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Progress of housing construction discussed at Government meeting

JSC "NMH "Baiterek". September 27. At a meeting of the Government, Chairman of the Board of JSC "National Management Holding "Baiterek" Yerbolat Dossayev said that the analysis of the financing of construction showed a necessity to consolidate the efforts of government agencies, subsidiaries of the Holding and developers in order to accelerate the availability of housing for the population.

In 2016, 202.5 billion tenge was allocated from the National Fund to finance the construction of rental and credit housing, including 113 billion tenge for the construction of rental and credit housing through JSC "Baiterek Development"; 67 billion tenge for the purchase of securities of local executive bodies to finance the construction of credit housing through akimats; 22.5 billion tenge for the construction of rental housing through JSC "Kazakhstan Mortgage Company".

In 2016, it is planned to disburse 112.1 billion tenge. 74.5 billion tenge or 66.5% of the plan has been utilized so far. Until the end of the year developers will get 37.6 billion tenge according to the acts of performed works. There has been formed the pool of projects with a total area of 233.8 thousand sq m (3.4 thousand apartments)  worth 40.8 billion tenge. This housing is to be put into service in 2016-2017.

The main problem is the lack of a complete set of documents, mostly design and estimate documentation with expertise, by developers. Baiterek Holding considers it necessary to recommend akimats to speed up the issue of land. "Gosexpertiza" Republican State Enterprise needs to accelerate work on the issue of expert evaluation on the developers' design and estimate documentation. After potential partners-developers provide a complete set of documents it will be possible to sign investment contracts. In 2017, the Holding offers to actively implement the repeated use of previously developed projects.

South Kazakhstan, Kyzylorda, Atyrau, Kostanay, Mangystau regions are leaders on the number of contracts. Commissioning of the first seven houses financed with funds of the National Fund allocated in February 2016 is scheduled for October 2016 in Kyzylorda. There are no housing projects in Karaganda region. The region's akimat held meetings with the developers, and the memorandum to the amount of 1.7 bln tenge was signed. The developer is preparing documents.

There are also no projects in Astana. According to the construction rules and regulations, it is required to build parking lots in residential estates in the capital. Due to the low cost of construction (up to 200 thousand tenge per a square meter) there is no interest from developers. The Governor's office has repeatedly held working meetings with construction companies and signed a memorandum worth 9.6 bln tenge. After negotiation with the akimat Baiterek Holding offers to consider the proposal on the construction of residential complexes with the right to commercialize parking lots by developers.

After the initial use of the allocated funds it is planned to conduct redistribution of housing volumes by region on the basis of the needs of the Construction Savings Bank's contributors. More than 50% of the contributors, who have finished accumulating funds, are mostly from Astana and Almaty. At the moment, there is no engineering-communication infrastructure for the projects of construction in Akmola, Atyrau, East Kazakhstan, West Kazakhstan, North Kazakhstan, South Kazakhstan, Kyzylorda, Mangystau, Kostanay regions and the city of Almaty. Akimats of these regions are needed to work on timely hook up of utilities before the housing is put into operation.

4In order to implement the Head of the State's instructions on the construction of real estates on the territory of EXPO 2017, the engineering companies of LLP "Lux nedvizhimost Group", LLP BI Group Corporation have to put into operation these houses by December 1 of this year. But the utilities have not  been connected yet.

In this regard, Astana akimat and JSC "NC "Astana EXPO-2017" are to complete all this work by October 10 of this year.

Akimats of many regions need to carefully analyze the detailed layout plans in order to form entire neighborhoods of multifamily housing. As for credit housing it is planned to repeatedly use funds during 20 years. Housing Construction Savings Bank will intensify efforts on the involvement of investors in the regions where the commissioning of housing is planned.

As for the projects with the start of construction in 2017 all participants of the state program have developed the projects with the area of 80 sq m. However, the state program "Nurly Zhol" envisages the restriction of apartments' area to 65 sq m in 2017. Thus, developers will not be able to reuse previously developed projects. It will lead to additional expenditures of construction companies and an increase of the documents' approval process up to 6 months. For the purpose of systematic work with developers it is proposed to extend the period of the 2016 standard of 80 sq m in 2017. This measure will expedite the contracting process in 2017.           

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