The FBRK editorial team continues its series of articles analysing the largest government procurement contracts of 2024 in the regions of Kazakhstan.
This time, Karaganda Region has come under scrutiny, where the most expensive contracts were concluded in the areas of water supply, energy, healthcare and sport. Let's look at each of them in detail.
THE WATER PROBLEM: 3.52 BILLION TENGE
The largest volume of procurement was carried out by Karaganda Su LLP, with a total value exceeding 3.5 billion tenge. The company was simultaneously tackling the tasks of ensuring water supply and modernising infrastructure, yet the results of these efforts differed drastically.
The most problematic was the procurement of drinking water supply services worth over 2 billion tenge. On 1 December 2023, Karaganda Su LLP and the branch 'Kanal Imeni Kanysha Satpayeva' of RGP 'Kazvodkhoz' entered into an agreement for the supply of 63.2 million cubic metres of water during 2024.
Despite meticulously detailed payment mechanisms and penalty clauses, one and a half years after the contract was signed, no actual payments have been made. This situation raises serious concerns, given the strategic importance of water supply for an entire region. Indicatively, even at the negotiation stage, the parties could not agree on the methodology for calculating volumes — the consumer even proposed increasing the volume to 64.7 million cubic metres.
This raises a legitimate question: why has such a large-scale contract, signed back in 2023 for 2024, remained without a single payment by mid-2025? This could indicate either serious violations in supplies by the contractor, financial problems on the part of the customer, or unresolved disputes over the quality or volume of services.
In contrast, a series of contracts with Uralsk Trade and Industrial Company LLP for the supply of polyethylene pipes was successfully implemented. Five contracts totalling 1.52 billion tenge provided for the modernisation of the water supply system and demonstrate a more mature approach to procurement planning.
The key contract, signed in May, was worth 1.46 billion tenge for the supply of over 11 kilometres of three-layer pipes with a diameter of 800 mm. These high-tech, Kazakhstani-made products are designed for a 50-year service life and can withstand pressure of up to 10 atmospheres. A positive aspect was the exclusion of intermediaries — the Uralsk supplier also acted as the manufacturer, which ensured a two-year warranty and prompt delivery times of just 16 days.
The successful implementation of these contracts shows that with proper planning and the selection of reliable partners, large infrastructure projects can be completed efficiently and on time. This is particularly important for upgrading public utilities, where modern pipelines must ensure reliable water supply for the region for decades to come.
ENERGY SUPPLY FOR HEATING NETWORKS: 1.4 BILLION TENGE
On 8 January 2024, Teplotranzit Karaganda LLP entered into a contract with NuraEnergy LLP for the supply of 47.5 million kWh of electricity with a total value of 1.4 billion tenge. The agreement secured the power supply for the city's pumping stations and heating points until the end of July 2024.
The delivery schedule reflected the seasonal specifics of the utility company: during the heating period (January-April), monthly consumption exceeded 10 million kWh, whereas in summer it dropped to 200 thousand kWh. The cost of electricity was 29.46 tenge per kWh.
By May 2025, the contract was almost fully fulfilled — actual payments amounted to 1.397 billion tenge, which is 3 million tenge less than the contract amount. Such minor discrepancies are usually related to fluctuations in actual consumption compared to planned targets.
This contract can be considered exemplary in terms of execution: clear terms, transparent pricing, and almost complete alignment between planned and actual figures.
SANITARY AND EPIDEMIOLOGICAL SERVICES: 1.22 BILLION TENGE
In February 2024, the Department of Sanitary and Epidemiological Control of Karaganda Region concluded two large contracts with RGP 'National Centre of Expertise' for the provision of sanitary and epidemiological services totalling 1.22 billion tenge.
Initially, the first deal was valued at 1.08 billion tenge, but during implementation it was adjusted down to 758 million tenge, resulting in savings of 325 million tenge. The second deal, worth 459.1 million tenge, remained unchanged. The contracts involved disinfection of outbreak foci and laboratory testing across the entire region.
Interestingly, both contracts were awarded from a single source, which in the field of specialised medical services may be justified by the limited number of qualified providers. The National Centre of Expertise, as a state body, has the necessary licenses and experience to carry out such work.
The significant saving on the first contract (nearly 30% of the initial amount) could indicate either an inflated initial estimate of the scope of work, or more efficient project implementation. In any case, the return of 325 million tenge to the budget should be seen as a positive outcome.
