Natural Monopolies Regulation Agency proposes to invest KZT 120 bln in modernization of 17 basic heating networks

There are four funding options provided by the comprehensive plan. All of them provide for the modernization of heating networks transporting more than 400 thousand Gcal of heat energy. These are 17 facilities providing services in the cities of Astana, Almaty and regional centers and having multiplicative impact on the county's economy, the primeminister.kz reports.

The first option is the modernization of networks through the rates based on annual inflation, excluding subsidies from the budget. The second option is the allocation of funds from the national budget, plus the increase in rates for heat energy within the inflation corridor. The third option is the allocation of funds under the program of modernization of housing. The fourth option is under consideration. It is based on the proposals of monopolists on allocation of 573.6 billion tenge from the national budget.

As a result, the third option was chosen by the agency.

"In particular, we expect that before 2020 the wear of heating networks will decrease by 15% to 55.5%, and the loss of the basic entities will decrease from 22.4% to 18.4%," Ospanov said.

In 2013, more than 12 billion tenge was invested in modernization of heating systems. In 2014 it is planned to invest about 32 billion tenge.