted that construction of Zhetygen-Korgas and Uzen-State border with Turkmenistan would be completed by the 20th anniversary of Kazakhstan's independence.

Prime Minister Karim Massimov positively assessed the work of the Ministry over the last year and recommended to actively use the market mechanisms in implementation of the projects. The Prime Minister stressed that the national budget should not remain the only source of financing of the projects.

"Attraction of budgetary resources for construction of any facilities in the post-crisis period does not meet today's requirements. It is important to develop public-private partnership", he said.

The Head of the Government also appraised the work of the Ministry of Communications and Information having noted that "The Kazakhstanis see the real results of investing in information and communication technologies". Among the achievements of Kazakhstan in this sphere is the e-Government system, implementation of 3G mobile communication and satellite digital TV. This year the authorities plan to reduce the tariffs for Internet access and mobile communication services. Currently Kazakhstan numbers 4 mln Internet users. Almost all Kazakhstanis use mobile phones. The Prime Minister ensured the Ministry with certain tasks for the year 2011. Thus, broadcasting in the Kazakh language on state TV channels must be organized in 24-hour regime.

On Tuesday, January 11, Prime Minister Karim Massimov held a session of the Government regarding the results of the country's socio-economic development in 2011. According to him, GDP growth made 7%. Industrial output grew by 10%. Inflation was at 7.8%. As the heads of the corresponding ministries informed, Kazakhstan has enough reserves of food for the current year and fuel for the heating period. However, the towns of Semey and Prioozersk faced a problem with heating. In order to investigate the situation a special commission has been established. Vice Prime Minister-Minister of Industry and New Technologies Asset Issekeshev proposed to strengthen the responsibility of the energy producing companies for delay in receiving the certificates of readiness. Besides, as the Minister considers, the energy facilities must be under the control of state bodies for which the current legislation should be amended. A. Issekeshev proposed also to legislate the terms and order of issuing technical standards for connecting small and medium business enterprises to electrical and thermal-heating networks. All of these propositions were backed.

Minister of Emergencies Vadimir Bozhko informed that 250 houses in Uyghur municipality of Almaty region had been severely affected by flood. The owners of the houses were evacuated and provided with necessary care.

In whole, as the Prime Minister noted, food pricing would be in spotlight of the Government this year. The heads of corresponding ministries and agencies were charged to control the situation at the food markets.

On the same day a session of the board of the National Space Agency took place. Following it K. Massimov charged the Agency to accelerate resolution of the issue concerning payment of the insured sum for the lost KazSat-1 satellite. As Chairman of the Agency T. Mussabayev informed, KazSat-2 satellite was planned to be launched in the first quarter of 2011. Upon completion of the sitting, the Prime Minister said that financing of the sector would be increased.

On Wednesday, the Agency for Natural Monopolies Regulation held a sitting of its board. Within the meeting the Head of the Government charged the Agency to develop the law on power industry.

On Wednesday President Nursultan Nazarbayev held a working conference with the participation of Prime Minister K. Massimov, his first deputy Umirzak Shukeyev and Minister of Agriculture Akhylbek Kurishbayev. Urgent issues of animal husbandry development and the situation in the country's agrarian sector were on agenda of the meeting. Following it the Head of State gave certain tasks.

On the same day the Agency of Kazakhstan for Competition Protection held a sitting of its board. As the Prime Minister noted, national interests must be taken into account within transition to the Common Economic Space. "Ensuring competitiveness is the key issue at the current stage, since development is impossible without competition. Accession to the club of 50 most developed countries of the world is the common task set to our republic", he stressed. "Food pricing and inflation control must remain the major objectives of the Agency for 2011", the PM added.

Yesterday, January 13, the Agency for Construction, Housing and Utilities summed the results of its activity in 2010. According to its Chairman Serik Nokin, the Agency set to implementation of the Program on housing-utilities modernization and Akbulak project. Particular attention will be given to the water supply and water disposal systems, heating and solid-household waste management as the most problematic elements of the utilities sector. The Agency plans also to conduct technical inspection of the heating network of the country's 6 cities. The collected data will be the basis for future investments and selection of the projects for realization. Following the meeting K. Massimov said that the Government should not stop regulating the country's construction, housing and utilities sectors. According to him, the housing and utilities infrastructure should be developed on a principally new basis. "Sometimes it is impossible to find guilty party as the problems arise in construction in which private banks are involved. As a result the Government and the local administration are blamed for. The Government should keep these issues under control", the Premier said addressing the Chairman of the Agency.

On Thursday, Vice Prime Minister-Minister of Industry and New Technologies Asset Issekeshev held a meeting with the working group on identifying the causes of the accidents at the thermal powers stations in Semey and Priozersk. As the meeting participants informed, the situation in both towns has stabilized.

On Friday, January 14, at the sitting of the board of the Ministry of Emergencies the Prime Minister recommended V. Bozhko to consider the opportunity of attraction of extra-budgetary resources for resolving issues of the safety on the basis of the public-private partnership. K. Massimov also noted that last year was tough for emergency situations. The state and the Ministry had problems that needed to be resolved immediately despite the lack of funds for it. The Prime Minister believes that this year will differ from the previous two - different financing, recovering of the economy after the global crisis. Therefore half of the issues regarding financing of the Ministry of Emergencies can be addressed this year. A special meeting will be convened on this purpose. Upon the completion of the sitting the Head of the Government thanked those who personally helped liquidate consequences of the emergency situations in 2010. He emphasized that those people who were at emergency scenes did their work very good and professional. At the end of the sitting a memorandum on executing the set tasks by the Ministry of Emergencies was signed.

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