THE FAILURE OF 'SHAKHTYOR': 1.2 BILLION TENGE
On 22 January 2024, the Department of Physical Culture and Sport of Karaganda Region entered into a contract with FC Shakhtyor for the sum of 1.2 billion tenge. The agreement provided for the club's financing for the entire 2024 season with clearly defined obligations.
Key terms of the contract included participation in the Kazakhstan Premier League and the Republic Cup, development of youth football and — crucially — the club retaining its place in the country's top division. Shakhtyor also undertook to attract at least 10,000 fans to matches, including stadium attendees and broadcast viewers, and to report monthly on its progress.
The result was catastrophic by every measure. Shakhtyor not only failed to meet its primary obligation of retaining its Premier League place — the team finished last, in 13th place in the league table, earning just 10 points and being disgracefully relegated to the First League. The team suffered a series of heavy defeats, including 0:5 against Ordabasy in the first round and 0:4 in the 25th round.
The regional akim, Yermaganbet Bulekpaev, publicly expressed dissatisfaction with the club's management, noting the lack of a long-term strategy and an over-reliance on foreign legionnaires (12 out of 25 players). He emphasised the need for a radical overhaul of the club, including a review of personnel policy and the development of its own scouting system.
This raises a legitimate question about the effectiveness of monitoring the use of budget funds. If the club was reporting monthly on its work, why were the negative trends not identified and corrected in advance? The 2024 season was one of the worst in Shakhtyor's history, requiring not only a change of leadership but also a complete review of the financing system for professional sport in the region.
THE SUCCESS OF 'SARYARKA': 1.2 BILLION TENGE
On 18 January 2024, an agreement for a similar amount was concluded with Saryarka Hockey Club LLP (later adjusted to 1.16 billion tenge). The contract provided for the Karaganda hockey players' participation in the Open Championship of Kazakhstan and the youth championship in the 2023/2024 and 2024/2025 seasons, as well as medical care for players and the submission of monthly reports.
Unlike the footballers, the hockey club demonstrated exemplary fulfilment of its obligations. In the regular championship of the 2024/2025 season, the team finished 4th with 52 points in 40 matches, showing an impressive goal difference of +31 (134 scored, 103 conceded).
In the play-offs, Saryarka showed character, overcoming the quarter-finals in a tense series against HC Almaty with a score of 4:3. In the semi-finals, the team lost honourably to HC Arlan (1:3), ending the tournament with bronze medals. In the Kazakhstan Cup, the club also reached the semi-finals.
Under the guidance of head coach Pēteris Skudra, the team confirmed its status as one of the leaders of Kazakhstani hockey, demonstrating consistent performance and achieving its set goals.
CONCLUSIONS
The analysis of the largest government procurements in the Karaganda region for 2024 has revealed both systemic problems and examples of effective management of budget funds.
The most concerning situation remains the non-fulfilment of the largest water supply contract. The absence of payments one and a half years after the contract was signed creates serious risks for a strategically important sector and likely requires intervention from regulatory authorities.
The prevalence of procurement from a single source also raises questions, as it limits competition and can lead to inflated prices. Although in some areas (natural monopolies, specialised medical services) such an approach may be justified.
However, there are also positive examples. The successful implementation of contracts for the modernisation of water supply and energy supply for heating networks demonstrates the possibility of high-quality execution of large infrastructure projects. The saving of 325 million tenge on sanitary and epidemiological services also deserves a positive assessment.
The contrast in the field of sport was particularly telling. With equal funding (1.2 billion tenge each), the hockey club Saryarka achieved consistent results and bronze medals, whereas the football club Shakhtyor failed completely, being relegated to a lower division. This clearly demonstrates the importance not only of the amount of funding but also of the quality of management, strategic planning, and control over the spending of funds.
To improve the efficiency of public procurement in the region, it is likely necessary to strengthen preliminary control at the planning stage, expand the use of competitive procedures where possible, and introduce stricter mechanisms for monitoring the execution of large contracts. The experience of successful projects should be studied and applied to other areas.
For reference, we previously wrote about the largest government procurements of Akmola Region. You can read more about the most expensive contracts of the capital via this link.
The editorial team will continue to monitor the situation in the sphere of government procurement and will present analyses of other regions of the country in future articles.
To be continued...