Bishimbayev suggests transferring regional water supply companies to a single operator
ASTANA. KAZINFORM The Ministry of National Economy of Kazakhstan offers to establish a single operator of the regional water supply companies. Minister of National Economy Kuandyk Bishimbayev has said it today at the government's sitting.
“In order to solve water supply problems, we need to consider the possibility of transferring regional water supply companies in urban settlements to a single operator which will administer the process together with an experienced technical partner. We believe it will be reasonable to attract a private partner with a big investment potential who will compensate his expenditures by means of PPP mechanisms, as per the law,” said Bishimbayev.
“We also need to adopt a mechanism of compensating for investment expenditures, for instance, by means of tariffs, direct compensation, governmental subsidies etc.” the Minister explained.
According to him, the single operator will conduct preparatory works on commercialization of the water supply companies for their further privatization.
“The operator will also compile a list of companies launched on PPP principles and successfully collaborating with the international financial institutions and which are ready for attracting private investors (such as water supply companies in Aktobe, Kyzylorda and Pavlodar). In order to implement the pilot projects, we should draft a schedule of water supply companies’ stage-by-stage transition to PPP mechanism. We should adopt criteria, indicators, terms and conditions and target indicators of the PPP projects,” he added.