Timur Kulibayev: "New technology, strong marketing and the state support will help the construction industry of Kazakhstan to get to a new level"

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It is necessary to analyze the possibility of substitution of imported building materials to domestic ones and to ensure maximize localization of enterprises in the country

Questions of import substitution in the production of building materials were discussed at the final meeting of the Committee of construction, production of building materials and housing NCE RK with the participation of the President of the Presidium NCE RK "Atameken" Timur Kulibayev.

Housing construction in recent years shows the growth: in 2013 in the country built 6 843mln sq. m, in 2014, 7518 million square meters, in 2015 the figure headed for the 8 940 million square meters. m. This year, in view of the large-scale construction project EXPO-2017, figures are expected to be no lower than last year.

At the same time the head of NCE RK "Atameken" stressed the importance of the revitalization of the substitution of imported building materials to domestic ones and facilitation to maximum localization of enterprises in the country, as well as ensuring the quality of the construction work.

"The scale of construction and the dynamics is positive, but we need to increase the turnover of existing production and launch new ones to supply the domestic market and go outside. It is difficult to compete with neighboring countries, but necessary. Competition is the "fuel" for development. There are three main important factors: the use of only new technology in the production, strong marketing and state support ", - said Timur Kulibayev.

The head of the National Chamber commissioned a study on the issue of the most relevant materials and equipment for the construction industry in Kazakhstan.

The head of the Committee of construction, production of building materials and housing NCE RK Alexander Belovich proposed to introduce in the country the practices of doing business in accordance with the standards of FIDIC (Federation Internationaldes Ingenieurs-Conseils), along with contracts, concluded in accordance with the Civil Code of the Republic of Kazakhstan. He noted their successful introduction on the roads of national significance in 2013, emphasizing the universality of these formalities.

"They apply in civil and industrial construction, they are prescribed in detail and widely used in many countries around the world. Standards provide a high responsibility of an engineer for the quality and volume of the performed work, rapid response in line with market fluctuations in prices of basic construction materials and equipment, the penalties for the failure of the timing of construction and so on ", - said Alexander Belovich.

The Chairman of the Presidium NCE RK "Atameken" Timur Kulibayev, drew attention to the importance of the implementation of anti-crisis measures and stimulation of financing of the construction industry, while maintaining a positive effect, both for business and for the state.

The Head of the Committee assured the President of "Atamken" that FIDIC contracts are balanced and honest in relation to both parties: the customer and the contractor, because the responsibility for the risk falls on the side that is competent to control the risks, to take responsibility and to make relevant decisions. In addition, their use is especially important during the conduction international construction tenders by the Republic of Kazakhstan, which are financed by private investors, the World Bank, EBRD, etc. ABRD

Member of the Board of NCE RK Yuliya Yakupbaeva reported on the ongoing work on keeping the register of domestic producers, which currently contains about 680 manufacturers, indicating what kind of products they produced by the region.

The map of production was compiled for each region. Producers are classified into large -77, medium – 266 and small - 336.

The registry includes major clients and contractors of the program "Nurly Zhol", EXPO-2017, Akimats and Housing Centres for update of infrastructure, etc. According to the report of JSC "NC" Kazakhstan Temir Zholy ", they company uses in construction more than 140 products of Kazakhstani producers.

In the near future, the Committee will submit proposals on import substitution of domestic production of building materials.

Alexander Belovich noted the existing problems in the sphere of technical regulation of the industry, including transfer of the functions of expertise of projects to the private market.

The Chairman of the Presidium supported the need for closer dialogue with the industry regulator and the Government on this issue in order to avoid infringement of the interests of entrepreneurs.