The FBRK editorial team continues its series of articles analysing the largest government procurement contracts of 2024 in the regions of Kazakhstan.
This time, the spotlight is on the Aktobe Region, where the most expensive contracts were signed in the areas of social housing, sport, energy, and sanitary-epidemiological control. Let’s take a detailed look at each of them.
SOCIAL HOUSING: A RECORD 6.6 BILLION TENGE
The biggest expenditure of the year was the purchase of social housing by the Aktobe city construction department, with a total value of over 6.6 billion tenge. Notably, all contracts were concluded with two individual entrepreneurs: Bauyrzhan Dintayev (3.4 billion tenge) and Nurzhan Sitdykov (3.2 billion tenge).
In total, more than 240 apartments were purchased at a uniform price of 285,000 tenge per square metre. The largest single transaction was 1.14 billion tenge for 78 apartments. Particularly concerning are the identical terms of all contracts: unrealistically short delivery times of 16 calendar days for dozens of finished, turnkey apartments, stringent requirements that the new builds be no older than two years, and a two-year warranty.
The concentration of such large-scale purchases from private individuals, rather than construction companies, at inflated prices, likely warrants close scrutiny from regulatory authorities. With the average market price for housing in Aktobe around 280-290,000 tenge per square metre, the overpayment is only 1-2%, which could indicate the actual market value of the housing being purchased.
ENERGY CONTRACTS: OVER 5 BILLION TENGE
Last year, the Aktobe city department of housing and communal services, passenger transport, and roads concluded a series of contracts with Aktobeenergosnab LLP for electricity supply for street lighting, totalling over 3.1 billion tenge. The largest contract was initially worth 1.6 billion tenge, but was adjusted over the year via four supplementary agreements to 2.83 billion tenge – an increase of 77%.
Such significant changes point to serious shortcomings in energy consumption planning. A separate contract worth 343 million tenge provides for the consumption of 7 million kWh at a tariff of 48.87 tenge per kilowatt-hour.
At the same time, Aqtobe su-energy group JSC entered into an agreement with the same supplier for the supply of electricity totalling over 2 billion tenge. However, a year later, an alarming picture has emerged: according to the public procurement system, payments under the contract are completely absent, even though the contract has the status of "partially fulfilled".
Unpaid electricity supplies create serious risks for the energy supply company and could negatively affect the region's energy stability.
FOOTBALL AMBITIONS: 3.55 BILLION TENGE
The Department of Physical Culture and Sport of the Aktobe Region concluded three major contracts in January 2024 with the Aktobe Regional Football Club JSC for a total amount of 3.55 billion tenge.
The largest transaction was worth 3.15 billion tenge for the preparation of the main and youth team squads. Initially, 2.8 billion tenge was planned, but the amount was increased by 350 million tenge via a supplementary agreement. The contract provides for training six times a week, six hours a day, medical check-ups, and participation in all official tournaments.
An additional 300 million tenge was allocated for youth football, covering more than 300 young athletes aged 6 to 18 in Aktobe and the region's district centres. The women's team received 100 million tenge for preparation and participation in national competitions.
All contracts were awarded without a tender, via a 'single-source' method – the authorities justified this by citing the absence of other suppliers of similar services in the region.
It is worth noting that the investments brought tangible results: the main 'Aktobe' team won bronze medals in the Kazakhstan Championship and, for the first time in years, won the National Cup, defeating Atyrau 2:1 in the final. The women's team also achieved a historic success, finishing second in the national championship. The young footballers gained valuable experience by participating in international tournaments.
SANITARY-EPIDEMIOLOGICAL CONTROL: 1.2 BILLION TENGE
The Department of Sanitary and Epidemiological Control of the Aktobe Region concluded two large-scale contracts with the National Centre of Expertise RSE for a total amount of over 1.2 billion tenge.
The first contract, worth 755 million tenge, covers a range of sanitary-epidemiological services: disinsection in natural foci of infections, deratisation of areas with particularly dangerous diseases, terminal disinfection in infection hotspots, and a wide range of laboratory tests. It is notable that the initial contract amount was 1.07 billion tenge, but was reduced by 316 million tenge through a supplementary agreement.
The second contract, worth 461 million tenge, provides for similar services with an emphasis on laboratory tests, including microbiological, virological, toxicological, and radiological analyses.
Both contracts were awarded using the 'single-source' method, which is explained by the specific nature of the activity and the licensing requirements in the field of sanitary-epidemiological control.
An additional FBRK investigation showed that during the disinsection of urban plantings in 2025 in Aktobe, imidacloprid is being used — a systemic insecticide from the neonicotinoid group.
This substance is banned in the countries of the European Union due to its harmful effects on pollinating insects. It is permitted in Kazakhstan but is intended primarily for agricultural crops, which raises questions about the appropriateness of its use in an urban environment. It should also be noted that the preparations used under the 2024 government procurement contracts may have differed from those used in 2025.
CONCLUSIONS
The analysis of the largest government procurements in the Aktobe Region reveals several systemic problems in the region's public procurement sphere.
The most serious questions are raised by the concentration of social housing purchases worth 6.6 billion tenge with two individual entrepreneurs. The identical terms of the contracts, uniform prices, and unrealistically short delivery times for finished housing point to possible prior collusion. Furthermore, the lack of competition among suppliers deprives the budget of the opportunity to secure more favourable terms.
Planning problems were particularly evident in the energy sector, where initial contract amounts were adjusted by tens of percent. The 77% increase in the street lighting contract over the course of a year attests to serious miscalculations in drawing up the technical specifications. An even more alarming situation concerns unpaid electricity supplies worth 2 billion tenge, creating risks for the region's energy security.
Additional questions for the sanitary-epidemiological services arise from the use in 2025 of imidacloprid, banned in the EU, for the disinsection of urban plantings, which could pose risks to the ecosystem and the health of city residents.
A positive point is the reduction in cost of sanitary-epidemiological services by 316 million tenge, demonstrating the possibility of optimising expenditure under proper supervision.
The investments in sport also proved effective: the procurement of services for the Aktobe football club amounting to 3.55 billion tenge was justified by the results achieved – the main team won bronze in the championship and the Kazakhstan Cup, and the women's team achieved a historic second place.
As a reminder, we previously covered the largest government procurements of the Karaganda Region. You can read more about the most expensive contracts in the capital via this link.
The FBRK editorial team will continue to monitor the situation in public procurement and will present an analysis of other regions of the country in future articles.
To be continued...