Astana mayor voices scheme of Kazakhstan capital's construction

ASTANA. November 21. KAZINFORM - If the pilot project for demolition of dilapidated and emergencyhousing is successfully implemented in Astana , then it will spread to the regions, said today at the meeting regarding the development of entrepreneurship Akim of Astana Imangali Tasmagambetov.

photo: QAZINFORM

"Rental housing, as in all countries with a market economy, should be a priority. For example, in Germany, rental housing is 60 % of the total housing stock. There's a law that answers all the questions of the rent policy. The citizen is protected by law and is not concerned that tomorrow someone will evict him. And he/she sends the accumulated capital not for the purchase of housing, but for health care, education, and for starting his/her own business.

Another example: a few days ago we began to implement a plan to demolish dilapidated housing. In accordance with the request of the Head of State, we have studied the international experience. In particular, the Turkish one, in Ankara, where this program has managed to negate the existence of old and dilapidated housing. The scheme is simple. We take a loan from the state of KZT 40 billion, which will be returned. These funds are for building a house with 100 % of apartments, 70 % of them will go on sale at the market price, other 30 % will be given free of charge to those who lived in the demolished and dilapidated housing, calculating meter by meter", the mayor said.

According to him, the meaning of this scheme is that 70 % of the apartments sold at the market price will alllow to earn per square meter, relatively $ 500 in terms that will be redirected to further construction and repayment of government loans.

"The benefit is that we have started to work on a market scheme. And this is a very good scheme, in which the construction will not stop in Astana. Thus, we accumulate a financial instrument that allows you to update the assets of the city in the form of new facilities", said Mr.Tasmagambetov.

He also stressed that how successfully and efficiently this pilot project would be implemented in Astana depended on the possibility of implementing this program in other regions, primarily in Almaty and other major regional centers.

"By linking these two examples, I would like to say on how well we will work out the mechanism for rental housing depends the development of this segment of the economy. Therefore, we must regard this issue as one of those that require very careful consideration. And later we can come up with a proposal to the Government to ensure that a pilot project to be realized in Astana", added the mayor.